Money, Money, Money

Diya Ravi

May 2, 2025

On Friday, May 2nd, 2025, President Donald Trump released a budget proposal for a mix of cuts towards different domestic programs. These involved public health, education, environment, foreign aid, and public assistance programs, while seeking to boost defense and homeland security spending, which signaled a dramatic shift in federal priorities. The plan, dubbed a “skinny budget,” outlines President Donald Trump's fiscal vision and is expected to be followed by a more comprehensive plan in the coming weeks. 

The proposal follows Trump’s priorities of beefing up the nation's defense and immigration enforcement capabilities. The administration is planning a 13% rise (to more than $1 trillion) in the Pentagon budget, aka the US Department of Defense.  This commitment is at odds with Trump’s frequent vows to end the US’s involvement in “forever wars” in the Middle East and elsewhere. The proposal included a “historic” $175 billion investment to “secure the border fully”. These increases would be partially funded through a budget reconciliation bill (which allows a bill to be passed with a simple majority of 51 votes, instead of the 60-vote super majority), allowing the proposal to bypass Democratic support in the Senate. 

The administration “protected” Transportation, Homeland Security, Veterans Affairs, and “numerous other priorities”. The proposal also preserves funding for Title 1 funding for schools with many low-income students, special education funding as well as Pell Grants (federal financial aid that is awarded to students who demonstrate exceptional financial need and haven’t earned a bachelor's, graduate, or professional degree. It also provides nearly $27 billion for disaster assistance and almost $3 billion for wildfire suppression. 

To offset these hikes, the administration proposes $163 billion in cuts to non-defense discretionary spending—a nearly 23% reduction. Agencies bearing the brunt of these cuts include the Environmental Protection Agency, the Centers for Disease Control and Prevention, the National Institutes of Health, and the Department of Education. This budget also eliminates many federal programs targeting climate research, clean energy, housing assistance, and support for low-income Americans. 

According to the OMB letter (Office of Management and Budget within the Executive Office of the President), the proposal calls for eliminating multiple diversity, equity, and inclusion initiatives, environmental justice efforts, and other “woke” programs. It would also slash nearly $2.5 billion from the Internal Revenue Service, a frequent target of Republicans. In the proposal, there have been no recommendations for so-called mandatory spending programs, including Social Security, Medicare, Medicaid, and the Supplemental Nutrition Assistance Program, commonly known as food stamps. 

The proposal faces criticism from both parties. Republicans object to limited defense increases without inflation adjustments, while Democrats warn the cuts would “decimate investments” in American families and innovation. Congress, which holds the power of the purse, is not obligated to adopt the proposal, setting the stage for contentious budget negotiations ahead.