President Donald Trump transmitted his nearly $2.2 trillion fiscal 2027 spending request to lawmakers during the congressional Easter recess. The proposal sets out the Administration’s funding priorities for FY 2027 and serves as the starting point for negotiations with congressional appropriators in the annual federal budgeting process. The budget requests a major increase in defense spending, proposing a record $1.2 trillion. Significant cuts are proposed for agriculture and water programs with highway and bridge programs fairing better. The administration proposed similar cuts in last year’s budget which Congress did not adopt.
The proposal targets the Department of Agriculture for significant downsizing, calling USDA a “bloated Washington, D.C., bureaucracy,” proposing to cut its funding by $4.9 billion, or 19%, from current funding levels and to eliminate international food aid programs.
Significant staffing cuts at the Farm Service Agency (FSA) and Natural Resources Conservation Service (NRCS) are proposed. The budget calls for 6,009 full-time equivalent FSA staff positions in FY 2027, a cut of more than 25% over two years from the 8,135 level in FY 2025. NRCS staff level would be set at 9,241 staff in FY 2027, the same number as this year but a decline of 2,301 positions from 2025 levels. The budget would shift significant funding from the Conservation Stewardship Program and the Environmental Quality Incentives Program to pay for remaining NRCS staff. In addition, zero funding is requested for conservation technical assistance, sustainable agriculture research and education programs, rural energy for American program, and Rural Business Development Grants.
For the U.S. Department of Transportation $111.3 billion in new budgetary resources is requested, focusing on core infrastructure, including a $700 million boost for the Federal Highway Administration’s Bridge Investment Program. The request proposes to strengthen major freight and highway projects while proposing to cut over $5 billion in electric vehicle charging infrastructure. The proposal requested $2.3 billion for the Infrastructure for Rebuilding America (INFRA) grant program, a $770 million increase from the FY 2025 enacted level. Federal surface transportation legislation is up for renewal at the end of September 2026 so additional details from the Administration on funding are anticipated.
The Administration proposed a 90 percent reduction to the Clean Water and Drinking Water State Revolving Funds (SRFs). This request mirrors the Administration’s request from the previous year, where they similarly requested drastic cuts to the SRFs. Congress instead funded the SRF programs at the previous year’s $1.126 billion. Reaction thus far to the proposal shows signs that Congress will likely fund these programs at similar levels to the previous year.
Smaller water infrastructure programs like the Reducing Lead in Drinking Water and Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability grant programs made out somewhat better in the President’s request. Under the budget plan each program would remain at FY26 level of $20 million and $2.25 million respectively.