Trump budget calls for return to 'fiscal sanity'

Donald Trump

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Some fiscal watchdogs, though, panned the effort as more piling on of debt by Trump with no course correction in sight. Now, under the new budget proposal, Trump is requesting five times more: $8.6 billion for 200 miles of wall. She warned the debt load will lead to slower income growth and stalled opportunities for Americans. The proposal is significant, both for how it started the politically bloody spending fight ahead (including funding for the border wall), and for its use of classic budget stunts.

"While demanding billions more for his wasteful, ineffective wall, President Trump will steal from students and hungry families, from rural communities and American farmers, from clean air and clean water, and from vital, job-creating investments nationwide".

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 the Trump plan would not balance until 2034, exceeding the traditional 10-year outlook. By strengthening work requirements, the administration wants to end people's dependency on government benefits. The non-defense cut over 10 years is even sharper: 16.6 percent.

Aides place copies of Volume 1 of U.S. President Donald Trump's budget for Fiscal Year 2020 on a table after it was delivered by the Office of Management and Budget (OMB) to the House Budget Committee room on Capitol Hill in Washington U.S., March 11, 2019.

Vought said that "Medicare spending will go up every single year by healthy margins and there are no structural changes for Medicare beneficiaries". Trump would send a near-record $165 billion in open-ended funding to the Pentagon via OCO.

Revenue would total $3.6 trillion in the coming year, while spending would total $4.7 trillion, resulting in a deficit of $1.1 trillion. The administration first proposed it a year ago, and the idea carries the endorsement of health secretary Alex Azar, a top Democratic lawmaker, and the pharmaceutical industry.

The President is clearly still stinging from two defeats on the 2019 budget, one in December and one in January. That's the reality that will greet Trump's latest budget, which probably will promptly be shelved after it's received by Congress on Monday. Those funds aren't subject to the budget caps that Congress has had to overcome for almost a decade.

"We don't think that that paradigm allows us to be able to get our fiscal house in order", Mr. Vought said. But House Armed Services Committee Chairman Adam Smith, D-Wash., and House Budget Committee Chairman John Yarmuth, D-Ky., have called it "a giant OCO gimmick to prop up defense spending".

While pushing down spending in some areas, including the Environmental Protection Agency, the proposal will seek to increase funding in others to align with the president's priorities, according to one official.

The Department of Veterans Affairs would get a 7.5 percent boost, to $93.1 billion.

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The Department of Justice is afforded $330 million in the budget to fight the opioid crisis that has been an increasing focus of the Trump administration.

It provides $500 million in new spending over the decade on child cancer research.

"This is a budget for the military industrial complex, for corporate CEOs, for Wall Street, and for the billionaire class", Sanders said.

The budget envisions a complete repeal of Obamacare and an extension of the Republican tax cut law, which the White House says is necessary to keep the economy booming. The plan says that money would be leveraged with private dollars, but Congress has largely panned that approach.

White House economic advisor Larry Kudlow said Sunday "there's no reason to obsess" about the budget deficit, as long as it remains below 5 percent of the overall economy. That's in line with other economists such as Oxford Economics, which also pegs 2019 growth at 2.3 percent followed by several years of 1.8 percent growth. Others have predicted lower growth. "He's gonna stay with his wall", Kudlow said. Republicans used to poke fun at Barack Obama's proposals by forcing Senate Democrats to vote on them, which usually wound up with unanimous opposition to the proposals. Fresh off the longest government shutdown in history, his 2020 plan shows he is eager to confront Congress again over the wall.

"President Trump hurt millions of Americans and caused widespread chaos when he recklessly shut down the government to try to get his expensive and ineffective wall, which he promised would be paid for by Mexico", House Speaker Nancy Pelosi, Democrat of California, and Senate Democratic Leader Chuck Schumer of NY said in a joint statement Sunday.

"At a time when our country faces challenges about jobs for the future, this money would better be spent on rebuilding America, and on education and workforce development for jobs for the 21st Century", they continued.

The budget arrives as the Senate readies to vote this week to terminate Trump's national emergency declaration. The Democratic-led House already did so, and a handful of Republican senators, uneasy over what they see as an overreach of executive power, are expected to join Senate Democrats in following suit.

He stressed the final version of the deal will go to President Trump who will decide whether it's good enough for the USA, and said he expects the upcoming trade deal to be "positive and bullish".

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