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Federal Market Intelligence for Small Business |
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Trump: cut $18B more in FY2017But some lawmakers say Trump proposal not in negotiationsWith civilian federal agencies facing a $54 billion reduction under President Trump’s proposed budget for fiscal 2018, there has been less attention on Trump’s proposed budget cuts for the rest of fiscal 2017. The White House in late March circulated a list of $18 billion in proposed additional reductions to civilian federal agencies that would take effect between April 29 and Sept. 30. The FY 2017 Reduction Options list runs 13 pages and includes deeper cuts to community block grants, health research, transportation infrastructure construction and foreign aid, among other programs. Trump has said a portion of those savings would go toward building a wall on the Mexican border. Lawmakers from both parties have shown resistance to the immediate cuts. They are currently negotiating fiscal 2017 appropriations that would take effect after the Continuing Resolution spending law expires on April 28. If no agreement is reached, there would be a government shutdown, but politicians seem eager to avoid that this year. Some Democrats have said in recent days that Trump’s $18 billion in additional cuts are not being included in those appropriations discussions, according to a report by CBS News. But if the budget talks do not go well, it is possible that Trump’s proposed budget cuts for fiscal 2017 could be on the table at some point. Currently, the government is being funded on a Continuing Resolution that expires on April 28. Negotiations are underway to either pass a budget for the rest of the year, or to approve a continuing resolution through Sept. 30. Major agency cuts Overall, Trump proposed the following reductions in funding for fiscal 2017, in comparison to the Continuing Resolution level:
Line item reductions The reduction options list mentions several programs that could be slated for the deepest reductions. For example, at HUD, the Community Development Block Grant program would be cut by $1.5 billion. At the Education Dept., Pell Grants for college education would be hit by a $1.3 billion cut by Sept. 30, under Trump’s plan. Those grants go to college students with demonstrated financial needs. Another Education Dept. program that would take a big hit is Title II teacher quality grants, formerly known as Teacher Quality State Grants, which would drop by $1.2 billion. Medical research grants at the National Institutes for Health would be reduced by $1.2 billion. That includes grants for new ideas in addition to existing research programs. The US Agency for International Development would lose $562 million for development assistance, $290 million for economic support grants and $242 million for AIDS relief grants. The Transportation Dept.’s National Infrastructure Investments program would be decreased by $499 million and the transit new starts program would lose $447 billion by Sept. 30. Trump’s list of reduction options was first obtained and published by Politico. More information: FY2017 reduction options: http://goo.gl/nvAY8G
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