Donald Trump's 2021 budget plans

WASHINGTON -
President Donald Trump will propose cutting billions of dollars in U.S. foreign aid in his fiscal 2021 budget while seeking an increase in funds to counter developing economic threats from China and Russia, senior administration officials told Reuters.

Trump, a Republican, sought in his budget proposal last year to slash foreign aid but faced steep resistance from Congress and did not prevail.

His latest budget, which will be released on Monday, is a blueprint for his spending proposals that is unlikely, again, to be passed, particularly in an election year.

Trump will seek to make a 21% cut in foreign aid in the proposal, which seeks $44.1 billion in the upcoming fiscal year compared with $55.7 billion enacted in fiscal year 2020, an administration official said.

Aid to Ukraine would remain at its 2020 levels under the new proposal, the official said. Trump was acquitted last week of impeachment charges that he withheld aid to Ukraine to spur Kiev to investigate political rival Joe Biden, a Democratic presidential candidate and former U.S. vice president.

Administration officials told Reuters that Trump would request an increase in funding for the U.S. International Development Finance Corporation (DFC) to $700 million compared to $150 million the previous year.

(c) Reuters 02/09/2020

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