President Trump's proposed $1.7 trillion budget for fiscal year 2026 aims to drastically cut federal spending by $163 billion, reducing domestic spending to its lowest level since the 1960s. The proposal includes significant reductions in funding for climate, education, health, and housing programs, with some programs facing complete elimination, such as the National Endowment for the Arts and the National Endowment for the Humanities. The budget reallocates resources towards defense and homeland security, with notable increases for the Department of Homeland Security and the military. The proposal has faced criticism from both Democrats and some Republicans, who express concern over the impact on vulnerable populations and the potential for increased federal debt due to tax cuts. Despite the opposition, the budget reflects Trump's vision of a smaller federal government with a focus on national defense and immigration control.

The budget proposal involves cutting $163 billion from federal spending, with significant reductions in climate, education, health, and housing programs, including the complete elimination of some agencies like the National Endowment for the Arts.

The proposal reallocates funds toward defense and homeland security, asking for an additional $43 billion for the Department of Homeland Security and $1 trillion for the military, with some increases seen as benefiting companies like SpaceX.

Criticism of the budget has come from both Democrats and some Republicans, with concerns about the impact on low-income Americans, the potential for increased federal debt, and the perceived accounting gimmicks in the defense budget.

The budget proposes cuts to programs that support vulnerable populations, such as rental assistance and public health initiatives, while also suggesting the elimination of the Centers for Disease Control and Prevention's National Center for Chronic Disease Prevention and Health Promotion.

Some Republicans have voiced opposition to certain aspects of the budget, particularly the cuts to military spending and social programs, emphasizing the need for Congress to ultimately determine federal spending priorities.

The budget includes plans to slash funding for renewable energy and climate-related research, while increasing support for fossil fuel initiatives and nuclear energy, reflecting a shift away from previous climate policies.

The proposal has sparked concerns about the future of federal benefit programs like Social Security and Medicare, as well as the broader implications for the nation's $36 trillion debt.