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
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.
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).