The Washington Post reports that Trump’s budget slashes Medicaid by $800 billion over 10 years, meaning he’s on board with the House vision to reverse former President Obama’s expansion of the program to pay for health care.
Follow CNBC International on Twitter and Facebook. The House has voted to cut the Medicaid funding, but Senate Republicans have signaled they are likely to start from scratch.
The week ahead includes a lot of economic data as well as minutes from the last Federal Reserve meeting, an official analysis of costs of the Republican health care bill and the release of President Trump’s budget.
Trump has instructed his budget director, former SC congressman Mick Mulvaney, that he does not want cuts to Medicare and Social Security’s retirement program in this budget, Mulvaney recently said, but the plan may call for changes to Social Security Disability Insurance, seeking ideas for ways to move people who are able out of this program and back into the workforce.
President Trump’s budget proposal for 2018 will recommend cutting $1.7 trillion in mandatory spending, Axios reported on Sunday, citing a source with direct knowledge of the matter.
An earlier blueprint from Trump proposed a $54 billion, 10 percent increase for the military above an existing cap on Pentagon spending, financed by an equal cut to nondefense programs.
The proposed changes will be a central feature of Trump’s first comprehensive budget plan, which will be the most detailed look at how he aims to change government spending and taxes over his presidency.
The new cuts are unpopular as well, with Rep. Mike Conaway, R-Texas, chairman of the House Agriculture Committee, saying: ‘We think it’s wrongheaded. We’ll go to work from there, ‘ said Sen.
Congress must approve most of the plan’s changes before they can be enacted.
Those familiar with the plan are not authorized to discuss it by name and request anonymity.
The White House is expected to unveil its budget on Tuesday. He has already broken that promise on Medicaid by backing cuts to the program called for under the Obamacare repeal bill passed by the House on May 4. To achieve balance, the plan by White House budget director Mick Mulvaney relies on optimistic estimates of economic growth, and the surge in revenues that would result, while abandoning Trump’s promise of a “massive tax cut”.
Josh Archambault, a senior fellow at the Foundation for Government Accountability conservative think tank, said Trump’s proposal gives states flexibility to impose work requirements that could usher in changes to programs such as Medicaid and public housing.
An average of 44 million people received SNAP benefits in 2016, down from a peak of 47 million in 2013.
Will there be more details on Trump’s tax overhaul proposals?