Trump’s FY 2027 Budget: Comprehensive Analysis of Federal Spending Cuts
President Trump’s FY 2027 budget proposal, released in April 2026, outlines a dramatic restructuring of federal spending with hundreds of billions in cuts targeting programs deemed wasteful or ideologically driven while significantly boosting defense spending by 44%. This comprehensive analysis breaks down the major reductions by department and program.
Education Department: Systematic Reductions
The Education Department faces a $2.3 billion (2.9%) decrease from the 2026 enacted level, with the budget putting the department “on a path to elimination” according to the document.
K-12 Education Cuts
- $8.5 billion cut through program eliminations and consolidations
- Teacher Quality Partnership (-$70 million) – eliminated for sixth time
- Training and Advisory Services—Equity Assistance Centers (-$7 million)
- Comprehensive Centers (-$50 million)
- Migrant Education and Special Programs (-$428 million)
- English Language Acquisition (-$890 million)
Higher Education Reductions
- $2.7 billion cut from higher education programs
- Minority-Serving Institutions Programs (-$354 million)
- Fund for the Improvement of Postsecondary Education (-$136 million)
- International and Foreign Language Education (-$81 million)
Other Education Changes
- Office of Career, Technical, and Adult Education (-$1.5 billion)
- Transfer of Career and Technical Education to Department of Labor
- Maintains funding for Federal Pell Grants with +$10.5 billion increase
Environmental Protection Agency: Major Restructuring
The EPA faces a 52% reduction (-$4.6 billion) from the 2026 enacted level, representing one of the largest percentage cuts of any agency.
Program Eliminations
- Complete elimination of Environmental Justice programs
- Atmospheric Protection Program (-$100 million)
- Diesel Emissions Reduction Act Grants (-$90 million)
Significant Reductions
- State Revolving Funds (-$2.5 billion)
- Categorical Grants (-$1 billion)
- Research and Development (major cuts to climate-related research)
- Hazardous Substance Superfund (reduced by $290 million)
Health and Human Services: Comprehensive Restructuring
HHS faces a $15.8 billion (12.5%) decrease from the 2026 enacted level, with the establishment of the new Administration for a Healthy America (AHA) as part of a major reorganization.
Major Program Cuts
- Low Income Home Energy Assistance Program (-$4 billion)
- Refugee Resettlement Program (-$768 million)
- Unaccompanied Alien Children (-$819 million)
- Community Services Block Grant (-$775 million)
- Creating Efficiencies through AHA (-$5 billion)
NIH and Research Reductions
- National Institutes of Health (-$5 billion)
- Elimination of National Institute on Minority Health and Health Disparities
- Elimination of Fogarty International Center
- Elimination of National Center for Complementary and Integrative Health
- Agency for Healthcare Research and Quality (-$129 million)
Foreign Aid and International Programs: Substantial Reductions
The Department of State and other international programs face a $15.5 billion (30%) decrease from the 2026 enacted level.
Humanitarian and Development Assistance
- Humanitarian Assistance (-$2.0 billion)
- Food for Peace (Title II) (-$1.2 billion)
- Global Health Programs (-$4.3 billion)
- International Organizations and the UN (-$2.7 billion)
Other International Program Cuts
- Treasury International (-$642.4 million)
- National Endowment for Democracy (-$315.0 million)
- African Development Fund (-$197 million)
- Global Environment Facility (-$150 million)
Department of Energy: Shift in Priorities
DOE requests $53.9 billion in discretionary budget authority, a $4.8 billion (nearly 10%) increase from the 2026 enacted level excluding WFTC funding, with significant reallocation from climate programs to energy dominance.
Program Eliminations and Reductions
- Cancelling Green New Scam IIJA Funding (-$15.2 billion)
- Energy Efficiency and Renewable Energy Programs (significant reductions)
- Office of Science (-$1.1 billion)
- Environmental Management (-$386 million)
- Advanced Research Project Agency-Energy (-$150 million)
Energy Investments
- Bolstering Energy Dominance (+$4.7 billion)
- Strengthening Nuclear Security (+$3.6 billion)
- Driving Domestic Critical Minerals Production (+$394 million)
- Refilling the SPR (+$89 million)
Department of Transportation: Infrastructure Refocus
The Department of Transportation requests $26.6 billion in discretionary budget authority, a $1.6 billion (6.2%) increase from the 2026 enacted level, with significant cuts to certain programs.
Major Program Cuts
- Transit Right-Sized (-$486 million)
- Terminates Unnecessary Subsidies for Electric Vehicle Chargers (-$4.2 billion)
- Essential Air Service Discretionary Funding (-$372 million)
- Defunds Program that Used Illegal and Inefficient Woke Criteria to Award Transportation Grants (-$145 million)
Department of Housing and Urban Development: Major Reductions
HUD requests $73.5 billion in discretionary budget authority, a $10.7 billion (13%) decrease from the 2026 enacted level.
