that President Trump submitted to Congress has goals that include a huge cut in various entitlement programs to the tune of $1.7 trillion in spending, according to Bloomberg News. It will include nearly $200 billion in cuts to the Supplemental Nutrition Assistance Program, which is the successor of food stamps, over the next 10 years. The latter amounts to a 25% reduction, according to The Washington Post. The cut to the food program are part of a $274 billion effort to reform welfare, according to The Associated Press. In other cuts, the Washington Post reports that Trump’s budget calls for about $800 billion in reductions to Medicaid for fiscal year 2018.
Trump’s budget is expected to propose huge domestic discretionary spending cuts. For example, an earlier version of the budget that circulated on Capitol Hill calls for slashing $54 billion in such cuts next year.
Some Republicans have expressed discomfort with the cuts, particularly Trump’s $54 billion in cuts to discretionary spending. Senate Majority Leader Sen. Mitch McConnell (R-KY) recently told Bloomberg that his caucus may have to write their own budget in much the same way that Congressional Republicans are rewriting the Obamacare repeal.
Forecasting a national economic growth accelerating to 3 percent after the tax cuts kick in, Trump has promised to balance the federal government’s budget in 10 years. The cuts also anticipate no recession over the next 10 years. Currently, the economy is not cooperating: growth dropped to an annualized rate of just 0.7% in the first quarter of this year. This was the slowest rate in three years. At the same time, demand for loans has dropped to the lowest point in six years.
Trump’s budget calls for $2.6 billion in border security spending, $1.6 billion of which will be for Trump’s proposed wall along the border with Mexico.
Democrats are already incensed about the proposal. New York Senator Chuck Schumer (D-NY) Trump’s campaign rhetoric to a “Trojan Horse.”
“This budget continues to reveal President Trump’s true colors: His populist campaign rhetoric was just a Trojan horse to execute long-held, hard-right policies that benefit the ultra-wealthy at the expense of the middle class,” Bloomberg noted.