How food stamp cuts could ripple through the economy

Erica Roy
May 25, 2017

But he drew rebukes, even from some Republican allies, for the plan's jarring, politically unrealistic cuts to the social safety net for the poor and a broad swath of other domestic programs.

Fox News contributors and hosts defended President Donald Trump's draconian budget request for fiscal year 2018 by coalescing around a talking point also voiced by the White House that spending cuts for nutrition assistance programs are justified due to their gut feeling that too many people are using them.

The proposal reflects a conservative vision of smaller government, a drastic rollback of programs for the poor and disabled to prod them into the workforce and a robust hike for the military and border security.

So, what's the plan for Medicaid?

CNNMoney reached out to Trump supporters in impoverished Beattyville, Kentucky, a town whose citizens voted overwhelmingly for Trump in the 2016 presidential election.

One House Budget Committee member, Rep. Tom Cole, R-Okla., told White House Budget Director Mick Mulvaney that Trump's proposed cuts to medical research are "penny-wise and pound-foolish" - and then excused himself to preside over DeVos' testimony. Mexico emphatically rejects that notion.

Democratic defenders of the program warned that would deny health care and nursing home care to millions of people.

Trump's budget cuts also target welfare programs for low-income women (and children), such as the Supplemental Nutrition Assistance Program (food stamps) and the Women, Infants, and Children (WIC) nutrition program. As we've reported, an analysis from University of California, Berkeley Labor Center found that 52 percent of fast-food workers are enrolled in, or have their families enrolled in, one or more public assistance programs such as SNAP, Medicaid or the Children's Health Insurance Program.

Congress is unlikely to approve such deep cuts in the program, since it affects constituents so broadly.

If Trump's budget goes through, the program Obama created would be eliminated and women in these positions may have to pay a median of $60,000 in student debt, according to Fortune.

According to Sanford, they need to see real numbers to ensure they aren't doing more damage than good, adding he believes it's wrong to insinuate they can balance the budget without making some hard choices.

Trump's budget would limit subsidies to farmers, including a cut in government help for purchasing popular crop insurance policies. And you have a 13 percent cut in the Department of Education. "Come on. That doesn't add up". However, Puckett depends on Social Security disability because of her sclerosis, so she also expressed that she would be concerned if the budget went into law, as she could lose her benefits.

Besides, Trump's budget - which includes a $52 billion increase in military spending next year alone - wouldn't really bring down the national debt, despite what Mulvaney claims. Dick Durbin of IL.

Trump's budget was silent on bargaining with the pharmaceutical industry to reduce the cost of prescription drugs, a topic the president has often touched on. Some $200 billion in federal infrastructure investments are promised to leverage another $800 billion in private investment, though the idea has yet to get much traction.

Sanford told Mulvaney that the budget "assumes that the stars perfectly align" by promising an economic growth rate of 3 percent but that such an economic surge wouldn't increase inflation and bond yields.

Trump's balanced-budget goal depends not only on the growth projections that most economists view as overly optimistic but also a variety of accounting gimmicks, including an nearly $600 billion peace dividend from winding down overseas military operations and "double counting" $2.1 trillion in revenues from economic growth - using them to both pay for tax cuts and bring down the deficit.

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