US President Donald Trump is set to unveil a sweeping budget proposal for fiscal year 2026 that would slash nondefense discretionary spending by over $160 billion, targeting environmental, renewable energy, education, and foreign-aid programs, The Wall Street Journal reported, citing administration officials.

Scheduled for release Friday, the fiscal 2026 budget proposal is a largely symbolic wish list that lays out the president’s spending and political priorities. With narrow Republican control in both chambers, Congress will ultimately decide which elements to adopt.

Push to eliminate ‘woke’ initiatives 

The plan reportedly includes $557 billion in nondefense discretionary spending—a $163 billion reduction from projected 2025 levels, amounting to a 22.6% cut, though the administration has not clarified how that figure was calculated.

Nondefense discretionary spending refers to the portion of the federal budget that requires annual approval by Congress and covers programs like education, transportation, and public health—it excludes mandatory spending on Medicare, Medicaid, Social Security, and defense.

Trump’s upcoming budget proposal would boost funding for defense, border security, air and rail safety, veterans, and law enforcement, officials divulged.

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The plan also expands on the administration’s push to eliminate diversity, equity, and inclusion initiatives, reverse Biden-era clean energy policies, and cut what it considers politically driven or wasteful programs, grants, and research.

Since taking office in January, the administration, spearheaded by Elon Musk’s Department of Government Efficiency, has begun dismantling federal agencies and terminating government employees.

According to budget documents reviewed by The Wall Street Journal, the White House plans steep cuts to agencies including the Environmental Protection Agency, Energy Department, Interior Department, Housing and Urban Development, Education Department, National Institutes of Health, and the National Oceanic and Atmospheric Administration.

Skinny budget targets 'wasteful' programs

Most federal spending is tied to prior legislation and debt obligations, which have grown significantly alongside the rising national debt.

Trump’s plan, often referred to as a “skinny budget", is a preliminary outline typically released in a president’s first year, offering top-line funding priorities ahead of a more detailed proposal expected later this month. The administration is set to send the outline to Congress on Friday.

Elon Musk estimates that the Department of Government Efficiency (DOGE) will slash $150 billion in spending in the next fiscal year starting Oct. 1, as part of a broader pledge to identify $1 trillion in total savings.

Trump’s upcoming budget aims to cut what the administration deems “wasteful” programs, shift more responsibility to states, eliminate so-called “woke” initiatives, and reduce funding for climate and green energy efforts, according to officials.

One official said the plan would roll back many grants introduced under the Biden administration, require greater cost-sharing from states and local governments, and eliminate or consolidate certain federal block grants to cut administrative expenses.

The budget is expected to include sweeping cuts to foreign aid, following Trump’s dismantling of the US Agency for International Development (USAID), with its remaining functions being transferred to the State Department. It also proposes shutting down several agencies previously targeted by Trump’s executive orders.