Trump’s $4.8 Trillion Budget Facing Tough Response from Congress

Trump administration has a layout estimation of $4.8 trillion budget for the coming fiscal year keeping in view to adopt welfare reforms of Americans and fight against the country’s deficits. A handful of Democrats in Congress had opposed his proposed budget and attacked Trump for neglecting his policies on welfare reforms including health and safety-net programs by the current administration.

Trump’s Extensive Budget

The White House had presented Trump’s blueprint budget that included several policies among which the funding for building a wall on the US-Mexico border and fighting the opioid crisis was highlighted. Meanwhile, a massive fund for safety net programs under the welfare reform policy was widely ignored by Trump’s proposed budget.

Trump administration, focusing on the reducing country’s financial debts and economic deficits, has proposed to cut billions of dollars for the areas including housing, environmental, transport, and other welfare programs of the people. Over past years, the proposals for reducing the welfare budget have been rejected by country’s lawmakers.

Russ Vought, acting director of the White House Office of Management and Budget, told reporters, “We’re going to keep proposing these types of budgets and hope that at some point Congress will have some sense of fiscal sanity and join us in trying to tackle our debt and deficits.”

Responding to the proposed budget, Sheldon Whitehouse, a Democrat on the Senate Budget Committee, declared, “Everyone knows the latest Trump budget is dead on arrival in Congress.” Similarly, citing Trump’s indifference on welfare policy including social security pension plans and medical health plan, House Speaker Nancy Pelosi argued, “Americans’ quality, affordable health care will never be safe with President Trump.”

Emerging Deficits and Growth Projections

Democrats criticized that the Trump administration had increased spending on defense which led to the rise of the country’s debts. The opposition party pointed out that Trump’s proposed military spending raised significantly while it has reduced the proposed spending for domestic welfare activities up to 6% below the $635 billion as the Congress initially agreed on.

Based on the assumption made by Trump administration, Vought claimed that the proposed budget would allow the US government to create $4.6 trillion in deficit reduction over 10 years besides the annual economic growth at 3% in the coming years.

Citing the budget as an optimistic economic projection, the Congressional Budget Office claimed that the country’s economy would grow by 2.2% in the current fiscal year and nearly 2.0% in the coming years. In the last fiscal year, the US economy grew 2.3% and Trump has taken credit by saying that his policy for tax-cutting helped in the US economy.

According to Reuters, Trump constantly made his promise for the elimination of the country’s debt but each year his promise failed which led to the country’s $22 trillion debt. As Reuters added, “This year’s deficit will hover at around $1 trillion and decline next year to $966 billion if his plan were to be enacted. Even so, over 10 years, deficits would add $5.6 trillion to the debt, not counting interest payments.”

I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.

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