Published: Wed, May 24, 2017
Medicine | By Megan Pierce

Trump's $4 trillion budget arrives on Capitol Hill

Trump's $4 trillion budget arrives on Capitol Hill

"We have plenty of money in this country to take care of the people who need help", Mulvaney said - just not enough to take care of people who don't need help, he added.

The plan - if agreed to by Congress - would cut $3.6 trillion in government spending over 10 years, balancing the budget by the end of the decade. It calls for deep cuts to programs such as Medicaid and food stamps, while projecting a big boost to economic growth that could be hard to achieve.

The proposal foresees a balanced budget in 10 years, but that relies on growth of at least 3 percent a year, widely seen as exceedingly optimistic, plus Congress passing the American Health Care Act along lines laid out in the House Republican version. This year's budget debate, Republicans hope, would grease the way for a major overhaul of the loophole-cluttered tax system.

Cuts include a whopping $193 billion from food stamps over the coming decade - a cut of more than 25 percent - implemented by cutting back eligibility and imposing additional work requirements, according to talking points circulated by the White House.

"We think it's wrongheaded", said Rep. Mike Conaway, R-Texas, chairman of the House Agriculture Committee, when asked about looming cuts to farm programs.

Ryan says "President Trump has proven his commitment to fiscal responsibility with a budget that will grow the economy".

"I do not believe this is what will happen", Manchin said of the Trump budget bill's chances on Capitol Hill.

Republicans, who control the House of Representatives, the Senate and the White House, are looking for ways to cut federal spending as they pursue massive tax cuts, the cornerstone of the Trump administration's pro-business economic agenda.

Trump's budget, like all presidents', represents policy priorities and is an opening bid in negotiations with Congress over spending.

The budget President Donald Trump is expected to release on May 23 will reportedly include hundreds of billions of dollars in cuts to Medicaid.

The budget would reduce pension benefits for federal workers by $63 billion by eliminating cost-of-living adjustments for most and by requiring employees to make larger contributions.

Under the president's plan, per the White House budget, Medicaid spending will increase from $378 billion in 2017 to $404 billion in 2018, reaching $524 billion by 2027.

The new proposed budget, which is titled the "New Foundation for American Greatness" and which the White House will officially roll out on Tuesday, indeed fulfills Trump's campaign promise of not touching either Medicare or Social Security.

Democrats have already voiced strong opposition to the plan, and even Republicans are wary of the political dangers in Trump's draconian cuts. The Congressional Budget Office has estimated that the cuts to Medicaid in the AHCA alone would lead to 14 million losing coverage.

Some of those spending reductions would come from crop insurance subsidies if the budget were to be approved.

Without the juiced-up growth projections, Trump's plan would be nearly $500 billion in the red instead of sporting a small surplus in 2027, the target year.

If the USA continues to underinvest in infrastructure, it will continue to fall behind other nations and its economic performance will suffer, the White House said.

Senate Majority Leader Mitch McConnell told colleagues that the Trump plan - unlike any of President Barack Obama's budget blueprints - "actually achieves balance".

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