Investing.com-- President Donald Trump is expected to propose slashing nondefense discretionary spending by $160 billion in his fiscal 2026 budget blueprint, targeting environmental programs, renewable energy, education, and foreign aid while boosting border security and defense, the Wall Street Journal reported on Thursday, citing administration officials.
The fiscal 2026 budget proposal, expected Friday, would cut nondefense discretionary spending to $557 billion, down 22.6% from projected fiscal 2025 levels, the WSJ report stated.
While largely symbolic, the budget sets the administration’s political priorities.
The cuts are part of an effort led by the newly established Department of Government Efficiency (DOGE), headed by Elon Musk, which aims to trim $150 billion in the coming fiscal year and $1 trillion over time.
Key proposed cuts are expected to include deep cuts to "environmental justice" programs at the Environmental Protection Agency, closing the U.S. Agency for International Development (USAID), WSJ reported, citing budget documents viewed by it.
Renewable energy programs would face significant reductions, including a $15 billion cancellation in the infrastructure law signed by former President Joe Biden, the report said.
The budget is also expected to target numerous diversity, equity, and inclusion (DEI) initiatives and propose ending preschool and teacher development grants that the administration argues promote “woke” agendas, according to the WSJ report.
Meanwhile, the budget would increase spending on border security, veterans, and law enforcement. Administration officials argue the cuts target "wasteful" programs and shift responsibility to states, WSJ reported.
Trump’s proposal is expected to face significant opposition in Congress, despite Republicans holding narrow majorities in both chambers, setting the stage for months of negotiations over spending priorities, the report added.