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Snapshot: What Trump’s budget does agency-by-agency

The White House has proposed cutting the Education Dept. in half, EPA by a third, and the Justice Department by a fifth but nearly all departments would see cuts if this budget is passed.

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Budget Director Mick Mulvaney speak to the media about President Donald Trump's proposed fiscal 2018 federal budget in the Press Briefing Room of the White House in Washington, Tuesday, May 23, 2017. (AP Photo/Andrew Harnik)

How President Donald Trump’s proposed $4.1 trillion federal spending plan would affect individual government agencies.

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AGRICULTURE

Up or down? Down 5 percent

Graphic shows Trump FY 2018 budget breakdown

Highlight: The proposed budget would limit subsidies to farmers, including a cut in government help for purchasing crop insurance. Crop insurance is an overwhelmingly popular program with farm-state senators in both parties, and previous farm bills have only increased spending. The budget would also limit spending on environmentally friendly conservation programs and some rural development dollars that help small towns build infrastructure.

Trump isn’t the first president to try to limit farm subsidies. Presidents Barack Obama and George W. Bush also proposed major reductions, but farm-state lawmakers have always kept them going. The Republican chairmen of the Senate and House agriculture committees both said Tuesday they oppose Trump’s proposed cuts.

Total spending: $132.3 billion.

Spending that needs Congress’ annual approval: $18 billion.

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COMMERCE

Up or down? Down 15.4 percent

Highlight: The budget would eliminate three economic development agencies and several grant programs aimed at preserving the environment and dealing with climate change. The Minority Business Development Agency, the Economic Development Administration and the Manufacturing Extension Partnership would be eliminated.

The budget would also eliminate several grant programs run by the National Oceanic and Atmospheric Administration: the Sea Grant, the National Estuarine Research Reserve System, Coastal Zone Management Grants, the Office of Education and the Pacific Coastal Salmon Recovery Fund.

Total spending: $8 billion.

Spending that needs Congress’ annual approval: $7.8 billion.

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DEFENSE

Up or down? Up 3.3 percent

Highlight: The Pentagon’s proposed 2018 budget would fund increases of almost 43,000 in the size of the active duty military and 13,000 in the Reserves. It provides troops a 2.1 percent pay raise, adds F/A-18 fighter jets and seeks a new round of base closures, which Congress routinely rejects. It also increases the amount of money used for training Afghan forces and conducting counterterror operations in Afghanistan. The budget includes $64.6 billion for military operations in Iraq, Syria, Afghanistan and Africa.

Total spending: $647 billion.

Spending that needs Congress’ annual approval: $639.1 billion.

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EDUCATION

Up or down? Down 46.9 percent

Highlight: Eliminates after-school and teacher training programs, ends subsidized federal student loans and loan forgiveness programs for public servants, funds year-round Pell grants and expands funding for school choice for low-income students.

Total spending: $61 billion

Spending that needs Congress’ annual approval: $59 billion

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ENERGY

Up or Down? Down 5.7 percent

Highlight: Trump’s budget would sell off nearly half the nation’s Strategic Petroleum Reserve, 270 million barrels, over the next 10 years as a way to reduce the budget deficit. The reserve is an emergency fuel storage maintained underground in Louisiana and Texas. Budget director Mick Mulvaney said the sale would not cause a security risk because of an increase in oil production from fracking. The administration says the plan would bring in a projected $17 billion over 10 years.

The budget also would hike spending for the National Nuclear Security Administration, which is responsible for maintaining the nuclear stockpile, while cutting other energy spending. The budget seeks $120 million to revive the mothballed Yucca Mountain nuclear waste repository, which is hugely unpopular in Nevada and was largely stopped by the efforts of former Democratic Sen. Harry Reid.

Total spending: $28 billion

Spending that needs Congress’ annual approval: $28 billion

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ENVIRONMENTAL PROTECTION AGENCY

Up or down? Down 31 percent.

