Cuts to medicaid, stood alone a, food stamps. It seeks to cut 3. 6 trillion in federal spending over ten years. The budget director, Mick Mulvaney answer questions about the budget missed 35 minute briefing. [inaudible] [inaudible] good morning. Lets make a brief statement before we start about things that are probably more important than the numbers folks like me get caught up in the numbers. What a talk about what happened in manchester england, the president this morning summed it up and for a lot of people he called these people who perpetrated this, evil losers. The president has 11 or 12, i took my son to his first concert when he was 11 or 12 and all of us with children that age this it close to home. We stand shoulder to shoulder with our allies and friends in the u. K. And also have the victims and their families in our hearts. As we talk about these other things that pale in comparison want to talk about the budget. I know some of you here yesterday and i know some this will be a repeat, lets talk about what this is. This is the president s 2018 budget. The name on the cover is the new foundation for american greatness. As i read through it over the weekend and weve been working on this since before he got here it struck me the title should have been different. Should have been a Taxpayer First budget. Thats what this is. So is trying to reconcile this i wanted to call it the first budget thats whats really new for one of the things that was new about this budget. Then we looked at this budget through the eyes of the people who are paying the bills. For years we have simply looked at a budget in terms of the folks on the backend of the program, the recipients of the taxpayer money and we havent spent enough time focusing the attention on the people who pay the taxes. Have a couple questions yesterday about compassion and needs to be on both sides of that equation. You have to have compassion for folks receiving the funds and for those were painted. That is one of the things that is new about this president s budget. What else is new . Its new in that it balances for the first time in at least ten years, the last time we looked we cannot find a president obama budget that balance to ever. He tried a few times to convince us that primary balance, we get to an actual balance on this budget within the tenure window. It begins to reduce the size of the debt relative to the size of the economy in year one. Thats how important it was and is to this president to bring fiscal discipline. If youre looking at the perspective of people who pay you like to tell them that at some point in the future youll be able the balance. The Previous Administration gave up on that. As ive said before if you borrow money, if i take money from you and i have no intention of ever giving it back, that is not debt. That is theft for going to borrow money from people we need a plan to pay it back and thats what the budget does thats one of the things new about this budget. The next is the foundation that were trying to build. I summoned up this way. I saw the article a few weeks ago about what is trump anonymous. It is sustained 3 Economic Growth. Everything we do in this administration and every time and called into the oval office on immigration policy, tax reform policy, budgets and spending, the focus is sustained 3 Economic Growth. We have been attacked stunningly by folks on the left and in the mainstream who say its an unreasonable assumption. Its absurd to think that 3 growth in an American Economy is absurd. It used to be normal. My normal for the history of the country. The average over the 240 years has been over 3 . Its been over 3 since world war ii. 1. 9 growth rates that they assume toward the end of their ministration the 1. 9 growth rate for the entire tenure window that the cbo assumes we reject. That is a pessimistic look at what the potential for what this countrys people is. We reject that pessimism. We probably should have gone in assume three and a half or 4 growth. 3 growth is just getting back to normal. If youre 30 years old and watching this you have never had a job as an adult in a healthy American Economy. If it had been a recession stumbling along at less than 2 growth. The difference doesnt sound like much in fact when i cringe when they said its only a 1 difference, its a 50 difference. The difference is tangible. 3 Economic Growth. If you dont like your job you can quit because you know you can get another job. If you get laid off you know you can start your own business. These are opportunities people have forgotten about. The optimism in the country that the president is eager to push back and bring back, its what drives everyone of our policies especially when it comes to dealing with jobs and the economy. We will bring back 3 Economic Growth and those numbers are assumed to this budget. By the way few dont the budget will never balance. If you assume 1. 9 growth youll never see a balanced budget again. We refuse to accept thats the new normal in this country. 3 is still normal 3 will be the new normal again and that is part of the foundations of this budget. The budget also speaks from funds the president s priorities. Weve talked about this since march when we unveiled the blueprint. Border security is another priority for him. We can talk about the details of the additional money we spend in those areas. The total of the 2018 budget is 54 billion over the baseline. Law enforcement gets a significant increase. At the federal state and local level as we follow through on efforts to enforce the law. Veteran see more money. Classic example of looking at warm through the eyes of the taxpayer. I put myself in the role of the person taken the money from the u. S. Taxpayer and giving it to someone else for benefits. If i can look at you and say i need to take this money from you so i can help this injured vet, i can do that in good conscious of my guess is youre okay with that. I am less comfortable to the point of not wanting to look in the insane need to take this money to give to this person over here who really isnt disabled but is getting a disabled benefit for this person who is supposed to use the money to go to school but isnt going or program that encourages you to graduate from college but its only 6 effective. Thats the compassion we talk about a message different perspective we bring to the budget. People dont mind paying their taxes as long as they know the money is not being wasted and frittered away. He also increased spending for School Choice in making this president the first of either party to propose a nationwide paid Parental Leave Program for parents and adoptive parents. 