Last Friday, the White House released its proposed federal budget cuts for the FY 2026 budget cycle, and proposed funding increases in areas that are policy priorities for President Donald Trump’s administration. This comes in a week where several committees in the House of Representatives are continuing work on a budget reconciliation bill that would include extensions of expiring tax provisions of the Tax Cuts and Jobs Act, tax proposals advanced by the White House, and increases to defense and border security. The reconciliation bill will contain much of the president’s policy agenda.

The proposed recissions are expected to face strong resistance as their fate is determined by Senate and House appropriations committees and included in FY 2026 appropriations bills. The proposed increases, however, are expected to be included in the separate reconciliation expected to be finalized in the House by the July 4 congressional recess. The White House has proposed increases of $119 billion for defense and related programs, offset by deep cuts to other federal agencies including the State Department, Health and Human Services, Housing and Urban Development, and Environmental Protection Agency, among others.