The 2018 federal budget proposed by President Trump is receiving a lot of attention for cuts made to programs that benefit low-income families and the elderly. The cuts would go in effect over the next decade.

But cuts and defense spending were not the only items in the federal budget Trump proposed. He also included ways to introduce student loan reform and paid parental leave, which would keep America competitive for workers.

During his campaign, the President pledged to provide paid family leave to help new parents. It was a topic Ivanka Trump also pushed during the campaign.

“The Budget delivers on this promise with a fully paid-for proposal to provide six weeks of paid family leave to new mothers and fathers, including adoptive parents, so all families can afford to take time to recover from childbirth and bond with a new child without worrying about paying their bills,” the budget says.

How could it do it?

Currently the budget reads: “Using the Unemployment Insurance (UI) system as a base, the proposal will allow States to establish paid parental leave programs in a way that is most appropriate for their workforce and economy. States would be required to provide six weeks of parental leave and the proposal gives States broad latitude to design and finance the program.”

It could also reform student loan programs, beginning for student loans on or after July 1, 2018. 

An income-dependent repayment plan would cap a borrower’s monthly payment at 12.5 percent of discretionary income. For undergraduate borrowers, any balance remaining after 15 years of repayment would be forgiven. For borrowers with any graduate debt, any balance remaining after 30 years of repayment would be forgiven, according to the budget.

To do this, the Budget eliminates the Public Service Loan Forgiveness program, establishes reforms to guarantee that all borrowers pay an equitable share of their income and eliminates subsidized loans. 

This leaves those currently in possession of student loans outside of the program.

“The elimination of Supplemental Educational Opportunity Grants along with significant reductions in Work-Study, TRIO, and GEAR UP would be the equivalent of erecting concrete barriers in the path of some of the neediest students who aspire to earn a college degree,” Association of Public and Land-grant Universities President Peter McPherson said.

This is just a proposed budget and many changes are expected in Congress. We can only wait to see if these programs will be available for future Americans.

Trump also created room in the budget to fund his border wall. You can read more on the increases to the budget in our article.