President Trump's 2018 budget proposal on Tuesday won't cut Social Security payments to retirees or Medicare, but it will make serious cuts to other entitlement programs. A source with direct knowledge tells me the Trump budget will save $1.7 trillion on the mandatory side over the next ten years.

Expected reaction: In the past couple days I've spoken to a number of White House officials about the budget proposal. The best summary, from one White House source: "Conservatives will love it; moderates will probably hate it." These mandatory cuts — especially to politically-sensitive programs like food stamps — will make some moderate Republicans as nervous as the recent health care bill did.

Balanced budget: I am told Trump's budget will balance over ten years. To get there, it will propose tough cuts on both the mandatory and discretionary sides — e.g. to the EPA and State Department — and will assume that the U.S economy will grow at 3 percent instead of the 1.6 percent rate it grew in 2016. The 3 percent growth rate will be reached after a few years, not immediately.

I am told Trump's budget will balance over ten years. To get there, it will propose tough cuts on both the mandatory and discretionary sides — e.g. to the EPA and State Department — and will assume that the U.S economy will grow at 3 percent instead of the 1.6 percent rate it grew in 2016. The 3 percent growth rate will be reached after a few years, not immediately. Where the entitlement cuts are made: From programs including SNAP (food stamps), CHIP (Children's Health Insurance Program), and SSDI (Disability Insurance). The budget proposal will also assume that Trump can sign into law the American Health Care Act — the Obamacare repeal and replace bill that passed the House and is now being considered by the Senate. That bill makes substantial cuts to Medicaid.

From programs including SNAP (food stamps), CHIP (Children's Health Insurance Program), and SSDI (Disability Insurance). The budget proposal will also assume that Trump can sign into law the American Health Care Act — the Obamacare repeal and replace bill that passed the House and is now being considered by the Senate. That bill makes substantial cuts to Medicaid. How the entitlement money will be saved: The source tells me there'll be an "emphasis on work requirements for able-bodied people" to save money on these social welfare programs.

"Good news" budget items the administration will tout: