Published: Thu, May 25, 2017
Money | By Armando Alvarado

Does Trump's Budget Cut Medicaid Funding? No One Seems To Know

The White House's budget proposal calls for an $800 billion Medicaid cut over the next decade as well as a $193 billion cut to the Supplemental Nutritional Assistance Program (SNAP) food stamp program over the same duration.

In testimony to the House panel, Mulvaney said the rosy 3 percent scenario is critical to the success of Trump's agenda, which includes balancing the federal budget.

President Trump's first budget proposal to Congress slashes $3.6 trillion over 10 years in an effort to balance the federal budget.

First, remember that Trump's budget does include a $1 billion boost in overall Title I aid, which would bring it up to $15.9 billion. He seeks to balance the budget within 10 years.

Trump budget director Mick Mulvaney, defending an administration that promises more economic growth than many think it can deliver, said Tuesday it's the Obama administration that went overboard in its forecasts for growth.

"It appears to be the most egregious accounting error in a presidential budget in the almost 40 years I have been tracking them", Summers wrote in the Washington Post.

President Donald Trump's budget director suggested Wednesday that the government's borrowing limit may need to be raised earlier than originally anticipated, citing "slower-than-expected" tax receipts.

"If it's important enough for us to have then we should be paying for it, because right now my unborn grandchildren are going to be paying for it, " Mulvaney said. States would receive significantly lower overall payments from the federal government, and Washington would no longer match state spending on coverage for kids whose families make more than two-and-a-half times the federal poverty level, about $51,000 for a family of three. In a nutshell, Trump would have gutted the Environmental Protection Agency, the National Institutes of Health and similarly crucial domestic agencies to fund a big boost in defense spending and border security.

Calgary artist touring in Manchester expresses heartbreak in wake of terror attack
Mayor Eddy Newman and the city's police chief spoke to the crowd and held a moment of silence to remember those that died. Flowers laid beneath Cobden statue in St Ann's Square in Manchester to mourn victims of the bomb attack.

During Wednesday's hearing, the unrealistic assumption embodied in Trump's budget were criticized by Freedom Caucus member Rep. Mark Sanford (R-SC), who said, "This budget assumes a Goldilocks economy". A report by the International Monetary Fund last month projected that while the US economy will expand at a faster pace this year and next than it did in 2016, that growth is forecast at 2.3 percent and 2.5 percent, respectively, for the next two years. It projects that if Trump's initiatives are adopted the deficit will start declining and actually disappear by 2027.

But the effort has stalled as the White House grapples with the political fallout from allegations of Russian meddling in the 2016 USA election.

Republican leaders in the House said lawmakers would be able to find common ground with the budget plan.

Trump's budget holds true to his campaign pledge to leave Medicare and Social Security pension benefits alone and contains spending increases for the military and veterans, but it treats most of the rest of the government as fair game.

It requests a $54 billion hike in defense spending that would be offset by making drastic cuts to nearly 20 federal agencies. A senior vice president for the Committee for a Responsible Federal Budget named told the Times that "you can't use the same money twice". "This budget is not going to go anywhere". The measure proposes cuts to Social Security Disability Insurance, which benefits more than 9 million Americans.

Those programs may not come out of Capitol Hill unscathed, however.

Virginia's senators say they are not impressed.

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