Trump Budget Sees $1 Trillion Deficits for Next Four Years


Russ Vought, director for the Office of Budget and Management, says the president has concentrated budgetary efforts on fiscal responsibility and reigning in the irresponsible spending that has caused so many problems in Washington. Back in 2016, Mr. Trump suggested he would force Mexico pay for the border wall by threatening to cut off billions of dollars in money transfers that Mexicans who are living in the US send home.

Even with the cuts, which the White House said would add up to $2.7 trillion in savings over a decade, the budget office said budget would not balance until 2034, exceeding the traditional 10-year outlook. The Trump budget takes full advantage, more than doubling funding for this Pentagon slush fund, to $165 billion, up from $81 billion enacted a year ago.

The Latest on President Donald Trump's budget proposal for the 2020 budget. In previous years, lawmakers have reached several budget deals to alter BCA caps that included parallel increases for defense and non-defense programs. "Congress refused to fund his wall and he was forced to admit defeat and reopen the government", the pair warned in a statement. House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer vowed to push back against any attempt to force the border wall through Congress a second time.

Also likely to inflame Mr Trump's opposition is his plan for $US2.7 trillion in spending cuts over the next decade, as well as an across-the-board 5 per cent cut next fiscal year in all spending with the exception of defence, which would increase by 5 per cent to about $US750 billion.

"I would just say that the whole issue of the wall and border security is of paramount importance", he said, adding that the United States should be "much tougher" and "have more constructive immigration policy", and that Trump is "going to stay with this wall".

Tax cuts have been a priority for the Republican White House and Congress in recent years, rather than deficit reduction.

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The Democratic chairman of the House Budget Committee, Rep. John Yarmuth of Kentucky, called the proposed cuts to essential services "dangerous".

Democratic Senator Debbie Stabenow said the budget cut would jeopardise the Usda's ability to implement the farm bill at a time when farmers are struggling with economic instability and trade uncertainty. It would also increase resources to fight the opioid epidemic with money for prevention, treatment, research and recovery, the administration said.

Dubbed the "Budget for a Better America", the proposed budget seems created to provoke another government shutdown in October if Democrats continue to oppose its priorities while most Republicans rally behind Trump, according to a Washington Post analysis.

Given that backdrop, one positive sign is that Mr Trump is proposing additional infrastructure spending but leaving the task of determining its makeup largely to Congress.

The president's budget also calls for institutions of higher education to share in the financial burden associated with federal loans for students.

The request is far more than the $1.4 billion Congress allocated for wall construction in January after a standoff between the president and Democrats, which led to a five-week partial government shutdown.

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It also seeks 8.6 billion dollars for constructing additional sections of a wall along the USA border with Mexico - 5 billion dollars in funding for the Department of Homeland Security and 3.6 billion dollars for the Department of Defense's military construction funds. Now that he's president, Trump is doing the exact opposite.

A number of Senate Republicans have said they oppose Trump moving unilaterally to move money without congressional approval and they are expected to pass a disapproval vote in the coming days.

Trump's budget also calls for the extension of the 2017 tax cuts, which are now expected to expire in 2025.

In an interview with the Fox News Sunday show, Kudlow said, "It will be a tough budget". Some view it as an overreach of executive power.

"This budget uses every gimmick and huge assumptions and it still doesn't get somewhere to be proud of", said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.

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