May 24, 2025 8:16 am
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Proposal to Cut $163 Billion from U.S. Budget

The Trump administration has proposed a $163 billion reduction in the next U.S. budget by increasing spending on defense and border security while cutting funding for education, housing, and health research. This proposal was introduced on Friday (May 2), according to a report by British news agency Reuters.

The administration has suggested a nearly 65% increase in the 2025 allocation for Homeland Security.

In a statement, the White House Office of Management and Budget (OMB) said it plans to cut discretionary spending — excluding Social Security, Medicare programs, and debt repayments — by 23%. These cuts primarily target non-defense government functions.

The proposal also includes slashing more than $2 billion from the Internal Revenue Service (IRS) and reducing funding for the National Institutes of Health (NIH) and the Centers for Disease Control and Prevention (CDC) by 40%.

This is President Trump’s first budget proposal since returning to office. It reflects his campaign promises to tighten border security and shrink the federal bureaucracy.

Democrats in Congress have strongly criticized the budget proposal. Meanwhile, many Republicans are calling for even more funding for defense and other critical sectors.

OMB Director Russ Vought stated, “We need a historic budget that stops funding our decline, prioritizes Americans, and supports our military and national security.”

The U.S. national debt has now reached $36 trillion. Budget analysts and some conservative politicians worry that if Trump extends his 2017 tax cuts, the debt burden will grow even further.

Senator Susan Collins, a top Republican involved in Senate budget planning, said there was a delay in submitting the proposal, and many important details remain unclear. She expressed concern that the proposed defense spending may not be sufficient and that inadequate funds have been allocated to help low-income Americans heat their homes.

Collins also pointed out that the Trump administration’s proposal must be approved by Congress, emphasizing, “Ultimately, the power of budget appropriation lies with Congress.

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