President Obama will release his FY2016 budget today and it will push for tens of billions of dollars more in federal spending by arguing the deficit has been cut and the economy is much improved since he first took office six years ago. His fiscal 2016 budget plan will flip that by making the case that the economy has turned around, which should allow for more federal spending to ensure the improving conditions benefit everyone.
Obama will propose a mix of tax increases and changes in spending programs that, besides paying for the repeal of the sequester, would reduce cumulative deficits by $1.8 trillion over 10 years according to an administration fact sheet.
The administration said the increases would be more than offset by other spending cuts and closing of tax breaks. The plan also proposes repealing the post-sequester discretionary caps through their scheduled end in 2021, raising both defense and non-defense spending on a dollar for dollar basis. The increases would total $74 billion in spending above sequester caps — raising defense spending by $38 billion, to $561 billion, and non-defense accounts by $37 billion, to $530 billion. Obama has suggested the non-defense increase will go toward more infrastructure spending, new research into precision medicine, education programs, and foreign aid for Central American nations to combat child migration. To be sure, the White House also views entitlement spending as an investment and is not expected to make any significant calls for scaling back Social Security, Medicare or Medicaid.
The budget debate will play out over the next several months as appropriators write the annual spending bills and focus on whether to raise the sequester caps. Congress has found ways around those caps three out of the past four years, but that was when Democrats controlled the Senate. The latest sequester proposal seeks Republican support by calling for equal increases between defense and non-defense spending.
Additional reading:
Obama’s Budget: Five Things to Watch
Obama to unveil $4 trillion budget that busts spending limits