$54bn hike in US military
Trump to boost defence spending as he signals foreign aid will be cut
DONALD TRUMP will propose a $54 billion (£43bn) increase in defence spending and impose corresponding cuts to domestic programmes and foreign aid in his budget plans for 2018.
White House budget officials outlined the information during a telephone call with reporters.
The president’s defence budget and spending levels for domestic agency operating budgets will be revealed in a partial submission to Congress next month, with proposals on taxes and other programmes coming later.
The approximate 10 per cent increase for the Pentagon would fulfil a Trump campaign promise to build up the military.
One official said there will be a reduction in foreign aid and that most domestic agencies will face cuts.
Tentative proposals for the 2018 budget year that begins on October 1 are being sent to agencies, which will have a chance to propose changes to the cuts as part of a long-standing tradition at the budget office.
President Trump’s budget, once finalised and sent to Congress in mid-March, is sure to set off a huge Washington battle.
Democrats and some Republicans are certain to resist the cuts to domestic agencies, and any legislation to implement them would have to overcome a filibuster threat by Senate Democrats.
A government shutdown is a real possibility.
President Trump’s budget also will not make significant changes to Social Security or Medicare, according to an administration official.
Mr Trump’s first major fiscal marker will land in the agencies one day before his first address to a joint session of Congress.
The prime-time speech is an opportunity for the President to refocus his young presidency on the core economic issues that were a centrepiece of his White House run.
The upcoming submission covers the budget year starting on October 1. But first there is an April 28 deadline to finish up the unfinished spending bills for the ongoing 2017 budget year, which is almost half over – and any stumble or protracted battle could risk a government shutdown then as well.
The March release is also expected to include an immediate infusion of 2017 cash for the Pentagon that is expected to register about $20bn (£16bn) or so and contain the first wave of funding for Mr Trump’s promised border wall and other initiatives, such as hiring immigration agents.
The president previewed a boost in military spending during a speech last Friday to conservative activists, pledging “one of the greatest buildups in American history”.
“We will be substantially upgrading all of our military, all of our military, offensive, defensive, everything, bigger and better and stronger than ever before,” he said.
In an interview with Fox News, Treasury Secretary Steven Mnuchin said cuts to Social Security and Medicare would not be part of the administration’s first budget.
Mr Trump’s priority is passing legislation to reduce middle-class and corporate taxes, he said.
As a candidate, Mr Trump promised to leave major entitlements untouched.