President Trump Proposes an Increase in Defense Spending
President Trump released a Budget Blueprint for 2018 on Thursday. The budget proposes a large increase in defense spending paid for by broad cuts to other federal government agencies.
Compared to 2017, President Trump’s 2018 Budget Blueprint calls for a $52 billion increase in the Department of Defense budget. That amounts to a 10 percent increase in defense spending. The increase in the Department of Defense budget would go toward improving readiness across all branches of the military. The 2018 increase in defense spending would be one of the largest in American history. In constant dollars, the boost in defense spending would only be exceeded by increases during the Reagan administration and during active conflicts. President Trump plans to increase military spending without increasing the deficit or debt.
President Trump plans to offset the increase in defense spending by making broad cuts to other federal government agencies. President Trump’s 2018 Budget Blueprint calls for a 28 percent cut to the Department of State budget. On the domestic side, the Environmental Protection Agency budget would be cut by 31 percent while spending on Health and Human Services would be cut by 17.9 percent. The Department of Energy would see a 5.9 percent cut.
The proposed budget would end federal funding for many independent agencies. Funding for well-known independent agencies such as the National Endowment for the Arts and the Corporation for Public Broadcasting would be eliminated. Other independent agencies would also be cut. Funding for the U.S. Trade and Development Agency would be eliminated. The U.S. Trade and Development Agency promotes U.S. exports in foreign countries.
The proposed budget does not address mandatory spending on Social Security. Social Security is the largest federal expenditure. According to the CBO, the federal government spent $910 Social Security in 2016. That amounts to nearly 5 percent of GDP. In contrast, nondefense discretionary spending was $600 billion or 3.3 percent in GDP in 2016. The Social Security Trust Fund is projected to go broke in 2029. When the Social Security Trust Fund goes broke benefits will automatically be cut.
