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US President Donald J. Trump gives the thumbs up as he returns to the White House in Washington on Wednesday after delivering a speech in Tennessee. Photo: EPA

Trump’s US$1.15 trillion budget would slash deep to pay for big military boost and border wall

The Environmental Protection Agency and State Department would face major cuts, with the National Endowment for the Arts completely eliminated under the plan

Donald Trump

US President Donald Trump is unveiling a US$1.15 trillion budget, proposing a far-reaching overhaul of federal government spending that slashes a dozen departments to finance a significant increase in military spending and a down payment on a US-Mexico border wall.

Thursday’s scheduled budget release will upend Washington with proposed cuts to long-promised campaign targets like foreign aid and the Environmental Protection Agency as well as strong congressional favourites such as medical research, help for homeless veterans and community development grants.

“A budget that puts America first must make the safety of our people its number one priority — because without safety, there can be no prosperity,” Trump said in a message accompanying his proposed budget that was titled “America First: A Budget Blueprint to Make America Great Again.”

The US$54 billion boost for the military would be the largest since Ronald Reagan’s Pentagon buildup in the 1980s, promising immediate money for troop readiness, the fight against Islamic State militants and procurement of new ships, fighter jets and other weapons. The 10 per cent Pentagon boost would be financed by US$54 billion in cuts to foreign aid and domestic agencies that had been protected by former president Barack Obama.
President Donald Trump's first proposed budget, released by the Office of Management and Budget. Photo: AP

The budget goes after the frequent targets of the party’s staunchest conservatives, proposing the elimination of the National Endowment for the Arts, legal aid for the poor, low-income heating assistance and the AmeriCorps national service program established by former president Bill Clinton.

Such programs were the focus of lengthy battles dating to the GOP takeover of Congress in 1995 and have survived prior attempts to eliminate them.

Lawmakers will have the final say on Trump’s proposal in the arduous budget process.

The budget is set for official release Thursday morning, but news outlets obtained the document in advance.

Law enforcement agencies like the FBI would be spared, while the border wall would receive an immediate US$1.5 billion infusion in the ongoing fiscal year, with another US$2.6 billion planned for the 2018 budget year starting October 1.

Trump repeatedly claimed during the campaign that Mexico would pay for the wall when, in fact, US taxpayers foot the bill in the budget proposal.

Twelve of the government’s 15 Cabinet agencies would absorb cuts under the president’s proposal. The biggest losers would be Agriculture, Labor, State and the Cabinet-level EPA. Defence, Homeland Security and Veterans Affairs are the winners.
US President Donald J. Trump delivers a speech at the Nashville Municipal Auditorium in Tennessee on Wednesday. Photo: EPA

More than 3,000 EPA workers would lose their jobs and programmes such as Obama’s Clean Power Plan, which would tighten regulations on emissions from power plants seen as contributing to global warming, would be eliminated. Popular EPA grants for state and local drinking and wastewater projects would be preserved, however.

Trump’s proposal only covers roughly one-fourth of the approximately US$4 trillion federal budget, namely the discretionary portion that Congress passes each year. It doesn’t address taxes, Social Security, Medicare and Medicaid, or make predictions about deficits and the economy. Those big-picture details are due in mid-May, and are sure to show large — probably permanent — budget deficits. Trump has vowed not to cut Social Security and Medicare and is dead set against raising taxes.

“The president’s going to keep his promises” to leave Social Security and Medicare alone, said White House Budget Director Mick Mulvaney.

Trump’s proposal is sure to land with a thud on Capitol Hill, and not just with opposition Democrats outraged over cuts to pet programs such as renewable energy, climate change research and rehabilitation of housing projects.

Republicans like Senator Rob Portman of Ohio are irate over planned elimination of a program to restore the Great Lakes. Top Republicans like Majority Leader Mitch McConnell of Kentucky and Senate Foreign Relations Committee Chairman Bob Corker of Tennessee are opposed to drastic cuts to foreign aid. And even GOP defence hawks like Armed Services Committee Chairman Mac Thornberry of Texas aren’t satisfied with the US$54 billion increase for the military.

Before the two sides go to war over Trump’s 2018 plan, they need to clean up more than US$1.1 trillion in unfinished agency budgets for the current year. A temporary catchall spending bill expires April 28; negotiations have barely started and could get hung up over Trump’s request for the wall and additional border patrol and immigration enforcement agents, just for starters.

Some of the most politically sensitive domestic programs would be spared, including food aid for pregnant women and their children, housing vouchers for the poor, aid for special education and school districts for the poor, and federal aid to historically black colleges and universities.

But the National Institutes of Health would absorb a US$5.8 billion cut despite Trump’s talk in a recent address to Congress of finding “cures to the illnesses that have always plagued us”. Subsidies for airlines serving rural airports in Trump strongholds would be eliminated.

This article appeared in the South China Morning Post print edition as: Federal spending slashed to fund defence increase
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