Trump’s Proposed ‘Skinny Budget’ Wants To Slash Non-Defense Spending By $163B

U.S. President Donald Trump’s administration has proposed a $163 billion reduction in non-defense spending, 22.6% below current-year expenditures. Due to its lack of details, the budget has been dubbed the “skinny budget.”

The Office of Management and Budget and the Executive Office of the President said in a release that over the next 10 years, the restraint would generate trillions in savings necessary for balancing the budget.

The budget proposes non-defense spending of $557.4 billion, which is $163 billion lower than current levels.

At the same time, the budget has also proposed unprecedented increases for defense and border security. The President has proposed a 13% increase in defense spending to $1.01 trillion for fiscal year 2026. For Homeland Security, the budget has committed a $175 billion investment.

The budget makes a down payment on the development and deployment of the Golden Dome project, a next-generation missile defense shield that would protect the U.S. from missile threats from any adversary.

It will also fund the F-47 Next Generation Air Dominance platform, the world’s first crewed sixth-generation fighter aircraft and the most advanced, capable, and lethal aircraft ever built.

“Under the proposal, a portion of these increases – at least $325 billion assumed in the budget resolution recently agreed to by the Congress – would be provided through reconciliation, to ensure that our military and other agencies repelling the invasion of our border have the resources needed to complete the mission,” the budget proposal stated.

The Republican-controlled Congress will now be responsible for the crafting of spending legislation.

Meanwhile, the 10-year U.S. Treasury yield rose nine basis points on Friday to 4.322%. The iShares 7-10 Year Treasury Bond ETF (IEF) traded 0.75% lower on Friday afternoon.

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