The White House released more details of its federal budget proposal. It includes substantial cuts to Medicaid and other aid to the poor. Because it comes packaged with tax cuts, it assumes the economy will grow faster as a result and ultimately balance the budget by 2027. It is, however, unlikely to pass Congress as is.
Total spending cuts: $4.3 trillion over 10 years
Nondefense discretionary spending: $1.4 trillion
As outlined in March's "skinny budget," the proposal includes significant cuts to most nondefense government agencies. The Environmental Protection Agency would be cut by 31 percent for 2018 and the State Department and related programs by 29 percent, with additional 2 percent cuts each year after. Law enforcement and homeland security spending are exceptions — the budget includes $1.6 billion for a border wall.
Medicaid and the Children's Health Insurance Program: $616 billion
Changes to Medicaid and the Children's Health Insurance Program would save the federal government money, but would reduce the number of people with insurance. Medicaid savings are estimated at $610 billion over 10 years. The administration would shift some costs to the states, by setting annual limits on federal payments to each state, starting in 2020.
Claimed savings from reductions in war funding: $593 billion
Phasing down the Defense Department's Overseas Contingency Operations fund, an off-budget spending account that is used to fund wars, saves some more money. The fund has been used to override spending caps passed by Congress and could be changed during any given year.
Other: $339 billion
The budget includes new limits on medical malpractice lawsuits, expected to reduce the practice of "defensive medicine," saving Medicare $31 billion over 10 years. It also proposes raising about $36 billion in new federal revenue by selling off major American energy resources and infrastructure, opening up vast new areas of public land for oil and gas drilling, and redirecting state revenues that flow from oil and gas royalties back to Washington. The Postal Service would see $46 billion in cuts.
Savings on interest payments on the debt: $311 billion
Interest payments on the federal debt are one of the federal government's biggest expenses. Under current law, the interest payments are expected to grow as deficits mount and interest rates increase. The Trump administration predicts that its cost-cutting will slow this rise.
Welfare programs: $272 billion
The budget seeks to cut the Supplemental Nutrition Assistance Program, which provides food stamps, by $190 billion and the Temporary Assistance for Needy Families block grants by $15.6 billion. It also proposes $40 billion in savings by barring unauthorized immigrants from collecting the child care tax credit or the earned-income tax credit.
Repeal and replace Affordable Care Act: $250 billion
Undoing the Affordable Care Act would save $250 billion over 10 years, according to the Trump administration, which promises "a smooth transition away from Obamacare." (These savings are in addition to those proposed for Medicaid.)