President Donald J. Trump’s federal budget proposal moves some expenses to the states and has deficits continuing to expand over the next two years. Funding for the Department of Housing and Urban Development has been increased from last year’s proposal, while more activity is expected from the Government National Mortgage Association.
In its first year in office, the Trump administration boosted economic growth, created more than 2 million jobs and added nearly $5 trillion in new wealth to the stock market, according to its fiscal-year 2019 budget presented to Congress.
“Unemployment is at a 17-year low, wages are rising, and jobs are returning to America,” the report from the president’s Office of Management and Budget states. “Starting this month, hardworking Americans are going to see increased take home pay because of the massive tax cuts and tax reform legislation we enacted at the end of last year.”
During the current fiscal year, receipts by the federal government are expected to reach $3.340 trillion, more than the $3.316 trillion in 2017.
Outlays during 2018, however, will exceed receipts by $873 billion. The expected deficit is more broad than $665 billion the prior year.
Next year’s federal deficit is expected to expand to $984 billion then peak at $987 billion in 2020. The deficit is then forecasted to fall each year until it is just $363 billion in 2028.
HUD’s portion of fiscal-year 2019’s budget is $41.24 billion, according to an announcement Monday. Last year’s proposal had HUD’s budget at $40.68 billion.
The statement said the administration is committed
to the idea that state and local governments are best positioned to address specific local needs. But it did offer increased funding for elderly and disabled rental subsidies, homeless assistance and lead hazard control.
Up to $400 billion in new loan guarantee authority is proposed for the Federal Housing Administration during fiscal-year 2019. For calendar-year 2017, FHA residential endorsements came to $255 billion, while commercial real estate endorsements were $18.5.
Ginnie Mae’s budget has been proposed at $550 billion in new guarantee authority, a little more than the $500 billion proposed last year. Ginnie’s calendar-year 2017 mortgage-backed securities issuance wad $474 billion, but fixed-rate issuance last month slowed to the lowest level since March 2017.
