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Trump's 'magic' budget: cuts to environment and health, more spending on defence and security

The 'security budget' grows by 13% and exceeds 1 trillion, a record and almost double the rest of US discretionary spending

3' min read

3' min read

An American budget that flies Maga flags, with drastic cuts of 163 billion dollars to environmental and renewable energy programmes, social spending and public health, education and diversity initiatives denounced as 'woke', foreign aid. Increases instead for security, border security against migrants, alongside the Pentagon and law enforcement: the 'security budget' grows by 13% and exceeds one trillion, a record and almost double the rest of US discretionary spending.

Donald Trump has finalised his first federal budget proposal since taking office in the White House. Guidelines known as the 'skinny budget', because they present without too many details recommendations for the fiscal year 2026, coming up in October. They translate the priorities and values of the new presidency into big numbers: a profound transformation of the role of government, which becomes the vanguard of its conservative crusades.

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The initial diktats will be followed by a more comprehensive document towards the end of the month. All of the president's wishes, starting as of last night with the skinny budget, are forwarded to Congress, the real author of financial laws. And from the House Trump has already made it clear that he expects this and more: by the summer he wants a ten-year 'big, beautiful bill', centred on generalised tax cuts of 4.5 trillion, including renewed and strengthened tax measures. The Senate and the House, with a Republican majority, are debating the project in order to pass it by 4 July, although delays have emerged in the face of the complexity of finding resources to finance it (they have identified at most 1.5 trillion in cuts).

The fiscal offensives in gestation at the White House do not stop there: they include a 'retroactive' package, prepared by budget chief Russell Vought, one of the brains behind the Project 2025 agenda. It intends to rescind funds now earmarked for 2025, some 9 billion that include humanitarian aid and support for public broadcasting.

However, the new budget becomes the symbolic yet indispensable stepping stone of Trump's fiscal design: it proposes 557 billion in discretionary spending, excluding defence, which the White House estimates represents a 22.6 per cent reduction. Among the programmes that vanish Head Start, childcare for less affluent families, and 40 billion subtracted from healthcare, from rural hospitals to teenage pregnancy prevention. Much of the funding for the Environmental Protection Agency and the Department of Education has been cancelled.

The cuts, besides not affecting the Pentagon, leave intact the colossal and delicate federal programmes Medicare and Medicaid, health care for the elderly and the poor, and Social Security, welfare, where appropriations in the absence of reforms are automatic. These items actually represent the most substantial part of the total federal budget, i.e. of an estimated annual expenditure of over 7 trillion that produces deficits close to two trillion and swells a debt of 36 trillion. However, Congress only has formulas on the table for a controversial Medicaid reduction as part of the tax relief legislation.

The budget savings figure now outlined by the White House for 2026 is similar to the one previously given by Elon Musk and his Department of Government Efficiency, the Doge, which assumed cuts of 150 billion, the first 'down payment' on the promise to wipe out a trillion in waste.

Spending on security and defence, by contrast, in Trump's vision rises to 1.010 billion next year. It includes military pay increases of 3.8 per cent. Above all, it cultivates projects dear to him: from the modernisation of nuclear forces to the Golden Dome, the space and missile shield. Expanding the naval forces as well, in response to China's fleet expansion.

"Stephen Miller in pole for national security adviser"

Meanwhile, Stephen Miller is gaining support in the White House as the leading candidate for the post of the next national security advisor, after Mike Waltz's move to the UN, according to five sources familiar with the situation told Axios.

The White House deputy chief of staff and architect of Trump's intense and controversial immigration crackdown is one of the president's longest-serving and most trusted aides.

He is also the administration's former homeland security adviser and a staunch defender of the administration's legal push for immediate deportation of undocumented immigrants without court hearings. One source told Axios that Miller might not want the job 'if it takes him away from his true love: immigration policy'. Another, however, added that 'if Stephen wants the job, it's hard to see why Trump wouldn't say yes'.

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