20 billion in the over a ten year window. I think i gave an incorrect number yesterday. Paid parental leave, all of these things are all Campaign Promises the president made while running for office. These numbers are the number president s policies put onto paper. We took his speeches and priorities and turn them into numbers and thats whats in the document. Does that a single thing and heres touch a Social Security retirement or medicare . Why . Because thats what he said when he was campaigning is that he wouldnt change those. Told the story sitting in the president s office with a list of reforms to entitlement spending and at the end of the list he said yes no on the nose rose Social Security retirement and medicare. Did not change those auto because he promised people he wouldnt. We can do that imbalance at the same time because we look at spending differently. When i can measure compassion by the number programs are people on those programs but by the number of people we help get off of those programs. We will measure it by the amount of money we spend by the number people would help. That is how you can get 3 Economic Growth and balance a budget in ten years so you borrow money from people inside help people take charge of their lives again and thats a part of the budget that deals with american greatness. Ill take questions. Is President Trump sticking to Campaign Promise and medicare benefits and not medicaid. This is one of my favorite stories to tell about washington spending. Keep in mind and i know you probably get this but in washington d. C. If you spent 100 lester on something always spent hundred dollars on it this year, and Washington People call that a cut. One hundred lester and this year, you call it a cut. Ive seen several occasions where we spend 100 last year i went 102 this year many people still call that a cut. The budget is hardwired to go up every year. If the Budget Office as we spend a hundred dollars last year were supposed to spend hundred six this year, for any people a lot of people who think we dont spend hundred seven is a cut. Its how washington speaks differently than the world back home. So medicaid, there are no medicaid cuts in terms of what ordinary human beings would refer to. Were not spending less money one year that we spent before. Were growing medicaid more slowly over the ten year budget window because they said that we should or that we will under current law. Why do we change it . We change those growth rates because of the American Healthcare act which this president supports. We support the house efforts and were working with the senate on working with their Health Care Bill but we support the American Healthcare act and that changes medicaid. It makes it a lot better and more able to deliver the Necessary Services to the people who need it. Heres how medicaid is funded by the state. The second largest line item after k12 medication was medicaid. Well see this come down with all these instructions on how to use it and we happen to think that medicaid is designed for more of an urban population then ruled that dominates in south carolina. We would ask the federal government give us more control over how the money gets spent. We think we can do it better to provide the same Services Cheaper or Better Service to more people at the same amount of money if you let us do better in the federal government said no. We said yes so we give governors and state legislature more control over medicaid. Everyone is interested in seeing the truly needed to get the care we promise them. Theres a better way to do it under obama care lets talk about what a failure that is and thats what the American Healthcare does. You mention stagnant growth of the number doubles 2008, but someone on the attack they called it simply ludicrous and that the administration is double counting the tax cut and benefit. I had a chance to see it on the way out the door. The ideas were rushing into my head of what i might say, if you cited in the back now would be a good time tomorrow. I went back to look at the economic assumptions that the Obama Administration made in its first few years. I want to say in a couple of different occasions there seem growth rate was more than four and half percent. This is the First Administration in history the first decade and a your time in history not to have a 3 growth rate but theyre promising us for a have growth. They want to talk about unreasonable assumptions. Well talk about my three in his four and half well talk about whos closer to reality. Heres what i think people have overlooked. We did it on purpose because its hard to compass. You have to make assumptions about a budget. Its natural for both administrations to make some assumptions. One we didnt make his we didnt close any tax cap. Thats the amount of money we should collect in taxes every year but dont. The 2016 thats 486 billion. We dont assume an additional penny of that being closed as part of the tax reform. Theres three reasons people dont want to pay tax they just dont. Theres always a certain number people who dont do that. Its too hard for them to do it, its too complicated