WASHINGTON – President-elect Donald Trump could reduce the federal deficit by $1.4 trillion over the next 10 years by reversing President Biden's executive actions, according to a report.
The Committee for a Responsible Federal Budget, a nonprofit organization that advocates for fiscal restraint, has raised potential cost savings as the Trump administration's unofficial Office of Government Efficiency, led by Elon Musk and Vivek Ramaswamy, looks for areas to cut spending. was identified.
The 78-year-old Tesla billionaire and Trump aide has already vowed to “cut” the bloated federal budget in the following ways:at least $2 trillion”
“Unlike most deficit-reduction measures, reversing costly executive actions by the Biden administration [administration] This could be done through the rulemaking process without requiring Congressional action. ” Nonprofit Report Note.
CRFB said up to $550 billion could be saved by eliminating Biden's pending student loan debt forgiveness plan. keep Income-driven repayment programs alone could reduce spending by up to $275 billion, the report says.
The SAVE initiative, which has 8 million registered borrowers, is already stalled pending the outcome of a federal court case. Missouri Republican Attorney General Andrew Bailey won a victory in August after the U.S. Supreme Court upheld the Eighth Circuit's ruling. A lawsuit seeking an injunction to stop the cancellation of debts.
The program, which would cap student loan payments and allow for debt forgiveness in as little as 10 years, was part of Biden's initial $430 billion plan to forgive between $10,000 and $20,000 of student loans per borrower. Dollar's plan faces legal scrutiny after it was struck down by the Supreme Court in 2023.
The CRFB says it could save up to an additional $150 billion by ending pending policies, including student loan interest forgiveness, and up to $110 billion in cancellations for borrowers who report difficulty making repayments. states that it is possible.
Another huge amount by targeting Biden's health care executive actions, including $140 billion in new Medicaid grants to states, $75 billion in changes to Medicaid eligibility rules, and $65 billion in changes to the definition of negotiated prices for the Medicare portion. savings pool ($385 billion) could be released. D rebate.
Blocking coverage of obesity drugs under Medicare would save an additional $40 billion in legal costs, and eliminating minimum staffing standards for Medicaid nursing homes would save $25 billion, according to the report.
The report says an additional $180 billion could be saved by reversing changes to the SNAP food stamp program and $150 billion could be saved by eliminating carbon dioxide emissions regulations for motor vehicles.
Many of the proposals could be politically sensitive for Mr. Trump, who has called for a series of policies that benefit workers and the middle class.
Trump, 78, has argued that these policies, which include eliminating taxes on overtime pay, tips and Social Security payments, will boost the economy, spur growth and, in turn, donate tax revenue to the Treasury. Trump's critics say it could cause an increase in the federal deficit.
The Republican leader also threatened to impose new tariffs on products that his supporters say would encourage a deal that would improve the position of American companies, but which his critics say would increase consumer costs. insisted.
The federal debt increased dramatically during President Trump's first term, jumping from $19.95 trillion to $27.75 trillion.
The federal debt currently exceeds $36 trillion, and about 13% of federal spending goes toward paying interest on that amount.
