Trump Expected To Follow Up Historic Jobs Report With Major Spending Cuts

President Trump has the Midas touch when it comes to adding jobs to the nation’s economy, as every measure he tries turns into job creation and further unemployment records. The latest April jobs report, released by the Bureau of Labor Statistics on Friday, shows that the national unemployment rate is at 3.9 percent – the lowest it has been since 2001. The report also showed unemployment for Black Americans is at its lowest level ever recorded.

The president is expected to follow up the glowing report with an announcement to cut $11 billion in federal spending.

Per Washington Examiner:

President Trump is expected to propose spending cuts early next week, according to an administration official, via the rarely used impoundment power.

A Republican aide said Congress expected a package of about $11 billion in cuts from the administration, less than conservatives had previously sought.

An administration official said the final numbers were still under discussion and that the package to be sent to Congress next week would be the first in a series.

While spending cuts are typical handled by Congress in the legislative branch of government, Washington Examiner reports the 1974 Impoundment Act allows Trump the ability to propose spending cuts for special consideration in Congress. As for how this would play out in Congress, “the spending reductions, or rescissions, would not be subject to the filibuster in the Senate, limiting Democrats’ ability to stop them.”

Here’s more:

Conservatives pushed for Trump to rescind spending after he signed the $1.3 trillion appropriations bill for fiscal 2018. That spending bill, which was subject to the filibuster, was negotiated between Republicans and Democrats. In those talks, Republicans agreed to raise domestic spending to get Democrats to sign off on higher defense spending. Now, conservatives are hoping to undo some spending without having to bargain with Democrats.

Last month, however, Senate Majority Leader Mitch McConnell, R-Ky., downplayed the possibility of rescinding the spending, noting that Trump and Republican leaders had made an agreement with Democrats.

Initial predictions of the cuts said Trump could be asking for as much as a $60 billion cut, Politico reports:

That would mean the Trump administration would again downsize ambitions for a presidential rescissions package. Some in the administration were initially eyeing a package of cuts up to $60 billion. A top appropriator later said that figure had shrunk to $25 billion.

The proposal expected to land on Capitol Hill on Monday will not target funds from the recently passed $1.3 trillion spending bill, the individuals familiar with the plan said. It will instead focus on years-old spending that has been approved but hasn’t yet been spent.

This is likely the first round of rescissions, with more to come later this year.

The presidential rescissions process — which hasn’t been used since 2000 — has been heralded by Trump’s belt-tightening budget chief, Mick Mulvaney, as a way to get spending cuts around the Senate filibuster.

According to the report, the Trump administration is planning to send the suggestions to Congress by mid-Summer. Once the rescissions are sent, the relevant funding gets automatically frozen until Congress holds a vote. The legislative chamber then has 45 days to finish considerations on the proposals before the request expires.

Here’s more on the April jobs report, via Fox Business:

Job growth accelerated in April, cutting the nation’s jobless rate as U.S. employers added 164,000 jobs compared to the revised 135,000 in March.

April’s reading fell short of analysts’ expectations for 192,000 jobs to be created in the month. March’s 135,000 was an upward revision compared to the intial reading for 103,000 jobs.

“This jobs report is truly a mixed bag. It is inevitable that attention will gravitate toward the decline in the unemployment rate to 3.9%, breaking out of the pattern of having held at 4.1% for six straight months. We can continue to head lower from here if we see robust hiring in the months ahead,” said Mark Hamrick, Bankrate.com’s senior economic analyst.

DISCLAIMER: Views expressed in articles do not necessarily reflect the views held by Sarah Palin.


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