On February 12, 2018, President Donald Trump released his $4.4 trillion federal budget request for Fiscal Year (FY) 2019, entitled “An American Budget” (FY 2019 Budget Request/Budget Request), which includes $3 trillion in spending cuts over the next 10 years and would increase revenue by $813 billion from economic growth. The proposal does not include provisions to achieve a balanced budget, projecting a $445 billion deficit by the end of the decade.
In the proposal, President Trump highlights recent economic growth for the nation, including the creation of two million jobs, a 17-year low for unemployment, and adding nearly $5 trillion in new wealth to the stock market. The proposal includes increased federal spending for the military, infrastructure, and border security, while cutting federal healthcare programs like Medicare and Medicaid.
Over a 10-year period, the FY 2019 Budget Request suggests that Congress appropriate $200 billion for infrastructure to spur $1.5 trillion in infrastructure investment with state, local, and private partners.1 The White House also requests $85.5 billion in discretionary funding for the Department of Veterans Affairs and proposes $23 billion for border security and immigration enforcement, including $18 billion for southern border wall construction during FY 2018 and FY 2019. The Budget Request calls for nearly $17 billion for the Department of Health and Human Services, and additional funding through a variety of different agencies, to address the nation’s opioid epidemic.
The FY 2019 Budget Request cuts mandatory spending by $1.66 trillion over the next decade, primarily through cuts to Social Security, Medicare, and Medicaid. Under the proposed budget additional mandatory spending programs would face a 7% budget cut of $513 billion over the next 10 years, including changes to the Postal Service for a savings of $39.5 billion, modifications to crop insurance premiums for $26 billion in reductions, the creation of a single income driven student loan repayment plan for savings of $128.4 billion, and overhauling the Supplemental Nutrition Assistance Program (SNAP) to create $213.5 billion in savings.
The Budget Request also identifies key legislative priorities and proposes to streamline regulatory processes. Examples of such priorities include making the US a net energy exporter by 2026, adding resources to rebuild and modernize the military, addressing high medical drug prices, reforming the current welfare system, and potentially creating a pathway to affordable education and well-paying jobs. The Budget Request proposes eliminating 22 regulations for every new regulation created.