Trump proposes $163 billion cut to US budget

US President Donald Trump's administration on Friday proposed a US$163 billion cut to the federal budget that would sharply reduce spending on education, housing and medical research next year, while increasing outlays for defence and border security.

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The administration said the proposed budget would raise homeland security spending by nearly 65% from 2025 enacted levels, as Mr Trump cracks down on illegal immigration.

Non-defence discretionary spending, which excludes the massive Social Security and Medicare programmes and rising interest payments on the nation’s debt, would be cut by 23% to the lowest level since 2017, the White House Office of Management and Budget said in a statement.