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Understanding Trump’s Budget Proposal
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Understanding Trump’s Budget Proposal

What’s being cut and why?

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Paul Krugman
May 04, 2025
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Understanding Trump’s Budget Proposal
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Still in the Netherlands, and I may write a letter from Europe tomorrow if I can get my computer, which is refusing to charge, fixed. Today, however, I wanted to write about the so-called “skinny budget” the White House just released. It will be a bit truncated because my battery is running down!

To be clear, this budget was only a proposal, and it’s unlikely that what Congress eventually passes will involve spending cuts as savage as those the Trump administration wants. But like all budgets, Friday’s document was a statement of values and priorities, and federal spending will surely move in the direction it points.

My own values and priorities are no secret, and I found this budget horrifying. But for today let me try to be relatively analytical, although I won’t hide my views. Beyond the paywall I’ll try to answer four questions:

1. This budget only addresses “discretionary spending,” with all of the big cuts concentrated on “nondefense discretionary spending” (NDD). What does that mean, and how does it fit into the overall fiscal picture?

2. Why is NDD singled out for big cuts?

3. Why are some pieces of NDD cut so much, while other kinds of spending are left intact or even increased?

4. Is this budget fiscally responsible?

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