Highlight: The budget cuts EPA by nearly one-third, eliminating more than 3,800 jobs while imposing dramatic cuts to clean air and water programs. Adjusted for inflation, the proposed budget would represent the nation’s lowest funding for environmental protection since the mid-1970s. The Superfund pollution cleanup program would be cut by $330 million, to $762 million.

Total spending: $5.7 billion.

Spending that needs Congress’ annual approval: $5.7 billion.

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HEALTH AND HUMAN SERVICES

Up or down? Down 1.3 percent

Highlight: The budget initiates deep cuts to health insurance programs for people with modest incomes, including coverage for children. Those cuts would go beyond the House GOP bill that repeals much of the Affordable Care Act, also known as “Obamacare,” and limits future federal financing for Medicaid.

Total spending: $1.1 trillion

Spending that needs Congress’ annual approval: $65.3 billion

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HOMELAND SECURITY

Up or down? Down 3.2 percent

Highlight: The budget asks Congress for $2.6 billion for border security that would include a down payment for Trump’s long-promised wall and increased technology along the U.S.-Mexican border. The budget calls for $314 million to hire 500 new Border Patrol agents and 1,000 agents for Immigration and Customs Enforcement. It also requests a $1.5 billion increase for ICE to arrest, detain and deport immigrants in the country illegally. The plan also proposes cutting about $667 million in grants administered by the Federal Emergency Management Agency. That includes proposed cuts to the Urban Area Security Initiative and eliminating the Transportation Security Administration’s law enforcement grants.

Total spending: $49.4 billion

Spending that needs Congress’ annual approval: $44.1 billion

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HOUSING AND URBAN DEVELOPMENT

Up or down? Down 22.9 percent

Highlight: The budget would eliminate HUD’s Community Development Block Grant program, a $3 billion effort that funds local improvement projects, affordable housing construction and other social supports like meals for seniors and enrichment programs for low-income children. The budget proposal says the program is not well targeted to poor populations and hasn’t showed measurable impact on communities. The administration’s budget also seeks to cut costs to the department’s rental assistance programs — a $2 billion decrease to $35.2 billion. Rental assistance programs comprise about 80 percent of the agency’s total funding.

Total spending: $40 billion.

Estimated spending that needs Congress’ annual approval: $40 billion.

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INTERIOR

Up or Down? Down 9.2 percent

Highlight: The budget calls for opening Alaska’s Arctic National Wildlife Refuge to oil and gas drilling, where it is now prohibited, while eliminating offshore oil revenues used by Gulf Coast states to restore disappearing shorelines. Arctic drilling, a contentious issue that would require congressional approval, would generate an estimated $400 million a year in tax revenues by 2022, according to the White House. Elimination of revenue-sharing to the four Gulf Coast states — Alabama, Louisiana, Mississippi and Texas — would generate $1.6 billion over the next five years, the document says. The proposal also includes money for seismic surveys to provide data for possible offshore drilling in the Atlantic Ocean where it is now barred.

The budget would cut $10 million from a program to manage wild horses and burros in the West and allow the Bureau of Land Management to sell or euthanize thousands of horses that now roam in Nevada, Oregon and other western states. More than 70,000 wild horses and burros roam federal lands across the West, a number that officials call unsustainable.

Total spending: $12.5 billion

Spending that needs Congress’ annual approval: $11.7 billion

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JUSTICE

Up or down? Down 19.1 percent

Highlight: The budget adds $26 million for 300 new assistant U.S. attorneys to fight gangs, violent crime and illegal immigration. Attorney General Jeff Sessions has identified those areas as his top priorities. The plan calls for 230 of these prosecutors to be stationed in yet-to-be-named cities deemed hot spots for violence.

Another 70 will be assigned to border states, focusing on those who enter and re-enter the country illegally after deportation, as well as document-fraud, human smuggling, drug trafficking and other immigration-related offenses.

Total spending: $31.6 billion.

Spending that needs Congress’ annual approval: $27.7 billion

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LABOR

Up or down? Down 3.3 percent.

