Deep cuts in Trump budget

Proposal will hurt Medicaid and anti-poverty efforts in rural US

Washington: The White House delivered to Congress a proposed 2018 budget that would deeply cut programmes for the poor and rural America, as well as diplomacy and foreign aid, while boosting defence and border security.

The plan claims it would help balance the budget within 10 years – in large part by rolling back benefits that have helped tens of millions of lower-income people, including many of those who helped send Donald Trump to the White House.

The plan, a reported US$4.1 trillion (RM17.6 trillion) for 2018, is certain to undergo major changes on Capitol Hill, where lawmakers rarely approve a president’s budget wish list in its original form.

Overall, government spending would be cut by US$3.6 trillion (RM15.45 trillion) over 10 years – with anti-poverty programmes like Medicaid – which provides health insurance to low-income families – and food stamps bearing the brunt of the cutbacks.

It does propose a six-week family leave programme for new parents, costing about US$20bil (RM85.85bil) over 10 years – a project championed by Trump’s daughter and key aide Ivanka.

“You have to have compassion for folks receiving federal funds, but you also need compassion for folks paying it,” said White House Budget director Mick Mulvaney while briefing reporters.

The State Department and the Environmental Protection Agency would each see their budgets cut by about a third, while defence spend- ing would increase by more than US$50bil (RM214.63bil) in 2018, or around 10% above 2017 levels.

The proposal also adds US$2.6bil (RM11.16bil) for border security and immigration enforcement – including US$1.6bil (RM6.86bil) for building a wall on the US-Mexico border, one of Trump’s controversial campaign promises.

Mulvaney stressed that Trump’s budget request reflected an effort to “bring some fiscal discipline” to federal spending.

He defended the budget against charges it drastically cuts funding for important safety net programmes like Medicaid, as well as tightening eligibility for disability insurance, a move set to save more than US$70bil (RM300.5bil) over 10 years.

But the blueprint reflects the administration’s plan to “reform Medicaid” to the tune of US$610bil (RM2.61 trillion) in savings over a decade.

Democrats have warned that an additional US$800bil (RM3.43 trillion) would be cut from federal funding of Medicaid with passage of the controversial Republican health care Bill, which seeks to replace Barack Obama’s health reforms.

House Minority Leader Nancy Pelosi branded the budget “a killer for the American people – literally a killer”.

Republicans recognise it as a presidential wish list, and few embraced it with open arms.

Senate Majority Leader Mitch McConnell appeared to distance himself from the budget. — AFP