[ad_1]
President Trump on Wednesday urged every major ministerial agency to draft proposals to cut 5% of its budget next year, adding that he could grant waivers to his request and suggesting that he would not ask the Pentagon to totally reduce the 5%.
"Remove the fat, get rid of trash," Trump said at a meeting with cabinet members. "I'm sure everyone around this table can do it."
Trump was probably referring to the planning process that will be included in the White House budget request in the spring. But spending levels must be approved by Congress and legislators have repeatedly rejected the Trump administration's budget proposals.
The push reflects the extreme focus of the GOP in recent days to come up with ideas to deal with the growing budget deficit, which has exploded since Republicans took control of Washington after years of denigrating deficits under the Obama administration .
A person informed of Trump's new plan, who was not allowed to speak, said the target was an average 5% reduction in discretionary spending by federal agencies.
Trump said he hoped the defense budget would be reduced from $ 716 billion to $ 700 billion, a reduction of about 2 percent.
The US government is expected to spend $ 4.47 billion next year, according to the Congressional Budget Office. Of this amount, approximately $ 1.36 trillion is "discretionary", or managed by Cabinet agencies and appropriated by Congress each year. A 5% reduction in this funding would be a reduction of $ 68 billion.
A report released on Monday showed that the budget deficit had risen 17% last year, reaching $ 779 billion, and that it was expected to eclipse $ 1 trillion per year by 2020.
Budget experts believe the deficit is rising due to a sharp increase in spending on military and other programs as well as last year's tax cut.
Because the government spends a lot more than it generates revenue, it has to borrow money to cover the difference by issuing debt. Interest payments on debt have already exceeded $ 300 billion a year and will rise rapidly with rising interest rates.
Trump's efforts to cut spending Wednesday contrast with past and current calls for increased spending elsewhere.
The president has also repeatedly and successfully claimed more defense spending. He threatened to dismantle the government if he did not mobilize at least $ 5 billion in December for the construction of a border wall, a promise that was made after his repeated campaign promise that the wall would be paid for by the government. Mexico. Trump also said that Congress should allocate the funds needed to manage hurricanes and forest fires, breaking with the GOP precedent and providing for new spending should be offset by cuts in other areas.
In March, Trump signed a $ 1 trillion spending bill that boosted domestic and defense spending, although he said on Wednesday that a portion of domestic spending was "on the books." 39 "wasted money" that he "would never have approved" if he had not needed Democrats' support for his future. increase in military spending.
Republicans in recent days have expressed renewed concern about the deficit and some party conservatives are pushing for cuts in spending.
Republicans had spent much of the Obama administration complaining about the deficit and demanding cuts in spending and budget cuts, but they dropped many of their pledges since taking office. Trump. Trump has not shown great interest in reducing debt since his takeover, saying that higher tax cuts and spending would contribute to the growth of the economy.
Trump's comments come one day after Senate Majority Leader Mitch McConnell (R., Ky.) Said a very different approach was needed to reduce the deficit.
McConnell blamed programs such as Medicare, Medicaid and Social Security for fueling the deficit, but said the programs could only be changed if the Democrats took control of the House or Senate because it would require leadership. of both parties.
It is extremely unlikely that Democrats will approve reductions in the benefits of these programs and many party leaders are campaigning to develop such programs.
During the 2016 campaign, Trump promised not to apply Medicare, Medicaid and Social Security reduction measures, which account for about 50 percent of the budget. Many Republicans said the only way to reduce future deficits was to limit spending on these programs.
Since his election, Trump has backtracked and said he would be asking for major cuts in Medicaid, a health care program aimed at the poor, but he has largely refused Medicare and drug cuts. social Security.
On Tuesday, Trump told The Associated Press that McConnell said spending on social programs was leading to a budget deficit. "I'm leaving social security. I do not touch social security. "
Trump has already signed a spending bill that will fund most federal agencies, including the Pentagon, until September 30, 2019. But spending on other programs, including homeland security , expire in less than two months and he has threatened a partial government closure if he does not secure more money for a border wall.
[ad_2]
Source link