Highlight: Trump is proposing cuts in job training programs including $434 million for the Senior Community Service Employment Program, $238 million by closing Job Corps centers, and $68 million for the Bureau of International Labor Affairs. He is proposing $90 million for apprenticeships that result in jobs and a parental leave program of six weeks.

Total spending: $45.8 billion.

Spending that needs Congress’ annual approval: $9.7 billion

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NASA

Up or down? Down 1.2 percent

Highlight: The budget cancels five planned missions to observe Earth and monitor climate change, saving $191 million. It eliminates an Obama-era mission to send astronauts to an asteroid. It also slashes NASA education spending by two-thirds and makes smaller cuts to exploration and space operations, along with increases in spending to explore other planets.

Total spending: $19.1 billion.

Spending that needs Congress’ annual approval: $19.1 billion

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STATE

Up or down? Down 31.7 percent

Highlight: Eliminates funding for the U.N. children’s agency, UNICEF, as part of a $780 million cut to international organizations. Also eliminates $1.6 billion in funding for climate change and slashes assistance for refugees and global health. That includes $222 million cut in an international fund for fighting AIDS, tuberculosis and malaria. Proposal also ends $523 million for international family planning programs.

Total spending: $40.2 billion.

Spending that needs Congress’ annual approval: $40.2 billion, includes $12 billion from the Overseas Contingency Account.

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TRANSPORTATION

Up or down? Down 2.2 percent.

Highlight: Trump proposes that the government pay $200 billion toward the $1 trillion cost of improving the nation’s infrastructure — rebuilding aging roads, bridges, water systems and more. Private investments would pay the rest, under his plan. He’s also suggesting cutting grants to Amtrak long distance services by $630 million and reducing the Highway Trust Fund by $95 billion over a decade.

Total spending: $75.7 billion

Spending that needs Congress’ annual approval: $16.2 billion

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TREASURY

Up or down? Up 6.7 percent

Highlight: Treasury oversees the Internal Revenue Service and the agency responsible for managing the government’s payment systems. The IRS would see a 2.1 percent budget cut, but says it will continue to seek less costly ways of delivering taxpayer services. Trump’s budget would provide increased investment for cybersecurity as well as implementing the sanctions program to combat terrorist financing. The budget would also seek initial funding to replace the aging Washington facility for the Bureau of Engraving and Printing that produces the nation’s paper currency.

Total spending: $601 billion

Spending that needs Congress’ annual approval: $12.1 billion

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VETERANS AFFAIRS

Up or down? Up 3.7 percent

Highlight: The budget proposes a $4.3 billion increase in discretionary spending, mostly to pay for medical care at more than 1,200 VA facilities nationwide serving about 9 million enrolled veterans. That’s a 5.8 percent increase as the Department of Veterans Affairs expands its network to include more private health providers. The budget also calls for $2.9 billion in mandatory budget authority for 2018 and $3.5 billion in 2019 to pay for expansion of the Veterans Choice private-sector program. To help pay for rising costs from that program, the VA would cap the amount of educational benefits veterans receive under the GI bill to roughly $21,000 a year and halt “individual unemployability” benefit payments to out-of-work disabled veterans once they reach retirement age.

Total spending: $183.1 billion

Spending that needs Congress’ annual approval: $78.8 billion

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Experts: North Korea latest ICBM test puts much of US in range

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PYONGYANG, North Korea — North Korea on Friday test-fired its second intercontinental ballistic missile, which flew longer and higher than the first according to its wary neighbors, leading analysts to conclude that a wide swath of the U.S., including Los Angeles and Chicago, is now within range of Pyongyang’s weapons.

Japanese government spokesman Yoshihide Suga said the missile, launched late Friday night, flew for about 45 minutes — about five minutes longer than the ICBM North Korea test-fired on July 4. The missile was launched on very high trajectory, which limited the distance it traveled, and landed west of Japan’s island of Hokkaido.

