The Blubber

Donald Trump has released a preliminary outline of his proposed budget for the 2026 fiscal year, often referred to as a “skinny budget.” This plan calls for cutting federal spending by $163 billion, which would amount to a reduction of over 20% in non-defense discretionary spending, excluding mandatory expenditures, according to a statement from the Office of Management and Budget (OMB).

The blueprint also proposes a 13% increase in defense funding and a nearly 65% jump in homeland security spending compared to the levels enacted for 2025. Civilian agency funding, in contrast, would be slashed by approximately 23%, bringing it to its lowest point since 2017. The proposal is consistent with the Trump administration’s broader agenda to scale back the federal government significantly—through workforce reductions, office closures, and strict immigration measures.

In the release, OMB Director Russ Vought stated:

“At this pivotal juncture, we need a transformative budget—one that halts the financing of national decline, prioritizes American interests, and provides historic investment in our military and homeland security.”

Typically released in a president’s first term, a “skinny budget” is a high-level overview of priorities and projected funding, which is later followed by detailed budget documents outlining full revenue and spending plans. While not legally binding, such a document provides lawmakers with a general direction for the president’s fiscal goals, serving as a reference as Congress begins shaping appropriations legislation for the coming year. As Politico explains, it serves as a guide for Capitol Hill leadership ahead of budget negotiations.

NPR points out that although Congress holds the power of the purse, the president must submit an annual budget proposal by law. These proposals primarily reflect the administration’s policy goals, along with estimated costs. Congress is under no obligation to adopt the president’s plan, but this particular budget might carry more weight than usual, given that the current Congress has shown a willingness to support Trump’s agenda.

Importantly, the proposed cuts apply to discretionary spending—funds Congress must approve each year—and do not affect mandatory entitlement programs such as Medicare, Medicaid, or Social Security.

The budget plan emerges amid Republican efforts to reconcile internal disagreements over federal spending reductions, as they seek to offset costs from Trump’s signature tax cut legislation. As Politico observes, the debate around the bill now largely centers on Medicaid: should the program be protected from cuts, or is its downsizing central to the legislation’s purpose? This issue is creating both public and behind-the-scenes friction as lawmakers aim to finalize Trump’s ambitious spending package before Memorial Day.