Trump FY2026 Budget Proposes $163 Billion Cut to Domestic Programs
March 16, 2026 · 2 min read
Claire Cummings
The White House FY2026 budget request proposes a $163 billion reduction — 22.6% — in domestic discretionary spending, concentrating the deepest cuts in programs that nonprofits and local governments rely on to deliver basic services.
Where the Cuts Land Hardest
Housing programs face a 43% reduction, with the proposal consolidating rental assistance into state block grants and eliminating the Community Development Block Grant and HOME Investment Partnerships programs entirely. The Low-Income Home Energy Assistance Program (LIHEAP), which serves more than 6 million households, would be zeroed out.
On the nutrition front, the Commodity Supplemental Food Program — which provides food boxes to low-income seniors — would be eliminated and replaced by "Make America Great Again Food Boxes." WIC benefits for fruits and vegetables would drop from $26 to $10 per month for children and from $47–52 to $13 for adults, a $300 million overall reduction.
Education grants take a significant hit as well: the $910 million Federal Supplemental Educational Opportunity Grant program, Federal TRIO Programs, GEAR UP, and 21st Century Community Learning Centers are all marked for elimination. HHS faces $33.3 billion in cuts, with the CDC slashed 44% and NIH targeted for an $18 billion reduction.
What Congress Has Done So Far
Congress already passed FY2026 appropriations for most agencies with far smaller reductions than the White House requested. But the budget proposal signals the administration's spending priorities as reconciliation negotiations continue in the House. The National Council of Nonprofits and the Food Research & Action Center have both issued detailed analyses warning nonprofits to prepare for cuts even if Congress softens them.
What Grant Seekers Should Do Now
Organizations dependent on LIHEAP, CDBG, HOME, or FSEOG funding should not wait for appropriations outcomes to begin contingency planning. Several states — Connecticut, Illinois, and California among them — have already begun backfilling specific federal cuts with state dollars. Tools like Granted can help organizations identify alternative funding streams from foundations and state programs before existing federal dollars disappear.
For in-depth analysis of how these proposed cuts affect specific grant categories, visit the Granted blog.