“We assess that this missile was an intercontinental ballistic missile, as had been expected,” Pentagon spokesman Navy Capt. Jeff Davis said in Washington.

Analysts had estimated that the North’s first ICBM could have reached Alaska, and said Friday that the latest missile appeared to extend that range significantly.

David Wright, a physicist and co-director of the global security program at the Union of Concerned Scientists, said in Washington that if reports of the missile’s maximum altitude and flight time are correct, it would have a theoretical range of at least 10,400 kilometers (about 6,500 miles). That means it could have reached Los Angeles, Denver and Chicago, depending on variables such as the size and weight of the warhead that would be carried atop such a missile in an actual attack.

Bruce Klingner, a Korean and Japanese affairs specialist at the Heritage Foundation think tank in Washington, said, “It now appears that a significant portion of the continental United States is within range” of North Korean missiles. Klingner recently met with North Korean officials to discuss denuclearization, the think tank said.

Washington and its allies have watched with growing concern as Pyongyang has made significant progress toward its goal of having all of the U.S. within range of its missiles to counter what it labels as U.S. aggression. There are other hurdles, including building nuclear warheads to fit on those missiles and ensuring reliability. But many analysts have been surprised by how quickly leader Kim Jong Un has developed North Korea’s nuclear and missile programs despite several rounds of U.N. Security Council sanctions that have squeezed the impoverished country’s economy.

President Donald Trump has said he will not allow North Korea to obtain an ICBM that can deliver a nuclear warhead. But this week, the Defense Intelligence Agency reportedly concluded that the North will have a reliable ICBM capable of carrying a nuclear weapon as early as next year, in an assessment that trimmed two years from the agency’s earlier estimate.

Japanese Prime Minister Shinzo Abe called the launch a “serious and real threat” to the country’s security.

Suga, the Japanese spokesman, said Japan has lodged a strong protest with North Korea.
“North Korea’s repeated provocative acts absolutely cannot be accepted,” he said.

A spokesman for Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, said Friday that Dunford met at the Pentagon with the commander of U.S. forces in the Pacific, Adm. Harry Harris, to discuss U.S. military options in light of North Korea’s missile test.

The spokesman, Navy Capt. Greg Hicks, said Dunford and Harris placed a phone call to Dunford’s South Korean counterpart, Gen. Lee Sun Jin. Dunford and Harris “expressed the ironclad commitment to the U.S.-Republic of Korea alliance,” Hicks said, referring to the U.S. defense treaty that obliges the U.S. to defend South Korea.

Prime Minister Abe said Japan would cooperate closely with the U.S., South Korea and other nations to step up pressure on North Korea to halt its missile programs.

South Korea’s Joint Chiefs of Staff said the missile reached an estimated height of 3,700 kilometers (2,300 miles) before landing at sea about 1,000 kilometers (625 miles) away. It appeared to be more advanced than the ICBM North Korea previously launched, it said.

The “Hwasong 14” ICBM test-fired earlier this month was also launched at a very steep angle, a technique called lofting, and reached a height of more than 2,500 kilometers (1,550 miles) before splashing down in the ocean 930 kilometers (580 miles) away. Analysts said that missile could be capable of reaching most of Alaska or possibly Hawaii if fired in an attacking trajectory.

South Korea’s Joint Chiefs of Staff said the missile was launched from North Korea’s northern Jagang province near the border with China. President Moon Jae-in presided over an emergency meeting of the National Security Council, which called for an emergency meeting of the U.N. Security Council and stronger sanctions on North Korea.

There was no immediate confirmation of the launch by North Korea. The day’s broadcast on state-run television had already ended when the news broke at around midnight Pyongyang time.
July 27 is a major national holiday in North Korea called Victory in the Fatherland Liberation War Day, marking the day when the armistice was signed ending the 1950-53 Korean War. That armistice is yet to be replaced with a peace treaty, leaving the Korean Peninsula technically in a state of war.

North Korea generally waits hours or sometimes a day or more before announcing launches, often with a raft of photos in the ruling party newspaper or on the television news. Kim Jong Un is usually shown at the site to observe and supervise major launches.

