Acting office of management and budget are Russell Vought on trumps 4. 8 million Budget Proposal for 2021 before the house Budget Committee. This runs three hours. I certainly welcome the acting director phoned the Russell Vought. Thank you for being here to testify on the president s 2021 Budget Proposal and i hope todays hearing will provide an open and amistad examination of the party set forth by the Trump Administration so they can get back to passing legislation Appropriations Bills that reflect the needs and priorities of the American People. I will now yield myself five minutes for an Opening Statement just six short months ago the president signed a bipartisan just, can everybody hear me . A just six months ago the president signed it twoyear budget deal into law. It does everything the president s proposal failed to do set rational discretionary lines allowing strong investments in our national and Economic Security and has bipartisan support including the bank member and myself and sets congress up for a successful appropriations process. Now the president s going back on his word. He is proposing deep cuts to critical programs that help American Families prepare our nation for the future. Once again he is breaking his promises and lying to the American People. Less than a week after promising medicare and Social Security would be saved from harsh budget cuts the president went and proposed slashing a half at the trillion dollars for medicare knowing it would hurt seniors and Social Security knowing it would hurt our nations disabled workers. During his state of the Union Address the president said he was working to improve Americas Health care and then he turned around a proposed a cut of medicaid by more than 900 billion knowing it would result in families losing lifesaving health care coverage. After talking up his plans to build an Inclusive Society by making sure that every american gets a great education and the opportunity to achieve and thats a quote the president proposes slashing discretionary resources for the department of education by 5. 6 billion. He then proposes a 170 billiondollar cut over 10 years in the Student Loan Programs knowing it will make it harder for young people to go to college to get a degree. The president is trying to cut nutrition assistance by more than 180 billion and thats before taking his recent meanspirited regulations into account. Knowing all along it will force more families to go hungry. In the state of the union speech President Trump talk about planting trees to protect the environment. Do you expect the environment by not gutting the epa by 26 which is budget would do. The president gave the American People his word that his administration would quote call necessary steps to safeguard our citizens from the coronavirus. That was another lie because days later his budget included nearly 19 reduction to the centers for Disease Control and prevention Discretionary Budget Authority despite the ongoing threat. The bottom line here is this president and his Congressional Republican allies have routinely prior to a specialinterest and the rich and powerful over the Health Safety and Economic Security of the american family. The president s destructive and or rational budget continues by intentionally going after working families and vulnerable americans while simultaneously extending tax cuts and giveaways to the wealthiest individuals and large corporations. Over the course of a decade the president s budget would non discretionary funds by 1. 5 trillion taking a wrecking ball to americas Economic Future and security. The same time and extend expiring provisions of the 2017 gop tax law adding more than 1 trillion to the debt. In reality the president ones unable to hide his growth protections. This president is asking working americans to sacrifice their safety and health their Economic Security their future at the cost of republicans tax scam which was never going to pay for itself. Shocking and it never gets easier to see her presence complete disregard for the human cost of this budget. Thankfully with a budget in place for 20 and 2021 for Senate Majority leader reaffirming his commitment to the bipartisan budget act of 2019 im confident that congress will stand firm against the president s warped vision for our nations future. Finally director vought from this recent theres a lot of interest in your presence here today that this is the first time you testified that part since President Trump was impeached but are not going to rehash the entire process but a major finding of congresss investigation was the administration broke the federal law and failed to abide by the empowerment control act and that falls squarely within the jurisdiction of the Budget Committee so i think its critically important that you adhere to the i see a today. As director is your responsibility and europe occasion to make sure that on the is in complete compliance with the i see a and fully respects the constitution grants congress the power of the purse. I promise that this committee will continue its vigilance and not allow the president to unilaterally substitute this budget the bipartisan budget already in place and i keep my promises. Look forward to hearing your testimony. I yield five minutes the Ranking Member. I think thank the chairman for holding the hearing and thank you acting director vought for being with us today. We are here to examine the president s budget request for fiscal 21 and its my hope that we will stay on task. I applaud the president for doing a budget here in the house the Budget Committee hasnt her by the budget. Interesting to me because our committee majoritys web site theres a section titled responsibility. The first sentence in the section reads this committees chief responsibility is to grant the concurrent resolution on the budget that provides a congressional framework for spending it revenue levels the federal surplus or deficit and public debt. As we all know the constitution gives congress the power of the purse funding the priorities of the American People while addressing our nation serious fiscal challenges is no easy task but it requires a lot of collaboration and its why hearing from the Administration Today is vitally important. In recent months we have heard from the likes of the Congressional Budget Office and just yesterday from the Federal Reserve many other outside experts have consistently warned our nation is nearing a fiscal crisis. We ought to Pay Attention to those warnings. The National Debt is over 23 trillion. Its projected to grow to more than 36 trillion within a decade soon thereafter on this path the federal debt the highest level in American History as a percentage of the american economy. Cbo projects by 2049 the federal deadpool equal to 48,000 per american. Thats almost a Million Dollars for a family of four. From there it only grows more. Interest payments on the debt will increasingly crowd out other federal spending is directed towards programs that americans rely on. Cbo projects Interest Payments on the debt will amount to three and 82 billion in fiscal 20. Thats 11 of tax revenue. We cannot continue on this path. We have to lead by example that we have to make the tough choices necessary to reverse course and here we are the greatest nation in the history of the world and we cant even manage to come up with something as simple as a dog on budget. The president is doing his duty and is put forward a budget that take steps in the right direction and i recognize there will be others that will be pushed back on his plan but at least we have a plan to look at. The budget does not achieve balance within 10 years preview overall 10 year project reports the budget on the path to balance by 2035. The president s budget reduces budgets by 4. 