Slide 54
Slide 54 text
United States Federal Budget
The budget cuts mandatory spending by a net $2,033 billion (B) over the 2018–2027 period. This includes reduced spending of
$1,891B for healthcare, mainly due to the proposed repeal and replacement of the Affordable Care Act (ACA/Obamacare); $238B in
income security ("welfare"); and $100 billion in reduced subsidies for student loans. These savings would be partially offset by
$200B in additional infrastructure investment.
The budget cuts discretionary spending by a net $1,851 billion over the 2018–2027 period. This includes reduced spending of $752
billion for overseas contingency operations (defense spending in Afghanistan and other foreign countries), which is partially offset
by other increases in defense spending of $448B, for a net defense cut of $304B. Other discretionary spending (cabinet
departments) would be reduced by $1,548B.
Revenues would be reduced by $1,000B, mainly by repealing the ACA, which had applied higher tax rates to the top 5% of income
earners. Trump's budget proposal was not sufficiently specific to score other tax proposals; these were simply described as "deficit
neutral" by the Administration.
CBO estimated that based on the policies in place as of the start of the Trump administration, the debt increase over the 2018–2027
period would be $10,112B. If all of President Trump's proposals were implemented, CBO estimated that the sum of the deficits (debt
increases) for the 2018–2027 period would be reduced by $3,276B, resulting in $6,836B in total debt added over the period.[6]
CBO estimated that the debt held by the public, the major subset of the national debt, would rise from $14,168B (77.0% GDP) in 2016
to $22,337B (79.8% GDP) in 2027 under the President's budget.[7]