The Hill: President Trump has indicated that he would allow $125 billion in spending cuts to take place for both defense and nondefense spending if Congress does not agree to his spending plan, top White House adviser Larry Kudlow said Thursday.
“The president has indicated, if the spending caps going all the way back to the 2011 deal are not met, then we will sequester across-the-board, both defense and nondefense, excluding entitlements, but we will run by those rules,” Kudlow said during The Hill’s Newsmaker Series event in Washington. “That’s tough stuff. I think that’s appropriate.”
Kudlow was referring to budget caps set in place in the 2011 Budget Control Act (BCA), a law that was meant to force bipartisan cooperation on budgeting by threatening steep cuts to both defense and nondefense spending.
Without legislation to raise the caps, 2020 defense spending would drop $71 billion and nondefense spending would drop $54 billion from current levels — about a 10 percent across-the-board cut.
In Trump’s budget request, he proposed sticking to those caps but putting $96 billion of additional defense spending into an off-budget account, a maneuver Congress would have to legislate. more here