Trump’s ‘skinny budget’ slashes $163 billion from federal programs, even his own party is alarmed

President Donald Trump has unveiled a bold new budget proposal that aims to slash federal government spending by over $160 billion, targeting a wide range of non-defence programmes while keeping military funding largely unchanged. The move has already stirred unrest among Republicans in Congress, who are growing uneasy about the scale of the cuts.

What all is facing cuts in Trump’s budget proposal?

The proposed 2026 budget, often referred to as a “skinny budget”, outlines sweeping reductions to domestic spending. Key areas facing cuts include:

• Public health: Millions would be stripped from agencies like the National Institutes of Health and the CDC.
• Education: Grants supporting low-income students, teacher training, and preschool development could be axed.
• Environment: Environmental Protection Agency programmes—particularly those linked to environmental justice—are in the crosshairs.
• Housing and labour: The Departments of Housing and Urban Development, the Interior, and Labour could each lose over 30% of their current funding.
• Foreign aid: USAID and the U.S. Institute of Peace may be eliminated entirely.
• Scientific research: NASA’s space science initiatives and funding for the International Space Station would see major reductions.

At the same time, the Trump administration wants increased investment in border security, rail and air safety, and law enforcement.

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How are GOP and Democrats reacting?

The reaction on Capitol Hill has been swift—and mixed.

Senate Appropriations Chair Susan Collins (R-Maine) criticised the proposal for lacking detail and for holding defence spending flat at $893 billion. “I have serious objections to the proposed freeze in our defence funding,” she said, adding that cuts to biomedical research and support for low-income households were also deeply concerning.

Former GOP Senate leader Mitch McConnell, now leading the Senate’s defence funding panel, echoed those concerns. He accused the White House of using “OMB accounting gimmicks” and warned that the proposed defence budget was “not a substitute for full-year appropriations.”

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Senate Armed Services Chair Roger Wicker (R-Miss.) added that the proposal would “shred to the bone our military capabilities.”

House Republicans have been more cautious. House Appropriations Chair Tom Cole (R-Okla.) said lawmakers had “a better understanding of what can pass and what can’t” than the administration.

Could Congress push back?

Although Congress often sets its own funding priorities, Trump’s administration is signalling that it may withhold funding lawmakers approve. A senior White House official did not rule out using “impoundment” powers to block spending decisions by Congress.

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This sets the stage for a clash between the White House and Capitol Hill, especially with Republicans needing some Democratic votes to pass any budget. Without bipartisan support, the risk of a government shutdown increases, with a deadline looming on 30 September.

What are Democrats saying?

Democrats have come out strongly against the proposed cuts. Senate Minority Leader Chuck Schumer called Trump’s budget “a betrayal of working people” and “morally bankrupt.” He pledged to oppose the plan with full force.

With memories of the March spending battle still fresh, Democrats are under pressure to resist further compromises.

What does the budget really mean?

While presidential budgets are typically symbolic, this year’s proposal has more weight. Trump has already frozen billions in spending without Congress’ approval, drawing multiple lawsuits and watchdog investigations. This budget signals how aggressively he intends to reshape government spending.

It also reflects Trump’s broader political goals. White House budget director Russ Vought framed the proposal as a push to return power to states and families. “The Federal Government has intruded on matters best left to American families,” he wrote.

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The administration’s full budget, with more detailed agency-by-agency plans, is expected later this month.