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President to Propose an End to Sequestration

President Obama will advocate for an end to sequestration by proposing equal budget increases in both defense and non-defense discretionary spending in his FY2016 budget to be released on Monday. Obama is giving a ‘sneak peak’ of his budget to House Democrats at their  retreat in Philadelphia today. According to a White House source, the proposal would reverse cuts for domestic priorities and match those investments dollar-for-dollar with the resources our troops need to keep America safe.

Spending caps for FY2016 are due to be set at $1.016 trillion as required the 2011 Budget Control Act (PL 112-25), which exchanged an increase in the deficit for a decade’s worth of strict spending caps, and across-the-board cuts if Congress does not adhere to the caps.

Both Republican and Democrats have expressed a desire for raising some spending levels, but Obama’s proposal is not likely to gain support among Republicans because of how he plans to pay for them. Obama’s plan would be fully paid for with cuts elsewhere and closing tax loopholes. But any tax increase will be a non-starter with Republicans, who have rejected similar proposals before. Obama is probably hoping that his proposal for increased defense spending will help draw the GOP into negotiations.