The budget also will raise military spending by 0.3 per cent to US$740.5 billion for the financial year 2021
The proposals are unlikely to be passed by the Democratic-controlled House of Representatives
US President Donald Trump will propose on Monday a 21 per cent cut in foreign aid and slashing social safety net programmes in his US$4.8 trillion budget proposal for fiscal 2021, according to senior administration officials.
The budget will seek an increase in funds to counter developing economic threats from China and Russia, but will also raise funds by targeting US$2 trillion in savings from mandatory spending programmes in the United States.
Trump, a Republican, sought in his budget proposal last year to slash foreign aid but faced steep resistance from Congress and did not prevail.
Trump latest blueprint for administration spending proposals is unlikely to be passed by the Democratic-controlled House of Representatives, particularly in an election year.
The budget will raise military spending by 0.3 per cent to US$740.5 billion for the financial year 2021, starting October 1 and propose higher outlays for defence and veterans, administration officials said.
The White House proposes to slash spending by US$4.4 trillion over 10 years.
That includes US$130 billion from changes to Medicare prescription-drug pricing, US$292 billion from cuts in safety net programs – such as work requirements for Medicaid and food stamps – and US$70 billion from tightening eligibility rules for federal disability benefits.
Trump’s foreign aid proposal seeks US$44.1 billion in the upcoming financial year compared with US$55.7 billion enacted in financial 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 US vice-president.
Administration officials told Reuters that Trump would request an increase in funding for the US International Development Finance Corporation (DFC) to US$700 million compared to US$150 million the previous year.