Trump budget would cut food stamps by 25 percent

Henrietta Brewer
May 23, 2017

On May 23, the Trump administration will unveil its budget proposal for the 2018 fiscal year, which would begin on October 1, according to Vox. It includes a wave of cuts to benefit programs such as Medicaid, federal employee pensions, welfare benefits, and farm subsidies.

As Donald Trump continues his first overseas trip as president, his White House staff is expected to announce a new budget proposal featuring $1.7 trillion in cuts to mandatory entitlement programs.

People familiar with the plan say that includes cuts to pensions for federal workers and higher contributions toward those pension benefits. People familiar with the plan were not authorised to discuss it by name and spoke on condition of anonymity.

The cuts, which would amount to an approximate 25 percent reduction, would be achieved in part by limiting eligibility for food stamps and by requiring work, according to the document. Medicaid now covers more than 70 million mainly low-income and disabled people. During the GOP primary, he asserted that he was the only candidate who would commit to not make any cuts to the federal program.

In addition to the defense spending increases proposed earlier, the budget is expected to include funding for a border wall with Mexico, infrastructure spending and paid leave for parents of a newborn or newly adopted child, according to the Associated Press. Medicaid is the third largest program domestic program in the federal budget, behind Social Security and Medicare.

Student loans: As the Washington Post previewed: "students now can have the balance of their loan forgiven after paying 10 percent of their income for 20 years".

The March streamlined version of the budget plan dealt only with the 30 percent of government spending that is appropriated each year.

Those cuts rang alarm bells for many Republicans, who were particularly upset about proposals to eliminate community development block grants, slash medical research and eviscerate foreign aid.

There is little sign they will have a change of heart now, especially with Trump's administration in turmoil and his poll ratings at historic lows.

The administration has prepared talking points for Republicans on Capitol Hill touting that the "budget strives to replace dependency with the dignity of work through welfare reform efforts".

"Hopefully we will be able make that argument to our friends in Congress that what DOE is involved with plays a vital role, not only in the security of America but the economic well-being of the country as we go forward", Perry said.

Republicans hope this year's budget debate would grease the way for a major overhaul of the loophole-cluttered tax system.

The budget will project that USA economic growth will reach 3% by 2021, a senior White House official told the Wall Street Journal this week.

Other reports by iNewsToday