White House May Have to Make Unpopular Cuts to Achieve Trump’s Cost-Cut Goals | Global News Avenue

Unwelcome cuts may have to be made in order for President Donald Trump’s administration to meet its spending cut target.

President Donald Trump’s administration creates an ambitious cost-cutting plan to shave $2 trillion in federal budget. So far, cost reduction has been shown to Dismissal of federal employees and Suspend or redistribute funds for Several departments.

However, the federal government spent much of its budget on interest on Medicare and Social Security benefits and national debt. President Donald Trump has Promise to leave social security and medical insurance In the past, economists and analysts said the White House may have to cut those plans to significantly weaken the federal budget.

The government’s Ministry of Efficiency is tasked with finding opportunities to cut spending, and the department said it has saved about $52 billion so far. However, NPR’s independent analysis confirmed only $2 billion. Last year, government spending $1.83 trillion more than collected in the form of taxes and other income.

“You can shut down U.S. aid and fire every federal employee, and if you don’t change anything else, you still have an annual budget deficit of more than a trillion dollars,” said Jon Hilsenrath, senior consultant at Stonex, a financial services firm., in an interview Investopedia.

Cutting safety net plan will not be popular

Cutting into these safety net plans may not be popular.

“The problem with re-spending of federal spending over the years is that the public tends to like to spend completed, and politicians tend to be reluctant to reduce it,” Hilsonlas said.

According to a recent survey by business intelligence firm Mreing Consult, only 5% of voters said social Security and Medicare Funds should be cut. About two-thirds of voters said the plans should receive more money. Cut other safety net plans, e.g. Medicaid and Breakalso unpopular.

The White House may be seeking to mitigate the severe impact of cuts on these plans. This week, Trump and Doge Consultant Elon Musk proposes the idea of ​​sending checks to Americans “Dips” saved Their budget cuts may arise.

Hilson Lass said returning some savings directly to taxpayers could make government spending politically viable. In the past, as Republicans successfully cut taxes and Democrats successfully increased spending on social programs, the federal spending deficit has accelerated, but neither side is willing to offset these changes completely and reduce spending in other areas.

But if the government cuts spending on social safety net programs, reduced aid could lead to a range of economic problems for themselves, which has the biggest impact on low-income families who receive federal benefits.

“If ‘saving’ gets big enough that it’s important to be macroeconomic, it’s because they go deep into federal programs to provide important help to vulnerable families who will explicitly get worse, regardless of ‘saving’ ‘How to distribute,’ wrote L. Josh Bivens, chief economist at the Institute of Economic Policy in an email Investopedia.