The White House Office of Management and Budget (OMB) said in a statement that the undefensive spending – excluding the budget portion of the large-scale Social Security and Medicare program and the lowest level since 2017 – would reduce the cost of debt payments by 23%.
Trump’s first budget since the Office of Recycling is designed to work hard to increase border security spending while cutting federal bureaucracy. Congressional Democrats have slashed domestic spending too much, with some Republicans calling for higher spending in defense and other areas.
“At this critical moment, we need a historic budget – ending our declined funds, putting Americans first and providing unprecedented support for our military and homeland security,” OMB Director Russ Vorkent said in a statement.
The federal government has $36 trillion in debt accumulation, and some fiscal conservatives and budget experts are concerned that Trump's proposal to extend the 2017 tax cut will increase. The so-called “thin budget” is an overview of government priorities that will provide a blueprint for Republican grants in Congress to begin making spending bills.
Extend tax cuts in 2017
Trump also prompted the Republican-controlled Congress to expand the 2017 tax cuts enacted in his first term, which nonpartisan forecasters say could add $5 trillion in debt. The budget proposal calls for $50 billion cuts in the U.S. sector as it absorbs U.S. international development agencies.
The proposal calls for $2.49 billion in cuts to the tax-collecting Internal Revenue Service, which a White House budget official said would end “weaponization of IRS enforcement” by former President Joe Biden.
The proposal furthers Trump's commitment to closure or significantly reduce the Education Department's commitment. It will retain funds for children in low-income families, but accounts for about 15% of the department's total budget. The Ministry of Housing and Urban Development, which oversees the housing assistance program, will almost cut funding.
“The days of Donald Trump pretending to be a populist are over,” said Chuck Schumer, a senior Democrat in the U.S. Senate. “His policies are nothing more than a full-scale attack on hard-working Americans.”
13% defense spending increases
The government said the budget will increase defence spending at the discretionary by 13%.
According to the Congressional Budget Office, the annual White House budget requirement includes economic forecasts and detailed proposals for each agent spending level for the fiscal year starting October 1. According to the Congressional Budget Office, spending in fiscal 2024 was $6.8 trillion. Lawmakers often make major changes to White House budget requirements, but Trump may get a lot of what he is looking for. Republicans in Congress hope to enact a tax cut bill by July 4.
The proposed budget cuts come as U.S. job growth slowed slightly last month, employers continued to hoard workers, and the outlook for the labor market became darker.
The Ministry of Labor Statistics Bureau said that the non-agricultural wage increased by 177,000 jobs last month, following a drop of 185,000 in March. The closely watched jobs report released by the department on Friday also showed that the unemployment rate stabilized at 4.2% in April.
