Donald Trump, then the Republican president of the United States, was celebrating his first 100 days in office. He put an impressive ending on that week, giving a commencement speech to graduates at the University of Alabama. The day of the event, Trump announced his surprise trip to West Palm Beach for the weekend. He prepared to roll out his budget proposal for the 2026 fiscal year this Friday. The proposal, which he plans to send to Congress, marks a significant step in his administration’s ongoing efforts to reshape the federal government.
Rebuilding the next budget proposal will include deep reductions. It’s projected to cut more than $160 billion from a wide range of causes, from environmental programs and renewable energy initiatives to education and foreign aid. This dramatic move punches Trump’s campaign promises down the homestretch of the 2024 presidential race. First, he’s long been an advocate for shrinking the federal government. Since taking office, Trump’s administration has decimated agency after agency. They’ve cut the federal workforce by tens of thousands.
On top of those huge cuts, Trump is expected to propose a military budget over $1 trillion. He maintains that the tariffs imposed on nearly every country will generate revenue that can help offset his tax-cut measures, which he describes as “a big beautiful bill.” These tariffs have themselves been a major driver of turmoil in global trade, further exacerbating pressure on the U.S. economy.
In fact, his budget announcement come on the heels of the U.S. economy contracting by -0.3% in Q1. This contraction is a symptom of the uncertainty about his policies, which have created a confidence crisis in business. As he prepares to release his executive budget proposal, Gov. He won’t be in Washington, a conscious decision on his part to prioritize engagement abroad while continuing to address daunting domestic economic headwinds.
To make things even more difficult, congressional Republicans are right now trying to work out their own party’s divisions over where to propose federal spending cuts. These cuts are needed to fund the enormous tax-cut package they’re trying to pass by July 4. The ongoing negotiations reflect the broader uncertainty surrounding Trump’s economic policies, which have raised concerns among lawmakers and constituents alike.