Setting the Right Course in the Next Budget Agreement

8/20/2019 Setting the Right Course in the Next Budget Agreement

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Setting the Right Course

in the Next Budget AgreementBy Harry Stein September 2015

WWW.AMERICANPROGRESS.O


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Setting the Right Course inthe Next Budget Agreement

By Harry Stein September 2015


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1 Introduction and summary

4 The fiscal landscape

8 The impact of sequestration caps on nondefense progra

17 Fiscal responsibility

20 Conclusion

22 Endnotes

Contents


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1 Center for American Progress | Setting the Right Course in the Next Budget Agreement

Introduction and summary

While he economy is seadily improving, his recovery has done litle or nohing

or he household budges o many middle-class and low-income Americans. Tis

dynamic is dramaically illusraed by daa compiled by economis Emmanuel

Saez, which show ha he op 1 percen o Americans reaped 58 percen o all

income gains rom 2009 o 2014.1 Meanwhile, median wages have been sagnan

since beore he Grea Recession, while a he same ime, a middle-class sandard

o living has grown more expensive.2

Te ederal budge should address his challenge by building an economy ha

works or everyoneno jus or he wealhy ew. Insead, lawmakers have mosly

spen he pas several years implemening a misguided auseriy agenda ha

pushes widespread economic growh urher ou o reach. Congress appears deer-

mined o enac more auseriy measures his yearan acion ha would mean

exending budge cus rom earlier years and deepening cus o some secors.

I is difficul o undersand he ull impac o hese budge cus since hey affec

an enormous number o secors and programs, bu many o he wors impacs

can be grouped ino wo caegories. In each caegory, his repor examines hree

specific examples.

Firs, budge cus reduce he economic invesmens ha lawmakers should be

making o srenghen he middle class and help Americans who are sruggling o

climb ino he middle class. Tese invesmens, which include he hree secors

oulined below, would help build an economy ha works or everyone.

• Infrastructure. Insead o creaing jobs by increasing inrasrucure inves-

menas advocaed by economic, business, and labor organizaionsCongress is debaing which inrasrucure programs o cu.

• Education. Congress is cuting programs ha oser improvemen and innova-

ion in public school sysems, jeopardizing financial aid or college sudens, and

scaling back effors o expand access o high-qualiy early childhood educaion.


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• Affordable housing. A a ime when millions o Americans canno find a sae

and affordable place o live, Congress is making deep cus o programs ha

increase he supply and accessibiliy o affordable housing.

Second, and perhaps more subly, ederal budge cus undermine vial govern-

men uncions ha promoe air reamen or all Americans. Many o he agen-cies and programs acing cus, including he hree lised below, provide saeguards

ha preven he playing field rom iling oward he wealhy ew.

• Environmental protection. Big polluers would ge a windall rom budge cus

and oher resricions on environmenal programsbu hese cus would

leave he American people wih more polluion, deerioraing public lands,

and job losses.

• Tax assistance and enforcement. Cuting he budge o he Inernal Revenue

Service, or IRS, makes i easier or large corporaions and he wealhy o ouma-neuver he governmen in order o avoid paying heir air share. Meanwhile, he

IRS barely has he bandwidh o answer quesions rom ordinary axpayers.

• The legislative branch. By hollowing ou he public insiuions ha provide

in-house experise o Congress, lawmakers are increasingly ousourcing policy

analysis o special ineres groups.

Te cus ha Congress is preparing o make his year can be raced back o he

Budge Conrol Ac o 2011 and is discreionary spending caps. Discreionary

spending is he porion o he ederal budge ha Congress allocaes each year

in appropriaions bills. Te Budge Conrol Ac also included a provision called

sequesraion ha urher lowered he spending caps and imposed separae caps

or deense and nondeense unding afer lawmakers ailed o negoiae a ollow-

up defici reducion package.

Lawmakers lifed he spending caps above sequesraion levels in fiscal years

2014 and 2015, bu his relie expires wih he beginning o FY 2016 on Ocober

1, 2015.3 In his FY 2016 budge, Presiden Barack Obama called or increases o

equal size o he deense and nondeense spending caps.4

In conras, Congresschose auseriy or nondeense programs in is budge resoluion, which keeps he

nondeense sequeser cap in place or FY 2016 and advocaes even more exreme

cus in laer years.5 Tis congressional auseriy does no exend o deense pro-

grams, however, where Congress is using a budge gimmick o increase deense

spending o roughly he same levels ha Presiden Obama recommends.6


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In a saemen published in June, he Whie House wroe ha Presiden Obama

“is no willing o lock in sequesraion going orward, nor will he accep fixes o

deense wihou also fixing non-deense.”7 I Congress and Presiden Obama do

no reach a budge deal by Ocober 1, 2015or pass a coninuing resoluion o

provide more ime or negoiaionshe ederal governmen will shu down.

Since Congress and he presiden agree ha FY 2016 deense spending should be

increased above sequesraion levels, here are wo remaining quesions ha mus

be setled beore a budge deal can be compleed. Te firs quesion is wheher

o increase he nondeense spending cap along wih he deense cap; he second

is wheher o offse he cos o hese spending increasesand, i so, deermine

which defici-reducing policies o include in he deal.

o ensure ha a poenial budge deal akes posiive seps oward building an

economy ha works or all, he Cener or American Progress recommends he

ollowing acions:

• Lawmakers should raise the nondefense spending cap to the presequester

level and provide an equal amount of relief for the defense budget. Given

he subsanial need o increase economic invesmen, i makes no sense o

provide more relie or deense programs han or nondeense programs. Tis

recommendaion or nondeense discreionary spending is based in par on

wha is poliically easible or a budge deal, and i should be noed ha even

he presequeser cap would be a relaively ausere allocaion or he nondeense

discreionary budge.

• Lawmakers should include new revenue in the budget deal if that deal includes

deficit-reducing policies to offset the cost of sequester relief. Federal spending

projecions have allen dramaically over he pas several years, and inadequae rev-

enue has become a larger problem.8 Bu while he Unied Saes sill aces long-erm

fiscal challenges, he shor-erm budge oulook is sable. Tereore, i lawmakers

canno agree on defici reducion ha includes revenue, increasing he sequesra-

ion caps wihou offses would be preerable o leaving sequesraion in place.

Tis repor begins by reviewing he curren fiscal landscape and he oulookor deense and nondeense programs under sequesraion. Te second sec-

ion examines Congress’ FY 2016 appropriaions bills o gauge he impacs

o sequesraion on a selecion o key nondeense programs. Te hird secion

deals wih he quesion o budge offses and he necessiy o including revenue

in any defici reducion agreemen.


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The fiscal landscape

Te budge defici or FY 2014 was $485 billion, which equaled 2.8 percen o he

oal U.S. economy as measured by gross domesic produc, or GDP.9 By compari-

son, he FY 2009 budge defici was abou $1.4 rillion, or 9.8 percen o GDP.10

Looking ahead, he Congressional Budge Office, or CBO, projecs ha he

budge defici will remain below 3 percen o GDP unil FY 2020, and hen rise o

3.7 percen o GDP by 2025.11 Tose deficis add o he cumulaive naional deb,

bu he increases will be small enough o cause he deb o grow a a rae similar

o ha o he overall economy. en years rom now, in FY 2025, he CBO projecsha he naional deb will be 76.9 percen o GDP, up slighly rom he FY 2014

deb-o-GDP raio o 74.0 percen.12

FIGURE 1

The budget outlook

National debt held by the public as a share of GDP

Source: Congressional Budget Office, "An Update to the Budget and Economic Outlook: 2015 to 2025" (2015), available at

https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/50724-BudEconOutlook.pdf.

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20250%

20%

40%

60%

80%

100%

10%

30%

50%

70%

90%

73.8% 76.9%


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While alling budge deficis are a posiive developmen or he fiscal oulook,

some o his improvemen has been he resul o he severe cus o discreion-

ary spending rom he Budge Conrol Ac and is sequesraion rules.13 Tese

cus have damaged he economy while ailing o address he populaion’s aging,

projeced healh care cos growh, and inadequae ax codeall o which are he

underlying drivers o he ederal governmen’s long-erm fiscal imbalance.14

Sequesraion imposes separae caps on discreionary spending or deense and

nondeense programs hrough FY 2021.15 In general, he deense cap covers he

U.S. Deparmen o Deense budge and oher deense uncions, such as he

nuclear weapons programs a he U.S. Deparmen o Energy.16 Te nondeense

cap covers domesic programssuch as inrasrucure, educaion, research,

public saey, and he social saey neas well as nondeense naional securiy

uncions such as diplomacy, veerans’ healh care, and border proecion.17

Some mandaory programswhich are no unded by annual appropriaions

are also subjec o an across-he-board cu rom sequesraion.18 However,mos major mandaory programssuch as Social Securiy and Medicaidare

exemp rom sequesraion, while Medicare cus are limied o a 2 percen

reducion in paymens o healh care providers.19

In Ocober 2013, a sudy by Macroeconomic Advisers ound ha, “Reducions in

discreionary spending have reduced annual GDP growh by 0.7 percenage poins

since 2010 and raised he unemploymen rae 0.8 percenage poins, represening

a cos o 1.2 million jobs.”20 Lawmakers ook a small sep in he righ direcion on

December 26, 2013, when Presiden Obama signed he Biparisan Budge Ac ino

law.21 Tis legislaionalso known as he Murray-Ryan deal because i was negoi-

aed by Sen. Paty Murray (D-WA) and Rep. Paul Ryan (R-WI)increased discre-

ionary spending above sequesraion levels or FY 2014 and FY 2015.22

Te Murray-Ryan budge deal increased he sequesraion caps or discreion-

ary spending by abou $45 billion or FY 2014 and $18 billion or FY 2015, wih

hose increases spli evenly beween deense and nondeense spending.23 Te oal

discreionary spending caps are approximaely $1.012 rillion or FY 2014, $1.014

rillion or FY 2015, and $1.017 rillion when he sequesraion caps reurn or

FY 2016.24

Nominal spending remains roughly consan because he underlyingsequesraion caps se orh in he Budge Conrol Ac increase slighly each year;

discreionary spending, however, does all in real erms rom FY 2014 o FY 2016

once inflaion is aken ino accoun.25


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While he reurn o sequesraion budge caps in FY 2016 does no orce large

and immediae spending cus, he CBO projecs ha hese caps will drive bohdeense and nondeense discreionary spending o heir lowes levels in recen his-

ory as a share o GDP.26 Te CBO also esimaes ha he discreionary spending

reducion rom sequesraion in FY 2016 will reduce economic growh and slow

job creaion by 500,000 jobs.27

Note: These spending caps do not include funding for wars, emergencies, disasters, or program integrity.

Sources: U.S. House of Representatives Committee on the Budget, Bipartisan Budget Act Section by Section Analysis (2013), available at http://budget.house.gov/uploadedfiles/bba_section-btion_analysis_.pdf; Congressional Budget Office, "An Update to the Budget and Economic Outlook: 2015 to 2025" (2015), available at https://www.cbo.gov/sites/default/files/114th-con-

gress-2015-2016/reports/50724-BudEconOutlook.pdf.

FIGURE 2

Discretionary spending caps under current law, in billions of nominal dollars

Defense discretionary budget authority cap Nondefense discretionary budget authority ca

$0

$150

$300

$450

$600

2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020

Before Murray/Ryan

defense sequester cap

Before Murray/Ryan

nondefense sequester cap

FIGURE 3

Discretionary spending as a share of GDP

2%

3%

4%

5%

6%

7%

1%

0%

Defense discretionary budget authority Nondefense discretionary budget authority

Actual

Actual

1977 1983 1989 1995 2001 2007 2013 2019

ProjectedProjected

1977 1983 1989 1995 2001 2007 2013

2009 Recovery Act

Note: These figures incorporate all discretionary funding, including for wars and emergencies.

Sources: Office of Management and Budget, Historical Tables, Tables 5.6 and 10.1, available at http://www.whitehouse.gov/omb/budget/Historicals (last accessed August 25, 2015); Congressiona

Office, "An Update to the Budget and Economic Outlook: 2015 to 2025" (2015), available at https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/50724-BudEconOut


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Over he long erm, he economy has ended o grow aser han he deense bud-

ge, and he projeced rend coninues he long-erm decline o deense spending

as a share o GDP.28 Ulimaely, he deense budge should be se based on he

naional securiy environmen raher han economic condiions.29 Miliary and

civilian leaders have saed ha he sequesraion caps hreaen naional secu-

riy, and he budges rom boh he Whie House and Congress would increasedeense spending afer he Murray-Ryan deal expires.30

Unlike deense spending, nondeense discreionary spending has remained

relaively consisen since he mid-1980s as a share o GDPwih he excepion

o 2009, when Congress passed he American Recovery and Reinvesmen Ac.31

Many economic policies are unded by he nondeense discreionary budge,

which may explain why his spending has ended o grow a roughly he same rae

as he economy over he pas 30 years. Sequesraion ends his consisen unding

patern or nondeense discreionary spending.