Program Eliminations
- Community Development Block Grant (-$3.3 billion)
- HOME Investment Partnerships Program (-$1.3 billion)
- Homeless Assistance Programs (-$393 million)
- Housing Opportunities for Persons with AIDS (-$529 million)
- Native American Programs and Native Hawaiian Housing Block Grant (-$489 million)
- Pathways to Removing Obstacles (PRO) Housing (-$50 million)
- Fair Housing Activities (-$60 million)
- Housing Counseling (-$58 million)
Department of Agriculture: Refocusing on Core Mission
The USDA requests $20.8 billion in discretionary budget authority, a $4.9 billion (19%) decrease from the 2026 enacted level.
Program Cuts
- National Institute of Food and Agriculture Formula Grants (-$510 million)
- Rural Business Service (-$82 million)
- Agricultural Marketing Service (-$61 million)
- McGovern-Dole Food for Education Program (-$240 million)
- Community Facilities Grant Earmarks (-$659 million)
Department of Commerce: Eliminating Wasteful Programs
The Department of Commerce requests $9.2 billion in discretionary budget authority, a $1.3 billion (12.2%) decrease from the 2026 enacted level.
Program Eliminations
- Minority Business Development Agency (-$47 million)
- Economic Development Administration (-$449 million)
- NOAA Operations, Research, and Grants (-$1.6 billion)
- National Institute of Standards and Technology (-$993 million)
- ITA Global Markets (-$150 million)
- National Telecommunications and Information Administration (-$2.2 billion)
Department of War: Major Increase in Defense Spending
The Department of War requests $1.5 trillion in total budgetary resources for 2027, a $441 billion (44%) increase from the 2026 enacted level.
Major Defense Investments
- Golden Dome missile defense system
- $65.8 billion for shipbuilding including new Trump-class battleship
- Critical Munitions procurement
- Critical Minerals and domestic supply chains
- Unmanned and Counter-Unmanned Systems
- Artificial Intelligence investments
Other Departmental Changes
Department of Justice
- Requests $40.8 billion in discretionary budget authority, a $4.7 billion (13%) increase over 2026
- Reduce Duplicative and Unnecessary State and Local Grant Programs (-$1.7 billion)
- Eliminates Woke Programs and Offices (-$20 million)
Department of Labor
- Requests $9.9 billion in discretionary budget authority, a $3.5 billion (25.9%) decrease from 2026
- Job Corps (-$1.6 billion)
- Senior Community Service Employment Program (-$395 million)
- Worker Protection Agencies (-$234 million)
- Office of Federal Contract Compliance Programs (-$101 million)
Department of the Interior
- Requests $15.9 billion in discretionary budget authority, a $2.3 billion (12.9%) decrease from 2026
- Bureau of Reclamation (various cuts)
- Green New Scam Programs (-$45 million)
- Duplicative and Wasteful Programs (over 40 programs eliminated)
Department of Homeland Security
- Requests $63 billion in discretionary budget authority, a $2.2 billion (3.3%) decrease from 2026
- FEMA Non-Disaster Grant Programs (-$1.3 billion)
- CISA (-$707 million)
- TSA Privatization (-$52 million)
Department of Veterans Affairs
- Requests $144.9 billion in discretionary budget authority, an $11.5 billion (9%) increase from 2026
- Defund and Eliminate Divisive and Wasteful DEI Initiatives
National Aeronautics and Space Administration
- Requests $18.8 billion in discretionary budget authority, a $5.6 billion (23%) decrease from 2026
- Science (-$3.4 billion)
- Legacy Human Exploration Systems (cuts)
- Space Technology (-$297 million)
- International Space Station (-$1.1 billion)
- Office of STEM Engagement (-$143 million)
Small Business Administration
- Requests $329 million in discretionary budget authority, a $671 million (67%) decrease from 2026
- Entrepreneurial Development Programs (-$309 million)
- Salaries and Expenses (-$170 million)
- Business Loan Programs Administrative Expenses (-$158 million)
Department of the Treasury
- Requests $11.5 billion in gross discretionary budget authority, a $1.5 billion (12%) decrease from 2026
- Community Development Financial Institutions Fund (-$204.5 million)
- Internal Revenue Service (-$1.4 billion)
Administration’s Rationale
The budget document characterizes eliminated programs as:
- “Woke” initiatives promoting divisive ideologies
- “Green New Scam” projects that increase consumer costs
- “Divisive” diversity, equity, and inclusion programs
- Duplicative or inefficient government functions
- Programs that “do not serve a core mission”
What’s Next
This budget proposal faces significant hurdles in Congress, where opposition is expected to many of these deep cuts, particularly to programs serving vulnerable populations. The final budget will likely look substantially different after negotiations between the administration and Congress.
The FY 2027 budget represents a fundamental shift in federal spending priorities, with dramatic reductions in domestic programs and substantial increases in defense spending. While the administration frames these cuts as eliminating waste and refocusing on core missions, critics argue they disproportionately impact vulnerable populations and important environmental protections.
