What’s Up with President Trump’s Budget?

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What’s Up with President Trump’s Budget?

 

 

Defense spending up. Big cuts to social programs. Federal funding for the arts on the chopping block.

 

You may have seen headlines or social media posts that give details about President Trump’s budget. Depending on where you stand, you may be cheering, weeping, or shrugging your shoulders. But what is actually going on with the president’s spending plan?

 

Officially, nothing is going on – yet. A 1990 law requires that the president submit a budget proposal to Congress by early February. Donald Trump has not done so (he wouldn’t be the first president to miss the deadline). In fact, his spokesman says that the president’s budget will be unveiled “later this year.”

 

Right now, the White House has asked agencies to find a way to increase defense spending by $54 billion and cut other spending by an equal amount.  That gives a broad idea of what the president will propose, but it does not give any details about what agencies may be targeted for cuts or what shape those cuts may take.

 

Even after the president submits his budget, this does not mean that his spending plan will go into effect. Under the federal budget procedure, the president submits a budget, but Congress must pass its own budget resolution. The congressional budget resolution may or may not incorporate what the president wants to see happen. Each chamber passes its own resolution, and these two versions must be reconciled by the two chambers.

 

The congressional budget is not even the final spending plan. It is, instead, a detailed outline of what spending should look like. If the resolution recommends changes to mandatory spending programs such as Medicaid and Social Security, Congress must pass those changes. For non-mandated spending, such as on defense or national parks, the congressional budget resolution provides a guide for appropriation committees to allocate actual spending amounts. The budget resolution does set forth special rules for consideration of some items, so it is a useful blueprint for Congress to take on future spending decisions.

 

It should be pointed out that this process is often ignored by Congress. Some years it does not pass any budget resolution. Instead, it simply passes appropriations bills to authorize a certain level of federal spending. We don’t know if that could happen this year. Given that the president is not close to submitting his budget resolution (remember, it was due in early February), chances are good that we’ll see some interesting maneuvers during this year’s budget process.

 

Comment below and share how you think President Trump and Congress should structure the 2017 federal budget!

 

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