US president Donald Trump’s administration will unveil his budget later today.
Trump, who is travelling overseas and will miss the unveiling of his plan, wants lawmakers to cut $3.6trn in government spending over 10 years, balancing the budget by the end of the decade, according to a preview given to reporters late on Monday.
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Robert Greenstein, president of the Center on Budget and Policy Priorities said:
We expect this budget to be the most aggressive proposal by any modern president to shift large amounts of income and resources from low- and modest-income households struggling to get by, to those at the top.
Verdict takes a look at what we can expect.
1. Social care
Under Trump’s plans, the National Cancer Institute would be hit with a $1bn cut compared to its 2017 budget.
The National Heart, Lung and Blood Institute would see a $575m cut, and the National Institute of Allergy and Infectious Diseases would see a reduction of $838m, the Washington Post reported.
Medicaid, the program introduced under former US president Barack Obama for people unable to pay for healthcare, will face an huge reduction in funding under Trump’s budget proposals.
Indeed, Trump’s budget plan would follow through on a bill passed by House Republicans to cut Medicaid by more than $800bn over the next 10 years
The Congressional Budget Office has estimated that if approved, such a policy could prevent 10m people from accessing Medicaid benefits over the next decade.
The Republican’s healthcare bill passed the US House of Representatives earlier this month, replacing Obamacare.
Other social spending reductions are also expected, Reuters reported, however, it is unlikely that Congress will approve them.
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Brian Gardner, an analyst with KBW Washington, said in a note to clients:
A president’s budget is a wish list, and many of the proposals in it may not become law.
There is speculation that SNAP (food stamps), CHIP (Children’s Health Insurance Program), and SSDI (Disability Insurance) programs will see significant funding reductions.
Currently, 18 states plus the District of Columbia allow families with incomes higher than 300 percent of the poverty line to sign up their children for CHIP, according to data from the Kaiser Family Foundation.
Soon after Trump was sworn in as 45th president of the US, he said: “We want to get our people off welfare and back to work…It’s out of control.”
Trump hopes to cut Environmental Protection Agency (EPA) funding by nearly one-third, reducing its size to what it was in the 1970s.
He also wants to slash spending on renewable energy innovation and eliminate the Greenhouse Gas Reporting program, among others.
Clean air regulatory programs, for example, would be cut by 47 percent.
Cuts to several key programs at the Centers for Disease Control and Prevention (CDC), which responds to disease outbreaks in the US and around the world are expected.
The CDC also ensures food and water are safe for consumption across the country.
The president’s budget proposes an $82m cut at the center that works on vaccine-preventable and respiratory diseases, such as influenza and measles.
It puts forward a cut of $186m from programs at CDC’s center on HIV/AIDS, viral hepatitis, sexually transmitted infections and tuberculosis prevention.
The money from the extensive cuts will be channeled into a new $500m block grant program to focus on “leading chronic disease challenges specific to each state.”
A federal paid family leave program will give families six weeks of paid leave after the birth or adoption of a child, a Trump administration official told CNN.
“For many families in our country, childcare is now the single largest expense — even more than housing,” Trump said during a September 2016 campaign rally in Pennsylvania. “Our plan will bring relief to working and middle class families.”
Trump has promised to cut tax rates. He is expected to create three tax brackets — 10 percent, 25 percent and 35 percent — instead of the current seven.