Late night launches are rare. North Korea usually conducts its missile and underground nuclear tests in the morning. It’s likely the North launched the missile at night and from the remote province of Jagang to demonstrate its operational versatility. To have a real deterrent, it’s important for North Korea to prove it can launch whenever and wherever it chooses, making it harder for foreign military observers trying to detect their activities ahead of time.
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Yamaguchi reported from Tokyo. Associated Press writers Robert Burns in Washington, Hyung-jin Kim in Seoul, South Korea, and Eric Talmadge in Pyongyang, North Korea, contributed to this report.

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Shell is preparing for life after oil

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LONDON — Royal Dutch Shell is planning for the day when demand for oil starts fading as major economies move away from oil and increasingly turn to electric-powered cars, Chief Executive Ben van Beurden said Thursday.

Van Beurden welcomed recent proposals to phase out passenger vehicles powered by fossil fuels in Britain and France, saying they are needed to combat global warming. Shell is looking at “very aggressive scenarios” as it makes plans to remain competitive in a world that gets more of its energy from renewable sources and less from crude oil, or “liquids,” he said.

“The most aggressive scenario – much more aggressive than what we are seeing at the moment, by the way – with maximum policy effect, with maximum innovation effect, can see us peaking in liquids consumption somewhere in the early thirties,” he said as Shell reported second-quarter earnings. “If there are a lot of biofuels in the mix, that may mean that oil will peak in the late twenties, but then everything has to work up.”

Van Beurden’s comments come amid increased focus on the future of the industry after the Paris climate agreement saw governments commit to tougher action on emissions and shareholders push for more long-term plans.

Britain this week pledged to ban the sale of new cars and vans using diesel and gasoline starting in 2040 as part of a sweeping plan to tackle air pollution. France announced a similar initiative earlier this month.

Car makers are also moving in this direction. Volvo says that by 2019 all of its cars will be powered by electricity or hybrid engines.

“It’s not a surprise that the international super-majors are starting to accept a future with the question of just how much oil and gas is needed,” said David Elmes, an energy industry expert at Warwick Business School. “They realize that is now in their planning horizons and therefore needs to be discussed with shareholders because it is influencing the decisions today, and one might argue that has been prompted by shareholder activism.”

Shell has already begun to respond to changing energy demand by increasing its focus on natural gas, van Beurden said. But the company also needs to get involved in electricity and renewable energy and expand its petrochemicals business, he said.

Van Beurden also stressed that while developed nations are moving away from gasoline- and diesel-powered passenger vehicles, the world will continue to depend on these fuels for many years.
Developing nations don’t yet have the money or electricity networks needed to shift away from fossil fuels, and aviation, shipping and trucking can’t easily shift to non-hydrocarbon energy sources, he said.

“As far as oil and gas are concerned, and certainly as far as oil is concerned, you have to bear in mind that if we have a peak and then go into decline, this doesn’t mean that it is game over straight away,” van Beurden said.

Shell’s discussion of the future came as it said second-quarter earnings more than tripled due to cost cuts and recovering oil prices.

The Anglo-Dutch energy giant said profit adjusted for changes in the value of inventories and excluding one-time items rose to $3.60 billion from $1.05 billion in the same period last year. Net income rose 31 percent to $1.55 billion.

The earnings reflect efforts to restructure the business to cope with lower oil prices and the purchase of natural gas producer BG Group. Shell’s oil price averaged $45.62 a barrel for the quarter, up 16 percent from a year earlier. Prices were above $100 a barrel as recently as 2014.

“The external price environment and energy sector developments mean we will remain very disciplined, with an absolute focus on the four levers within our control, namely capital efficiency, costs, new project delivery, and divestments,” van Beurden said.

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Report: Scaramucci has more than $50m in assets

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NEW YORK  — He vows to be a fresh voice in the Trump administration, but in one way he is like many of the others: He is wealthy, with a vast and complicated array of assets.

