According to budget tables released by the administration, Trump’s plan cuts nearly $3.6 trillion from an array of benefit programs, domestic agencies and war spending over the coming decade – an nearly 8 percent cut – including repealing and replacing Obama’s health law, cutting Medicaid, eliminating student loan subsidies, sharply slashing food stamps, and cutting $95 billion in highway formula funding for the states.
“Many in agriculture and rural America are likely to find little to celebrate within the budget request”, Alabama Rep. Robert Aderholt, the Republican chairman of the appropriations subcommittee that oversees agriculture spending, told Perdue.
“We want to do some climate science, but we aren’t going to do some of the insane stuff that the previous administration did”, Mick Mulvaney, director of the White House Office of Management and Budget, told reporters. The proposal also includes big cuts in Social Security’s disability program.
Republicans are still eying cuts to the program, but none as large as what Trump has proposed.
“Are we going to actually throw millions off Medicaid? No”. “Is this how you want it spent?”
President Donald Trump’s first budget request to Congress would cut or eliminate a range of programs created to reduce greenhouse gas emissions, as well those helping communities prepare for more intense flooding or hurricanes expected to result from climate change.
The Pentagon would get a spending hike, and there would be a $1.6 billion down payment to begin building a wall along the border with Mexico, which was a central promise of Trump’s presidential campaign.
“We reject that pessimism”, Mulvaney said at a White House briefing Tuesday.
Republicans anticipate that they’ll use a reconciliation package to pass tax reform, which could prevent them from passing legislation that adds to the deficit outside the budget window they use, which has typically been 10 years.
“Trump’s budget is a return to the pre-financial crisis world”, where the rate curve from the Fed’s overnight lending to the longest-term bonds were higher across the board, he said.
THE FACTS: Former President Barack Obama’s expectations for growth were in line with accepted economic views at the time.
House Speaker Paul Ryan stopped short of embracing the administration’s budget projections. Based on what we know so far, the plan could cost $3 to $7 trillion over a decade – our base-case estimate is $5.5 trillion in revenue loss over a decade.
South Carolina Rep. Mark Sanford told White House budget director Mick Mulvaney that Trump’s budget “presumes a Goldilocks economy” that never goes into recession.
“You can not move quickly to pull the rug out from under people who need help”, Kasich said. But the reality is you can’t. Can you guess the last time we had an unemployment rate of 4.8 percent, growth of 3 percent and inflation held at 2 percent?
But look at page 27 of Trump’s budget.
Trump’s budget would squeeze additional savings beyond that, but congressional aides say how much is not exactly clear. The budget, which would slash $1.7 trillion in spending over 10 years, makes deep cuts to domestic programs focused on science and research, the arts and, most notably, social welfare programs such as Medicaid, student loans, and food stamps.
Hoagland noted that many of these programs are “necessary” for investing in workers to increase productivity.
Without that sustained growth, there could be a serious fiscal shortfall caused by Trump’s policies. Not a top academic economist surveyed this month by the University of Chicago said such a feat was possible given today’s economic and demographic circumstances.
Obama’s first budget in 2009 estimated growth would be above 4 percent in 2011, 2012 and 2013.