BUSINESS
RELATING TO GOVERNMENT
INSIGHTS ON U . S . LEGISLATIVE ISSUES AND INDUSTRY TOPICS
Dissecting President Trump ’ s proposed budget
ON MAY 23 , President Trump released his proposed budget for fiscal year 2018 , kicking off the funding debate in Washington , D . C . Congress must complete funding legislation by Sept . 30 , 2017 , and with several high-priority items still on the legislative schedule for Congress , FY18 appropriations only add to the uncertainty .
Signal Group , NTA ’ s legislative advisors , answered Courier ’ s questions about the administration ’ s proposed budget , the congressional appropriations process and the current environment within the Beltway .
Courier : What are the highlights of the president ’ s proposed budget ? Signal Group : It reduces federal spending by $ 3.6 trillion over 10 years , with significant cuts across the board to domestic , non-defense programs . The administration contends that a combination of aggressive cuts and three percent annual economic growth would balance the budget by 2027 .
President Trump ’ s request outlines a $ 4.1 trillion budget for FY18 , with $ 1.15 trillion of that directed to discretionary spending . The significant differences between White House and congressional spending priorities are likely to pose a challenge for reaching agreement on FY18 spending levels . This is compounded by the fact that the administration ’ s budget violates the caps established by the Budget Control Act of 2011 . This likely will require Congress to address fundamental issues related to the balance between defense and nondefense spending , as well as the scheduled return of sequestration , a law that limits the size of the federal budget .
Courier : How does this budget address priorities of the travel and tourism industry ?
Signal Group : For the industry , it ’ s important to focus on the proposed budget levels for the Department of Transportation , Federal Aviation Administration , Transportation Security Administration and U . S . Customs and Border Protection , as they each regulate different modes of travel and security . Under President Trump ’ s proposed budget , both the DOT and FAA take significant cuts . The proposed budget aims to create a more streamlined DOT ; it ’ s unlikely , however , that the 16 percent cut proposed by the president will be implemented by Congress .
Travel and tourism caucus leaders in the House and Senate are ready to fight for programs that have helped bring more positive experiences to tourists .
With regard to Department of Homeland Security agencies , which include CBP , the president proposed an increase of almost $ 3 billion , including $ 100 million for additional staffing . Ironically , the TSA could face cuts . The number of Visible Intermodal Prevention and Response teams , which patrol public areas of airports beyond security checkpoints , along with bus and train stations , would drop from 31 to eight . Additionally , the budget proposes an Aviation Passenger Security Fee increase from $ 5.60 to $ 6.60 for each connecting flight , which would generate about $ 530 million more for aviation security . Construction and other non-personnel items are also proposed to be cut .
Courier : What about Brand USA ? Signal Group : The president also proposes to eliminate Brand USA , which promotes the country overseas as a tourist destination , and shift its revenue to CBP . This proposal has not been well received on Capitol Hill and within the industry . Many lawmakers and trade groups , including NTA , have already declared opposition to this part of the proposal .
Keep in mind that while President Trump ’ s proposed cuts can have a significant impact on the industry , this is just one part of the process , and Congress can accept or reject any portion of the proposed budget .
Courier : Will Congress support our industry ? Signal Group : The travel and tourism industry has broad support on Capitol Hill . Travel and tourism caucus leaders in the House and Senate are ready to fight for programs that have helped bring more positive experiences to tourists , both international and domestic . Remember : Travel and tourism is America ’ s biggest export industry , and members of Congress don ’ t want to hurt a large part of our economy . Brand USA has played a significant role in the industry ’ s success , and eliminating it would not be well received .
Courier : What does the proposed budget reveal about the administration ’ s plans for infrastructure ? Signal Group : An interesting piece of the administration ’ s proposed budget was the inclusion of an “ infrastructure initiative ” fact sheet . The administration has stated intentions to invest $ 200 billion of federal spending in infrastructure in the hopes of leveraging $ 800 billion in private investment . However , the proposed budget first cuts a number
10 July 2017