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

Trump’s budget generally left the Treasury Department alone — except for the IRS. The budget seeks to cut IRS funding by $2.5 billion. The agency has already frozen hiring, initiated broad-based layoffs and paused a Biden-era technology modernization process under the direction of officials from the U.S. DOGE Service.