3 keys to understand Trump's new budget proposal

Leslie Hanson
March 14, 2019

Most of the proposed Medicare cuts in President Donald Trump's 2020 budget would affect payments to healthcare providers and not directly affect benefits given to seniors, a new analysis shows.

Russ Vought, acting director of the Office of Management and Budget, said the budget helps achieve savings through lowering drug prices, rather than cutting Medicare benefits to seniors. "He said he wouldn't cut Medicare, he said he wouldn't cut Social Security, and his budget cuts both".

Once in the White House, Trump reneged on his promise not to cut Medicaid for low-income people. The Trump administration wants to eliminate that differential.

"President Trump's budget proposal is nothing short of an attack on our education system". His 2020 budget allocates $25 billion less on Social Security and $845 billion less on Medicare.

Democratic senator Patrick Leahy, chairman of the Senate Appropriations Committee, said in a statement that Trump's plan "is not worth the paper it is printed on".

Also, as expected, the president intends to cut $220 billion in the Supplemental Nutrition Assistance Program (known as SNAP or, more commonly, as food stamps), $21 billion in Temporary Assistance for Needy Families, $207 billion in the student loan program and seeks up to a 31-percent reduction in the Environmental Protection Agency.


Tricia Neuman of the nonpartisan Kaiser Family Foundation said the Medicare cuts in this year's budget are larger than what Trump proposed last year. He called the proposal "malicious". The National Institutes of Health, which conducts and supports medical research, would lose $4.5 billion in funding, another politically unpopular idea, though the Department of Veteran's Affairs would gain an additional $6.5 billion from the year before. In addition, the budget would squeeze billions from state and local grant programs - throwing out the Community Development Block Grant program and others that provide financial aid for affordable housing.

House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Charles Schumer (D-N.Y.) made it clear that they would not approve the wall money. Now the only thing that people are going to witness is how the messages are going to appeal the voters.

According to critics, the White House's budget proposal sets high expectations for economic growth.

These reductions are not that cut and simple, but it boils down to Trump once again breaking promises, which will have a devastating impact on the quality of life in the nation, particularly for those who depend on a strong social safety net.

"Over the next 10 years, we are confident that the economic policies of this administration ... will more than pay for the costs of the tax cuts", said Vought.

"If we can reduce the regulatory state and get health care costs down, we can get the economic engine going, and then restrain spending".

Other reports by Iphone Fresh

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