Trump Proposes $163 Billion Cut to Non-Military Spending, Boosts Military 13% and DHS 65%, Cuts Housing 44% Impacting Bay Area Homelessness

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Published May 9, 2025, 04:48 PM

President Donald Trump's 2026 budget proposal includes a $163 billion reduction in non-military spending while increasing military funding by over 13% and boosting Department of Homeland Security (DHS) funding by 65%. The plan significantly cuts federal support for social programs, including a 44% reduction in housing funding, a 38% cut to labor programs, a 26% decrease in health funding, and a 15% reduction in education spending. These cuts are expected to have a pronounced impact on California, particularly in areas such as federal rental assistance and Section 8 housing aid, potentially worsening homelessness in the Bay Area. The budget reallocates savings from non-defense spending primarily to border security and military expenditures, leading to an overall increase in government spending despite the cuts to social programs. Critics note that while the reductions align with voter preferences for lowered non-defense spending, Congress has not agreed to cut major expenditures, complicating the fiscal outlook.

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Sources

inewsource.org responsiblestatecraft.org eastbaytimes.com latimes.com

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Donald Trump’s proposed budget gives DHS a 65% boost and increases military spending by over 13%—while slashing funding for housing by 44%, labor by 38%, health by 26%, and education by 15% https://t.co/DiN3DMA0C3