But that proposal would directly conflict with one of President Trump’s core promises on the campaign trail. Right now borrowers of federal undergraduate loans can repay their loans based on how much they earn, with payments at either 10 or 15 percent of income based on the program.
Trump’s budget would also cut entitlement programs for lower-income Americans, such as Medicaid.
Trump’s GOP allies rejected such cuts when wrapping up long-overdue legislation for the current budget year, which ends September 30.
NY magazine notes that the overall budget relies on a $2 trillion math error and an overoptimistic economic growth projection.
Wisconsin advocacy groups said Monday that it’s too soon to know how the cuts would affect enrollment levels or specific services provided to Medicaid enrollees. But it needs to pass a spending bill by September 30, the end of the fiscal year, in order to avert a government shutdown.
Previously reported FY 2018 budget provisions include a $54 billion hike in defense spending that would be offset by making drastic cuts to nearly 20 federal agencies.
Furman also says it’s been almost a decade since the last recession, and just about every economist believes another is inevitable over the next decade. The administration has requested $2.6 billion for overall border security.
Trump has said he will find a way for Mexico to repay the United States for the construction of the wall but that Congress would need to fund it first. The new program has been championed by Trump’s daughter, Ivanka. With 10,000 baby boomers hitting retirement age each day, and an official unemployment rate of 4.4 percent, it would be hard for the USA economy to grow as fast as the administration envisions without enlisting an army of new workers.
Several programs geared to helping low-income and disabled Americans would come under the knife in Trump’s budget. Swan identifies these cuts as coming from food stamps, the Children’s Health Insurance Program, and disability insurance.
The White House says it would be implemented by cutting back eligibility and imposing additional work requirements.
All domestic spending except for the military and homeland security would be cut by $57 billion, which is around 10 per cent, over the next decade. Foreign aid makes up roughly 1% of the federal budget and includes a host of programs meant to help implement national security policy.
House Democratic Leader Nancy Pelosi said the Trump plan “guts investment in jobs and hollows out our economy“, and instead should be focused on investments in jobs, education, clean energy and medical research. Moreover, the administration’s budget assumes that it will continue to collect revenue at today’s tax rates – which it has repeatedly said it intends to lower.
Trump is calling for six weeks of national paid leave to be made available to new mothers and fathers, including those who adopt. In states that reinstated the limit, such as Kansas and ME, many of those who had their benefits stopped were still not working a year later.
There are also cuts to college loan programs and pension programs for federal employees, while adding spending for the military.
And while House Republicans have already passed a bill that would provide for the same cuts, and even some Senate Republicans are pushing for the kinds of changes that would drop millions of adults from Medicaid, it’s not clear they have enough support in the Senate to get what they want.