White House officials are putting together a fiscal 2018 budget, which calls for $800 billion, 10-year cut in entitlement programs, including Medicaid and Social Security disability insurance, Roll Call is reporting.
The budget being prepared for President Donald Trump aims to wipe out the deficit by using a formula of strong economic growth combined with the cuts, according to Roll Call. White House officials are convinced these changes will help ramp up the economic growth by three percent in the coming decade, the newspaper quoted sources.
Stronger economic growth could raise an additional $2 trillion or more over the next 10 years, Roll Call reported.
The budget request is not completed and could be changed, the newspaper cautioned.
However, the budget is not expected to include any major changes in Social Security or Medicare. But, the Medicaid reductions would go beyond those in the House-passed health care bill, according to Roll Call.
Roll Call said it was unclear which programs aside from Medicaid could suffer cuts. However, the budget proposal is expected to reduce the cost of the Social Security Disability Insurance program, it said.
The Congressional Budget Office has estimated the federal debt will grow by $10 trillion over the next decade, according to The New York Times.
But Treasury Secret Steven Mnuchin said in late April that Trump's economic plan "will grow the economy and will create massive amounts of revenues, trillion of dollars in additional revenues,” Roll Call reported.
The budget proposal is expected to be released the week of May 22.
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