-Mexican border to thwart illegal immigration.
This time, though, the President will up the ane, requesting a staggering $8.6 billion to finish major sections of the wall, and begin construction in earnest ahead of the 2020 presidential elections, according to an exclusive report from Reuters.
The Trump budget also proposes cutting spending on Medicare, the federal program that gives health insurance to older Americans, by $845 billion over the next 10 years, in part by limiting fraud and abuse and payments to hospitals.
While pushing down spending in some areas, including the Environmental Protection Agency, the proposal will seek to increase funding in others to align with the president's priorities, according to one official.
"This budget will have more reductions than any president in history has proposed", a senior administration official told reporters on a call Monday.
Though the plan comes with a built-in deficit of more than $USD2 trillion, Trump administration officials described it as a "return to fiscal sanity" that won't hinder economic growth.
The budget proposal dramatically raises the possibility of another government shutdown in October, and Trump used to the budget to notify Congress he is seeking an additional $8.6 billion to build sections of a wall along the U. Frankly, that's all a president's budget does - Congress routinely says, "Yeah, thanks", and then promptly ignores every president's budget. Many lawmakers view the declaration as an overreach of executive power. "The same thing will repeat itself if he tries this again", said the House speaker, Nancy Pelosi, and the Senate Democratic leader, Chuck Schumer of NY. "The same thing will repeat itself if he tries this again", the leaders continued. "We hope he learned his lesson".
Larry Kudlow, the White House chief economic adviser, brushed aside budget deficit concerns on Sunday, arguing that markets are not overwhelmingly anxious about federal spending. And earlier this week, Trump said that while he was "confident" about the prospects for an agreement, "if this isn't a great deal, I won't make a deal".
"We have a crisis down there", he said.
"I don't think good growth policies have to obsess necessarily about the budget deficits and so forth", Kudlow said.
The budget also reiterates several previously outlined Trump administration drug-pricing priorities, including a proposal to allow some state Medicaid programs to craft their own more limited drug formularies and negotiate prices directly with manufacturers. And even though they have proposed budget cuts before, only to be rejected by Congress, his top advisers want to dig in on the cuts this year, convinced Americans will support them. To stay within the caps, the budget shifts a portion of the defense spending, some $165 billion, to an overseas contingency fund, which some fiscal hawks will view as an accounting gimmick.
Ludlow said on "Fox News Sunday" that the "tough budget", combined with healthy economic growth, would dismiss worries about the debt. "I think it's essential". Some of these recent budget deals have not been favorable towards spending.
Since becoming president, Trump has changed his description of how the wall would be financed, at first saying Mexico would eventually pay the USA government back, and later scrapping any mention of Mexico sending money to the United States. That's the reality that will greet Trump's latest budget, which probably will promptly be shelved after it's received by Congress on Monday. It also anticipates the economy to gradually slow to 3.1 per cent in 2020, 3 per cent in 2021, and 2.8 per cent in 2026.
Negotiators are "working out some of the hard final points", Kudlow said.