Congress’ FY 2016 appropriaions bills show he effec in he firs year o accep-

ing sequesraion or nondeense programs. Wih coninued sequesraion, he

CBO projecs ha nondeense discreionary spending would all even lower as a

share o GDP in uure yearswell below he previous low poins conneced o

budge cus during he Reagan and Clinon adminisraions. Even he preseques-

er caps could evenually bring nondeense discreionary spending o hisoric lows

as a share o GDP, bu a leas argeed new invesmens would sill be possible

and many o he wors cus could be avoided.32


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The impact of sequestration

caps on nondefense programs

In is budge resoluion, Congress voed o limi FY 2016 nondeense discreion-

ary spending o sequesraion levels, bu he budge does no make any binding

choices abou how o allocae unding wihin ha broad cap. Te specific impacs

o sequesraion on nondeense discreionary programs have only become clear as

Congress wries appropriaions bills o und he governmen or FY 2016.

Raher han presening a complee caalog o every budge cu ha Congress

has atemped, his secion analyzes a subse o he wors cus wihin he wocaegories o economic invesmen and leveling he playing field. Tere are many

imporan secors ha are no included, so he issues covered in his secion are

only a ew o he many reasons ha he sequesraion cap does no work or he

nondeense discreionary budge.

Cutting economic investments that

strengthen and grow the middle class

Te nondeense discreionary budge suppors many differen ypes o inves-

mens ha increase poenial or economic growh and opporuniy, creae good

jobs, and help low-income Americans climb ino he middle class. Congress,

however, is advancing appropriaions bills ha dives rom hese secors as a resul

o holding nondeense discreionary spending o sequesraion levels. Tis secion

ocuses on hree such secors: inrasrucure, educaion, and affordable housing.

Infrastructure

Te American Sociey o Civil Engineers gives he naion’s inrasrucure a D+

grade.33 A sudy by he Inernaional Moneary Fund finds ha invesing in inra-

srucure would increase economic growh in boh he shor erm and he long

erm.34 Te AFL-CIO, he naion’s larges ederaion o unions, and he U.S.

Chamber o Commerce boh advocae inrasrucure invesmen o creae middle-

class jobsone o he ew economic policies on which hese organizaions agree.35


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Despie he clear case or increasing inrasrucure invesmen, Congress is aking

he opposie approach in is appropriaions bills by cuting unding rom waer

and ransporaion programs. Te Senae Appropriaions Commitee advanced

legislaion ha would cu $533 million rom revolving unds ha suppor sae

and local invesmens in drinking waer and wasewaer inrasrucure,36 and he

House bill cus $581 million rom hese wo unds.37

Te Office o Managemenand Budge esimaes ha he House bill would mean a loss o approximaely 200

waer inrasrucure projecs.38 Te Sierra Club repors ha a similar number o

projecs would no be unded by he Senae bill and warns ha 14,000 jobs could

be los as a resul.39 Tese cus come a a ime when housands o Americans con-

rac waerborne diseases every year and sewer overflows annually dump abou

850 billion gallons o unreaed sewage ino American bodies o waer.40

Furhermore, he House passed an appropriaions bill ha would make a huge cu

o he U.S. Deparmen o ransporaion’s ransporaion Invesmen Generaing

Economic Recovery, or IGER, programan innovaive compeiive granprogram or mulimodal and mulijurisdicional projecs ha are difficul o und

hrough oher ederal ransporaion programs.41 Even hough here is more han

enough demand rom sae and local governmens o significanly expand he pro-

gram, he House bill would reduce IGER unding o approximaely 80 percen less

han he lowes level o unding i has received since is esablishmen in 2009.42

Te Senae Appropriaions Commitee rejeced he House’s IGER cu by und-

ing he program a he FY 2015 level o $500 million, bu as a consequence, he

Senae was orced o cu more deeply rom major capial invesmens o sar or

expand rail and bus neworks a he Federal ransi Adminisraion, or FA.43 Te

Senae unded he FA’s Capial Invesmen Gran program a $336 million less

han he House and $535 million less han he FY 2015 enaced level.44

Allowing he naion’s ransporaion nework o all ino disrepair makes i harder

or workers o ge o heir jobs and or businesses o grow and deliver heir goods

o marke. While he House and Senae ake differen approaches on ranspora-

ion, sequesraion would orce boh chambers o choose how o cu inrasruc-

ure invesmen. Presiden Obama’s budge rebuffs his alse choice by rejecing

sequesraion and advocaing subsanial increases or boh IGER and FACapial Invesmen Grans.45


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Education

Speaker o he House John Boehner (R-OH) says ha one o his “five poins”

o grow he economy is o srenghen educaion, bu he House Appropriaions

Commitee is considering legislaion o cu $2.8 billion rom he U.S. Deparmen

o Educaion o adhere o he congressional budge.46

Te bill rom he Senae Appropriaions Commitee would cu Deparmen o Educaion unding by

$1.7 billion.47 By comparison, he presiden’s budge increases Deparmen o

Educaion unding by $3.6 billion.48

Presiden Obama’s budge would increase ederal effors o improve low-perorm-

ing schools and suppor schools wih a high proporion o sudens who live in

povery, while Congress would underund boh o hese prioriies. Te presiden’s

budge would provide an addiional $1 billion or grans o high-povery schools

under ile I o he Elemenary and Secondary Educaion Ac, or which lawmak-

ers provided abou $14.4 billion in FY 2015.49 Te House bill would reeze und-ing or hese ile I grans a curren levels, while he Senae would provide a $150

million increase.50 Avoiding cus o ile I grans orced Congress o make sharp

cus elsewheresuch as he School Improvemen Gran, or SIG, program, which

unds effors o urn around some o he wors perorming schools in he counry.

Te House Appropriaions Commitee proposes o compleely eliminae SIG,

while he Senae bill would cu SIG by $56 million.51

Congress would also make especially deep cus o invesmens ha help oser

innovaion and improvemen in local school disrics. Te House and Senae

bills boh eliminae he Invesing in Innovaion Fund, which helps urn around

sruggling schools and idenifies sraegies ha effecively improve he peror-

mance o eachers and principals.52 Te House bill would cu $164 million rom

he Insiue o Educaion Sciences, while he Senae bill would make an $11

million cu.53 Presiden Obama’s budge would provide subsanial increases or

he Insiue o Educaion Sciences and he Invesing in Innovaion Fund as par

o wha i calls “a cross-cuting commimen o using and developing evidence in

order o maximize resuls or axpayers and sudens.”54

Conservaives claim ha “school choice” is he key o improving educaion,55

bu helimis imposed by sequesraion are undermining even he school choice agenda.

