Trump budget boosts military and wall but targets social services

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The president's proposal asks for an additional $5 billion in funding for the Department of Homeland Security and $3.6 billion in new military construction funds, plus an additional $3.6 billion to replace previously appropriated funding that Trump wants to use for the wall, according to a senior administration official, who requested anonymity to discuss the plan ahead of its release.

Vought, speaking on CNBC, says the proposed budget will also have cuts in discretionary spending, such as foreign aid and in welfare "reforms".

Mr. Trump was "forced to admit defeat" and reopen the government after Congress didn't give him the wall money he was seeking recently, said House Speaker Nancy Pelosi and Senate Minority Leader Charles E. Schumer. Although the Trump Administration had requested major funding for the border wall, Republicans and Democrats could not agree to a budget that fully incorporated border wall funding, and the 2019 budget that eventually passed, just shy of an early February deadline, included only a bare minimum amount of wall funding.

Larry Kudlow, a top economic adviser to Mr. Trump, said Sunday that the wall and border security issue are "of paramount importance".

That's the reality that will greet Trump's latest budget, which probably will promptly be shelved after it's received by Congress on Monday.

The President's blueprint also revisits the political fight over border wall funding that triggered this past winter's partial government shutdown.

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The Committee for a Responsible Budget said Trump's budget would add $10.5 trillion to the debt over a decade, and criticized the White House for what it called a "fantasy assumption" of 3 percent economic growth over that timeframe - higher than the 2 percent average used by independent forecasters.

Budget proposals are merely a starting point, but leading Democrats immediately rejected the president's border request.

Trump's request would come in his proposed budget for fiscal year 2020.

An administration official said Trump's budget proposes increasing defence spending to $750 billion - and building the new Space Force as a military branch - while reducing non-defence accounts by five per cent, with cuts recommended to economic safety-net programs used by many Americans. Congress may resist it, but we also think that they have an interest in, we hope they have an interest in maintaining, in getting rid of the deficit.

The increasingly ambitious cuts to Medicare in the White House budget reflect the administration's narrowing budget math, as the federal deficit has continued to balloon under its watch.

But Kudlow said he was not anxious by some predictions the American economy will only advance a little more than 2 percent this year.

Budget showdown looms over Trump's expected request for border wall funding
The US Congress must rule on a final version of the fiscal 2020 bill by October 1st, or face a new government shut down. The 2020 budget proposal will undoubtedly keep border security a top issue as the presidential election gets underway.

But he said Mr Trump "is going to stay with his wall".

The Democratic chair of the House budget committee, John Yarmuth of Kentucky, called proposed cuts to essential services "dangerous" and said Trump had already added almost $2tn to deficits with "tax cuts for the wealthy and large corporations, and now it appears his budget asks the American people to pay the price".

The $8.6 billion is in addition to the billions of dollars Trump seeks to secure for the wall through the national emergency at the border he declared last month.

The budget will also cut funding overseas. Trump's plan to boost the Pentagon's budget, to spend $8.6 billion on his much-promised border wall, and to extend the 2017 personal income tax cuts (which are scheduled to sunset in 2025) are attempts to play to his Republican base while the 2020 election is looming. This would save $241 billion over 10 years.

The national emergency declaration unsettled many lawmakers, including some of his key allies in the Senate.

According to the White House, as the federal debt ticks toward $23 trillion spending cuts and budget deficit reduction are top priorities.

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