Proposed Cuts Target the Poor Hard

At the beginning of September, Congress passed and the president signed a continuing resolution (CR) to keep the US government funded through December 8, 2017. The measure also provides emergency relief assistance in the aftermath of Hurricane Harvey. As Congress has not yet passed the FY18 appropriations bills, the CR ensures (1) the federal government continues to operate after September 30, 2017 when the current fiscal cycle ends; and (2) provides Congress and the White House more time to complete the FY18 funding bills. A summary of key funding recommendations President Trump sent Congress is below:

Big Picture:

  • Cut non-defense spending by $4.3 trillion
  • Increase defense spending by $27 billion over the next 10 years.
    –Center for Budget Policy and Priorities

Top 3 areas for non-defense discretionary spending:

  • Health care & health research (21%);
  • Transportation & economic development (19%); and
  • Education & training (15%).

Targeted Cuts:

  • Government programs that aid moderate to low-income families,
  • Federal aid for secondary education
  • Many more federal grants and programs
  • To fund major tax cuts.

Bottom-line:

  • Defense and law enforcement programs receive significant increases.
  • Programs that assist low and moderate-income families are hit the hardest, and would be cut by an estimated $2.5 trillion in the next decade.