Te House and Senae bills boh provide a modes increase or charer school grans,

bu hey are sill significanly smaller han he increase ha he presiden’s budge

would provide.56 Te House bill also eliminaes he Magne Schools Assisance


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program, while he Senae bill cus his program by $6.6 million.57 Te magne

school program is designed o reduce segregaion in school disrics by supporing

schools ha sudens rom a variey o backgrounds choose o atend.58 For example,

“Tis American Lie” recenly repored on he cenral role ha magne schools in

Harord, Connecicu, play in inegraing public schools and expanding educaional

opions or sudens rom Harord and is surrounding suburbs.59

College sudens could ace higher coss as a resul o cus o he Pell Gran pro-

gram ha helps make higher educaion affordable or more han 8.2 million su-

densand his is only Congress’ laes atemp o cu Pell Grans.60 Te Senae

bill would rescind $300 million rom he Pell Gran program, while he House bill

would cu Pell Gran unding by $370 million compared wih he reques in he

presiden’s budge.61 While he Pell Gran accoun currenly has a surplus, i will

likely ace a shorall beginning in FY 2017.62 Choosing o cu he program now

raher han planning or he uure will make i even harder o find sufficien unds

in FY 2017especially i sequesraion caps remain in effec. Te Commitee orEducaion Funding warns ha he House bill would increase he projeced Pell

Gran shorall o $634 million in FY 2017,63 which could lead o eiher reducing

Pell Gran awards or making ye anoher round o cus o oher educaion priori-

ies. Te mandaory spending cus advocaed by he congressional budge resolu-

ion would likely mean even more cus o he Pell Gran program, and he House

endorsed a 10-year reeze on he maximum Pell Gran available o low-income

sudens even as college coss coninue o rise.64

Even preschoolers would have heir educaions jeopardized, as he House and

Senae bills boh erminae Preschool Developmen Grans ha help 18 saes

make qualiy preschool available o economically sruggling amilies wih 4-year-

olds.65 Te House and Senae bills were boh able o provide a small increase in

Head Sar undingby making deep cus o oher educaion programsbu he

presiden’s budge sill provides a much larger increase.66 According o he Office

o Managemen and Budge, he difference beween he Head Sar allocaions in

he House bill and he presiden’s budge ranslae o eiher serving 140,000 ewer

children or ailing o lenghen he Head Sar schedule so ha 570,000 children

can receive ull-day and ull-year preschool.67 Preschool Developmen Grans

received $250 million in FY 2015,68

which exceeds he Head Sar increases provided in eiher he House or Senae bills.69


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Affordable housing

Families need a sable and affordable place o live in order or parens o hold

down a job and children o excel in school, bu rising coss and low wages push

affordable housing ou o reach or millions o Americans.70 Due o limied und-

ing, however, only one in our eligible households currenly receive ederal renalassisance.71 Tose numbers would only ge worse under appropriaions bills

passed under he curren budge caps, even hough boh he House and Senae

bills prioriize renal assisance programs wihin heir limied overall allocaions.

Te Office o Managemen and Budge esimaes ha he Senae bill would ail

o renew abou 50,000 renal assisance vouchers, while he House bill would

allow abou 28,000 vouchers o expire.72 In addiion, neiher bill would resore he

67,000 renal assisance vouchers ha were eliminaed by sequesraion back in

FY 2013.73 Oher affordable housing programs would are even worse.

Te ae o he HOME Invesmen Parnerships Program, or HOME, which helpssaes and localiies suppor affordable housing or low-income households, illus-

raes how he curren spending caps block adequae unding or affordable housing.

Te Senae bill all bu eliminaes HOME by unding i a jus $66 million, compared

wih he $900 million i received in FY 2015 or he $1.8 billion allocaion in FY

2010.74 Te House bill manages o und HOME a $900 million bu does so in par

by ranserring $133 million rom he Naional Housing rus Fund o HOME.75

Te Naional Housing rus Fund is designed o creae affordable housing or he

lowes-income reners and is supposed o be unded by dedicaed revenues ha

are no subjec o he annual appropriaions process.76 Te wo pahs aken by he

House and Senae demonsrae ha here simply is no enough budgeary space

o und affordable housing under sequesraion; hese programs will eiher be cu

drasically or lawmakers will be orced o raid oher accouns o und hem.

Funding or public housing aces a similar dilemma. Te naion’s public housing

sock is in deep disrepair, risking he very exisence o hese affordable unis. Te

ederal governmen has consisenly underunded he preservaion and upkeep

o public housing, creaing a backlog o more han $26 billion in repairs.77 Tis

backlog grows larger every year ha Congress ails o appropriae enough money

or public housing capial invesmen, and boh he Senae and House bills or FY2016 are cuting unding urher below he already inadequae levels o FY 2015.78


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Ti lt ing the playing field toward special interests and the wealthy

Congress is divesing no only rom programs ha improve he economic oulook

or low-income and middle-class amilies, bu i is also weakening saeguards ha

are supposed o preven he playing field rom iling oward he wealhy and spe-

cial ineress. Te effec o hese cus is subler. Some o hese agencies migh noregularly inerac wih mos Americans, bu hey all ulfill vial responsibiliies or

he American people. Tis secion ocuses on cus o hree secors: environmenal

proecion, ax assisance and enorcemen, and he legislaive branch. In all hree

o hese cases, unding cus have benefied hose a he op while making hese

agencies less responsive o he concerns o ordinary Americans.

Environmental protection

Congress is preparing o deliver huge vicories o big polluers in he appro-priaions bill o und he U.S. Environmenal Proecion Agency, or EPA, and

he U.S. Deparmen o he Inerior. Meanwhile, ordinary Americans would be

lef wih he healh impacs o air and waer polluion, as well as job losses and

deerioraing public lands.

In March 2013, he National Journal repored ha earlier rounds o unding cus

had “kneecapped environmenal enorcemen” a he EPA,79 and now Congress is

pushing even more cus and resricions. Te House Appropriaions Commitee

seeks o cu oal EPA unding by $718 million, or 9 percen, rom FY 2015 levels. 80

Te Senae bill would cu EPA unding below FY 2015 levels by $543 million, or

7 percen.81 Tese proposed cus would significanly hamsring he EPA, which

already received subsanial cus in earlier years.82 Boh bills include provisions ha

prohibi he EPA rom implemening Clean Air Ac rules o address climae change

and ozone polluion and Clean Waer Ac rules o proec sreams and welands.83

As a ormer EPA official said o he earlier cus, hese appropriaions bills could

mean ha “ laws abou environmenal enorcemen are jus paper.”84 Perhaps ha

would be a vicory or Americans or Prosperiyounded by billionaire broh-

ers Charles and David Kochwhich runs a websie called “Sop he EPA PowerGrab!”85 Sopping he EPA, however, is no a goal shared by mos Americans: Te

