Cuts $3.6 trillion in federal spending over the next decade.
“Deficit spending has become an ingrained part of the culture in the nation’s capital”, the administration said in its budget for fiscal year 2018, which starts from Oct.1, 2017.
The budget will repeal and replace Obamacare, reforming Medicaid, provide a path toward welfare reform, reduce government waste from improper payments throughout the government, redirect foreign aid spending, and reduce non-defense spending and redefine “the proper role of the federal government”.
Trump’s proposed budget is an attempt to make good on campaign promises the businessman-turned-politician made throughout 2016, when he fired up crowds by pledging to cut government waste, remake the way government interacts with Americans and cut politically unpopular programs.
The White House estimates that the country’s cumulative debt as a share of the economy would fall to 60% of GDP by 2027 under Trump’s proposals, down from 77% today. It can, and likely will, come up with a very different plan.
-The Poor: Trump’s budget would slash Medicaid and the Children’s Health Insurance Program by $616 billion over the next decade.
-Farmers: The budget plan would cut farm subsidies by $38 billion over the next decade.
Medicaid is now an entitlement program, which means anyone who qualifies for it receives insurance.
Like the House GOP health bill, the budget would let states beginning in 2020 choose between two funding mechanisms for Medicaid, a block grant or a cap tied to the number of enrollees.
The president is also requesting a $54 billion increase for the Department of Defense and other national defense programs.
At the same time, the blueprint boosts spending for the military by tens of billions and calls for $1.6 billion for a border wall with Mexico that Trump repeatedly promised voters the US neighbour would finance.
The contingency fund pays for wars and current operations in Afghanistan.
Thus, of all the groups that would bear the burden of Trump’s proposed budget, it seems children from low-income families will carry the greatest weight of all.
-The Disabled: Trump’s budget calls for cutting Social Security disability benefits by almost $70 billion over the next decade by encouraging and, in some cases, requiring people receiving the benefits to re-enter the workforce.
$1 trillion for public infrastructure over 10 years, which would mix public dollars with incentives for private-sector investments. Nationally, the AHCA would cut federal funding by 25 percent over 10 years and end coverage to 14 million people across the U.S. The work requirement is popular among conservative think-tanks and has been frequently promoted by House Speaker Paul Ryan.
The Maryland Democrat calls the proposed budget the most “draconian” of any he’s seen sent to the Congress and says it would have a devastating impact on working Americans, federal employees and to national security. The budget projects a $15 billion reduction in funding in 2023 and does not include any funding to make up for that. The food stamp program serves about 42 million people.
Trump would keep campaign pledges to leave core Medicare and Social Security benefits for the elderly alone, but that would translate into even deeper cuts in programs for the poor such as Medicaid and food stamps.
The Trump budget also suggests additional savings of $610 billion, mostly from further reducing the amount Medicaid pays out each year to shift more costs to the states. SNAP helped keep 2.1 million children out of poverty in FY2012. Both credits are created to incentivize low-income people, especially those with children, to work. About $60 billion of that is annual “mandatory spending”, including road repairs paid through gas tax collections.