Tuesday, March 14, 2017

.45's Proposed Federal Contraction


chicagotribune |  The federal government is projected to spend $4.091 trillion next year, with roughly two-thirds of that going mostly toward Social Security, Medicare, Medicaid, poverty assistance and interest payments on the government debt. This spending is expected to be left untouched in the budget proposal next week.

What Trump will propose changing is the rest of the budget, known as discretionary spending, which is authorized each year by Congress. Slightly more than half of this remaining money goes to the military, and the rest is spread across agencies that operate things like education, diplomacy, housing, transportation and law enforcement.

Among Trump's expected proposals are an increase in military spending of $54 billion, more money to start building a wall along the border between the United States and Mexico, and the creation of new initiatives that expand access to charter schools and other educational programs.

To offset that new money, Trump will propose steep cuts across numerous other agencies. Although final numbers remain in flux, his advisers have considered cutting the Department of Housing and Urban Development's budget by $6 billion, or 14 percent, according to a preliminary budget document obtained by The Washington Post. That is a change that Trulia chief economist Ralph McLaughlin said could "put nearly 8 million Americans in both inner-city and suburban communities at risk of losing their public housing and nearly 4 million at risk of losing their rental subsidy."

Preliminary budget documents have also shown that Trump advisers have also looked at cutting the Environmental Protect Agency's staff by about 20 percent and tightening the Commerce Department's budget by about 18 percent, which would impact climate change research and weather satellite programs, among other things.

Trump and his advisers have said that they believe the federal workforce is too big, and that the federal government spends - and wastes - too much money. They have said that Washington - the federal workers and contractors, among others - has benefited from government largesse while many other Americans have suffered. Federal spending, they have argued, crowds the private sector and piles regulations and bureaucracy onto companies.