Watch Live: White House Releases Details Of Trump's 2018 Budget Proposal

Tyler Durden's picture

Watch as the White House officially releases its 2018 budget proposal (the statement can be read here and the full budget is found at the following link).

The Trump administration has officially unveiled its budget seeking $1.5 trillion in non-defense discretionary cuts and $1.4 trillion in Medicaid cuts over the course of a decade, while adding nearly half a trillion dollars to defense spending, for a total of $3.6 trillion in spending cuts. The plan, titled “A New Foundation for American Greatness,” would dramatically reshape federal spending, cutting anti-poverty and safety net programs, while leaving Medicare and the retirement portion of Social Security untouched.

After submitting the budget, Trump made the following appeal to Congress:

As this Budget returns us to economic prosperity, it will also allow us to fund additional priorities, including infrastructure, student loan reform, and initiatives to help working families such as paid parental leave. We will champion the hardworking taxpayers who have been ignored for too long. Once we end our economic stagnation and return to robust growth, so many of our aspirations will be within reach.

 

It is now up to the Congress to act. I pledge my full cooperation in ending the economic malaise that has, for too long, crippled the dreams of our people. The time for small thinking is over," the statement said.

Trump's budget is largely irrelvant: Congress will reject most of the proposals as it takes up the budget in the coming weeks and months. It is being released, unusually, with President Trump out of town on his first foreign trip in office.

* * *

Earlier:

More details of President Donald Trump's first budget proposal were reported Monday by Bloomberg and Reuters. The leaks add to the picture of what we know about Trump’s budget, which also includes a flurry of leaks published by The Washington Post, the Associated Press and Bloomberg late Sunday, which fleshed out Trump’s plans to slash entitlement spending.

In total, the budget plans to trim $3.6 trillion in spending over 10 years across all discretionary spending and non-discretionary spending lines, in order to enable tax reductions across the board: if enacted - and remember that the president's budget is just an initial blueprint which rarely passes in its original form - the Trump administration would implement the deepest cuts to government programs in a generation, delivering the opening salvo in a new round of budget battles in Washington.

This is key to balancing the budget by the 10th year.

It also relies on rather rosy growth economic projections,  estimating that U.S. gross domestic product will accelerate to 3% by fiscal year 2020. That’s compared with Bloomberg’s median projection of 2%, and the Congressional Budget Office’s long-term projection of 1.9%. It also expects the 10-year Treasury yield to rise to 3.8% in that time, while CPI increases to 2.3% and unemployment holds more or less steady at 4.7%.

Bloomberg also noted that Trump’s budget been declared dead on arrival by many of his Republican allies in Congress,” so Trump may be headed for another protracted legislative battle.

The full proposal, titled “A New Foundation for American Greatness,” is expected at 11 a.m. Eastern. The proposal relies on a mix of cuts to anti-poverty programs, optimistic economic forecasting and deep cuts to nondefense discretionary funding to meet its targets. It would not touch Social Security and Medicare, which Trump promised to leave alone during his campaign. The budget would also dramatically shift spending to the Pentagon from domestic programs. In 2018, the budget would shift $54 billion from nondefense discretionary spending to defense by enacting major cuts to the State Department, the Environmental Protection Agency, the Department of Agriculture and other agencies.

Here's a rundown of the latest details to emerge: 

