Today, the Trump Administration released its Fiscal Year 2026 Discretionary Budget Request in advance of the full budget release later in May, providing its request for appropriations for fiscal year 2026. The Administration would maintain total discretionary spending at the same amount, $1.6 trillion, as provided for this current year, while reconfiguring the allocation within that total. The skinny budget does not address revenues or mandatory spending, so it fails to present a full picture of the budgetary challenges that define the U.S. fiscal outlook.

The Administration would allow for significant increases in the base funding for two departments: Defense and Homeland Security. Defense spending would increase by 13 percent year-over-year, from $848 billion to $962 billion, including resources allocated via the reconciliation process. Spending for the Department of Homeland Security would increase by nearly 65 percent, from $65 billion to $107 billion, mostly to address border security and other issues.

A few departments would see small increases in funding (Veterans Affairs, Transportation, Energy), but all others would face reduced appropriations. In particular, funding for the Department of State and international programs would fall from $59 billion in 2025 to $10 billion in 2026, a drop of 84 percent. Other large reductions were proposed for the Departments of Housing and Urban Development ($34 billion in program cuts, or 44 percent), Health and Human Services ($33 billion, or 26 percent), and Education ($12 billion, or 15 percent).