The Trump administration made some striking moves with their recent budget proposal. The first is looking at getting $1.5 trillion in nondefense discretionary cuts. The second has a few more people upset. The second major move is to cut $1.4 trillion from Medicaid over the next ten years.
The budget plan, known as “A New Foundation for American Greatness” will totally revamp the spending in America. According to the Hill, the budget would “[cut] anti-poverty and safety net programs, but [would leave] Medicare and the retirement portion of Social Security untouched.” In his opening remarks at the press conference, Mulvaney said that budget should be renamed “the budget through the eyes of the taxpayer.”
While this may not work in the current state of America, economists are optimistic that the U.S. is rapidly growing. Pairing that fact with the hopeful tax reform plan which will cut taxes, it’s probably that the budget will balance after roughly a decade. According to the Hill, this change could even drop the debt lower than “60 percent of the gross domestic product.”
At one point Mulvaney was asked about the funding for climate change. Mulvaney politely notified the reporter that the Obama administration had used taxpayer money to fund a musical about climate change and asked is that proper use of your money? You can watch the interaction below:
According to the Hill, defense spending will skyrocket:
“By 2027, defense spending would increase $42 billion over sequestration levels, while nondefense would be cut by $260 billion. In that year, nondefense outlays would amount to just 1.4 percent of GDP. The proportion of defense to nondefense discretionary spending would be higher than in the previous 40 years.”
When 2018 swings around, Trump’s budget has placed $54 billion from nondefense to defense spending by cutting from these agencies:
The Environmental Protection Agency would lose 31.4%
The State Department would lose 29.1%
The Department of Agriculture would lose 20.5%
The National Science Foundation would lose 10.7%
The money saved will primarily be redirected to Medicaid…
The budget is also assuming the new American Health Care Act will be passed and ObamaCare will be repealed and replaced. This would cut $839 billion from Medicaid and take funding from Planned Parenthood. The budget is also planning on drawing back from Disability insurance from Social Security which many are saying breaks Trump’s campaign promise of leaving Social Security alone.
Office of Management and Budget Director Mick Mulvaney released the following statements to reporters on Monday:
“We are no longer going to measure compassion by the number of programs or number of people on those programs. If you’re on food stamps and you’re able-bodied, we need you to go back to work.”
He also said this is true for those using disability benefits but should not be receiving them. According to the Hill, the budget office is estimating a 3 percent growth rate in just five years and also predicts that to last up to the year 2028. In comparison, the Congressional Budget Office is estimating the growth to be 1.9 percent over the next ten years.
The budget apparently leaves many weary, including Senate Budget Committee Chairman Sen. Mike Enzi who wrote the following statement:
“The President’s budget is a suggestion. We will take a close look at his budget, but Congress is mandated by the Constitution with key spending responsibilities and will ultimately decide what the nation’s fiscal priorities will be.”
Ivanka even made her appearance in the budget with the proposed $19 billion for paid family leave, a topic most other countries already use.
Credit: The Hill