Trump’s Budget Proposal to Boost Defense but Reduce Spending on Health Care

Last modified: January 22, 2021

On Monday, President Trump released a $4.8 trillion budget proposal that outlines additional spending for border enforcement, military, and national defense. According to reports, the said budget reflects Trump’s effort to shrink the federal safety net programs — hence why we can expect budget cuts for affordable housing, food stamps, Medicaid, and student loan assistance

Moreover, the budget proposal — which must be approved by Congress — outlines an annual reduction of 2% in the discretionary spending for domestic programs such as education and environmental protection. Based on the proposal, there would be large military spending ($3.2 billion) for the creation of advanced weapons that can evade large missile defense systems; $18 billion also goes to the newly formed Space Force.

Trump said on Monday that the budget proposal would strengthen the nation’s nuclear arsenal and the military in general. On the other hand, it seems that health care is not on the list of priorities for the president, despite it being a hot issue of late. The budget outlines major changes to health care programs, including lowering Medicaid and ACA funds. The $1 trillion combined cuts signal substantial changes in the overall health care system

According to the chairman of the Senate Budget Committee, Senator Michael Enzi, the president’s budget reflects the administration’s priorities. Nevertheless, the proposal remains a suggestion and the power still rests with Congress. They hope to make a decision that would put the country in a sustainable fiscal course, Enzi said.

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