  • The budget will include $200 billion in new funding over 10 years for Trump’s promised $1 trillion infrastructure investment program. The Trump administration has said the money will be used for loans, grants and other ways to secure investment by the private sector and state and local governments, Bloomberg noted. The $1 trillion target incorporates projects, like the Keystone XL Pipeline, that wouldn’t have happened if the administration hadn’t gotten involved.
  • It includes an additional $25 billion budgeted over 10 years to give parents six weeks of family leave.
  • budget also includes plans to sell off half the oil in the US Strategic Petroleum Reserve (SPR), an unexpected announcement which has pressured the price of crude on Tuesday.
  • The Department of Homeland Security’s budget would increase $3 billion, while the Pentagon’s budget would rise $6 billion.
  • Domestic agencies’ budgets will be cut by 10% in 2018 and 40% in 2027.
  • $2.6 billion for increased border security, including $1.6 billion earmarked for Trump’s promised border wall. The other $1 trillion is for aircraft, equipment and surveillance technology, Bloomberg noted.
  • The budget calls for steep cuts to federal workers’ retirement benefits. Per Bloomberg: “Eliminating cost-of-living adjustments for retirees would save $42 billion while increasing required employee retirement contributions would save $72 billion. And the budget would save $72 billion through cuts to Social Security Disability Insurance.”

Bloomberg notes that the budget relies on sweeping tax cuts to strengthen economic growth, offsetting some of the drop in tax revenue. But so far, the administration has provided few details beyond the broad strokes revealed by Treasury Secretary Steven Mnuchin and Chief Economic Advisor Gary Cohn.

Office of Management and Budget Director Mick Mulvaney said Monday that the proposal wouldn’t contain any new information about Trump’s tax-reform plans; even still, the math is a little vague.

The budget proposal, Bloomberg reports, also relies on “several other classic accounting gimmicks,” like this one:

The budget “assumes that the wars in Afghanistan and the Middle East will cause future Congresses to allocate $593 billion in extra war funding that won’t be needed and then claims to save that amount by not spending it.”

It also assumes that the repeal of a section of Dodd-Frank that gives regulators the power to wind down the big banks during a crisis will lead to a savings of $35 billion. The nonpartisan Congressional Budget Office projects savings of just $14.5 billion.

* * *

Finally, with the OPEC Vienna meetingin two days, here are some more details on the biggest surprise in the budget proposal, the sale of half the US SPR oil holdings. As Bloomberg writes, the White House plan to trim the national debt includes selling off half of the nation’s emergency oil stockpile. The sale would raise $500 million in fiscal year 2018 by draining the Strategic Petroleum Reserve, and as much $16.6 billion in oil sales over the next decade.

The Strategic Petroleum Reserve currently holds 687.7 million barrels of oil in salt caverns and tanks at designated locations in Texas and Louisiana. That allows for quick distribution when natural disasters or unplanned accidents occur, according to the Energy Department website.

Measures passed in 2015 and 2016 call for the sale of nearly 190 million barrels of oil from the reserve between 2017 and 2025, to raise money for unrelated government programs. Those sales would cut the reserve by about 27 percent. Slashing the stockpile by half would require further sales, and would risk breaching the legally required inventory threshold. The reserve must contain a minimum of 450 million barrels.

The budget summary document doesn’t indicate the scope or timing of potential oil reserve sales, or whether a $2 billion program to modernize the stockpile’s infrastructure would be affected.

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Shue's picture

Stop spending money for the Kike and Saudi Apes' wars killing brown people. Problem solved.

WTFRLY's picture

Exactly this, things will fix themselves if you stop helping Al Qaeda and ISIS. This is the Hunger Games budget coming at us lol.

apadictionary's picture

just cut the cia money. all the terrorism money can be diverted to schools and hospitals.

NoDebt's picture

"It would not touch Social Security and Medicare"

No, of course not.  Let's ignore the elephant in the room.  Maybe it will go away.

 

BigFatUglyBubble's picture

you'd have an army of old farts with nothing to lose.  sounds like a good movie idea.

nmewn's picture

And it begins...

CARACAS, Venezuela (AP) — Protesters set fire to late President Hugo Chavez’s childhood home in western Venezuela on Monday, an opposition lawmaker said, as protests against the South American nation’s socialist government grew increasingly hostile.

