President Donald Trump unveiled a $4.8 trillion budget proposal on Monday that includes deep cuts to domestic programs like food stamps, Medicaid and affordable housing programs.
Trump’s fiscal 2021 plan should be dead on arrival and soundly rejected by Congress.
The plan includes additional spending for military, national defense, border enforcement and an extension of the individual income tax cuts that were set to expire in 2025 while dramatically slashing safety net programs for vulnerable Americans.
The biggest reduction is an annual 2 percent decrease in spending on discretionary domestic programs like education and environmental protection.
Trump’s plan would deeply cut food stamps, subsidized housing for the poor, Medicaid and student loans. Trump’s budget also targets clean energy programs and student loan subsidies.
Specifically, Trump’s proposal would cut $465 billion from Medicare providers such as hospitals, slash funds to the Environmental Protection Agency and take about $900 billion out of Medicaid over a decade.
The budget proposal would reduce the $1.08 trillion budget deficit for the ongoing budget year and a $966 billion deficit gap in the 2021 fiscal year starting Oct. 1 to $261 billion in 2030 mainly through huge cuts in domestic programs while keeping tax cuts intact and boosting military spending. The plan proposes $4.4 trillion in spending cuts over the coming decade.
Trump has also proposed adjustments to eligibility for Social Security disability benefits.
Trump’s proposed cuts to Medicaid and subsidies for Affordable Care Act health insurance policies total almost $1 trillion over 10 years, according to calculations by the Center on Budget and Policy Priorities.
Medicaid provides care to more than 70 million poor and disabled people. President Barack Obama expanded Medicaid when passing the Affordable Care Act a decade ago, but Trump has endorsed Republican plans to dramatically reduce the program.
Trump would cut food stamp costs by providing much of the benefit as food shipments instead of cash. He’s also proposing work requirements for safety net programs like Medicaid, food stamps and federally subsidized housing.
Other cuts include eliminating heating subsidies for the poor and plans to dramatically slash legal aid to the poor.
The budget vaguely promise a “health reform vision” that calls for better care at lower cost and protecting people with preexisting medical conditions. However, Trump and his fellow Republicans have previously tried to dismantle the Affordable Care Act. There is no reason to believe they won’t try again if there is a second Trump administration and the GOP gains more seats in Congress.