Donald Trump 2018 budget proposal: Key highlights

President Donald Trump sent his 2018 budget request to Congress on Tuesday. It is a political wish list that slashes $3.6 trillion over 10 years as the administration aims to balance the budget.

AFP May 24, 2017 07:10:01 IST
Donald Trump 2018 budget proposal: Key highlights

Washington: President Donald Trump sent his 2018 budget request to Congress on Tuesday. It is a political wish list that slashes $3.6 trillion over 10 years as the administration aims to balance the budget.

The cuts primarily target social safety net programs while the blueprint boosts military spending. Here are the highlights:

Deep cuts

Donald Trump 2018 budget proposal Key highlights

File image of Donald Trump. AP

Medicaid: The health care program for the poor suffers a $610-billion cut over 10 years. The White House bases its projections on passage of the Republican health care bill recently approved by the House of Representatives. Democrats note the bill would slash Medicaid by $800 billion.

Food Stamps: The Supplemental Nutrition Assistance Program, the US government's modern version of food stamps, takes a hit of $193 billion.

Retirement benefits: Implementing several changes to the Federal Employees Retirement System saves $77 billion over a decade.

Student loans: Streamlining (and curtailing) student loan programs will save $76 billion.

Departments: The State Department and US Agency for International Development see their combined budget slashed by 31.5 percent, to $37.6 billion next year. The Environmental Protection Agency budget also gets cut by 31.4 percent, while the Department of Education loses 13.5 percent of its funding.

Increased spending

Defence: Trump's proposed budget calls for $639 billion in Pentagon spending in 2018, up from $606 billion in 2017.

Parental leave: A new proposal allowing six weeks of paid leave for parents of newborns and adopted children, a program championed by Trump's daughter Ivanka, costs $20 billion.

Border Security: $1.6 billion is reserved for building a wall on the US border with Mexico, a top Trump campaign priority.

Changes

Taxes: The budget proposal partly relies on the implementation of Trump's tax overhaul, with the White House stressing that the reform's lower tax rates would trigger investment, create jobs and help lead to the budget's optimistic annual economic growth projection of 3.0 percent.

The plan shrinks the current system from seven brackets to just three: 10 percent, 25 percent and 35 percent. It cuts the corporate tax rate to 15 percent.

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

Centre can cut excise duty on petrol, diesel by Rs 8.5 a litre without hurting revenues, say experts
India

Centre can cut excise duty on petrol, diesel by Rs 8.5 a litre without hurting revenues, say experts

Central and state taxes make up for 60 percent of the retail selling price of petrol, available at Rs 91.17 per litre in Delhi and over 54 percent of diesel which is available for Rs 81.47 in the National Capital

US coronavirus fatalities approach 500,000; Anthony Fauci terms it worst health crisis in past 102 years
World

US coronavirus fatalities approach 500,000; Anthony Fauci terms it worst health crisis in past 102 years

A year into the pandemic, fatalities have reached about 498,000 — roughly the population of Kansas City, Missouri, and just shy of the size of Atlanta

Centre released Rs 1 lakh crore GST compensation to states since Oct 2020, says Finance Ministry
India

Centre released Rs 1 lakh crore GST compensation to states since Oct 2020, says Finance Ministry

The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of GST