Domestic Cuts
Trump’s plan for a 40 percent reduction in non-defense discretionary spending by 2027 is also very unlikely. That would require sustained, deep spending cuts to nearly domestic agency of the government -- and Congress already rejected all of Trump’s proposed cuts for fiscal 2017 when it passed an omnibus spending bill earlier this month.
It would take those accounts to just 1.7 percent of GDP, a level not seen in decades.
Democrats have insisted that any bipartisan spending deal won’t include significant domestic spending cuts.
Senate Majority Leader Mitch McConnell of Kentucky said Tuesday he expects to start negotiations with Democrats soon on a new spending cap soon.
"We’ll have to negotiate the top-line with Senate Democrats" he said.
Trump has sought to negotiate with Democrats on infrastructure spending and touted a $1 trillion investment. The budget makes clear that he only intends to spend $200 billion as part of that plan, relying on private investors to pony up the rest. But the budget elsewhere anticipates $95 billion in savings from cutting highway funding.
This article was provided by Bloomberg News.