With a $2 trillion deficit looming, the Obama administration has spent the past two years trying to negotiate a budget with the Republicans.
In July, the budget was approved with the “supercommittee” — a group of Republican members who met in private meetings with President Donald Trump to discuss ways to cut spending, but the budget passed without any amendments.
But with a new budget coming out this week, some Republicans believe they’ve hit their limit.
As the Washington Post’s Philip Bump reports, the new budget proposal calls for $2.2 trillion in spending cuts — $2 billion more than the $1.9 trillion budget the administration has proposed for fiscal year 2018.
That’s a drop of $700 billion, but it’s a lot less than what the administration proposed last year, which included $2-trillion in new spending cuts and $500 billion in tax increases.
The cuts would hit middle-class families the hardest.
The budget would slash Medicaid spending by $2,300 per family, and increase the number of people on food stamps by $1,000 per family.
The plan also includes $300 billion in automatic cuts to Medicare and $200 billion in cuts to the military.
These spending cuts would make it easier for the White House to avoid raising the debt ceiling.
The debt ceiling was not raised in the new fiscal year, but House Speaker Paul Ryan (R-WI) said last week that if the debt limit isn’t raised this year, the U.N. Security Council will have to raise the ceiling to keep the U,S.
The new budget plan also proposes $50 billion in reductions in domestic programs.
But the White the WhiteHouse says this plan is balanced and is only $50-billion more than what was included in the administration’s proposed budget for fiscal 2018.
The House of Representatives will hold a vote on the budget on Friday, and it will likely be passed with a simple majority.
If passed, the Republican plan would also eliminate all deductions for taxes, including the mortgage interest deduction.
But House Republicans won’t be able to undo the $300-billion in cuts the Whitehouse proposes.
Republicans plan to repeal Obamacare, which the Trump administration says will save $716 billion.
But it’s unclear how much of that money would actually go to help the poor and middle class, as the White house has suggested.
As NPR’s David Welna points out, a lot of the new spending in the Republican budget would help the rich.
The Congressional Budget Office estimates that the cuts in Medicaid and food stamps would save $300 for every $1 the president proposes.
But these spending cuts aren’t expected to affect the rich, who already have an extensive safety net thanks to their employer plans.
They would be phased out over the next five years, but they would still affect the poorest Americans.