Federal Budget

Fiscal Year 2027 Administration Budget Request

On April 3, 2026, the Trump Administration released the President's FY2027 Budget Request to Congress. The Budget proposes a 10% cut to non-defense spending, including proposed cuts to the Internal Revenue Service (IRS); FEMA non-disaster grants; and global health and humanitarian assistance.

Across the Budget and supporting fact sheets, the Administration signals a broader effort to narrow the Federal Government’s partnership with nonprofits working on causes the Administration views as misaligned with its priorities. This includes redirecting federal resources away from nonprofits and the existing grantmaking infrastructure and toward states, localities, and employers.

Note: The Department of Treasury will not release their “Greenbook”—the Treasury Department's list of budget proposals which typically accompanies the President’s annual Budget Request—in an effort to focus on implementing tax provisions passed in the One Big Beautiful Bill Act (OBBA).

The Budget allocates $11.5 billion in discretionary spending for the Department of Treasury, a 12% decrease from the 2026 enacted level, which includes a $1.4 billion cut to the IRS and a $204.5 million cut to Community Development Financial Institutions.

In addition, the Budget includes:

  • $40.8 billion for the Department of Justice in discretionary budget authority, a 13% increase over the 2026 enacted level, including a $30 million increase to support the National Fraud Division and $1.7 billion in cuts to state and local grant programs aimed at addressing issues such as violence against women, supporting communities of color, and research on anti-LGBTQ+ hate crimes.
  • $35.6 billion for the Department of State and other international programs in discretionary budget authority, a 30% decrease from the 2026 enacted level. This includes $2 billion in cuts to humanitarian assistance, $1.2 billion in cuts to Food for Peace, $4.3 billion in cuts to global health programs, $2.7 billion in cuts to support for international organizations, and $315 million in cuts for the National Endowment for Democracy.
  • $4.2 billion for the Environmental Protection Agency in discretionary budget authority, a 52% decrease from the 2026 enacted level.
  • $76.5 billion for the Department of Education in discretionary budget authority, a 2.9% decrease from the 2026 enacted level.
  • $111.1 billion for the Department of Health and Human Services in discretionary budget, a 12.5% decrease from the 2026 enacted level, including proposing eliminating the Community Services Block Grant program.
  • $63 billion for the Department of Homeland Security in discretionary budget authority, a 3.3% decrease from the 2026 Continuing Resolution, including a $1.3 billion cut to non-disaster grant programs at FEMA.
  • $74.5 billion for the Department of Housing and Urban Development, a 13% decrease from the 2026 enacted level, including $3.3 billion in cuts to the Community Development Block Grant.
  • $9.9 billion for the Department of Labor, a 25.9% decrease from the 2026 enacted level. This includes cuts to several public-private partnerships.

Questions?

Connect with Council Staff