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5 key points from President Trump's $4.1 trillion budget proposal

Trump's budget features welfare cuts, extra defense spending, and implications for student loans.

Donald Trump released a new $4.1 trillion budget proposal on Tuesday, calling it A New Foundation for American Greatness.

Given that the Republican majorities in the House and Senate will come up with their own budget proposals, it's likely that pieces of Trump's plan will be altered and removed. But it sets the president's priorities for negotiations going forward.

GoMN has taken a look at the budget document and picked out some key points.

Student loan changes

Cuts would be made to the federal student loan program, including those for low-income college students, with $143 billion in reductions over the next 10 years.

It would eliminate federally subsidized loans that pay students' loan interests while they're at school, and would also eliminate public service loan forgiveness programs for nurses, police officers and teachers.

The biggest saving would come from consolidating all the different loan repayment plans into a streamlined, simplified plan, saving $76 billion. It would cap graduate repayments at 12.5 percent their monthly income.

Spending cuts to agencies

One of the headline figures in the budget is that it contains $4.3 trillion in budget cuts over the next decade to most government agencies – outside of defense, homeland security and police.

The Environmental Protection Agency would take one of the biggest hits, with its budget slashed 31.4 percent for 2018. The State Department would see cuts of 29 percent, the Corps. of Engineers 16.3 percent, and the education department 13.5 percent.

The Energy Department would see a 5.6 percent reduction in funding. However, that doesn't affect the National Nuclear Security Administration, which sees an 11.4 percent increase.

Spending on defense, law enforcement up

The Department of Defense would see a 10.1 percent increase in its budget, some of which will be put towards 84 new jets for the Air Force and eight new ships for the Navy.

It also creates a budget to enlist 56,400 more soldiers, sailors, airmen and marines, which Trump says "are needed to fill gaps in our combat formations."

At the same time, Trump is proposing to cut foreign aid, which the New York Times says includes some programs that military officials argue "contribute to global stability and are seen as important in avoiding future conflicts."

There's also $1.6 billion to build the border wall with Mexico.

Cuts to Medicaid/welfare programs

As well as factoring in the savings from the removal and replacement of the Affordable Care Act (if it goes through), the budget also features $610 billion in cuts to Medicaid funding over a decade.

Trump says the reform would give states more power to prioritize Medicaid dollars for "the most vulnerable populations."

The budget for the Children's Health Insurance Program, which provides low-cost health plans for families who earn too much to qualify for Medicaid, would be cut 19 percent.

Also included in cuts is a 29 percent reduction to SNAP (formerly known as Food Stamps). Eligibility requirements would also be tightened up to ensure it targets the neediest, and would also require "able-bodied adults to work."

Time notes 44 million Americans use the program, which costs the federal government $75 billion a year – three times what it did in 2000. The number of people using SNAP went up from 2009 to 2013 during the recession, but has since fallen a bit, Politifact writes.

The budget also includes a tightening of access to Social Security's disability program, calling for $48 billion in savings by refocusing the program to provide incentives and pathways to help people with "temporarily disabilities" recover and return to work.

"Government must ensure only those who are truly eligible receive benefits," the budget says, adding that it will work to crack down on disability benefit fraud.

Funding for parental leave

About $19 billion in the budget is being set aside to provide paid family leave to new parents.

Under the plan, new mothers and fathers, including adoptive parents, will get six weeks of paid family leave to "recover from childbirth and bond with a new child without worrying about paying their bills."

It's not clear how this would be overseen and administered.

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