As the Senate Appropriations Committee makes its 302(b) allocations, divvying up funding among the 12 appropriations bills, it will have to deal with an unpleasant surprise from CBO's latest baseline: lower estimated Federal Housing Administration receipts.
Maya MacGuineas, President of the Committee for a Responsible Federal Budget, wrote a commentary that appeared in the Wall Street Journal Washington Wire. It is reposted here.
The Pentagon's budget faces serious constraints this year as a result of budget caps agreed to last year and rising personnel, healthcare, and retirement costs taking up an increasing share of military spending.
With the U.S.'s involvement in Afghanistan set to wind down at the end of the year, there is some uncertainty about the military presence in 2015 and beyond. Until a security accord is reached, it is difficult to say whether the U.S. will leave a small residual force in the country or whether the U.S. will withdraw entirely. Because of the uncertainty, the Pentagon provided a placeholder request of $79.4 billion (most of the $85 billion war spending total) for FY 2015 without specifying how the money will be spent.
In our discussion of House Budget Committee Chairman Paul Ryan's (R-WI) budget, we talked about one area where the budget actually boosts spending: defense. The budget repeals the sequester for defense spending, shifting those cuts to the non-defense side while further reducing non-defense spending. However, the committee report for the budget resolution tightens the caps by clarifying the definition of what can count as war spending.
Much of the focus in House Budget Committee chair Paul Ryan's (R-WI) budget inevitably falls on the changes it it would make to mandatory spending, of which there are many. However, much of the budget's deficit reduction comes through further cuts (beyond the sequester currently in place) to non-defense discretionary spending.
On Tuesday, the President released his budget, detailing his priorities for the upcoming year and beyond. Facing declining federal investment, the President's new budget places an emphasis on restoring some of the sequester cuts to discretionary and mandatory spending passed in the Budget Control Act of 2011.
With the release of the FY 2015 President's budget, the Obama Administration has now presented six annual budget plans (and an additional proposal to the Super Committee). As you can imagine, there are a lot of policies in this year's budget that are holdovers from previous ones, but there are also new ones. This blog will highlight major new policies in this year's proposal.