Pew Research Cener has ound ha 59 percen o Americans hold a “avorable”

view o he agency, compared wih 32 percen wih an “unavorable” view.86 In

March 2015, a Gallup poll ound ha only 16 percen o Americans believe he

U.S. governmen is doing “oo much … in erms o proecing he environmen.” 87


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In addiion o EPA budge cus, Congress is also morgaging America’s public

lands by underunding he Land and Waer Conservaion Fund, or LWCF. Te

LWCF uses revenue rom offshore oil and gas developmen ees o suppor

ederal, sae, and local parks, oudoor projecs, and conservaion programs.88

Presiden Obama’s budge ully unds he LWCF a $900 million, which includes

a $400 million discreionary appropriaion and a legislaive proposal or $500million in mandaory unding.89 Te Senae bill holds unding roughly consan

a he FY 2015 level o $306 million, while he House bill would cu unding even

urher o $248 millionand neiher chamber has aced on he mandaory und-

ing proposal.90 Tere is also a growing risk ha Congress will ail o reauhorize

he program beore i expires a he end o Sepember.91

Insufficien unds or programs such as he LWCFor he eliminaion o he pro-

gram alogeherwould have a significan impac on he jobs and local economies

ha America’s public lands and oudoor spaces suppor. In addiion o helping pro-

ec iconic naional parkssuch as he Grand Canyon and Yellowsonehe LWCFhas suppored he creaion o more han 40,000 sae and local projecs across he

counry o acquire land or develop aciliies or oudoor recreaion.92 According o he

Oudoor Indusry Associaion, consumers spend more han $646 billion every year

on oudoor recreaion, and he indusry suppors more han 6.1 million jobs across

he counrymore jobs han drilling, mining, and logging combined.93

Internal Revenue Service

Congress has sharply reduced he IRS budge in recen years, and Howard

Gleckman o he nonparisan ax Policy Cener wries ha hese budge cus

creae wo differen ax sysems: one or he rich and powerul and he oher or

everyone else.94 An underunded IRS is increasingly unable o keep up wih he

ax-avoidance schemes used by wealhy people and big corporaions, who have

vas legal and accouning resources a heir disposal.95

An underresourced IRS migh help hose a he op, bu i jus makes ax ime

harder or everyone else. During he 2015 filing season, more han 6 ou o 10

axpayers who ried calling he IRS did no reach a represenaive, and lines beganorming a IRS axpayer Assisance Ceners hours beore hey opened.96 IRS

Commissioner John Koskinen esified beore Congress ha he “unaccepable

level o axpayer service” was due o budge cus.97 Te reasury Inspecor General

or ax Adminisraion, which is independen o boh he IRS and he Obama

adminisraion, also recenly repored ha IRS budge cus have significanly

reduced he IRS’ capaciy o communicae wih axpayers and enorce ax laws.98


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Congress now plans o make even deeper cus o he IRS budge. Te House

appropriaions bill or he IRS would cu is budge by $838 million rom FY 2015

levels.99 Compared wih inflaion-adjused FY 2010 levels, his would be a cu o

25 percen, or $3.3 billion.100 Te Senae Appropriaions Commitee advanced

a bill ha cus IRS unding by $470 million rom FY 2015 levelswhich is 22

percen, or $2.9 billion, below inflaion-adjused FY 2010 levels.101

Tese budge cus increase ederal deficis by increasing he ax gap, which is he

difference beween he amoun o axes owed and he amoun colleced. Te mos

recen figures rom he IRS reflec a reurn on invesmen o $5.10 or every $1

in he overall IRS budge.102 Tis suggess ha he proposed House budge cus

would reduce ax revenues by $16.8 billion and ha he Senae cus would reduce

ax revenues by $14.9 billion, compared wih a budge ha insead roze IRS und-

ing a inflaion-adjused FY 2010 levels.

Legislative branch

Tere are many reasons ha Congress is deeply unpopular wih he American

peopleperhaps including some o he budge decisions lised abovebu one

reason is ha over ime, Congress has sysemaically undermined he proes-

sional saff and insiuions on which i relies o uncion effecively. Te FY 2016

legislaive branch appropriaions bills rom he House and Senae boh roughly

mainain he overall FY 2015 level o $4.3 billion, which locks in a 17 percen cu

rom inflaion-adjused FY 2010 levels.103 In addiion o diminishing he capac-

iy o Congress’ own saff, hese bills also underund he budge analyss a he

Congressional Budge Office, he policy expers a he Congressional Research

Service, and he invesigaors a he Governmen Accounabiliy Officeall o

which are independen agencies wihin he legislaive branch.104


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Weakening he insiuions o he legislaive branch srenghens he power o spe-

cial ineres groups, as members o Congress increasingly urn o privaely unded

insiuions or policy analysis. As poliical scieniss Lee Druman and Seven

eles explain, Congress canno “push back agains he claims o he mobilized and

wealhy in he name o he unmobilized … i is capaciy o collec and process

inormaion has been sysemaically dismanled.”105 Adequaely unding he legis-

laive branch does no guaranee ha Congress will uncion effecively and sand

up o special ineress, bu hollowing ou he legislaive branch almos cerainly

guaranees ha Congress will ail o do so.

FIGURE 4

Cutting legislative branch institutions results in Congressional dysfunction

Funding cuts in House and Senate FY 2016 legislative branch appropriations bills

relative to inflation-adjusted FY 2010 levels

CongressionalBudget Office:

Nonpartisan budget analysts

Sources: Legislative Branch Appropriations, 2016, S. Rept. 114-64, 114 Cong. 1 sess. (Government Printing Office, 2015), available athttps://www.congress.gov/114/crpt/srpt64/CRPT-114srpt64.pdf;Legislative Branch Appropriations Bill, 2016 , H. Rept. 114-110, 114 Cong. 1

sess. (Government Printing Office, 2015), available at http://www.gpo.gov/fdsys/pkg/CRPT-114hrpt110/pdf/CRPT-114hrpt110.pdf;Legislative Branch Appropriations Act, 2010, H. Rept. 111-265, 111 Cong. 1 sess. (Government Printing Office, 2009), available at

http://www.gpo.gov/fdsys/pkg/CRPT-111hrpt265/pdf/CRPT-111hrpt265.pdf; Office of Management and Budget, Table 10.1—Gross

Domestic Products and Deflators Used in the Historical Tables: 1940–2020 (Executive Office of the President, 2015), available athttps://www.whitehouse.gov/omb/budget/Historicals.