While demonstrators are decrying current President Nicolas Maduro for the country’s triple-digit inflation, rising crime and shortages of food and medicine, they have also destroyed at least five statues commemorating Chavez, Maduro’s mentor and the founder of Venezuela’s “Bolivarian revolution.”

https://apnews.com/85710834dfe045c6a4a5563d5fea6839/Lawmaker:-Hugo-Chave...'s-childhood-home-burned-by-protesters

VinceFostersGhost's picture

 

 

triple-digit inflation, rising crime and shortages of food and medicine

 

Socialism is death.

FrozenGoodz's picture

Ohhhh ahhhhh a bunch of numbers ... that'll never pass ... but gives the illustration that he's doing what he told his supporters he'd do ... ohhhhh ahhhhh ... stay overseas giving nothing burger speeches to the islam world that which you hate ... MAGA

roddcarlson's picture

 "budget also includes plans to sell off half the oil in the US Strategic Petroleum Reserve (SPR), an unexpected announcement which has pressured the price of crude on Tuesday."

 

Anything of value the Jews have to put wheels under it or a straw in it.  I'm sure the Kushner Petroleum Reserve KPR will go for half its market value.  Meanwhile the other half of the SPR reserve will be filled with oil from the KPR at double the going rate. Followed by more Goldman derivatives, followed by bank bailouts, followed by more Jew shovel ready handouts from KPR, followed by more counterfeit money going to the Jew owned banks, followed by another boy genius CEO that is related to Rothchild, followed by more news that muzzies are bad to Jews in Zion, followed  by more admission by Jews of Muslims into our lands, followed by more Fed work for Goldman Sacs.  Hail to our blessed Turkish Holy ones, that have their Talmud to tell them to lie, steal, rape from Goyim like the Pharisees taught them so well.

 

Whenever you have a highly valued asset such as the SPR being sold, you can always know that the blessed holy ones could no longer resist the temptation from stealing it.

Proofreder's picture

Jew jealously - hard to hide -

you are a fucking idiot - lots of that going around ...

Roadwarrior's picture

Time to get some of the slugs of Welfare, food stamps, disability, sec 8's ect.

earleflorida's picture

yep...

so lets officially make this 'Arab`NATO' the sole protectorate of USSAs unipolarization!

does anybody have a problem with handing ussa strategic energy security to the Saudis?

swmnguy's picture

Nickels.

There's no fixing the US economy without cutting a zero off the War Machine budget.  Maybe not even then, but absolutely not otherwise.  Anybody who says otherwise is either lying cynically or utterly innumerate.

LawsofPhysics's picture

LOL!  This is not "socialism" or "capitalism"...

This is CORPORATISM/FASCISM...

The global "elite" are gutting 'merica.

get long sharecropping and guillotines!

QQQBall's picture

Laws of Physics +100

 

Firs the Income Statement, then the Balance Sheet. Look for more assets to be sold off or privitzed to the oligarchs plundering the country.

 

How about instead of means testing SS, we means test teh Congresscritters that insider trade their way to multi-millionaire status? Do they need pensions and medical insurance?

Bes's picture

Destroy the MIC - the biggest swamp of them all

Desrtroy the banksters - the other biggest swamp

Stop all foreign wars and everything is basically on the house.  

this budget is playing on the margins and cutting the everyday man meanwhile the swamp creatures laugh all the way to the bank.

#maga???

swmnguy's picture

Russians over 30 years of age will notice the similarities.

earleflorida's picture

man,... if i didn't know russia's past?so well, esp., during wwi ~ mar/1918 when Lenin sold out the country in what was called the 'shameful peace' to the austro-germans without ever signing (in person out of shame, no one in the central cmte. put their signature to the disgracful treaty) the 'brest-litovsk treaty'--- pretty much selling the great russian empire to preserve his 'Tragedy of Russian Peasant' bolshevik party via his, 'Civil War' dreams? --- his ultimate prise ambition (once he sold russia down the drain his civil war was a done deal) were to become a reality!

what came next was germany buying all russian assets at rubles (inflation made the russian currency worthless) on the marK?!?

does this sound familiar?

