President Donald Trump Proposes $163 Billion Cut from Federal Budget

President Donald Trump Proposes $163 Billion Cut from Federal Budget
[Washington, May 2, 2025]

According to a report by CBS News, U.S. President Donald Trump's administration has proposed a $163 billion reduction from next year’s federal budget. Under the proposal, non-defense discretionary spending—excluding mandatory expenditures—would be slashed by more than one-fifth.

In a statement, the White House Office of Management and Budget (OMB) announced that the proposed budget would increase defense spending by 13% and homeland security funding by nearly 65% compared to the approved 2025 budget. Meanwhile, non-defense discretionary spending would be cut by 23%, bringing it to its lowest level since 2017.

OMB Director Russ Vought stated, “At this critical time, we need a historic budget — one that halts our decline, prioritizes Americans, and delivers unprecedented support for our military and homeland security.”

The White House's annual budget proposal outlines funding allocations for various federal agencies, along with economic forecasts. If approved, it would take effect for the fiscal year beginning October 1.

However, the responsibility for finalizing the budget lies with Congress. Currently controlled by Republicans, Congress will now work on turning this proposal into law, though in practice, the final adopted budget often diverges from the White House’s initial recommendations.

This proposal comes at a time when congressional Republicans are trying to reconcile internal disagreements over federal spending cuts to help fund a major tax-cut bill. Additionally, recent increases in American tariffs have caused global trade disruptions, placing further pressure on the economy — a factor that may need to be addressed in the budget planning process.