CongressionalResearch Service:

Neutral policy experts

GovernmentAccountability Office:

Nonpartisan investigators of waste,

fraud, and abuse in federal programs

-15%

-10%

-5%

0%

-5.6%

-8.7%

-14.2% -14.2%-15.4% -14.9%

Senate funding cuts

House funding cuts


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Fiscal responsibility

As lawmakers atemp o srike a deal o increase he sequesraion caps or FY

2016, a key challenge will be wheher and how o implemen defici-reducing

policies o offse he increases in deense and nondeense discreionary spend-

ing. Presiden Obama proposes o pay or sequesraion relie wih a balanced

mix o spending cus and ax increases106he oundaion o earlier proposals or

biparisan fiscal compromise.107 Approximaely hal o Congress has pledged o

oppose any such compromise, however, by signing he ani-ax pledge circulaed

by Americans or ax Reorm.108

Wih leaders on boh sides o he aisle alking abou he imporance o address-

ing rising economic inequaliy and sagnan wages, lawmakers should be able

o agree ha defici reducion should no worsen hese problems or sruggling

Americans.109 Te congressional budge isel illusraes why defici reducion

plans ha do no include new revenue canno proec low-income and middle-

class Americans. Te Cener on Budge and Policy Prioriies finds ha 63 percen

o he cus in he congressional budge would come rom programs or people

wih low and moderae incomes, while hose a he op are no asked o pay even a

dime in addiional axes.110

Tis repor only describes he ip o he iceberg or he congressional budgea

subse o he wors cus ha Congress is making in order o implemen he firs

year o is budge or nondeense discreionary programs. Te congressional

budge cus he overall cap on nondeense discreionary spending even urher

in uure years and also makes huge cus o mandaory programs. I he congres-

sional budge is implemened, i could double he number o Americans wihou

healh insurance, increase he cos o higher educaion, and make i harder or

low-income amilies o pu ood on he able.111

When he Peer G. Peerson Foundaion asked CAP and our oher hink anks

rom across he ideological specrum o design heir own budge plans, all o he

organizaionsincluding he conservaive hink anksproduced plans ha

included new ax revenue.112


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Lawmakers are already saring o agree on many ax policies ha would raise

new revenue. In a previous repor, CAP idenified a se o biparisan ax policies

ha would collecively raise revenue by more han $1.4 rillion over 10 years.113

Tese policies include limiing he value o iemized deducions or high-income

axpayers, closing he carried ineres loophole, and scaling back ax subsidies or

oil companies.114

Lawmakers may wish o reserve some o hese policy changesor a larger ax reorm, bu he goal o comprehensive reorm should no sand in

he way o reasonable incremenal seps o improve he ederal budge oulook by

making he ax code airer and more efficien.

Fee increases provide anoher alernaive or raising revenue, and he Obama admin-

israion has indicaed a willingness o accommodae ani-ax conservaives by look-

ing or ways o raise revenue rom hese nonax sources.115 Tis was he approach

used in he Murray-Ryan deal.116 Limiing revenue increases o user ees sharply

limis he poenial or defici reducion, however, since user ees are much narrower

in scope han axes.117 Tis creaes a larger challenge now han i did or he Murray-Ryan deal, since ha deal already used some o he opions or increasing user ees.

I lawmakers canno agree on a defici reducion package ha includes sufficien

revenue, increasing he sequesraion caps wihou compleely offseting he cos

would be preerable o leaving sequesraion in place. Te budge oulook is sable

and here is no looming deb crisis, so fixing sequesraion is a ar more urgen

issue han fixing he long-erm deb.

Tere were serious flaws in he policies recommended by he 2010 repor rom he

Naional Commission on Fiscal Responsibiliy and Reorm, commonly known as

he Bowles-Simpson commission, bu his repor is sill useul or illusraing why

sequesraion is unnecessary rom a fiscal perspecive.118 Te Bowles-Simpson com-

mission recommended $1.7 rillion in discreionary spending cus rom FY 2011

o FY 2020.119 Compared wih he same baseline budge projecion used by he

Bowles-Simpson commission, lawmakers have already reduced discreionary spend-

ing by $1.8 rillioneven i sequesraion is ully repealed saring in FY 2016. 120

Te ederal governmen is also spending much less on healh care programs and

ineres paymens or he naional deb compared wih he projecions rom 2010. 121

Largely as a resul o hese acors, and assuming sequesraion is repealed going orward, oal ederal spending rom FY 2011 o FY 2020 is now projeced o be $2.6

rillion less han he levels recommended by he Bowles-Simpson commission.122


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More work sill needs o be done o address he naion’s long-erm fiscal chal-

lengesespecially wih regard o he ax codebu he budge oulook has

improved dramaically in recen years. I lawmakers have o choose beween defi-

cis or sequesraion, hey should remember Presiden Obama’s saemen rom

December 2013: “A relenlessly growing defici o opporuniy is a bigger hrea o

our uure han our rapidly shrinking fiscal defici.”123

FIGURE 5

Discretionary spending cuts since the 2010 Bowles-Simpson report

Total discretionary spending from FY 2011 to FY 2020, in trillions of dollars

$14.2

Note: The Bowles-Simpson discretionary spending baseline adjusted the August 2010 Congressional Budget Office baseline to modifywar spending projections and adjust other discretionary spending to match President Barack Obama's request at that time. The current

projection used in this figure is the March 2015 Congressional Budget Office baseline with and without future sequestration, adjustedto reduce war spending.

Sources: The National Commission on Fiscal Responsibility and Reform, The Moment of Truth (The White House, 2010), Figures 14, 15,and 16, available at http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/TheMomentofTruth12_1_2010.pdf;

Congressional Budget Office, "August 2015 Baseline." In "An Update to the Budget and Economic Outlook: 2015 to 2025" (2015),available at http://www.cbo.gov/publication/45069.

Bowles-Simpson baseline

$12.5Bowles-Simpson recommendation

$12.4Current projection without future sequestration

$12.0Current projection with future sequestration


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Conclusion

Seting a budge requires making choices. Limiing nondeense discreionary

spending o sequesraion levels would mean choosing o cu invesmens ha

srenghen and grow he middle class, while giving even more o an edge o he

wealhy and powerul. A beter choice would be o level he playing field by scaling

back ax breaks ha only benefi hose a he op.

One opion everyone should wan o avoid is a governmen shudown, and

progressives have offered a number o compromises o preven ha oucome. Agreeing o equal relie or deense and nondeense programs is a compromise

he same compromise ha was a he core o he Murray-Ryan deal. Agreeing o

include spending cus in a defici reducion packageraher han ocusing solely

on revenuesis a compromise. Exploring user ees as a way o raise revenue wih-

ou raising axes is a compromise o accommodae an uncompromising ani-ax

pledge. Bu negoiaions canno succeed i only one side is willing o compromise.

