US: Trump's FY2026 Budget Draws Pushback From GOP Defence Hawks

May-02 15:26

Reuters carrying comments from senior White House Office of Management and Budget officials on President Donald Trump’s ‘skinny’ budget resolution for Fiscal Year 2026 that was released today.

  • The officials note the budget's focus on spending reductions: “White House proposes FY2026 $1.7 trillion budget, down 7.6% from previous year." The officials add that the “proposed FY2026 budget includes lowest non-defense spending since 2000.”
  • House Budget Committee Chair Jodey Arrington (R-TX) told reporters, “President Trump's budget reflects his bold and unwavering commitment to reining in Washington’s runaway spending, right sizing the bloated federal bureaucracy, and putting our nation on a path to balance. President Trump’s budget is a battle plan for restoring economic freedom and fiscal sanity in Washington before it’s too late.” per Chad Pergram at Fox News.
  • Despite a purported 13% increase in defence spending, Senate Armed Forces Committee Chair Roger Wicker (R-MI) issued a critical statement, accusing the OMB of cutting defence spending in real terms.
  • Wicker: “OMB is not requesting a trillion-dollar budget. It is requesting a budget of $892.6 billion, which is a cut in real terms. This budget would decrease President Trump’s military options and his negotiating leverage.”
  • Wicker’s statement could foreshadow a standoff between defence hawks and conservatives over defence spending that could spill into the ongoing House of Representatives markup of the ‘One Big Beautiful’ reconciliation bill.  

Historical bullets

MNI EXCLUSIVE: MNI Reports on a Proposal for EU Defence Funding

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FED: US TSY 17W AUCTION: NON-COMP BIDS $586 MLN FROM $60.000 BLN TOTAL

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US: Senator McConnell To Vote Yes On Democratic Tariff Resolution - NBC

Apr-02 15:01

Senator Tim Kaine (D-VT) said that former Senate Republican Leader Mitch McConnell (R-KY) indicated that he will vote yes on a Democratic resolution that would "undo" President Donald Trump's tariffs on Canada by challenging the national security justification for their imposition, according to NBC News' Frank Thorpe on X. The resolution is seen as a message exercise as House Speaker Mike Johnson (R-LA) would kill the bill in the House, should it pass the Senate. 

  • For the resolution to pass, Democrats will need at least four Republican votes. Senator Rand Paul (R-KY) and moderate Senators Susan Collins (R-ME) and Thom Tillis (R-NC) have indicated they will vote yes.
  • The vote, which will come later today after being punted from yesterday's schedule by Senator Corey Booker's (D-NJ) marathon speech, will put Republicans representing farm and manufacturing states in a challenging position, with polling suggesting that voters are sceptical of Trump's tariffs.
  • Republican Senators may feel slightly more emboldened to oppose Trump's agenda after elections in Florida and Wisconsin yesterday provided warning signs that Independents and moderate Republicans are unconvinced by the early period of Trump's administration and the influence of advisor Elon Musk.
  • Recognising that a significant Senate Republican rebellion could undermine his 'Liberation Day' announcement, Trump has issued two lengthy statements on Truth Social directly calling on Republicans to oppose the resolution.