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Market Chatter: Trump to Propose $163 Billion Cut in Nondefense Federal Spending
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Market Chatter: Trump to Propose $163 Billion Cut in Nondefense Federal Spending
May 26, 2025 12:12 AM

08:05 AM EDT, 05/02/2025 (MT Newswires) -- President Donald Trump is set to introduce his fiscal 2026 budget proposal Friday, which reduces nondefense funding by $163 billion, the Wall Street Journal reported Thursday, citing administration officials.

The plan would cut spending in areas such as environmental protection, renewable energy, education, and foreign aid, establishing nondefense budgets at $557 billion, a 22.6% reduction from fiscal 2025 projections, the WSJ reported.

Officials said the proposal reflects Trump's broader efforts to scale back federal programs, including eliminating diversity initiatives and rolling back clean-energy targets.

In contrast, the budget would boost allocations for border security, defense, transportation safety, veterans, and law enforcement, the news outlet reported.

Budget documents reviewed by the Journal showed deep cuts across agencies like the EPA, Energy, Interior, HUD, Education, NIH, and NOAA.

The White House did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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