May 30 2017
Fed Update: Proposed Budget Cuts Health Care, Education and Infrastructure Spending
Last week, President Trump proposed a $4.1 trillion federal budget for 2018. While it is still up to lawmakers to finalize the budget, it gives insight into the administration’s priorities. It includes $1.4 billion toward school vouchers to bolster “school choice” programs in an effort to give parents more options regarding where to enroll their children, while also cutting $1 billion toward Department of Education funding to subsidize student loan interest; $2.3 billion in teacher training; and $1.2 billion in after school programs, which would mostly affect low-income students. In terms of health care, the Trump budget assumes passage of the American Health Care Act and the elimination of $839 billion from Medicaid as proposed, as well as an additional $600 billion reduction to Medicaid over 10 years. Additionally, the budget proposes $200 billion toward an infrastructure initiative over 10 years. While this is a sharp reduction from the $1 trillion promised during the presidential campaign. The difference is proposed to be covered by tax incentives to private developers with governmental authorization for private development. For more information, contact Alicia Berhow, OCBC Vice President.