SPONSORED:

Trump unveils $4.8 trillion budget that backtracks on deal with Congress

President TrumpDonald TrumpIran's leader vows 'revenge,' posting an image resembling Trump Former Sanders spokesperson: Biden 'backing away' from 'populist offerings' Justice Dept. to probe sudden departure of US attorney in Atlanta after Trump criticism MORE on Monday unveiled a $4.8 trillion budget proposal that includes spending cuts that would nullify a two-year deal negotiated with Congress last summer.

The new budget for the 2021 fiscal year beginning in October includes $590 billion in non-defense spending and $740.5 billion in defense spending. The total $4.8 trillion figure also anticipates about $3.5 trillion in spending on Social Security, Medicare and other entitlements.

The August deal hammered out by Trump in talks with the House and Senate raised spending for both defense and domestic spending.

ADVERTISEMENT

Under the new budget, the defense figure is the same, but the domestic spending is cut through changes to a slew of federal programs and agencies.

Presidential budgets are annually ignored by Congress, so the two-year deal negotiated last fall is likely to remain in place.

"Everyone knows the latest Trump budget is dead on arrival in Congress. It’s merely a political stunt to gratify extremists in his party," said Sen. Sheldon WhitehouseSheldon WhitehouseSenate Democrats file ethics complaint against Hawley, Cruz over Capitol attack Democrats seize on GOP donor fallout Senior Democrat says Hawley, Cruz should step down from Judiciary MORE (D-R.I.), who is pushing for to reform the budget process alongside retiring Senate Budget Committee Chairman Mike EnziMichael (Mike) Bradley EnziSenate swears-in six new lawmakers as 117th Congress convenes With Senate at stake, Georgia is on all our minds Wyoming mask mandate backed by GOP lawmakers goes into effect MORE (R-Wyo.).

But the new budget shows where the president's priorities are, both for this year and a second term if Trump wins reelection, and some of the proposals could turn into budgetary battles later this year.

The Trump budget proposes slashing Commerce Department funding by 37 percent, the Environmental Protection Agency by 26 percent, the Department of Housing and Urban Development by 15 percent, the Department of Health and Human Services by 9 percent and the Education Department by 8 percent. 

ADVERTISEMENT

It seeks an 8 percent cut to the Agriculture Department's budget, a 21 percent cut to the State Department and foreign aid and an 11 percent cut to the Labor Department. It would reduce funding for Energy Department by 8 percent.

Though the budget forecasts a $1 trillion deficit for 2020 and a $966 billion deficit in 2021, it lays out a plan for eliminating the deficit over 15 years, a longer time frame than the typical decade-long budget window.

To do so, Trump would cut domestic spending while reducing costs to Medicaid and Medicare.

The administration would seek to reduce costs by capping or block granting Medicare benefits, adding work requirements to a slew of medical and anti-poverty programs or implementing changes that might otherwise lower the costs of Medicare and Medicaid.

Democrats pounced on the $700 billion cut to Medicaid and limitations on other health and welfare programs, which the administration said resulted from savings and efficiencies.

ADVERTISEMENT

“Year after year, President Trump’s budgets have sought to inflict devastating cuts to critical lifelines that millions of Americans rely on," House Speaker Nancy PelosiNancy PelosiOvernight Health Care: Biden unveils virus plan and urges patience | Fauci says it's 'liberating' working under Biden | House to move quickly on COVID-19 relief Overnight Defense: House approves waiver for Biden's Pentagon nominee | Biden to seek five-year extension of key arms control pact with Russia | Two more US service members killed by COVID-19 On The Money: Pelosi says House will move immediately on COVID-19 relief | Biden faces backlash over debt | 900,000 more Americans file for unemployment benefits MORE (D-Calif.) said in a statement.

The path to clearing deficits also assumes that interest rates on the debt will drop again before climbing back up and that the economy will grow an average of 3.1 percent each year over the next decade, a growth level oft-promised but never achieved by Trump and his administration.

The proposal does include a couple of areas where there could be cooperation between the administration and Democrats in Congress. 

The White House left an empty placeholder for a prescription drug plan, indicating an openness to negotiating a bipartisan deal with Democrats.

But officials were less optimistic about the likelihood of moving forward on a $1 trillion infrastructure plan, noting that Democrats would likely insist in raising taxes to cover the costs.