Trump’s Budget, What Next?
Earlier this week, the Trump Administration released the proposed budget for 2018. The 62 page proposal, “A New Foundation For American Greatness” outlines the $3.6 trillion, 10 year savings proposal to balance the budget and reduce national debt. Budgetary changes come from increases to specific programs, which will be funded, in part, by cuts to other departments and programs and tax reform.
The budget will not affect Medicare or non-disability Social Security, although it includes changes to the Medicaid disability program.
In part, increased funding would support the following:
- Department of Homeland Security – border security – including 1500 new immigration agents and 75 new immigration judges to handle the large backlog of cases
- Defense spending – Defense Secretary Jim Mattis is currently in the process of making appointments for high-level positions, such as Air Force and Navy Secretary. The Department of Defense, has not yet released the Future Years Defense Program (FYDP) plan, not unusual in a transition year.
- Veterans Affairs Department
- Paid Parental Leave
Budget Reductions may affect funding to the following:
- Disability program (SSI)
- Federal Work Study program
- TANF (assistance for needy families)
- Environmental Protection Agency
- State Department – including possible cuts to the United Nations’ – currently, approximately 22% of their operating budget comes from the United States.
The Trump Administration has announced that cuts to federal spending in Medicaid programs would be offset by the repeal/replacement of Obamacare. This includes removing federal mandates and allowing for States to manage federally funded programs.
On a state-by-state basis, some states would see an increase in funding, while others would see an overall reduction in federal financial support. To view how the budget could impact your state, click here.
Next up, the Houes and the Senate will review the budget in committees, and although the US governmental fiscal year begins October, 1st, a final budget may not be seen until the forth quarter.
Click “A New Foundation For American Greatness” for the full proposal, including the budget and links to the Office of Management and Budget.