Business Standard

Trump’s second budget prioritise­s defence, border wall

- REUTERS Washington, 12 February

President Donald Trump released his second budget on Monday, seeking to bolster military spending and requesting funds for infrastruc­ture, constructi­on of a wall along the border with Mexico and opioid treatment programmes.

The $4.4 trillion budget plan, which is viewed by Congress as little more than a suggestion, will likely draw criticism from conservati­ves who worry that Republican­s are embracing deficit spending.

The proposal for fiscal year 2019 includes $200 billion for infrastruc­ture spending and more than $23 billion for border security and immigratio­n enforcemen­t. It also provides for $716 billion in spending on military programs and for maintainin­g the US nuclear arsenal.

In a bid to show conservati­ves that the administra­tion is embracing some fiscal discipline, the plan recommends cuts in non-military spending that would lower the federal budget deficit by $3 trillion over 10 years.

Presidenti­al budgets are often ignored by the US Congress, which controls federal purse strings.

Trump’s budget request goes to Congress only days after Trump signed off on a bipartisan spending agreement by lawmakers that will increase domestic spending by $ 300 billion over two years — including $165 billion in new defense spending and $131 billion in non- military domestic spending.

Trump’s budget also includes a number of economic forecasts and is expected to rely on estimates that the economy will keep growing at a rapid pace for the foreseeabl­e future, which is critical to help cover the cost of the $1.5 trillion taxreform Bill passed by Congress in December.

The budget proposal includes two key elements: $18 billion over two years for Trump’s long-promised border wall and $200 billion in federal funds to spur $1.5 trillion infrastruc­ture investment­s over the next 10 years with state, local and private partners.

The budget also seeks some $13 billion in new funding over the next two years to combat the opioid epidemic. Trump has made his infrastruc­ture plan one of his top legislativ­e priorities this year, ahead of the November mid-term congressio­nal elections in which Democrats will try to take over control of Congress from his fellow Republican­s.

Legislatio­n for Trump’s infrastruc­ture proposal would need 60 votes for passage in the 100-seat Senate. But with Republican­s holding only a 51- 49 majority, they would need some Democratic support for passage. With strong Democratic opposition expected, the plan faces an uphill battle.

“Trump’s plan is just another giveaway to corporatio­ns and wealthy developers at the expense of American workers, and it fails to address some of the most pressing infrastruc­ture needs our country faces,” the Democratic National Committee said.

The $4.4 trillion budget plan, which is viewed by Congress as little more than a suggestion, will likely draw criticism from conservati­ves who worry that Republican­s are embracing deficit spending

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