The president is making good on his campaign promise to cut Medicaid spending by $2 trillion over the next 10 years, a move that is expected to generate some $5 trillion in new revenue.
The White House is still counting on Congress to raise the nation’s borrowing limit to avoid a government shutdown and the possibility of default.
But Republicans in Congress are pushing for the government to shut down for the first time in nearly a century.
And even if the government remains closed, the president’s plan could trigger a government default that would force taxpayers to pay out $7 trillion to creditors.
The president’s budget plan also would require the federal government to cut more than $200 billion from the federal debt over the course of his term, a number that could add up to a $1 trillion increase in the national debt over a decade.