Trump budget keeps pledges: Cuts for poor, more for defense

That would total $1 trillion, the infrastructure spending figure Trump consistently called for during his presidential campaign.

Mulvaney said Washington should work like "real life" where you don't say a budget is cut if it doesn't increase from one year to the next.

Rep. Mark Sanford, R-S.C., laced into the budget, saying it was based on fanciful economic predictions of high growth rates but low inflation and bond yields that would make managing the government's $20 trillion debt less costly.

Trump's plan promises that overhauling the tax code and easing regulations will lift economic growth from the lackluster 2.1 percent average rate of recent years to sustained annual gains of 3 percent or better.

The budget is littered with reductions to services helping the neediest Americans, including the food stamps program ($191 billion cut in the next decade) and the Temporary Assistance for Needy Families ($22 billion cut).

The budget is subject to congressional approval before it becomes law, so let's check out the reactions from lawmakers.

"We're not going to measure our success by how much money we spend, but by how many people we actually help", argued budget director Mick Mulvaney.

Here's a rundown of some of the bigger line items in the budget.

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. The program is integral to health care providers, professionals and hospitals who provide care to Medicaid beneficiaries.

A sizable portion of the cuts to domestic spending would be made to Medicaid.

In the early review of the president's plan, critics also pointed to proposed cuts to welfare assistance and a shift toward more dollars being awarded through "block grants", which can allow new flexibility in spending but would also limit future increases in funding.

It was meant to fund events that could not be forecast and thus could not be budgeted for (hence the name), and thus is not subject to Budget Control Act caps.

The president's proposed budget is merely a guide and lawmakers will be diligent in crafting a more balanced plan, he said.

Chao said Schumer has called for $1 trillion in direct government funding, which is "not very realistic" and would add to the deficit.

A plan to eliminate the federal Housing Trust Fund could cut $10 million in affordable housing help that the state received previous year. The proposal would extend the work requirement to all able-bodied adults.

The budget would reduce pension benefits for federal workers by $63 billion by eliminating cost-of-living adjustments for most and by requiring employees to make larger contributions. It would also give states more control of, and responsibility for, such spending.

-Medicaid would be reduced by more than $600 billion over 10 years by capping payments to states and giving governors more flexibility to manage their rosters of Medicaid recipients. - Debbie Stabenow, Democratic senator from MI, and the person you need to know to get any farm bill passed. Social Security and Medicare remain untouched. But it appears to break Trump's promise not to cut Medicaid.

"You have to have compassion for folks who are receiving the federal funds, but also you have to have compassion for the folks who are paying it", he told reporters. Both programs provide low-income families with access to affordable healthcare.

Student loans: Streamlining (and curtailing) student loan programmes will save US$76 billion.

  • Larry Hoffman