Facts from treaty: Poland, Cromland, Lithuania, Ukraine, and Finland and basically all the Baltic were German protectorates. 89% of coalmines, 59% of industry, 59% agricultural and approx. 39% of Ruusia was now gone wirh a pop. loss of 55 million at the germans mercy ... and what does germany do?, butt started dropping bombs on Petrograd at the end of Apr/1918! 

new game's picture

post merger of state and corp. joined as one under the leadership of the one party tyranny(deep state).

all else is a circus tradition. distractions. how many rings are active right now? fuken-eh, by jovee, we need moar tents...

general ambivalent's picture

And psyop-capitalism is living death.

Give Me Some Truth's picture

High-five to all the crazy preppers in Venezuela.

shovelhead's picture

Lol.

Getting pretty bad when they smash your name and face from the temples.

ThirdWorldDude's picture

nmewn, here's an alternative take on the Venezuelan crisis just so we remain balanced.

I hope your memory serves you well and you still recall what happened in Caracas in 2002, when neoliberal CIA-sponsored hordes organized their march on the Presidential Palace.

silvercity's picture

Why do the Generals continue to support the 'bus driver'? It will not be long now!

peopledontwanttruth's picture

When war starts out the USA will be like Germany at the Battle of the Bulge where they ran out of gas. Sell this oil low, watch it soar then the USA buys from SA who recoups their 350 billion arms deal. Tax payers pay for it.
Race you to the basement

Malleus Maleficarum's picture

That was my first thought, too. War is on the horizon; it's only a matter of time. If we're lucky enough for it to remain conventional (doubtful, but one can hope) we'll need that petroleum. God knows the tax dollars are long gone and  the average peons who paid for it won't see a fucking drop of it. Well, maybe a gallon of crude for turning in your grumbling anti-war neighbors to the DHStasi. I can see this country possibly going down the path of the USSR, if we're lucky, with anything of value auctioned off to the highest bidder. Or maybe as the Fourth Reich, we'll even get to pull off our own "Ardennes" offensive in, say, Virginia!

peopledontwanttruth's picture

Bingo. We have a winner! Amazing we only dropped 5 balls.

You're spot on.

tmosley's picture

Medicare can be addressed through the back door by lowering costs for medical care with free market principles. Social security can be similarly addressed by allowing technology to cure aging. When the old fucks have bodies of 25 year olds again, no-one is going to feel bad about taking away their pension.

Might sound crazy, but we are on the verge of it today. Plasma from young animals will do the job, should the FDA stand down and let it happen.

NoDebt's picture

Maybe you aren't aware that SS pays based on your age, not on your health.  Living longer is one of the primary contributors to SS's coming insolvency (actually, it's already insolvent when you realize the SS "trust fund" was raided back in the Clinton years and stuffed with a bunch of government IOUs).

 

tmosley's picture

Maybe you aren't aware of the content of my post:

If 90 year olds are as healthy and youthful as 30 year olds, NO-ONE WILL FEEL BAD ABOUT CUTTING SOCIAL SECURITY TO ZERO.

NoDebt's picture

Maybe you aren't aware that people will bitch about cutting off their SS no matter how healthy they are.

 

tmosley's picture

Yes, but they aren't going to die from being unable to work. That is the point of a pension. If people no longer become geriatric as they age, there is no point in having pension programs. They will inevitably fall by the wayside as the programs collapse and no new ones are proposed as they are unneeded.

Nice Try Lao Che's picture

Isn't that plasma from young animals what keeps Soros going? Or is it humans?

Nice Try Lao Che's picture

All I got from that article is that he'd look like a mouseketeer.

 

(or Ariana Grande)

https://s-media-cache-ak0.pinimg.com/736x/f7/3c/52/f73c52488249ca4d3bb08...

pods's picture

I love it. The younger generation has been fucked out of their future by the old people, and now they want their actual blood?

