A budget proposal unveiled by the White House Monday reportedly includes cutting deficits by $3 trillion over the next 10 years, includes severe cuts to some federal agencies, $18 billion for a Mexican border wall, and increases funding for the Pentagon.
However, the Associated Press noted that Trump’s $4.4 trillion budget proposal “heralds an era of $1 trillion-plus federal deficits and — unlike the plan he released last year — never comes close to promising a balanced ledger even after 10 years.”
The AP further reported:
Tax revenue would plummet by $3.7 trillion over the 2018-27 decade relative to last year’s “baseline” estimates, the budget projects. Trump is requesting a record $686 billion for the Pentagon, a 13 percent increase from the 2017 budget enacted last May.
The spending spree, along with last year’s tax cuts, has the deficit moving sharply higher with Republicans in control of Washington. Trump’s plan sees a 2019 deficit of $984 billion, though $1.2 trillion is more plausible after last week’s budget pact and $90 billion worth of disaster aid is tacked on. That’s more than double the 2019 deficit the administration promised last year.
All told, the new budget sees accumulating deficits of $7.2 trillion over the coming decade; Trump’s plan last year projected a 10-year shortfall of $3.2 trillion.
“In one year of working together, we have laid the foundation for a new era of American greatness,” Trump said in the budget message accompanying his spending document. “America is back to winning again. A great spirit of optimism continues to sweep across our nation.”
The plan also reprises proposals from last year’s Trump budget to curb crop insurance costs, cut student loan subsidies, reduce pension benefits for federal workers and cut food stamps, among other proposals.
Mick Mulvaney, the former tea party congressman who runs the White House budget office, said Sunday that Trump’s new budget, if implemented, would tame the deficit over time.
“The budget does bend the trajectory down, it does move us back towards balance. It does get us away from trillion-dollar deficits,” Mulvaney said on “Fox News Sunday.”
“Just because this deal was signed does not mean the future is written in stone. We do have a chance still to change the trajectory. And that is what the budget will show tomorrow,” he said.
BREAKING: President Trump sends Congress $4.4 trillion spending plan that features soaring deficits.
— The Associated Press (@AP) February 12, 2018