The White House on Friday released President Donald Trump’s proposed budget for the 2026 fiscal year, which calls for $163 billion in cuts to federal spending.

Office of Management and Budget Director Russell Vought, in a letter to Congress alongside the proposal, said the cuts to discretionary funding would lead to “significant savings.”

“The President is proposing base non-defense discretionary budget authority $163 billion — 22.6 percent below — current-year spending, while still protecting funding for homeland security, veterans, seniors, law enforcement, and infrastructure,” Vought wrote.

While budget proposals are essentially wish-list for the administration, they serve to illustrate the president’s priorities and what the White House hopes is a jumping off point for negotiations with Congress.

The cuts proposed would come from the Department of Education, the Department of Health and Human Services, USAID and the Environmental Protection Agency, among others.

However, Trump is proposing a 13% increase to defense spending, which would bring it to $1.01 trillion for the next fiscal year.

The administration’s also proposing $175 billion to go toward the southern border.

This is a developing story. Please check back for updates.