Back in the US, Trump has asked for $5 billion to fund the construction of his long-promised border wall, and $3.8 billion to repay the funds redirected following his national emergency declaration last month. Nancy Pelosi might try the same trick with House Republicans this time around to force them into voting for foodboxes and steep cuts in welfare, or more likely voting against both and risking the ire of some conservatives and Trump populists. Furthermore, the budget would preclude the Defense Department from any funding caps that are set to take place during fiscal year 2020-all positive news for the Direxion Daily Aerospace & Defense Bull 3X Shares (NYSEARCA: DFEN).
To get around the caps set on defense spending by the 2011 Budget Control Act, the Trump administration proposes funneling the money through the Overseas Contingency Operations fund, more traditionally used for emergencies. If he serves eight years, Trump would leave with higher debt as a percent of GDP than when he entered office, according to White House forecasts.
The White House and Congress must agree on funding by October 1 to keep the government funded and open - which coincides with the deadline to lift the debt limit, or risk a default, which would have severe economic repercussions. "The same thing will repeat itself if he tries this again", said House Speaker Nancy Pelosi, D-Calif., and Senate Democratic leader Chuck Schumer of NY.
The administration is also asking Congress for $USD40 billion to fund the State Department's work on global diplomacy and aid in fiscal 2020, a slight increase from last year's request but nowhere close to addressing deep cuts made in 2017.
"At a time when we should be funding programs that work for the American people, the President continues to push for a vanity project that most Americans don't want and experts say we don't need", said a statement from Ryan.
Vought acknowledge the tax cut had contributed to higher deficits, but he praised the corporate rate reduction central to "MAGAnomics" - the administration's economic plan coined from the president's "Make America Great Again" campaign slogan.
The Trump administration is looking to decrease the Education Department's funding by $7.1 billion compared to what it was given last year, as part of next year's proposed budget.
Like past presidential budget proposals, Trump's plan was highly unlikely to become law.
The Department of Justice is afforded $330 million in the budget to fight the opioid crisis that has been an increasing focus of the Trump administration.
"We hope he learned his lesson", the duo continued, adding that the money should be spent on education and workforce development.
Second, Social Security and Medicare are starting their rapid growth so many budget experts have been warning about for years, making it even more hard to bring the budget into balance. Trump's budget relies on "gimmicks" to keep the debt rising by "only" that much, experts across the political spectrum say.
White House Press Secretary Sarah Sanders also couldn't confirm if there was anything in the president's 2020 budget request that explicitly mentioned Mexico paying for the wall.
The OMB said the budget would propose $2.7 trillion in spending cuts over a decade, which it said would be more than any other administration had ever planned.
By refusing to raise the budget caps, Trump is signalling a fight ahead. Trump's 10-year, 1.5-trillion-dollar infrastructure bill that the White House released in February 2018 ended up stranded in the legislative process.
Even if the president's emergency declaration survives this congressional challenge, Trump faces significant opposition in the courtroom.
The request is far more than the $1.4 billion Congress allocated for wall construction in January after a standoff between the president and Democrats, which led to a five-week partial government shutdown. He also told Fox News Sunday there was no reason to "obsess" about deficits, and expressed confidence that economic growth would top 3% in 2019 and beyond.