Coming into office next year, Donald Trump will face massive budget deficits of $2 trillion a year and rising. Trump and every member of Congress now know that excessive deficits and spending can spike inflation, which is very unpopular with voters. The president and his budget team must find spending cuts to tackle the deficit monster. However, Trump wants tax cuts, which would increase deficits. He also doesn't want to cut Social Security or Medicare, and he may increase defense spending. Those are the three largest programs in the federal budget. On the other hand, Trump has tasked Elon Musk with helping him cut federal spending, and there are many programs--even aside from the big three--that they should put on the chopping block: President-elect Trump says that Elon Musk will be in charge of cost-cutting, and Musk has talked about a new Department of Government Efficiency. But Musk seems to understand that we need program eliminations, not just efficiency, and he suggested a goal of $2 trillion in savings.
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Table of Contents
- Coming into office next year Donald Trump will face massive budget 1
- Congress now know that excessive deficits and spending can spike 1
- However Trump wants tax cuts which would increase deficits. He also 1
- On the other hand Trump has tasked Elon Musk with helping him cut 1
- 1. K12 public school subsidies. President George W. Bush favored 1
- 2. Urban transit subsidies. Many urban rail systems attract few riders and 2
- 3. Foreign aid. The federal budget includes 47 billion for international aid 2
- 4. Green subsidies. The Inflation Reduction Act of 2022 is costing the 2
- 5. Broadband subsidies. The 2021 infrastructure bill added 65 billion in 2
- 6. Public housing and rental subsidies. The Department of Housing and 2
- Urban Development HUD hands out 55 billion a year for public 2
- 7. Community development grants. HUD hands out 21 billion a year to 2
- 8. Junk food subsidies. Trump partner Robert F. Kennedy Jr. favors 2
- 9. Farm subsidies for the rich. Trump and the Republicans generally 2
- 10. Medicaid. This health program has grown explosively because the 2
- President-elect Trump says that Elon Musk will be in charge of cost- 2
- Efficiency. But Musk seems to understand that we need program 2
- A key target for eliminations should be aid-to-state programs such as K12 2
- The Trump-Musk spending cut effort will of course face hurdles in 3
- Congress. The administration should focus on a handful of ripe targets 3
- Trump should insist on eliminations in must-pass bills such as the 3
- America risks a sustained economic crisis if we donʼt cut federal spending. 3
- But cuts are also an opportunity to improve the nationʼs governance and 3
