Trump budget proposes harsh cuts to social programs and huge jump in military spending

The Trump Administration released its 2019 budget proposal on February 12^th, 2018

The 2019 budget is here while the White house 2019 budget page with the budget and related supplements is here.

Here are some highlights. The budget has large reductions in social programs such as: HHS budget would be cut by 21%. HUD down 18%. Interior slashed 16%. Labor drops 21%. State cut 26%. Transportation reduced by 19%.

In the proposed budget, Defense spending is increased by 13% next year including $24 billion more for nuclear weapons. Defense spending would increase by 80% over the next 10-years compared to social spending.

There is also a separate two-penny (2%) across the board cut for all domestic, discretionary spending each year.  That’s about a 30% cumulative cut over the 10-year budget period.

Treasury budget includes an “integrity” program to reduce the gap between “taxes owed vs. taxes collected” by $29 Billion. IRS enforcement created a big issue with the XXX administration.

In S-2, you see some really brutal cuts to welfare, healthcare (Obamacare), student loans, disability, retirement, and Medicare. It also includes huge reductions in “other,” unnamed programs. Interestingly, it includes $1-2 billion for paid parental leave. The paltry item is split out on its own line in the appendix.

In S-4, the proposed budget, Trump wants to increase defense spending by 80% relative to social programs. Right now, the money spent on social needs and defense is roughly equal. Trump proposes to make defense spending roughly 80% larger than social program by 2028.

Eliminates the MBDA – Minority Business Development Centers. Turns MBDA into a “policy” office for the federal government

The GDP is expected to grow by 2.8% and the inflation rate will average 2.3% over the time span of the budget. The year deficit falls from $665 B (2017) to $363 B in 2028.

 Major Categories in the Budget

Description	Amount	Change	% Change
Agriculture	$19 Billion	-$3.7 Billion	-16%
Commerce	$9.8 Billion	+$546 MM	+6%
Defense	$686 Billion	+$80 Billion	+13%
Education	$60 Billion	-$7.1 billion	-10.5%
Energy	$29 billion	-$900 Million	-3%
HHS	$68.4	-$17.9	-21%
DHS	$46 B	+$3.4 Billion	+8%
HUD	$39.2 billion	-$8.8	-18%
Interior	$11 B	-$2.2 B	-16%
Justice	$28 B	-$345 MM	-1%
Labor	$9.4 B	-$2.6 B	-21%
State	$25.8 B	-$9 B	-26%
Transportation	$15.6 B	-$3.7 B	-19%
Treasury	$12.3 B	-$392 MM	-3%
VA	$83.1 Billion	+$8.7 B	+11.7%
Army COE	$4.8 B	-$480 MM	-20%
EPA	$5.4 B	-$2.8 B	-34%
NASA	$19.6 B	+$500 MM	+2.6%
SBA	$834	-$53 MM	-6%