Trump administration sending Congress $4.1 trillion budget

  • Trump administration sending Congress $4.1 trillion budget

Trump administration sending Congress $4.1 trillion budget

Trump said his Budget blueprint for 2018 provides for one of the largest increases in defence spending without increasing the debt; and significantly increases the budget for immigration enforcement at the Department of Justice and the Department of Homeland Security.

-Farmers: The budget plan would cut farm subsidies by $38 billion over the next decade.

The White House's $4.094 trillion budget request for fiscal 2018 calls for cuts that hit Medicaid, food assistance and other anti-poverty programs. It would essentially result in cutting the program's funding in half by the end of the tenth year. With a low labour force participation rate and sluggish productivity, many economists doubt whether the United States can indeed meet this three percent growth target.

In a blog post published Tuesday in The Washington Post, Larry Summers, former Treasury secretary in the Clinton administration, said the growth forecast based on the Trump administration's policies is fair enough "if you believe in tooth fairies and ludicrous supply-side economics". Just as important for the budget, the prospects of health care and tax legislation are entirely uncertain. Congress creates budgets, not presidents, although presidents have to sign them.

There is some new spending.

Trump assumes away future war spending, yielding almost $600 billion in savings from phasing out the Defense Department's Overseas Contingency Operations fund.

The funding for the wall will be $1.6 billion for construction and $300 million for additional border patrol and immigration agents.

Exactly. The rich pay the most in overall taxes (even if not by percentage), and they get the lion's share of benefits from Trump's budget.

Most departments would see steep cuts, particularly the State Department and the Environmental Protection Agency.

This category of spending accounts for the smallest part of the federal budget and covers everything from education, legal aid and national parks to government-funded research and diplomacy. But some of Trump's spending proposals are so severe, members of both parties are likely to resist, if only because many of their constituents rely on these programs.

It is expected to balance over 10 years through cuts and bullish estimates of economic growth. The cuts in the new Trump budget would undoubtedly raise that number even higher. "If you're on food stamps and you're able-bodied, we need you to go to work", Mulvaney said.

Part of the reduction would result from Trump's proposal to tighten eligibility requirements for benefits in these programs and "encourage" work.

"This is, I think, the first time in a long time that an administration has written a budget through the eyes of the people who are actually paying the taxes", White House Budget Director Mick Mulvaney told reporters on Monday.

The budget would also limit the earned income tax and child care tax credits - crucial supports for low-income workers - by requiring that they only be available to those with Social Security numbers. "In these unsafe times, this public safety and national security budget blueprint is a message to the world - a message of American strength, security and resolve", Trump said. Another $200 billion in federal infrastructure investments is promised to leverage another $800 billion in private investment.

The economic assumptions supporting the new budget plan instantly raised bipartisan eyebrows.

-Veterans: The budget proposal calls for an increase for the Veterans Administration, including $29 billion over the next decade for the Choice program.

President Donald Trump's budget is getting an icy reception on Capitol Hill from many of his fellow Republicans. Back then he would have made partial paid leave available only to working mothers whose employers didn't offer paid maternity leave. Budget savings are projected to far exceed not only the increased spending, but the losses stemming from the lowered taxes. Many Republican states elected not to expand Medicaid following a successful Supreme Court challenge to Obamacare, but those states will also experience cuts.

Republican leaders in the House said lawmakers would be able to find common ground with the budget plan.