President Orders Budget Cuts: Government Tightens Belt for 2026
Published Date: 6/5/2025
Presidential Document
Summary
Starting October 1, 2025, the government will cut spending in many areas to help control the budget for Fiscal Year 2026. These spending cuts, called sequestration, affect most non-exempt programs and are based on a detailed plan from the Office of Management and Budget. This move aims to keep the budget balanced and reduce the deficit, impacting how much money some government programs get next year.
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Broad Federal Spending Cuts Begin Oct 1, 2025
Starting October 1, 2025, the President ordered that direct spending budgetary resources for fiscal year 2026 in each non-exempt budget account be reduced by the amounts calculated by the Office of Management and Budget in its May 30, 2025 report. The cuts (called sequestration) apply to most non-exempt programs and are intended to lower the deficit.
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