Budget Proposals for 2026
What does Congress have up its sleeves?
Sometimes it has been hard for me to listen to or read the news. Of course, I am in the blue hole, so I get more tags for those stories, or stories written in that light. That is the reason that I fact-check almost everything. A few things pass, and I am open to correction.
After hearing that even a few Republicans voted against the proposed budget while in committee, I wanted to learn more about what was in the bill and what was not. In my first fact-check, I just asked what was in the bill and got results from which line areas were cut by what percent, and which were increased. I’m using perplexity.ai to do my research and the basic so I don’t have to pay for it (just in case you are interested in using ai). Since I lived in two communities in Alaska with tribal governments and influence, I did a more specific search for that, and you will see past the budget proposal.
Key Features of the Latest Budget Proposal (FY 2026)
Major Spending Cuts and Shifts
The proposal calls for a $163 billion reduction in non-defense discretionary spending, a 23% cut from the previous year, bringing domestic spending to its lowest level since 2017145.
These cuts target programs in education, housing, medical research, and the Internal Revenue Service (IRS), with over 40% reductions for the National Institutes of Health (NIH) and Centers for Disease Control and Prevention (CDC), and more than $2 billion cut from the IRS5.
Defense and Border Security Increases
Defense spending would rise by 13%1.
Homeland Security funding would increase by nearly 65%, with a focus on border enforcement and immigration control15.
Social Security and Veterans
The budget maintains a commitment not to reduce Social Security benefits, while allocating resources to improve Social Security Administration (SSA) services and invest in fraud prevention and automation1.
Support for veterans and law enforcement is preserved or increased1.
Education and Workforce
The Department of Education would continue to be phased out, consolidating multiple K-12 and special education grant programs into simplified block grants for states, while maintaining Title I and IDEA funding1.
Increased investment in charter schools and apprenticeship programs, with $500 million allocated to expand high-quality charter schools and a new requirement that states spend at least 10% of workforce grants on apprenticeships1.
Elimination and Consolidation of Programs
The budget eliminates funding for diversity, equity, and inclusion (DEI) initiatives, critical race theory, and various climate and “green” programs1.
Many federal programs deemed “better suited” for state or local administration would be devolved to those levels1.
Space and Infrastructure
NASA funding is refocused on lunar and Mars exploration, with over $7 billion for lunar missions and $1 billion for Mars, while eliminating “green aviation” and certain propulsion projects1.
Continued support for core tribal programs, infrastructure, air and rail safety1.
New Initiatives
A new “America First Opportunity Fund” (A1OF) is proposed, with $2.9 billion for strategic investments aimed at strengthening the U.S. economy2.
Impact of the Latest Budget Proposal on Tribal Nations' Funding
Significant Reductions Across Core Programs
The FY 2026 budget proposal includes deep cuts to federal funding for tribal nations, threatening the federal government’s treaty and trust responsibilities126.
Core tribal programs face a nearly 24% reduction, with almost $911 million cut from services that support tribal self-governance, road maintenance, housing, and programs for children and families26.
The Bureau of Indian Affairs (BIA) would see a $617 million cut, affecting tribal operations, including roads, housing, and social services, as well as the elimination of the Indian Guaranteed Loan program for tribal business development26.
Tribal law enforcement funding would be reduced by $107 million (a 20% cut), and the Bureau of Indian Education construction program would lose $187 million, eliminating funding for new school construction and repairs2.
Housing and Economic Development
The proposal eliminates competitive grant programs for tribal housing, focusing only on main formula grants, and completely cuts the Native Hawaiian Housing Block Grant2.
The Treasury’s CDFI Fund, which supports Native community development financial institutions, would lose 90% of its funding, dropping from $324 million to just $33 million4.
Other Program Changes
Some programs, such as the Indian Reservation Drinking Water program, would see a modest increase, but these are exceptions rather than the norm2.
Cuts also extend to energy efficiency and renewable energy programs, which could reduce support for tribal renewable energy projects2.
Community and Economic Impact
Tribal leaders and policy experts warn these cuts will directly impact essential services, economic development, and the well-being of tribal communities, increasing uncertainty and making it harder for tribes to plan and invest136.
The cuts are widely criticized as undermining the federal government’s obligations to tribal nations, with concerns about increased poverty, hardship, and negative effects on local economies156.
Lastly, I asked AI, “Are tax cuts for the wealthy included in the budget?” I got the following.
Tax Cuts for the Wealthy in the 2025 Budget
Overview
The current budget proposals from House Republicans and the Trump administration include significant tax cuts, many of which would benefit wealthy individuals and corporations. These tax reductions are largely extensions and expansions of the 2017 Tax Cuts and Jobs Act (TCJA), with several provisions specifically skewed toward higher-income households and business owners368.
Key Provisions Impacting the Wealthy
Extension of TCJA Tax Cuts: The budget aims to make permanent the individual and estate tax cuts from the TCJA, which lowered top income tax rates and significantly increased the estate tax exemption-both measures that primarily benefit the wealthy367.
Pass-Through Business Deduction: The proposal maintains or expands the 20% deduction for pass-through business income, a provision that disproportionately aids high-income business owners3.
Estate Tax Exemption: The budget continues the elevated estate tax exemption, allowing wealthy families to transfer more wealth tax-free37.
State and Local Tax (SALT) Deduction: The plan increases the SALT deduction cap, which is especially beneficial to high-income taxpayers in high-tax states4.
New Loopholes and Deductions: Analyses highlight that the proposed legislation is "full of new loopholes for the ultrawealthy," offering additional tax breaks that do not broadly benefit middle- or lower-income Americans28.
Distributional Impact
Multiple sources indicate that the benefits of these tax cuts are skewed toward the affluent. While there are also increases to the standard deduction and child tax credit, the largest dollar benefits accrue to those with higher incomes1369.
"Any benefits from the tax reductions, which are already skewed toward the affluent, might be eclipsed by cuts to healthcare and food assistance that Republicans also plan to incorporate into the bill.1
Budgetary Consequences
The Joint Committee on Taxation and independent analysts estimate that extending these tax cuts would add over $4 trillion to the deficit over the next decade578.
To offset some of the lost revenue, the budget proposes deep cuts to programs serving low-income Americans, such as Medicaid and food assistance146.
What do you think about that? Please take a look at that last section, Budgetary Consequences. “These tax cuts would add over $4 trillion to the deficit over the next decade.”
I thought they were all about decreasing the national debt. Remember, I wrote about that last year. Today, I’m writing to my congressman to request that they begin budget negotiations again, eliminate all the tax cuts for the wealthy, and then see where they are with balancing the budget. If school lunches, food pantries, farmers, and the poor are being cut, it is inappropriate for the wealthy to benefit.
Note: numbers at the end of the sentences give the link to where the information was found.