President Trump in the Rose Garden. (Photo: AP)
The Congressional Budget Office said Thursday that under President Donald Trump's 2019 budget, debt will continue to rise, though, as the Center for a Responsible Federal Budget points out, "at a slower rate than under current law."
As the CBO analysis notes, on Feb. 12, the Trump administration submitted its annual set of budgetary proposals to the Congress; subsequent amendments were transmitted on April 13.
According to CBO's analysis:
- Federal debt held by the public would equal 86% of gross domestic product (GDP) in 2028 under the president's budget, compared with 96% that year in the agency's baseline and about 78% this year.
- The federal deficit would be $2.9 trillion smaller under the president's budget than in CBO's baseline during the 2019–2028 period, CBO estimates. By contrast, the administration estimates that the deficit would be $5.2 trillion smaller than the baseline amount during that period.
- The two largest changes over the 2019–2028 period would be a $2.1 trillion reduction in nondefense discretionary spending (excluding that designated for overseas contingency operations, or OCO) and a $1.3 trillion reduction in mandatory spending for health care.
Trump's proposals would boost mandatory spending on infrastructure programs by $131 billion over the next 10 years, CBO estimates.
Trump also proposes changes to federal student loan programs that would generate $103 billion in savings to the government between 2019 and 2028, CBO estimates. The proposals would make a number of changes to the Federal Direct Loan Program, including creating a single income-driven repayment plan, eliminating loan forgiveness for some borrowers and eliminating subsidized loans.
Trump's budget plan also suggests the following:
Extend Tax Provisions That Expire in 2025
