WASHINGTON: US President Donald Trump’s administration proposed a $163 billion cut to federal spending next year, which would eliminate more than a fifth of the non-military spending excluding mandatory programmes, it said in a statement.

The White House Office Management and Budget said the proposed budget would raise defence spending by 13pc and homeland security spending by nearly 65pc compared to 2025 enacted levels. Non-defense discretionary spending would be cut by 23pc to the lowest level since 2017.

“At this critical moment, we need a historic Budget; one that ends the funding of our decline, puts Americans first, and delivers unprecedented support to our military and homeland security,” said Russ Vought, OMB director, in the statement.

The annual White House budget request includes economic forecasts as well as detailed proposals about how much money should be spent by every government agency for the year that starts on October 1.

However, it will be the responsibility of the Republican-controlled Congress to craft spending legislation, and what lawmakers ultimately adopt often differs from the White House request.

The release comes as Republicans in the US Congress are working to bridge internal divisions over proposed cuts in federal spending to pay for a landmark tax-cut bill they hope to enact by July 4. They may also have to factor in growing stress in the nation’s economy arising from US tariff hikes.

Published in Dawn, May 3rd, 2025

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Resurgent threat
Updated 30 Jun, 2026

Resurgent threat

THE message from Islamabad to Kabul seems to be clear: any act of terrorism inside Pakistan found to be linked to...
Unchecked powers
30 Jun, 2026

Unchecked powers

THERE is little disagreement that Punjab needs stronger tools to combat organised crime, habitual offenders and...
Patriot Pass
30 Jun, 2026

Patriot Pass

IT must be a shared humanity that has bonded the ‘leader of the free world’ so closely with his counterparts in...
‘Missing’ LGs
29 Jun, 2026

‘Missing’ LGs

Across the world, successful civic governance is made possible through effective, responsive local bodies, which are closest to the voter.
Audit or ritual?
29 Jun, 2026

Audit or ritual?

THE AGP’s latest audit report of federal civil accounts is a detailed record of governance failures and...
Al Aqsa under threat
29 Jun, 2026

Al Aqsa under threat

NOT satisfied with the genocidal violence it has unleashed in Gaza, the current Israeli administration is doing all...