President Trump’s Proposes $4.1 Trillion 2018 Budget, <1% Higher Than 2017 Budget, Significant Increases In Defense Spending With Cuts To Nearly All Other Agencies

 In Budget and Taxes, Economy   Last Updated: July 30, 2017

On May 23 2017 President Trump released his proposed 2018 budget for the Federal Government.  This budget totals $4.1 trillion, which is less than 1% higher than the 2017 budget.  The Trump proposal adds $440 billion to the deficit in 2018 (compared to a $603 billion addition in 2017).  The Trump administration has highlighted several key elements of this budget, including:

  • $3.6 trillion in spending reductions (over 10 years)
  • $250 billion in deficit savings (over 10 years) associated with health care reform
  • Deficit neutral tax reform (tax rates yet to be finalized)
  • $54 billion more in defense spending, (offset by a $54 billion reduction in non-defense spending)
  • $2.6 billion investment in a border wall with Mexico

 

Non-defense services and agencies experience significant budget reductions under Trump’s budget proposal.  The Departments of Defense, Homeland Security, and Veterans Affairs are the only ones to see increases.   More details on individual department budget changes are available here.

SOURCE: Washington Post (See below citations)

Congress must approve the budget before it takes effect.  This process can be lengthy because it typically includes several revisions and amendments to the initial proposal (including proposals from the House of Representatives and the Senate, all of which must be reconciled and approved by both chambers and the President).

 

 

 

 

Budget of the U.S. Government.” Whitehouse.gov. Office Of Management And Budget, 23 May 2017. Web. 4 June 2017.
Soffen, Kim, and Denise Lu. “What Trump Cut in His Agency Budgets.” The Washington Post. WP Company, 23 May 2017. Web. 04 June 2017.
Policy Basics: Introduction to the Federal Budget Process.” Center on Budget and Policy Priorities. N.p., 19 Feb. 2016. Web. 04 June 2017.

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