Lawmakers can srike a budge deal o help build an economy ha works or

everyone by lifing he spending caps or boh deense and nondeense programs

and including revenue in any offseting defici reducion package. Te appropria-

ions bills in Congress demonsrae ha choosing sequesraion will mean more

spending cus ha only benefi he wealhy ew. I lawmakers are ineresed in

addressing he concerns o he middle class and hose sruggling o climb ino he

middle class, he choice should be clear.


24/30


About the author

Harry Stein is he Direcor o Fiscal Policy a he Cener or American Progress.

His work ocuses on he ax and spending choices wihin he ederal budge, and

he has writen exensively abou opics including appropriaions, ax expendiures,

and he budge oulook. Prior o joining he Cener, he worked as a legislaiveassisan o Sen. Herb Kohl (D-WI). His porolio included he ederal budge,

ax policy, and naional securiy, including Sen. Kohl’s work on he Deense

Appropriaions Subcommitee. In ha posiion, Sein spearheaded successul

effors o permanenly exend he ax credi or employer-provided child care and

o compensae roops who had been wrongully denied benefis ha hey earned

in connecion wih overseas deploymens.

Sein has appeared on radio and elevision saions including MSNBC, CNBC, and

BBC World Service, and he has published opinion pieces in oules such as Reuers,

Te Guardian , and Roll Call. His work has been cied by publicaions including TeWashington Post , Te Atlantic , and Te New Yorker , and he has been quoed in Te

Wall Street Journal , Bloomberg, Politico , and many oher major news sources.

Sein is an experienced ax proessional and voluneers his ime o prepare ax

reurns or low-income cliens hrough he DC Earned Income ax Credi

Campaign. He received his bachelor’s degree in poliical science and psychology

rom he Universiy o Wisconsin–Madison.


25/30


Endnotes

1 Emmanuel Saez, “Striking it Richer: The Evolution of Top Incomes in the United States (Updated with 2014preliminary estimates)” (Berkeley, CA: University of Cali-fornia, Berkeley, 2015), available at http://eml.berkeley.edu/~saez/saez-UStopincomes-2014.pdf .

2 Drew DeSilver, “For most workers, real wages havebarely budged for decades,” Fact Tank, October 9,2014, available at http://www.pewresearch.org/fact-tank/2014/10/09/for-most-workers-real-wages-have-barely-budged-for-decades/. The cost of middle-classessentials such as child care and college have grownmuch more quickly than overall inflation. See Figure 1.2in Jennifer Erickson, ed., “The Middle Class Squeeze: APicture of Stagnant Incomes, Rising Costs, and What WeCan Do to Strengthen America’s Middle Class” (Wash-ington: Center for American Progress, 2014), availableat https://www.americanprogress.org/issues/economy/report/2014/09/24/96903/the-middle-class-squeeze/.

3 Office of Management and Budget, OMB Sequestra-tion Preview Report to the President and Congress forFiscal Year 2016 (Executive Office of the President,2015), available at https://www.whitehouse.gov/sites/default/files/omb/assets/legislative_reports/sequestra-

tion/2016_sequestration_preview_report_president.pdf.

4 Office of Management and Budget, Fiscal Year 2016Budget of the U.S. Government (Executive Office of thePresident, 2015), available at https://www.whitehouse.gov/sites/default/files/omb/budget/fy2016/assets/budget.pdf .

5 Concurrent Resolution on the Budget for Fiscal Year 2016,H. Rept. 114-96, 114 Cong. 1 sess. (Government PrintingOffice, 2015), available at http://www.gpo.gov/fdsys/pkg/CRPT-114hrpt96/pdf/CRPT-114hrpt96.pdf .

6 Harry Stein and Katherine Blakeley, “Bitter budget fightheads to Congress,” MSNBC, June 3, 2015, available athttp://www.msnbc.com/msnbc/bitter-budget-fight-heads-congress.

7 Office of Management and Budget, Statement of Administration Policy: H.R. 2685 – Department of Defense Appropriations Act, 2016 (Executive Office of thePresident, 2015), available at https://www.whitehouse.gov/sites/default/files/omb/legislative/sap/114/saphr2685r_20150609.pdf .

8 Harry Stein and Lauren Shapiro, “Does WashingtonHave a Spending Problem or a Revenue Problem?”,Center for American Progress, May 7, 2015, availableat https://www.americanprogress.org/issues/budget/news/2015/05/07/112689/does-washington-have-a-spending-problem-or-a-revenue-problem/.

9 Congressional Budget Office, “An Update to the Budgetand Economic Outlook: 2015 to 2025” (2015), availableat https://www.cbo.gov/sites/default/files/114th-con-gress-2015-2016/reports/50724-BudEconOutlook.pdf .

10 Congressional Budget Office, “Historical Budget Data,” available at http://www.cbo.gov/publication/45249 (last accessed August 2015).

11 Congressional Budget Office, “An Update to the Budgetand Economic Outlook: 2015 to 2025.”

12 Ibid.

13 Budget Control Act of 2011, Public Law 25, 112th Cong.,1st sess. (August 2, 2011), available at https://www.congress.gov/bill/112th-congress/senate-bill/365.

14 Congressional Budget Office, “The 2015 Long-TermBudget Outlook” (2015), available at https://www.cbo.

gov/sites/default/files/114th-congress-2015-2016/reports/50250-LongTermBudgetOutlook-3_1.pdf.

15 Budget Control Act of 2011, Public Law 25.

16 Pat Towell and Amy Belasco, “Defense: FY2014 Authori-zation and Appropriations” (Washington: CongressionalResearch Service, 2014), available at https://www.fas.org/sgp/crs/natsec/R43323.pdf .

17 Center on Budget and Policy Priorities, “Policy Basics:Non-Defense Discretionary Programs” (2014), availableat http://www.cbpp.org/cms/?fa=view&id=3973.

18 Karen Spar, “Budget ‘Sequestration’ and SelectedProgram Exemptions and Special Rules” (Washington:Congressional Research Service, 2013), available athttps://www.fas.org/sgp/crs/misc/R42050.pdf.

19 Ibid.

20 Macroeconomic Advisers, “The Cost of Crisis-Driven Fis-cal Policy” (2013), available at http://pgpf.org/special-reports/the-cost-of-crisis-driven-fiscal-policy.

21 Bipartisan Budget Act of 2013, Public Law 67, 113thCong., 1st sess. (December 26, 2013), available athttps://www.congress.gov/113/plaws/publ67/PLAW-113publ67.pdf .

