"I'd like you all to come back with a five percent cut and I think if you can do more than that we will be very happy," Trump told the cabinet members.
Trump explained that some secretaries can deliver greater cuts in spending than the specified 5 percent and emphasized his request was of high importance.
The Penny Plan called on the US Congress to decrease discretionary spending by 1 percent every year.
Trump noted that his strategy was first to take care of the defense sector, resulting in a boost for the Defense Department budget that totals $716 billion for the next year.
Trump said the time has come now to take care of other government departments.