Allison Colburn
By Allison Colburn December 12, 2017

Penny plan so far absent from budget

President Donald Trump's vow to improve the economy included a strategy to reduce federal spending dubbed the "penny plan."

The plan says it would reduce non-defense and non-entitlement spending by 1 percent each year.

"Over 10 years, the plan will reduce spending (outlays) by almost $1 trillion without touching defense or entitlement spending," the campaign said.

Trump's 2018 budget proposal doubled the suggested yearly reductions. It projected non-defense spending would decrease from $462 billion in 2018 to $385 billion in 2027. This, along with other budget changes, would result in a $16 billion surplus in the next decade, according to the proposal.

As we have previously reported, the budget proposal relies on what experts have called "rosy" assumptions about the rate at which the economy will grow. Republicans, on the other hand, argue that proposed changes to the tax code would provide an economic boost.

In October, the Senate and the House passed a budget blueprint that would also allow Republicans to pass tax legislation without the need for Democratic votes. The budget does not include Trump's proposed penny plan. Early estimates by the Congressional Budget Office of the tax plan's effect on the budget expected a more than $1.4 trillion increase to the federal deficit.

Sen. Michael Enzi, R-Wy., a supporter of the penny plan, might introduce legislation to implement it in the future, said Enzi's press secretary, Max D'Onofrio.

Since Congress hasn't taken steps to incorporate the plan into the budget, and we don't yet have a timeline on when that could happen, we rate this promise Stalled.

Latest Fact-checks