But Sen. Kirsten Gillibrand, who counts paid family leave among her priority legislative objectives, said it was insufficient.
States also would be required to match 20 percent of federal funding for the program under Trump's 2018 federal budget. It also relies on rosy projections about economic growth to balance the budget within 10 years.
Many economists are highly skeptical that such reforms could lead to the 3 percent growth goal, a conclusion which Mulvaney - using one of his boss's favorite words - described as "sad".
The cuts are part of a budget blueprint for the upcoming fiscal year that begins October 1. The Department of Homeland Security's budget would increase US$3 billion versus the final full year of President Barack Obama's term, while the Pentagon's budget would see a US$6 billion increase over that same time.
The budget proposes $65 billion for defense OCO in 2018, a number that gradually falls until it reaches $10 billion in 2022, where it remains through 2027.
The plan would also sell off half of the nation's emergency oil stockpile to raise US$16.5 billion and open up the Alaska National Wildlife Refuge to oil drilling to raise US$1.8 billion. Under the Trump proposal, many current grants would instead be converted to loans. Pressed by his daughter Ivanka, the President's budget sets aside $25 billion over ten years for a project that is sure to draw more support from Democrats than Republicans - allowing parents time off to be with a newborn baby.
Details are still forthcoming, but Republicans have long sought to downsize safety net programs, saying they are rife with fraud and stop low-income Americans from being self-sufficient.
The federal government also would spend almost $250 million less on food stamps for Wisconsin residents each year under Trump's proposed spending plan, which calls for a 25 percent decrease in Supplemental Nutrition Assistance Program spending, according to David Lee, executive director of Feeding Wisconsin, an organization that advocates on behalf of food shelters and oversees a network of pantries in the state.
Josh Archambault, a senior fellow at the Foundation for Government Accountability conservative think tank, said Trump's proposal gives states flexibility to impose work requirements that could usher in changes to programs such as Medicaid and public housing.
"We are no longer going to measure compassion by the number of programmes, or the number of people on those programmes", Mr Mulvaney told reporters on Monday.
Mulvaney noted that the Trump plan would require working adults whose low income otherwise qualifies them for the Earned Income Tax Credit and the Child Tax Credit to have a Social Security number.
He said, "This would pull the rug out from so many Americans who need help: those suffering from opioid and heroin addiction, people in nursing homes and their families who care for them".
Together, changes to those two programs alone are estimated to save about $40 billion over a decade.
President Donald Trump proposes to spend $4.1 trillion in fiscal 2018, measured as outlays.
Trump had repeatedly promised during the 2016 presidential race that he would not make any cuts to Medicaid. And the budget would save US$72 billion through cuts to Social Security Disability Insurance. "We all know that closing tax expenditures is hard and controversial", said Robert Greenstein, president of the left-leaning Center on Budget and Policy Priorities.
I was the first & only potential GOP candidate to state there will be no cuts to Social Security, Medicare & Medicaid. It includes a wave of cuts to benefit programs such as Medicaid, federal employee pensions, welfare benefits, and farm subsidies. The $800 billion cut assumes that the House-passed bill to repeal the Affordable Care Act, known as "TrumpCare", would become law.