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Trump’s Agenda Faces Tough Fiscal Reality After State of the Union

  • Tax cut of $1.5 trillion projected to balloon federal deficit
  • President has backed away from proposal for welfare overhaul
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Bloomberg’s Kevin Cirilli previews President Donald Trump’s upcoming State of the Union speech.Source: Bloomberg

President Donald Trump plans to promote the Republican tax overhaul he signed into law in his first State of the Union speech on Tuesday night, but fiscal headwinds mean he’s likely to have less legislative success in his second year in office.

Democrats and Republicans have voiced concerns about the administration’s approach to financing a large-scale infrastructure program and military investment -- two key themes expected in Trump’s speech -- after passing a $1.5 trillion tax bill that’s projected to balloon the federal deficit.