62 in between 2021 in 2030 and under current law deficits are more than a trillion dollars annually and under this proposal the annual deficit would be over 261 billion by 2030. Further this budget reduces your debt held by the public from 81 of gdp at 60s 66 of gdp or faith i like that direction but its a tremendously tremendous improvement to the president budget does not breach the spending caps called for the bipartisan budget act of 2019. Means the defense spending cap below the nondefense discretionary cat by 37 billion for fiscal 21 traditionally there are several priorities i wish to see this budget. So so when is served in military the military belief in ensuring the safety and security of the American People and is probably her most fundamental purpose of the federal government to appreciate the Trump Administrations clear commitment to this responsibility. Second i appreciate the administrations focus on this budget by approving longterm health for the mac and people by investing in measures to combat the Opioid Epidemic that is crippling communities across the country. Third referred in this room many times our economy is historically strong. The number of Jobs Available to seize the number of people looking for work by 1 million. We must ensure that her workforce meets the demands of our Strong Economy which is why applies the administration is once again investing in korea Technical Education. As ive said before the biggest threat to all of these priorities and to longterm security of our nation is their outofcontrol spending. Accounts for 70 of all federal spending and is projected to increase to 76 according to ceo the cbo by 2029 to the program grown their intended size and scope and they far exceeded what we can a fourpack said many times he cannot have a real conversation without producing the deficits and debt without addressing mandatory spending. The president budget take steps in the right direction. Theres a lot of work to be done its imperative we Work Together in a bipartisan bicameral fashion to address a budget that funds our nations important priorities while acknowledging our very real fiscal challenge. Look forward to the discussion today and i thank the chairman and i yield back the balance of my time. I thank the gentleman for his Opening Statement. Now once again welcome acting director vought. You have five minutes for your prepared statement. Said thank you. Chairman yarmuth and Ranking Member womack and members of the Budget Committee in here today to discuss the president s budget for fiscal year 2020 which we have entitled the budget for americas future. This budget reflects and builds upon the progrowth economic policies of this president which unleashed one of the most powerful economies in history. People are coming back to the workforce wages are rising 401 k s pensions and savings accounts are growing that this budget continues these economic policies once again provides a path for enduring economic expansion by tapping the real problem of deficits in our nations debt. The plan offered today proposes to balance a budget within 15 years by proposing more deficit reduction 4. 6 trillion, that any president in history. Under this budget are current path to a trillion dollar deficit as far as the eye can see will be reduced to two and 61 billion in 2030 with a surplus in 2035. Dead as a percentage of gdp currently at 81 of projected to grow to 100 within 10 years will drop to 66 by the end of the 10 year window. This budget is not a it Funds National priorities that this administration believes are vital to the security of the American People. Let me give you a few examples. 741 billion for the defense of this country. This amount comes on the heels of the Defense Budget 700 16 billion and 738 billion in prior years. Modernization itself will receive nearly 20 increase in the last fiscal year. The same time this budget reflects a highlevel and assumption that are overseas operations will require less funding as the president works to end the endless wars for the budget also makes substantial investments in Border Security and Immigration Enforcement ensures every high school has a highquality career Technical Education program, funds nasas return to the moon by 2024 as a platform to mars and thereafter and grows medical care at 13 to fully fund the mission ad but includes substantial resource to fight against the opiate epidemic and proposes a 1 trilliondollar infrastructure package to rebuild the roads and bridges. It also keeps the promises that President Trumps made to the American People such as protecting Social Security and medicare for seniors. This president is a promises made promises kept kind of president in this budget is no different. Despite the predictable misleading claims by many on the other side. Medicare will grow on average 6 a year under this budget. The budget does propose Good Government reforms to lower drug prices root out the improper payments and addresses wasteful spending. This budget proposes to remove from medicare certain programs such as uncompensated care and graduate medical education which are drained the Medicare Trust fund even though they benefit more than seniors. To be clear these programs would still be funded outside of medicare but with reforms to limit their growth. Similarly this budget proposes payment neutrality for the fate same service being performed at Different Health care location but a c. A. T. Scan cost the same as an outpatient hospital as it does as in a physician office. The local cost of health care is out of touch. Medicaid will grow 3 which is higher than the rate of inflation but the program has 57 billion in improper payments last year in hhs lacks a statutory tools to recruit most of these cosby this budget would provide such authority while giving states the option of a block grant or percapita payment. Only in washington d. C. To advocate of budget that grows every year faster than inflation to the budget proposes other commonsense mandatory savings such as a universal work requirement for medicaid tanf housing and food stamps. This will ensure we are helping to lift ablebodied dependents off of the cycle of dependency to a ladder of opportunity. Terms of Discretionary Spending this budget will propose substantial reductions similar to previous budgets. While budgeting and the defense cat under current law this budget proposes a 5 cut. This budget continues to be a statement from this president and his administration of the stand with families and businesses across the country who have to balance the budgets. Washington d. C. Does not stand with a of different principle of recklessly spending other peoples money. That has to change and hopefully this budget leads to that. Im ready to take your questions. Thank you mr. Vought for your Opening Statement we will begin our questionandanswer session now. A reminder numbers those questions and mr. Voughts answers will be made part of the formal hearing record. Any members wishing to submit questions for the record will be able to do so for the next seven days. We will defer questions until the end of the hearing and i now recognize mr. Moulton. The want to address the president comment that this budget is good for National Defense but i find that hard to to believe by conflicts of directly with the advice hes been given by several generals and is cochair of the task force on the u. S. Armed Services Committee and particularly concerned about the investment that china is making an rnd for a new generation of weapons that we are failing to match. You recall how we responded to this moment in 1957. We increased our National Investment to make sure we were prepared for adversaries. With that we increased those investments . We have increased them in the research and development area. Specifically in education, Greater School education get a proposes sub