White House delivers 2021 Budget

Feb 14, 2020  | 3 min  | Ep4526

According to the Treasury Department, the U.S. budget deficit is up 19 percent from the same period a year ago. The growth puts the country on track for its first $1 trillion deficit since 2012. The nonpartisan Congressional Budget office says it will stay above that line for the next decade.

President Trump is offering his solution to the growing deficit with his Fiscal Year 2021 budget. His projections show the deficit would indeed top $1 trillion, but then decline over the next decade.

Peter Tubbs has more.

The White House’s $4.8 trillion federal budget arrived in Congress this week. Outlined in the document were the president’s priorities featuring cuts to various domestic programs including Medicare and Social Security with the aim of balancing the budget in 15 years. 
The FY 2021 budget reduces $57.7 billion in mandatory agricultural spending by 2030 through lower crop insurance subsidies and conservation programs in addition to tightening eligibility for farm programs. At the same time, the proposal would increase money for rural infrastructure, rural water and wastewater projects and a rural broadband pilot project. 
Critics contend many missives are repeat line items that failed to win approval when Republicans controlled both chambers and likely D-O-A in a House controlled by Democrats.
In 2019, the Trump Administration provided $28 billion in trade mitigation assistance and $5.7 billion in disaster help for farmers. If the new budget is approved, roughly one-third of farm income will come from government payments and crop insurance benefits this year.  
There is new language for the Supplemental Nutrition Assistance Program or SNAP. Included in the document are reforms to work requirements for able-bodied adults in an effort to promote self-sufficiency. Under the Trump proposal, adults would be required to work, participate in job training, or volunteer at least 20 hours a week in order to receive SNAP benefits. 
This budget repeats a request to combine traditional SNAP Electronic Benefits Transfer cards to allow for the purchase of “Harvest Boxes” filled with products made in the United States. The administration is also looking to reduce duplicate participation in all federal programs through the implementation of the National Accuracy Clearinghouse, an interstate data-matching system. 
Nine members of Congress sent a letter to the president about the challenges of the $15 billion in SNAP cuts that benefit almost 36 million Americans. Each of the signees, all Democrats, said that they, at one time in their lives, participated in government programs for assistance. The letter states that every dollar of SNAP funding increases the GDP by $1.73. 
The Trump budget is built on the assumption of 3 percent GDP growth over the next five years. U.S. GDP growth has been below 3 percent since 2005.
For Market to Market, I’m Peter Tubbs. @PeterTubbs


More from this show

Grinnell Mutual Insurance