A battle over spending is shaping up between President Trump
and congressional Republicans. Many of Trump’s campaign promises involved
spending large amounts of tax money on items from the military to
infrastructure. Now budget hawks in Congress are gearing up to try to prevent
the deficit from exploding over the next four years.
The Wall
Street Journal reports that the tensions surfaced in the confirmation
hearing of Mick Mulvaney, a South Carolina congressman who has been nominated
by Mr. Trump to head the White House Office of Management and Budget. Mulvaney
faced sharp questions from two different camps in the GOP. On one side were
defense hawks who were concerned about Rep. Mulvaney’s past votes to cut
military spending. On the other were those at odds with Mr. Trump’s campaign promise
not to cut Social Security or Medicare.
While the Trump Administration has indicated that it plans
some cuts in government spending, the elephant in the room is that programs
like the National Endowment for the Arts and the Center for Public Broadcasting
aren’t what’s busting the federal budget. Even foreign aid only represents
about one
percent of federal spending.
Let’s face it, America. We have an entitlement problem.
Entitlements make up about
half of the federal budget. The largest entitlement of all is a program
that many don’t even think of as an entitlement. Social Security accounts for
24 percent of the federal budget and is the largest single budget item. Health
spending in the form of Medicare, Medicaid, the Children’s Health Insurance
Program (CHIP) and Obamacare subsidies account for another 25 percent. Defense
spending is a distant third at 16 percent. Entitlement spending is expected to
rise even further as Baby Boomers age and leave the workforce.
“I’m not looking to pick a fight with the president of the
United States, but if his goal is to put the country on a fiscally sound
course, he’s going to have to address entitlement reform,” Rep. Tom Cole (R.,
Okla.) told the Journal. “Anybody who is going to balance the budget on
discretionary spending [cuts] is on a fool’s errand.”
A fight that is likely to come before entitlement reform is
Mr. Trump’s plan for an infrastructure
stimulus. Rep. Mulvaney and many Republicans were critical of the
infrastructure spending plan before the election, but a separate Journal
article noted that Democrats were embracing the $1 trillion proposal.
“We’re challenging him to join us even if his Republican
colleagues in the House and Senate aren’t for it,” Sen. Chuck Schumer (D-N.Y.)
said. This raises the possibility that President Trump
could form a bipartisan alliance with congressional Democrats to enact his
spending proposals as well as block conservative attempts at entitlement
reform.
The Republican budget hawks will have allies in the Trump
Administration. Mr. Mulvaney, a proponent of entitlement reform during his four
terms in Congress, said, “I haven’t been quiet and shy since I’ve been here. The
president knew what he was getting when he asked me to fill this role.”
Likewise, the fiscally conservative Heritage
Foundation was influential in the Trump transition team. Since the group
holds President Trump’s ear, reports like the one that advise him to “not be
taken in by hyperbolic rhetoric about the state of the nation’s infrastructure
or lured by false promises of stimulus-induced job creation” may prove
influential in the long term.
The Trump campaign has led to a Trump Administration that is
filled with contradictions. Trump’s promises of spending, some made as
recently as last week, conflict with his appointment of fiscal
conservatives like Mulvaney. Other appointees, such as Steven
Mnuchin, seem to be more squishy on deficit spending.
Will Trump follow his advisors or his instincts? Will
Republicans back him if Trump follows his liberal inclinations on spending?
Stay tuned and find out.
Originally published
on The
Resurgent
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