The Trump Administration Budget Plan Calls for Cuts, Consolidation

by Mitch Coppes, Federal Government Affairs Manager, Goodwill Industries International

Recently, the Trump Administration released its initial budget proposal for Fiscal Year 2026 (FY26). As is common with the first budget of a new presidential administration, the “skinny” budget outline provided by the White House offers a preview of a more detailed FY26 funding plan that is expected to come out later this month.

The president’s budget request calls for deep cuts to domestic programs and proposes to reduce overall funding for the U.S. Department of Labor by nearly 35 percent compared to current funding levels. While the budget documents lack specific funding recommendations for many federal employment and training programs, it does seek to eliminate funding for Job Corps and the Senior Community Service Employment Program (SCSEP). The Trump Administration proposes to consolidate spending on workforce programs into a single “Make America Skilled Again” state block grant, wherein states would be required to spend at least 10 percent of their grant funds on apprenticeships.

The budget plan would defund other programs and agencies, including the Low-Income Home Energy Assistance Program (LIHEAP), Community Development Block Grant, AmeriCorps, and Adult Education and Literacy programs. It also proposes cancelling over $15 billion in funding from the Bipartisan Infrastructure Law for renewable energy, including nearly $6 billion for electric vehicle charger programs.

The President’s budget request is not binding, and it will be up to Congress to determine the FY26 funding levels for federal programs and activities. Members of Congress from both parties were quick to express their concerns about the proposed cuts. “I have serious objections to the proposed freeze in our defense funding given the security challenges we face and to the proposed funding cuts to – and in some cases elimination of – programs like LIHEAP, TRIO, and those that support biomedical research,” said Sen. Susan Collins (R-ME), chair of the Senate Appropriations Committee. “Ultimately, it is Congress that holds the power of the purse.”