New White House communications director Anthony Scaramucci owns property and businesses worth more than $50 million, according to a financial disclosure report filed with the government’s chief ethics agency. The biggest source of his wealth is an ownership stake in an investment fund he founded, SkyBridge Capital.

The fund is in the process of being sold to a division of Chinese company HNA Group, a deal that has drawn scrutiny and dashed Scaramucci’s hopes to move to the White House much earlier in the year. He was turned down as chief liaison to the business community in February.

“In any administration there are always some really extraordinary wealthy individuals, but in this White House, there are so many,” said Don Fox, who stepped down as general counsel at the Office of Government Ethics in 2013. “Their finances, their potential conflicts, become exponentially more complicated to manage.”

Scaramucci joins a long list of former Goldman Sachs employees in the administration, including economic adviser Gary Cohn, chief strategist Steve Bannon and Treasury Secretary Steven Mnuchin.

SkyBridge accounted for a bulk of his income. In the nearly 18 months from the start of last year through June 27, Scaramucci took in about $10 million in salary and other income from the investment fund.

The financial disclosure also shows Scaramucci earned $88,461 as a contributor to Fox Business News.

Scaramucci expressed frustration on Thursday with the scrutiny of his personal holdings, and the conflict they may pose.

“I sold SkyBridge. I don’t work there anymore,” he told CNN’s “New Day” on Thursday morning.

“There’s residual profits that once the sale occurs I am going to receive, but I am not on salary. I do not have a W2 there. What do you want me to tell you?”

SkyBridge announced it struck a deal to sell to HNA Capital and RON Transatlantic in January. A call to SkyBridge’s spokesperson was not immediately returned.

Another issue raised by Scaramucci’s holdings involves the treatment of taxes on gains from the SkyBridge sale. Federal officials are allowed to file a so-called certificate of divestiture to defer paying taxes if they are being forced to sell an asset because of potential conflicts with their public job.

Since Scaramucci announced the SkyBridge sale long before he took his job, that raises the possibility he will fail to qualify, putting in doubt perhaps millions of dollars of profit for him.

Walter Shaub, the former head of the Office of Government Ethics and a big critic of the Trump administration, has tweeted that Scaramucci should have waited for a ruling about whether he needed to sell before entering into a deal to do so.

He tweeted on Tuesday, “U don’t qualify for employee tax relief by entering into a deal & then go looking for a job that may or may not necessitate closing the deal.”

But Richard Painter, former chief White House ethics lawyer to President George W. Bush, isn’t so sure. He said that Scaramucci may be able to qualify if owning SkyBridge is deemed a conflict before the sale is complete.

“They don’t take away the certificate of divestiture because you thought about selling before,” Painter said.

Scaramucci’s lawyer, Elliot Berke, said in an email Thursday that his client had been advised to sell SkyBridge to avoid conflicts before he stuck a deal to do so. “Throughout the review, career nonpartisan officials have recommended he be granted a certificate of divestiture, as has the White House Counsel’s office,” Berke wrote.

Scaramucci has vowed to shake up the administration in part by rooting out those who leak information to press, and the release of his personal finance report on Politico on Wednesday stoked his anger.

He took the Twitter with a vow to contact investigators.

“In light of the leak of my financial disclosure info which is a felony,” he tweeted, “I will be contacting @FBI and the @JusticeDept #swamp @Reince45.”

In fact, the report wasn’t leaked. It was released after a public records request by a Politico reporter to the Export-Import Bank, where Scaramucci had been employed at a senior level since mid-June.

The Associated Press subsequently obtained the same financial disclosure Thursday. A reporter filled out a publicly available form, turned it in at the bank’s office and was emailed a copy of Scaramucci’s financial disclosure about 30 minutes later.

The report shows that Scaramucci owns several residential properties and businesses. A stake in the New York Mets and property in the Hamptons on Long Island are each worth at least $1 million.
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AP writer Daniel Trielli contributed to this report from Washington.

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