On May 2, the administration of US President Donald Trump proposed to cut federal spending by $163 billion next year, cutting non-military spending, except for mandatory social security programs, by 1/5. At the same time, defense spending will increase significantly. This is reported by UNN with reference to Reuters.
Details
According to a statement by the White House Office of Management and Budget, the proposed budget for next year will increase defense spending by 13% and national security spending by almost 65% compared to 2025. At the same time, non-defense spending will be reduced by 23% to the lowest level since 2017.
This will be the first budget compiled by the Trump administration since his return to office as President of the United States. Thus, as the publication notes, it aims to fulfill its promises to increase spending on the armed forces and border security, while reducing the federal bureaucracy.
At this critical moment, we need a historic budget - one that will end the funding of our decline, put Americans first and provide unprecedented support to our military forces and national security,
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Reasons for reduction
Currently, the federal government has a growing debt of $36 trillion, and some fiscal conservatives and budget experts fear that Trump's tax cut bill will increase it, while spending will remain the same as it was.
Trump is urging the Republican-controlled Congress to extend the 2017 tax breaks, which became his main legislative achievement in his first term, and which, according to impartial forecasters, could add $5 trillion to the country's debt
At the same time, the US President is looking for other ways to save money in order to compensate for their shortage and the growing debt due to tax breaks.
What the new US state budget will include
The White House's annual budget request contains economic forecasts, as well as detailed proposals on how much money each government agency should spend during the fiscal year beginning October 1. According to the Congressional Budget Office, spending in fiscal year 2024 amounted to $6.8 trillion.
The White House's new draft budget provides for the allocation of an additional $500 million in discretionary spending aimed at strengthening border security and implementing mass deportation initiatives supported by Trump. In addition, it is planned to invest $766 million in the purchase of modern technologies for border protection, as well as to provide funding for the maintenance of 22,000 border guards and the hiring of new customs and border guard officers.
At the same time, as Reuters notes, Republicans in Congress are seeking to pass a law on tax cuts by July 4 and are actively negotiating on reducing federal spending, which should compensate for tax breaks. As the publication notes, in this process they will probably have to take into account the increasingly tense economic situation in the United States, caused by Trump's introduced increased duties, which affect the global trading system.
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According to the Office of Management and Budget (OMB), the proposed budget is the implementation of Trump's promise to liquidate or significantly reduce the US Department of Education, while it is planned to maintain funding for programs for children from low-income families.
Trump's decision to cut funding to non-defense sectors has been criticized by the opposition.
"The days when Donald Trump pretended to be a populist are over. His policy is nothing more than a total attack on hardworking Americans. While he is destroying health care, cutting education and depriving programs that families rely on, he is financing tax breaks for billionaires and large corporations," said US Senator Chuck Schumer, the Democratic leader in the Senate.
Let us remind you
US President Donald Trump plans to request a record $1.01 trillion for national security spending for the fiscal year beginning October 1. This is more than 13% higher than the current year's figure.
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