In my senior year I worked with a great team on this design challenge in my advanced manufacturing class. We unfortunately did not get to build the design. It had a working volume of 12"x12"x8" and should be able to cut aluminum. The parts list is attached, and at the time of the project, the parts could be purchased for $800 dollars. I believe some of the motor mounts would have to be reinforced but this design should allow for a sub $1000, 2.5 axis, desktop CNC.
CNC CAD
CNC Wiring Diagram