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3d ago

Trump’s FY2026 Budget Sparks GOP Divisions Over Defense Spending and Domestic Cuts

The proposed budget pairs a $119 billion defense boost with deep domestic cuts, while Congress debates a reconciliation package to extend tax cuts and raise the debt ceiling.

President Donald Trump takes a question from a reporter in the Oval Office at the White House on May 5, 2025, in Washington, D.C.
The Capitol is seen framed through a window in the Cannon House Office Building on Capitol Hill in Washington. Congress is working out the details of the reconciliation package — or President Donald Trump’s "one big, beautiful bill" — that would extend tax cuts, raise the debt ceiling and include some mandatory spending cuts. (J. SCOTT APPLEWHITE/AP FILE)
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Overview

  • The Trump administration’s FY2026 budget proposes a 13% increase in defense spending and a 65% boost for Homeland Security, funded partly through a $119 billion reconciliation package.
  • Domestic discretionary spending faces a 23% cut, with agencies like the EPA, HUD, and State Department seeing reductions of up to 84%.
  • Congressional Republicans are divided, with some criticizing flat base defense funding at $893 billion and reliance on reconciliation for defense increases.
  • The reconciliation package under negotiation aims to extend 2017 tax cuts, raise the debt ceiling, and include limited mandatory spending cuts, though details remain unresolved.
  • With the federal government operating under continuing resolutions and a looming debt-ceiling deadline, the budget battle underscores tensions between the White House and Congress over fiscal priorities.