President Trump Releases FY 2018 Budget Blueprint

Last week, President Trump released his proposed $1.1 trillion FY 2018 budget blueprint which involves a $54 billion increase in defense spending and corresponding cuts to non-defense spending. The Pentagon would have a 10 percent ($52.3 billion) increase, and the Department of Homeland Security would have a seven percent ($3 billion) increase.

The “America First” blueprint does not provide the tax revenue, mandatory spending and detail that will be available when the President releases his final full budget request in May.

Of relevance for petroleum marketers, EPA took the biggest hit with a proposed 30 percent reduction in funding. $100 million dollars would be saved by defunding climate change research, regulatory activities and international programs. The Global Climate Change Initiative would be eliminated entirely. The White House plan would reorient EPA’s air program to protect the air, “without unduly burdening the American economy." The proposal would also stop funding for the Clean Power Plan and the Energy Star program.

The Department of Transportation funding would be decreased by 12.7 percent and the Department of Energy funding by 5.4 percent. The Advanced Research Projects Agency-Energy, which funds clean energy research would be eliminated entirely, as would the Advanced Technology Vehicle Manufacturing loan program, and the energy loan guarantee operation. DOT would see elimination of funding for commercial flights to rural airports.

PMAA will strongly push back on the proposals to eliminate funding for the Low Income Home Energy Assistance Program (LIHEAP) and the Weatherization Assistance Program. Both programs are vital in serving low income consumers of home heating fuel.

Much of Trump’s blueprint is strongly criticized, even by members of his same party. Like all presidential budgets, ultimate passage of the blueprint is not likely, especially provisions such as the elimination of LIHEAP which will not be supported by a majority in the Senate. In both chambers, most domestic programs have bipartisan advocates. And in the Senate, bipartisan support will be imperative because it takes 60 votes to move spending bills past delaying tactics.