to do it and we think that if its a simpler tax code that people are more likely to pay. That makes sense. If you could fill out your tax reform on a single piece of paper youre more likely to actually do it. Its also easier for us to see if it youre paying the rent amount. That would allow us to very reasonably assume a reduction in the tax cap. Im aware of the criticisms that i was say theres other places where we are overly conservative. We stand by the numbers and we thought the tax reform would be deficit neutral was the most reasonable. We can assume it was deficit neutral, or add to the deficit. This early in the process with dealing with tax reform we assumed the middle road was the best way to do it. Can you characterize Climate Science program and you describe those as taxpayer rate. You tell me. I think the National Science foundation used your taxpayer money to fund a Climate Change musical to think thats a waste of your money . What about Climate Science. Cc my point. What i think you saw happened as the pendulum went too far to one side. Were spending too much of your money on Climate Change and not efficiently. To a target it . Sure. Of aimed at reducing yes, does it mean that were antiscience . No. Were trying to get things back in order to where we can look at the folks who pay the taxes. When i can into the crazy stuff the Previous Administration did. I will note they didnt say anything about the musical. What are your assumptions and expectations for budget in reference to the wall. Have a, the record to say. Some arent supporting and some are. I was disappointed yesterday dont know if anybody is here that broke the embargo on think theres anybody here but i read the article about how we supposedly automatically reduced our request for the wall funding does not accurate. The 2017 request was 1. 5 billion for Border Security and additional dhs funding. It was 2. 6 for Border Security almost twice as much of 4. 5 for total dhs. Much larger number so im not sure how the person got to that number. Where absolutely dead serious about the wall. After taking care of the National Security and the vets my guess is its in the president s top three. We made it clear to the folks on the hill that while we didnt get as much money as we want to for Border Security we did get a lot. And we will see increased Border Security between today and the end of the calendar year. We will continue to press on. We think theres a role for technology and additional people thats what we asked for. It is priority for the president. [inaudible] did you set a 3 target and then reverse . Because there is many numbers floated during the campaign, three or three and half, for four and half we didnt start with the numbers and work back but was myself, secretary minutia, director, we looked at the cbo baseline numbers and said what will our tax policy increase gdp by . What are the ranges for that what will the regulatory policy impact gdp by what is repealing obama care do for increasing gdp . We have hard numbers on that. We assumed that if you repeal obama care it will increase gdp because it creates a disincentive to work. We went through the item by item and arrived at 3 . He will see that in the rampup for that i think our assumption for this years 2. 3 and 3 . We think its a very reasonable and defensible macroeconomic assumption Digging Deeper in the numbers we think our numbers regarding the related Interest Rates and unemployment rates are likewise defensible. We get questions about productivity and we hear stories about newspapers about a business in utah that cannot find enough people to work the people say how will you grow the economy 3 if her are ready facing tight employment market. The multiple the numbers up the difference between the use six rate in the you threeway its in excess of 6 Million People. The socalled the unemployment rate. The use six rate is those folks on employed in the labor force looking for it but cant find it. Plus the people who are marginally attached are working parttime because i cant find fulltime work. That is over 6 Million People. We believe we should be able to drive these together and get them in fulltime employment. This goes back to 1994. In a properly functioning economy that would be the case. Was the difference against your will, you want to work full time but youre not. Youre technically not unemployed but you want to be doing more. Want to be more productive to go back and we believe we bring those people back to the job place they led to productivity. On the day he came down the escalator and he said were gonna save medicare, medicaid and Social Security without cuts. I realize will be saving social securitretirement but not Social SecurityDisability Insurance. Is he keeping his promise on that program . Yes. Heres why. The fact that is called Social SecurityDisability Insurance. We propose to do parental paid leave in this budget. We propose to do that using tools that exist so state unemployment insurance. I think thats why canada doesnt know. Think new york and new jersey already provide statewide paid parental leave. They do it through Disability Insurance programs. That does not mean parental leave is unemployment or disability. It means that program is managed through the infrastructure that existed at the time. The same is true of Social Security disability. It is not what most people would consider Social Security. Why those individuals who received ssdi receive less . I hope so. If their people were getting ssdi who should not be getting. What about those who receive should be . Noah people are really disabled. How do you determine who is getting at that shouldnt be . One is how we pick the Administrative Law judges. Its a lifetime appointment on day one. We tried to face them in to make sure theyre not. There several judges accused of abusing the program. Your point is next line one. Were not