House Budget Committee Chairman Tom Price (R-GA) released the House Republican budget draft today, which in recent years has been largely a political document. The House Democrats are expected to release a competing draft soon. The federal budget, while it does not become law, does have to pass both chambers of Congress and will guide the House and Senate on federal spending. In addition, the budget typically charges the respective legislative bodies on sweeping policy initiatives, such as tax reform, which is what then-Chairman Paul Ryan (R-WI) suggested last year. This year, Chairman Price includes the repeal of Dodd-Frank and Obamacare, proposes a premium support system for Medicare, asks for a bipartisan study and report to Congress on the problems facing the Social Security program, and would eliminate the Alternative Minimum Tax.
Additionally, the final budget will guide the respective House and Senate Appropriations Committees on how much funding is available to begin work on the 12 annual appropriations bills.
The details are not yet clear, but at first blush, the bill would aim to balance the budget in nine years and create a surplus by 2025. The measure would also cut $5.5 trillion over the next decade. This would be achieved by eliminating duplicative programs and eliminating programs within agencies that are not “core functions” of the federal government. Examples of these duplicative, beyond the scope or “corporate welfare” programs cited include, job training programs, and eliminating the Hollings Manufacturing Extension Program and Trade Promotion Activities at the International Trade Administration.
Redundancies and misuse of tax dollars called out include:
- There are 92 different anti-poverty programs.
- There are 17 food aid programs.
- There are 22 housing assistance programs
- An Inspector General report revealed that employees at the Environmental Protection Agency are taking paid leave after work-related violations.
- The Department of Defense and the Central Intelligence Agency, two of the most important agencies in our national security apparatus, currently spend part of their budget studying climate change.
For higher education, the legislation proposes a new framework to use “federal dollars more efficiently” in higher education — but details on what that framework would be are thin. Pell grant awards would both be capped for next decade and limited to the neediest borrowers.
The bill would also replace or prevent Sequester cuts — although how is unclear. The measure would keeping the 2011 budget ceilings, and would impose a $1.017 trillion ceiling on spending in the fiscal year beginning on Oct. 1. Domestic discretionary programs would get $493 billion, with $523 billion allotted for the Pentagon’s base budget. The GOP budget ignores Obama’s request for $74 billion in additional spending.
Already, the GOP members of the House Armed Services Committee has been less than committal to the measure. It remains to be seen if the measure will enjoy unified Republican support.
An overview of the House Budget Committee draft can be found here.
The Office of Federal Relations will continue to update on this issue as more information becomes available.