U.S. President Donald Trump will propose on Monday a 21% cut in foreign aid and slashing social safety net programs in his $4.8 trillion budget proposal for fiscal 2021, according to senior administration officials. The budget will seek an increase in funds to counter developing economic threats from China and Russia, but will also raise funds by targeting $2 trillion (1.55 trillion pounds) in savings from mandatory spending programs in the United States.
The budget will raise military spending by 0.3% to $740.5 billion for the fiscal year 2021, starting Oct. 1 and propose higher outlays for defense and veterans, administration officials said. The White House proposes to slash spending by $4.4 trillion over 10 years.
That includes $130 billion from changes to Medicare prescription-drug pricing, $292 billion from cuts in safety net programs - such as work requirements for Medicaid and food stamps - and $70 billion from tightening eligibility rules for federal disability benefits.
Trump’s foreign aid proposal seeks $44.1 billion in the upcoming fiscal year compared with $55.7 billion enacted in fiscal year 2020, an administration official said.
Editorial credit: Evan El-Amin / Shutterstock.com