Donald Trump 2018 budget proposal: Key highlights
- Author: Larry Hoffman May 24, 2017,
May 24, 2017, 23:04
President Trump is sending Congress a $4.1 trillion spending plan that relies on faster economic growth and steep cuts to programs supporting low-income individuals to balance the government's books over the next decade.
No. 2 Senate Republican John Cornyn calls the budget "dead on arrival". Those cuts follow a partial plan from March that targeted domestic agency operations and foreign aid that were quickly dismissed by lawmakers.
"It'll face a tough sled here", said veteran Rep. Harold Rogers, R-Ky. Other estimates range between 1.6 and 2.1 percent, but no economist, Goldwein says, has arrived at figures close to the 3 percent the White House is projecting.
The proposal projects that this year's federal deficit will rise to $603 billion, up from the actual deficit of $585 billion last year.
Other cuts in Trump's budget include $63 billion in cuts to pension benefits for federal workers by eliminating cost-of-living adjustments for most workers and requiring employees to make higher contributions.
That is only 3 per cent more than former President Barack Obama had sought in his long-term budget plan.
The plan drew immediate fire from lobby groups, including from the Committee for a Responsible Federal Budget, which said it relied on "rosy assumptions", gimmicks and unrealistic cuts.
Federation of American Hospitals President and CEO Chip Kahn said the budget proposal would make it more hard for hospitals to provide care.
Schumer said the administration would cut funds from states and cities "to pay wealthy hedge funds and Wall Street to build more toll roads".
The proposed budget has no projection for debt reduction, and Office of Management and Budget Mick Mulvaney even called Trump's debt expectations "hyperbole".
MULVANEY: We need folks to work.
But it could be the start of real bargaining that goes something like this: Trump doubles his offer (unlike Mulvaney, he doesn't care about budgetary red ink), uses some money from a tax on foreign income of USA companies, and gets Saudi Arabia and other countries to chip in for energy-related projects and some public-private deals.
New parents: The budget includes Ivanka Trump's top priority - a new program allowing new parents to take up to six weeks off after birth or adoption of a child. Some $200 billion in federal infrastructure investments are promised to leverage another $800 billion in private investment.
In his budget, Trump upheld his promise - for the most part - that he would not cut Medicare and Social Security, two social insurance programs that deficit hawks have long targeted for reforms. Those cuts are paired with the repeal of Obamacare's expansion of the program to 14 million people and amount to, by decade's end, an almost 25 percent cut from present projections.
In addition, the budget would make another Dollars 610 billion in cuts to Medicaid over 10 years by transitioning the program from a traditional entitlement to either a block grant program or a per-capita program that puts a ceiling on federal Medicaid funding to states. There are massive proposed cuts in food stamps, along with deep reductions in agricultural subsidies and water and sewage improvements.
These cuts, White House officials said, would usher in a sustained period of strong economic growth that would grow wealth, create more jobs, and reduce poverty.
Ryan isn't making any promises about passing the Trump budget, though.
Border Security: $1.6 billion is reserved for building a wall on the United States border with Mexico, a top Trump campaign priority.