“I want to work with Congress to replace mindless austerity with smart investments that strengthen America.” President Obama
FY16 Budget
President Obama kicked off the budget season on Monday, February 2, with the launch of his proposed FY16 budget of $4 trillion, which:
- Increases taxes on the wealthiest individuals and corporations (taxing overseas profits).
- Cancels sequestration (automatic spending cuts) for defense and non-defense spending.
- Flattens the rate of growth of the deficit and the national debt.
Overall the president’s budget boosts research funding at the federal agencies and funding for student financial aid. His proposal for funding for two years of community college is also part of his FY16 budget.
Federal Budget Process
A quick review of the lengthy, and partisan, federal budget process:
- The president’s budget is announced the first Monday in February.
- Budget Resolution: Congressional budget committees set their own budget numbers and priorities. This results in a nonbinding budget blueprint that does not go the president for signature.
- Budget Reconciliation: This acts on suggestions in the Budget Resolution around spending and savings. It only needs a simple majority for passage, but must then be signed by the president.
- Appropriations committees consider and pass 12 appropriations bills.
- Each of the 12 appropriations bills are expected to be passed on the floor and sent to the president for signature by September 30.
The last time Congress passed all 12 appropriations bills by September 30 was 1997. The last federal government shutdown was 2013 (16 days).
We’ll continue to gather details on the president’s budget proposal as they become available.