New Federal Administration May Propose Sharp Cutbacks

The incoming Trump Administration apparently is developing a range of policy proposals to curtail federal spending and agencies – some of which may have effects both on stat and local governments directly, and on the federal and federal-dependent workforce. Both areas of consequence could be substantial for Maryland and its economy.

From reporting in The Hill:

Staffers for the Trump transition team have been meeting with career staff at the White House ahead of Friday’s presidential inauguration to outline their plans for shrinking the federal bureaucracy, The Hill has learned.

The changes they propose are dramatic.

The departments of Commerce and Energy would see major reductions in funding, with programs under their jurisdiction either being eliminated or transferred to other agencies. The departments of Transportation, Justice and State would see significant cuts and program eliminations.

. . .

The preliminary proposals from the White House budget office will be shared with federal departments and agencies soon after Trump takes the oath of office Friday, and could provoke an angry backlash.

Trump’s Cabinet picks have yet to be apprised of the reforms, which would reduce resources within their agencies.

The budget offices of the various departments will have the chance to review the proposals, offer feedback and appeal for changes before the president’s budget goes to Congress.

It’s not clear whether Trump’s first budget will include reforms to Social Security or Medicare, two major drivers of the federal deficit.

Read the 2016 Heritage Foundation report, referenced as a source for many of the current proposals in development, online at the Heritage website.