Trump's 2020 Budget Plan Will Be Late: 5% Cut in Domestic Spending?

Larry Kudlow

White House National Economic Council director Larry Kudlow told Fox Business Network that the administration would propose a “very tough spending” budget “in a few weeks” and call for at least 5 percent across-the-board cuts in domestic spending. “Let’s minimize government where possible,” Kudlow said.

He did not make clear whether the 5% cut would be a real cut from current levels or a cut in proposed built-in growth, which is a favorite scam of government officials to appear as though they are cutting as the budget grows.

The U.S. budget deficit last year came in at $779 billion and is projected to hover around $900 billion this year. But government debt is rising at a significantly faster pace when counting interest payments on that debt.

Even with cuts, the deficit is forecast to continue to grow. But it is anticipated that the House, controlled by Democrats, will even oppose any proposed cuts.

Under law, the White House is supposed to send its proposal on the first Monday in February but much of the White House budget office was furloughed during the shutdown.

A senior White House budget official who asked not to be named cited the 35-day partial government shutdown as the reason there will be a delay in submitting its 2020 budget proposal, reports Reuters.

The 2020 fiscal year begins on October 1, 2019.

-RW