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President’s FY2020 Budget

Today, the Administration released its FY 2020 President’s budget request (PBR) to Congress. This budget is the first step in the annual Congressional appropriations cycle. The annual PBR is a political and policy document indicative of the goals of the  Administration for the coming year.

The $4.7 trillion FY 2020 budget released today would sharply reduce spending on safety-net programs, while effectively exempting the Pentagon from strict spending caps set to take effect in FY 2020.

The PBR assumes the scheduled FY 2020 and 2021 sequester cuts to domestic spending, which is effectively a 10 percent reduction to nondefense programs from current levels. The budget would reduce the overall level of nondefense spending by nearly $30 billion reduction and would increase military spending by 5 percent, to $750 billion from $716 billion received in FY 2019. It requests $8.6 billion for new barriers along the southern U.S. border, including $5 billion for the Department of Homeland Security and $3.6 billion for the Defense Department’s military-construction budget. The president’s blueprint would also provide additional funding to boost manpower at Immigration and Customs Enforcement and Customs and Border Protection, and it proposes policy changes to end so-called sanctuary cities.

The Administration’s budget proposed $2.7 trillion in spending cuts over the next decade of which $1.9 trillion is cuts to mandatory spending programs.  Specifically within those programs, the Administration proposes to cut $22 billion from safety-net programs next year—$327 billion over the next decade—and proposes new work requirements for recipients of food stamps, Medicaid, and federal housing programs.

Within the discretionary nondefense side of the ledger, cuts were proposed to:

  • $87.1 billion for HHS (a 12 percent cut)
  • $34.36 billion for NIH (a 12 percent or $4.9 billion cut)
  • $5.8 billion for HRSA (a $1 billion cut)
  • $5.27 billion for CDC (a $1.2 billion cut)
  • $31.7 billion for Energy, (an 11 percent cut) and requests $5.5 billion for Office of Science (a 9 percent decrease) while eliminating Advanced Research Projects Agency-Energy (ARPA-E)
  • $62.0 billion for ED (an $8.5 billion or 12 percent cut) and eliminating, Public Service Loan Forgiveness, Supporting Effective Instruction State Grants, 21st Century Community Learning Centers, and Federal Supplemental Educational Opportunity Grants
  • $12.2 billion for Commerce (a $1.0 billion or a 9.3-percent increase), but eliminations to the  Sea Grant, Coastal Zone Management Grants, and the Pacific Coastal Salmon Recovery Fund.
  • $12.5 billion for Interior (a 14 percent cut)
  • $7.1 billion for NSF (a 9 percent cut)
  • $21 billion for NASA (a 1.4 percent increase)

The budget specifics for HHS, ED, Energy, DOD, Interior, NOAA, and NASA should be forthcoming this week.

Other items included in the budget, the PBR proposes to streamline student loan repayment by consolidating multiple IDR plans into a single plan. The Single IDR plan would cap a borrower’s monthly payment at 12.5 percent of discretionary income. For undergraduate borrowers, any balance remaining after 180 months of repayment would be forgiven. For borrowers with any graduate debt, any balance remaining after 30 years of repayment would be forgiven.  It would expand Pell Grant eligibility to include high-quality short-term programs. The budget proposes to restructure and streamline the TRIO and GEAR UP programs by consolidating them into a $950 million State formula grant.

NIH would continue to address the opioid epidemic, make progress on developing a universal flu vaccine, and support the next generation of researchers. The PBR includes a new, dedicated effort to support research and develop new treatments for childhood cancer. Cancer is the leading cause of death from disease among children and adolescents in the United States. The basic biology of childhood cancers is not fully understood and differs from that of adult cancers. The Budget includes increased funding and an innovative initiative to enable the Nation’s best researchers and doctors to learn from every child with cancer, providing the opportunity to comprehend finally the unique causes and the best cures for childhood cancer.

 

 

UW Physician Testifies in Senate HELP Committee

Today, Dr. Katherine Bennett testified in the Senate Health, Education, Labor and Pensions at the invitation of Senator Patty Murray. The hearing, titled “How Primary Care Affects Health Care Costs and Outcomes,” can be viewed on the HELP committee’s website here.

HELP Primary Care Costs Hearing

But Will He Sign It?

Following the Senate’s lead from last week, the House cleared yesterday the massive spending package that combines the annual Labor-HHS-Education and Defense spending bills by a vote of 361-61.  The Senate approved it by a vote of 93 to 7.  The bill also includes a continuing resolution (CR) that would fund through December 7 the other agencies and programs whose funding bills are not signed into law by next Monday.

Earlier this week, there had been some uncertainty about whether the president would actually sign the package because it did not contain the funding his wants for a border wall along the Southern border.  It now appears that he will indeed sign it.

The CR could now apply to a larger number of bills– seven– than originally hoped for.  House and Senate negotiators have spent the last several weeks trying to reach a compromise on a combined package of four more appropriations measures and it remains uncertain at this point whether an agreement can be reached and signed into law before the House recesses on Friday.  Among the bills under discussion are those that would fund the departments of Interior and Agriculture.

Senate Approves Labor-HHS/Defense/CR Package

By a vote of 93 to 7, the Senate adopted earlier today a massive spending package that includes the Labor-HHS-Education and Defense appropriations bills as well as the continuing resolution that would keep funded through December 7 parts of the government that do not have their spending bills approved by October 1.

The measure now heads to the House for its consideration.  The chamber is currently in recess and will return next week.

More Action Expected on Appropriations

More action on the FY2019 appropriations front is expected today, with the Senate bringing up for the consideration the second “minibus” of spending bills, which contains the Labor-HHS-Education and Defense measures.  The chamber could pass it by the end of the day today.

In addition, the staff for the House and Senate Appropriations Committees are scheduled to meet today to see if the remaining hurdles in the third minibus can be cleared.  This package contains the Interior, Agriculture, Transportation-Housing, and Financial Services bills.