kicking anybody off of any program who needs it. We have plenty of money in this country to take care of the people who need help. And we will do that. We dont have them enough money to take your people who doesnt need it. Staff for example ive been asked a question about a 42 million americans i think the high was 47. Those during the recession. Numbers went as low as 28 and its like during the recession. What you would expect on a program like food stamps. During bad Economic Times more people would go on more food stamps. We went from 28 million before the recession to 47 at the hat height. Its 4244 today and were eight years from the recession. Weve had Economic Growth although it was slow. Why is the number still that high . If youre paying for is it reasonable for you test the question, other people in that program who should be on there . Should it be up to the government to make sure folks who are paying the taxes say to make sure everybody on ssdi is disabled. We think thats the definition of compassion. One thats balanced between those who get the benefit someone to pay them. Talk about provisions affecting federal employees and how it strengthens the federal government. With talk about federal retirement. Thats one of our largest simply put, we tried make federal retirement closer to the private sector. We increased contributions they make to the 4o1k program. Then run program we got rid of a costofliving adjustment but those are folks who will be participating in Social Security at the same time which is a cost of living adjustment. Without their common sense reforms to try and bring the federal government and other programs closer to the private sector. Im a federal worker have a pension and 4o1k. Raise your hand if you are in the private sector with the pension and 4o1k. One did. So were trum simply trying to gt common sense back into the program. We dont think thats unreasonable for. Talk about Border Security. Global American People see with that money. Are you talking about replacement wall . Just to be clear the 1. 5 was request for 2017. 2. 6 is the request for 2018. Reflecting the fact that there are 12 months in 2018 and only five and 2017. So they will see all of the above. Replace the wall, the wall, land acquisition, infrastructure. You dont magically build the wall in the middle of nowhere. You have to build the road and need Utility Services out to it if youre going to do lighting. Its all of the above. Part of the president s commitment. We havent decided yet on the best kind of all, i think were going through competition a and either four or eight different prototypes that are in the process of being designed and built right now is her try to figure out what the most appropriate wallace. We fully expect different barriers will serve in different areas. Are you projecting out thats made ten years out . Are you projecting much more you will need to complete the promise . The federal budget is a budget in name only. They call it a budget because they didnt know what else to call it. It has a spending proposal for the first year and thats we get detailed, and then you have these policies and broader brush approaches for the next years to 10. So we get specific of where we spend the money in 2018 but then we get less specific. We play them numbers for dhs. I want to talk to about how concerned are you in doing that and does the Administration Plan to break with its agreement with other agents . I cannot speak to the oecd. I will tell you that we do not believe the proposals we got would harm the Domestic Production ability. One of the reasons we believe if you telegraph it over the course of time theres a way to do without having a dramatic impact on prices. By the way youre talking about propose to reduce the size of the reserve back in the 1970s. At that time we were importing over 6 Million Barrels of oil a day from the middle east and we had limited Domestic Production. Thats why you do it. The National Security argument if we will rely so heavily on imported oil there might be a National Security or National Economic argument to not exposing to the oil shocks that we had a knock us down dramatically when we have increased production like we do today. You suck congress with the crude oil exports in this country. We also produce more oil because of fracking a more natural gas and hydrocarbon. We think its a responsible thing to do. Go back to the perception of the taxpayers. I dont need to take this much of your money to bury in the ground out of west texas where we have domestic surplus or supplies. Go ahead. You said that you will be phasing in the work requirements and out was wondering if you could talk to us more about the process and how you expect that to happen. Also if you could tell us what you would say to the able body americans see reference saying i want to work but i cant find work. The answer to your question im not familiar with the detail of how we face it in overtime. Well have to get back to. But what would say to people is great, thank you. Thank you for wanting to work. We need you to do that. We will do everything we can to help you find a job that you are suited to and a job that you can use to help take care of you yourself and your family. Thats not the problem the folks that are out there and want to work will be able to work with them to solve the problems. As the folks who do not want to work. If theres 44 Million People on their maybe its reasonable to ask if there folks on their that shouldnt be. I would suggest its a compassionate question task but i assure you if you want to work theres good news because were gonna get 3 growth and the opportunity to go back to work. [inaudible] will hear from Senate BudgetCommittee Ranking member bernie sanders, house Budget Committee member john, Senate Minority leader, Chuck Schumer and House Minority leader, nancy pelosi. This is 20 minutes. Morning john