Trump's 2026 Budget Proposes $1.01 Trillion Defense Increase, $163 Billion in Cuts, and $4,000 Tariff Impact on Families

President Donald Trump's fiscal year 2026 budget proposal includes a 13% increase in funding for the Department of Defense, aiming to reach $1.01 trillion. This increase is intended to bolster military capabilities, including the development of the F-47 Next Generation Air Dominance fighter jet and the deployment of the Golden Dome missile defense shield.

The budget also proposes a significant reduction in non-defense discretionary spending by $163 billion, or 22.6%, affecting various social programs. Notable cuts include a $491 million reduction to the Cybersecurity and Infrastructure Security Agency's budget, a $26 billion cut to the Department of Housing and Urban Development's rental assistance program, and the potential elimination of the Organized Crime Drug Enforcement Task Forces. The budget also targets the Section 8 program, HUD discretionary funding, CDBG, HOME grants, USDA Rural Development, LIHEAP, CDFI Fund, Neighborhood Reinvestment, Essential Air Service, Infrastructure Investment, EPA environmental justice, NOAA data programs, and SBA Entrepreneurial Development.

Critics argue that these cuts, particularly to housing assistance, could lead to increased homelessness and strain on state resources. The budget's approach to shifting responsibility for rental assistance to states has been described as potentially devastating for communities across the country.

Additionally, Trump's tariff policies are impacting small businesses and consumers. Reports indicate that tariffs could cost American families an extra $4,000 per year, with small businesses facing challenges in pricing and survival due to these levies.