Alec Simantov
Alec is a Director in the McAllister & Quinn Research Universities Practice. Alec holds a Master of Public Policy degree from George Mason University’s Schar School of Policy and Government. Alec leverages his expertise on the Federal budget and Congressional appropriations to provide strategic oversight on legislative and policy developments, focusing on R&D, science, and higher education policy.
Administration Releases FY26 “Skinny Budget,” Kicks Off FY26 Appropriations Process
On May 2, 2025, the Office of Management and Budget (OMB) released President Trump’s fiscal year 2026 (FY26) “skinny budget” request. The colloquial term “skinny budget” refers to the limited information provided, as a skinny budget contains proposed topline numbers for key departments and agencies with no details on specific program requests. A skinny budget is common during an administration transition year and provides a look into the priorities of the new administration. The full President’s Budget Request, including individual federal agency justification documents that will outline programmatic funding priorities and requests, is expected later this month.
As Congress holds the constitutional “power of the purse” and remains the budgetary driver within the Federal government, the annual President’s Budget serves as a guide to executive branch priority areas and acts as the starting point for Congress to begin the FY26 appropriations process. Congress sets its own topline spending levels independent of Presidential budget requests.
Key Takeaways from the President’s “Skinny Budget”
- The President’s FY26 skinny budget requests a $163 billion cut for base non-defense spending, a 22.6% reduction in non-defense discretionary spending from FY25 continuing resolution levels.
- The budget requests $1.01 trillion for defense spending, a 13.0% increase, and includes $175 billion for border security.
- The budget request proposes significant reductions in federal climate research funding, as reflected in the proposed funding levels for the DOE Office of Science, NSF, NOAA, and NIST.
- The budget request proposes significant reductions in funding for Department of Education student support funding, including TRIO and Title III programs. Funding levels for special education programming remains steady.
AI & Quantum
The request preserves federal funding for artificial intelligence and quantum information science across key federal agencies. Even among broad proposed funding cuts to agencies like NSF, the request notes, “Funding for Artificial Intelligence and quantum information sciences research is maintained at current levels.”
U.S. Leadership in Human Space Exploration
The proposal reorients NASA’s mission priorities to advance U.S. leadership in deep space exploration, with a strategic focus on outpacing China. The Administration is proposing over $7 billion for lunar exploration and $1 billion in new investments for Mars programs, including a $647 million increase in Human Space Exploration funding. To support these goals, the proposal calls for operational efficiencies through the streamlining of NASA’s workforce, IT infrastructure, center operations, and facility management. The request proposes to reduce funding for lower-priority scientific research, refocusing on core, high-impact objectives while emphasizing fiscal discipline and programmatic efficiency.
Diversity, Equity, and Inclusion (DEI)
In line with the Administration’s priorities on programs, grant funding, and education that they consider “radical,” all programs that align with Diversity, Equity, and Inclusion (DEI) have been stripped from the budget request.
Make American Healthy Again (MAHA)
The Administration is proposing the formation of the Administration for a Healthy America (AHA) through the consolidation of key Department of Health and Human Services (HHS) subagencies, including OASH, HRSA, SAMHSA, ATSDR, and NIOSH. Under the AHA, newly proposed divisions such as Primary Care, Maternal and Child Health, Mental Health, Environmental Health, HIV/AIDS, and Workforce will centralize critical programmatic functions. While core programs will continue under AHA’s umbrella, proposed funding reductions for legacy agencies like CDC reflect a strategic shift to state-level responsibility, primarily through block grant allocations. The budget also requests $500 million for the President’s MAHA Commission established through executive order in February.
Reprioritizing Federal Climate and Environmental Research Investments
The skinny budget outlines the Administration’s proposed pivot in federal energy R&D funding, redirecting resources and investments away from renewable energy deployment and carbon removal initiatives toward foundational research in traditional energy domains. The budget proposes to rescind over Infrastructure Investment and Jobs Act (IIJA) funding, targeting programs for renewables and electric vehicle infrastructure that the Administration deems “inefficient” and “burdensome” to consumers. The budget further signals the Department of Energy’s (DOE) plans to shift toward advanced R&D in domestic fossil energy, critical mineral extraction, next-generation nuclear reactor technologies, and firm baseload power systems.
Next Steps: Congress Picks Up the Ball
While the “skinny budget” offers insight into the Administration’s policy direction, it omits key details, such as mandatory spending programs, tax proposals, and long-term economic projections. The Administration is expected to release the full President’s Budget Request in the coming weeks and will include comprehensive agency-level justifications, including programmatic priorities and proposed cuts, and analytical perspectives, which provide policy rationales behind major initiatives.
Congress has already kicked off the FY26 appropriations process, holding hearings last week on the Administration’s budget request from agencies like DOE and USDA. The House and Senate Appropriations Committees will continue to hold hearings throughout May and June to question Administration officials on proposed funding levels as they draft their appropriations bills and set their own topline funding levels for FY26. The appropriations process in Congress is traditionally a bipartisan process requiring negotiation and cooperation from both parties. Procedural rules in the Senate require appropriations bills to garner 60 votes to pass, meaning the Republican Senate majority will need the votes of at least 7 Democrats to support the bills. The 2026 fiscal year begins on October 1.
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