President Trump’s budget proposal doesn’t drop until tomorrow, but Axios got a sneak peak of it and reveals that major cuts to certain entitlement programs are included. There will apparently be no Social Security or Medicare reforms, but SNAP (food stamps), CHIP (Children’s Health Insurance Program), and SSDI (Disability Insurance) will see cuts. New work requirements will be proposed for many entitlement programs.
Axios reports a White House official as saying of Trump’s proposed budget:
“Conservatives will love it; moderates will probably hate it.”
In addition to spending cuts, there will also be a provision to balance the budget “over ten years.” This would require “cuts on both the mandatory and discretionary sides — e.g. to the EPA and State Department — and will assume that the U.S economy will grow at 3 percent instead of the 1.6 percent rate it grew in 2016. The 3 percent growth rate will be reached after a few years, not immediately.”
People worried about their student loans will be interested in this change: “Trump’s proposal — which makes good on a campaign promise — would raise the maximum payment to 12.5 percent of income, but shorten the payment period to 15 years.”
The proposal being released tomorrow assumes that Trump will eventually be signing AHCA into law, which would make further cuts to entitlements by reforming Medicaid.