What’s in Trump’s 2026 budget proposal?
What’s in Trump’s 2026 budget proposal?
|
|
The
One Big Beautiful Bill Act was a large piece of legislation that made
several budgetary changes. Some of its provisions are permanent; other
provisions won’t go into effect until later next year. Meanwhile, the
Trump administration has released its proposed budget for discretionary spending in fiscal year 2026, which begins on October 1. Here’s a look at the proposed changes. |
|
- The proposed 2026 budget would keep base discretionary spending at
the same level as 2025, but shifts billions out of some departments and
into others. It would move $113.3 billion to the DOD, meaning the
department would have 59.6% of all base discretionary spending.
- The Department of Homeland Security budget would have the largest
percentage increase (64.9%) to support immigration enforcement and other
administration policies. Funding for FEMA, TSA, and cybersecurity,
among other programs, would be reduced.
- The State Department and international aid programs would be cut by
83.7%, including reductions in international disaster assistance and
global health efforts.
- The administration also proposes a 43.6% decrease in program funding
for the Department of Housing and Urban Development, reducing it from
$77.0 billion to $43.5 billion. This includes a $26.7 billion cut in
federal rental assistance programs.
- The Education Department’s discretionary budget would drop 15.3%,
from $78.7 billion to $66.7 billion. (You can read USAFacts Founder
Steve Ballmer’s open letter to Education Secretary Linda McMahon on LinkedIn.)
|
|
Americans aren’t saving like they used to
|
|
Americans saved an average of 4.6% of their disposable income in 2024. The US personal saving rate
is a measure of people’s financial health and is one indicator of
consumer behavior and economic growth. Rising personal savings can mean
people are spending less, which can lead to slower economic growth.
Consumer spending accounts for 70% of the US economy. Congress is considering legislation to create a Universal Savings
Account, an investment vehicle exempt from taxes and withdrawal
penalties. The idea is to encourage more Americans to save because they
aren’t saving as much as they used to.
- The personal saving rate in the 1960s and 1970s averaged 11.7%,
peaking at 17.3% in May 1975. It’s gradually declined since then,
reaching an all-time low of 1.4% in July 2005.
|
|
- Personal savings peaked at 32% in April 2020. There are a few
reasons for this, including households proactively saving during
economic uncertainty. Business closures reduced opportunities for
spending, contributing to higher savings.
- Inflation is another reason for lower savings: food and fuel costs
may rise while wages don’t increase at the same rate. This goes for
housing, too. Over one-third of all households were cost-burdened in 2023, spending more than 30% of their income on mortgage or rent.
- Americans may also be saving in different ways. The share of
American assets held in stocks rose from 15.2% to 20% from 2019 to
2022.
|
|
The Trump administration has resumed sending some weapons to Ukraine. Remember last week when we said more data on government assistance to foreign countries was coming soon? It’s here! Dive into aid sent to Ukraine and 175 other countries. As of July 8, the US has counted 1,288 cases of measles. This is the highest yearly case count since the nation declared measles eliminated in 2000. We have a new page tracking these cases across states. Thousands of Philadelphia city workers had been on strike for over a week, resulting in residential trash piling up. They reached a deal with the city last Wednesday. President Trump approved a major disaster declaration for Texas on July 6, making FEMA funding available to people affected by the devastating floods. |
|
In 2024, the federal government spent $100.3 billion
on the Supplemental Nutrition Assistance Program (SNAP) — about 1.5% of
total federal spending. The average monthly benefit in 2024 was $188
per person, down from the 2021 peak of $253. |
|
|
|
|
No comments:
Post a Comment