The White House asked the Congress to cut $3.6 trillion in government spending on healthcare and food assistance programs as they push ahead with tax cuts and trimming the deficit. Fred Katayama reports.
The White House asked Congress to cut $3.6 trillion in government spending over ten years. Among the programs suffering the biggest cuts - Medicaid and food stamps, the U.S. Postal Service, and support for farmers. The plan also calls for imposing user fees for meat inspections, selling off half the nation's emergency oil stockpile, and opening the Alaska National Wildlife Refuge to drilling. That pulled down oil prices Tuesday. Despite deep cuts, Trump also budgeted some new spending. That includes money for the Pentagon, a downpayment for a wall on the border with Mexico, financing paid leave for new parents, and $200 billion for infrastructure programs Adam Abelson, portfolio manager at Stralem Fund: (SOUNDBITE) ADAM ABELSON, PORTFOLIO MANAGER, STRALEM FUND (ENGLISH) SAYING: "All of this is priced-in. The way that we see valuations, infrastructure investments and defense guys are already expected to do this. And, if you think about all these long-term contracts, it takes years and years and years of revenue recognition to get the full body of work there, so we kind of just think that this is a trade that continues to go higher, but, nonetheless, is probably fully valued." Trump's budget plan relies on a forecast for economic growth of three percent a year by the end of his first term. That's well beyond Congressional Budget Office assumptions of 1.9 percent growth.