Bwaaaah!  I can almost see the lines forming of all the young people who want to reward the old folks how have already fucked them seven ways till Sunday.

pods

TheReplacement's picture

Even if your science god does deliver, it ain't gonna make no 90 year old a 30 year old again. At best they can have positive effects and elongate the lives of current 30 year olds so that when they are 90, in 60 years, they will feel like they are 30. The system cannot be sustained that long unless Meow Mix comes to cost about $100 an ounce.

Furthermore, just how long will these life elongated humans live after they do reach the point where they actually do look and feel like 90? Are they gonna be on SS/MC for 100 years by then? Are you going to start a company and call it Soylent Green?

tmosley's picture

Wow, you sure know your stuff, and certainly didn't just pull that out of your ass without even reading the article, which showed elderly mice regrowing hair and using the exercise wheel like young mice.

pods's picture

I really doubt that old humans would want to get back onto the "wheel" they are accustomed to.

pods

Give Me Some Truth's picture

The film that best depicts where we might be heading is the underappreciated animated gem  "Wall-E." People never even have to get out of their recliners. And they get so big they can't walk on their own. 

Give Me Some Truth's picture

Social security is the State's guarantee that there will be no serious movements to seceede from the union. Not enough citizens would be willing to risk going it alone without Uncle Nanny.

LawsofPhysics's picture

Then stop taking this out of the paychecks of my employees!!!!!  Let them KEEP THEIR MONEY you stupid fuck!

espirit's picture

 

I concur, LoP.

 

Gimme back what I put in and we’ll call it even.

  

tmosley's picture

Are you implying that I am advocating abolishing Social Security, but keeping the tax?

LawsofPhysics's picture

You were NOT very clear, period.  Are you going to give me back what I put in, with interest?

tmosley's picture

No. I'm not God.

Let us be clearer, then. Your problem with ending social security is that you don't get to anally rape the next generation like you were anally raped?

Sadistic. I like it. Eternal cycle of slavery and death it is!

Cloud9.5's picture

The fountain of youth is always right around the corner.  Can you imagine the reality of seven or eight billion vampires in search of young blood?  Are you going to infuse the Alzheimer patients with a thousand years of longevity?  To deny them that would be deemed cruel and unusual punishment and the epitome of discrimination.

 Do you not realize that the social security system is a massive empire employing thousands of workers to include hundreds of judges, lawyers and clerks?  Then on the nongovernment side there are many more hundreds of private attorneys who make a good living working the appeals process to get even more people on social security disability. And then of course there are the ten thousand boomers that go into the system every day.  Boomers vote and they will burn down anyone that goes after their gravy train.

 

The medical industrial complex will sign onto your longevity program because us old geezers are cash cows.  The system will spend a hundred thousand dollars to keep a severely handicapped 94 year old alive.  My mother is a classic example.  None of this will come to an end until the system crashes.  Then you will have a massive die off and an ensuing dark age.

tmosley's picture

>The fountain of youth is always right around the corner.

There hasn't been any serious research into aging as a disease in and of itself until very recently.

>seven or eight billion vampires in search of young blood

As the article I pointed out showed, you need not take the plasma (not whole blood, just plasma) from the young of your own species. Get the blood from cows and pigs before slaughter. And that is just for now. Eventually we will find the actual factor that causes the rejuvination and just make that synthetically, or engineer our cells to produce it.

>Alzheimer patients with a thousand years of longevity

The article I posted showed that this treatment also rejuvinates the brain.

>muh workers

Make-work positions damage the economy. Get rid of them and then you will have the workers you need for real jobs.

>Then you will have a massive die off and an ensuing dark age.

Jack off fantasy.

Cloud9.5's picture

I sincerely hope you are right.  I have always been a fan of Time Enough for Love, ah to be Lazerus Long.  While the hope is warm and fuzzy, I don’t hold much out for it. I expect to die like everyone who has come and gone before me.  If you don’t reconcile that with yourself, the odds are that you are going to be majorly pissed when fate hands you your death sentence.