Kari Lake’s Controversial Budget Proposal Sparks Debate
US Senate candidate Kari Lake has reiterated her contentious plan to slash the federal budget by half, a move that critics argue would severely impact defense, veterans’ benefits, and result in massive job losses. Lake has consistently pushed for these drastic budget cuts, even suggesting a more extreme 75% reduction at an event with the Payson Tea Party.
Lake contends that overspending by Democrats and certain Washington politicians has necessitated these cuts. “Democrats, and some politicians in DC, they have overspent,” Lake said. “They passed $1.9 trillion budgets—or, not budgets, spending packages, to buy all kinds of things we don’t need. So we’ve got to cut a lot.”
The spending package she mentions is the American Rescue Plan (ARP), a 2021 initiative designed to mitigate the economic fallout from the COVID-19 pandemic. While it led to a temporary rise in inflation, proponents argue it has had lasting positive effects, such as funding a new affordable housing project in Phoenix through a $2.5 million ARP investment.
Implications of Proposed Budget Cuts
If Lake’s proposal to cut the federal budget by 50% were to be implemented, it would not only halt government operations but also significantly harm the US economy. Despite vowing to preserve Social Security and Medicare, these commitments, combined with the 12% needed for debt interest payments, would leave merely 5% of the current budget, or $435 billion, for all other government functions.
- National Defense, current budget $1.4 trillion
- Health services, current budget $1 trillion
- Income Security—including federal retirement benefits, housing, and unemployment—current budget $677 billion
- Government administration, current budget $400 billion
- Veterans benefits and services, current budget $331 billion
- Education and social services, current budget $228 billion
- Commerce and housing credits, current budget $150 billion
- Transportation, current budget $133 billion
- Natural resources and environment, $121 billion
This would also affect community development, international affairs, agriculture, science, space, technology, energy, and the federal justice system, sectors that currently share a budget equivalent to what Lake proposes for the entire government.
Moreover, such a reduction could lead to nearly 3 million job losses among federal employees, affecting their retirement and unemployment benefits. If Lake were to pursue her 75% cut ambition, this would reduce the federal budget to $2.1 trillion, leaving only $1 trillion after debt interest to fund Social Security and Medicare, which together require $2.9 trillion.
Lake’s proposal is seen as more radical than Project 2025, a conservative plan linked to Donald Trump, which also suggests significant cuts to several departments. Whether Lake’s plan is a genuine commitment or a rhetorical tactic to appeal to far-right supporters remains a topic of debate.
