US budget proposal includes funding for border wall

President Trump’s proposed budget for the fiscal year 2020 has been revealed. It includes US$8.6 billion to fund sections of the controversial wall on the US-Mexico border.

The budget could lead to an overall cut in infrastructure and construction spending though, as the proposal looks to cut overall non-defence discretionary spending by 5% – federal and construction programs fall into this category.

The administration continues to try to keep the idea of a comprehensive infrastructure package alive. A fact sheet accompanying the 2020 budget proposal asks Congress to pass legislation providing US$200 billion in federal spending.

The administration claims that this would spark up to US$1 trillion in non-federal investment, including money from the private sector. 

The proposed US$8.6 billion for the US-Mexico wall is highly unlikely to be passed easily. Funding for the wall was the main issue behind the recent 35-day federal government shutdown.

US construction spending increased 4.1% in 2018 from 2017, although spending dropped by 0.6% in December 2018 compared to November 2018.