22 Ibid.

23 House Budget Committee, “Bipartisan Budget Analysis:Section by Section Analysis” (2013), available at http://budget.house.gov/uploadedfiles/bba_section-by-section_analysis_.pdf .

24 Congressional Budget Office, “An Update to the Budget

and Economic Outlook: 2015 to 2025.”

25 Inflation measured using GDP Price Index from Officeof Management and Budget, “Historical Tables,” Table10.1, available at https://www.whitehouse.gov/omb/budget/Historicals (last accessed August 2015).

26 Ibid., Tables 5.6 and 10.1; Congressional Budget Office,“An Update to the Budget and Economic Outlook: 201 5to 2025.”

27 Letter from Keith Hall to Bernard Sanders, August 11,2015, available at https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/50725-Spend-ing_Caps_Letter_Sanders.pdf .

28 Office of Management and Budget, “Historical Tables,” Tables 5.6 and 10.1; Congressional Budget Office, “AnUpdate to the Budget and Economic Outlook: 2015 to

2025.”

29 Travis Sharp, “Tying US Defense Spending to GDP: BadLogic, Bad Policy,” Parameters (Autumn) (2008): 5–17,available at http://strategicstudiesinstitute.army.mil/pubs/parameters/articles/08autumn/sharp.pdf.

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30 Office of the Under Secretary of Defense (Comptrol-ler) Chief Financial O fficer, United States Departmentof Defense Fiscal Year 2016 Budget Request: Overview(U.S. Department of Defense, 2015), available at http://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2016/FY2016_Budget_Request_Over-view_Book.pdf ; Concurrent Resolution on the Budget forFiscal Year 2016.

31 Office of Management and Budget, “Historical Tables,” Tables 5.6 and 10.1.

32 Ibid.; Congressional Budget Office, “An Update to theBudget and Economic Outlook: 2015 to 2025.”; BudgetControl Act of 2011.

33 American Society of Civil Engineers, “2013 Report Cardfor America’s Infrastructure” (2013), available at http://www.infrastructurereportcard.org/a/documents/2013-Report-Card.pdf .

34 International Monetary Fund, “World Economic Outlook(WEO): Legacies, Clouds, Uncertainties” (2014), availableat http://www.imf.org/external/pubs/ft/weo/2014/02/.

35 Kevin Bogardus, “AFL-CIO, Chamber press lawmakersfor infrastructure funds,” The Hill, October 23, 2011,available at http://thehill.com/blogs/blog-briefing-room/news/189233-afl-cio-chamber-make-case-for-infrastructure.

36 Senate Committee on Appropriations, “Department ofthe Interior, Environment, and Related Agencies Ap-propriations Bill, 2016” (2015), available at http://www.appropriations.senate.gov/sites/default/files/hearings/FY2016%20Interior%2C%20Environment%20Appro-priations%20Report%20-%20114-70.pdf .

37 House Committee on Appropriations, “Department ofthe Interior, Environment, and Related Agencies Ap-propriations Bill, 2016” (2015), available at https://www.congress.gov/114/crpt/hrpt170/CRPT-114hrpt170.pdf .

38 Office of Management and Budget, Statement of Ad-ministration Policy: H.R. 2822 – Department of the Interior,Environment, and Related Agencies Appropriations Act,2016 (Executive Office of the President, 2015), availableat https://www.whitehouse.gov/sites/default/files/omb/legislative/sap/114/saphr2822r_20150623.pdf.

39 Sierra Club, “Sierra Club Statement on Department ofInterior and EPA Appropriations Markup,” Press release,June 18, 2015, available at http://content.sierraclub.org/press-releases/2015/06/sierra-club-statement-department-interior-and-epa-appropriations-markup.

40 Kevin DeGood, “Clean Water Infrastructure: The Cost ofInaction” (Washington: Center for American Progress,2013), available at https://www.americanprogress.org/issues/economy/report/2013/11/04/78526/clean-water-infrastructure/.

41 House Committee on Appropriations, “Departments of Transportation, and Housing and Urban Development,and Related Agencies Appropriations Bill, 2016” (2015),available at https://www.congress.gov/114/crpt/hrpt129/CRPT-114hrpt129.pdf .

42 Office of Management and Budget, Statement of Admin-

istration Policy: H.R. 2577—Transportation, Housing andUrban Development, and Related Agencies Appropriations Act, 2016(Executive Office of the President, 2015), avail-able at https://www.whitehouse.gov/sites/default/files/omb/legislative/sap/114/saphr2577r_20150601.pdf .

43 Senate Committee on Appropriations, “Transportationand Housing and Urban Development, and RelatedAgencies Appropriations Bill, 2016” (2015), availableat https://www.congress.gov/114/crpt/srpt75/CRPT-114srpt75.pdf .

44 Ibid.

45 U.S. Department of Transportation, Budget Highlights,Fiscal Year 2016 (2015), available at http://www.trans-portation.gov/sites/dot.gov/files/docs/FY2016-DOT-BudgetHighlights-508.pdf.

46 Press Office of Speaker of the House John Boehner,“Speaker Boehner’s Five Points for Resetting America’sEconomic Foundation,” September 5, 2014, available athttp://www.speaker.gov/general/speaker-boehners-five-points-resetting-americas-economic-foundation;

House Committee on Appropriations, “AppropriationsCommittee Releases the Fiscal Year 2016 Labor, Healthand Human Services Funding Bill,” Press release, June16, 2015, available at http://appropriations.house.gov/news/documentsingle.aspx?DocumentID=394272.

47 Senate Committee on Appropriations, “Senate Ap-propriations Committee Advances FY2016 Labor, HHS,Education Bill (Majority),” Press release, June 25, 2015,available at http://www.appropriations.senate.gov/news/senate-appropriations-committee-advances-fy2016-labor-hhs-education-bill.

48 U.S. Department of Education, Fiscal Year 2016 BudgetSummary and Background Information (2015), availableat http://www2.ed.gov/about/overview/budget/bud-get16/summary/16summary.pdf .

49 Ibid.

50 House Committee on Appropriations, “Departments ofLabor, Health and Human Services, and Education, andRelated Agencies Appropriations Bill, 2016” (2015), avail-able https://www.congress.gov/114/crpt/hrpt195/CRPT-114hrpt195.pdf ; Senate Committee on Appropriations,“Departments of Labor, Health and Human Services,and Education, and Related Agencies AppropriationsBill, 2016” (2015), available at https://www.congress.gov/114/crpt/srpt74/CRPT-114srpt74.pdf.

51 Ibid.

52 Letter from Shaun Donovan to Hal Rogers, June 23,2015, available at https://www.whitehouse.gov/sites/default/files/omb/legislative/letters/labor-h-house-letter-rogers.pdf ; Senate Committee on Appropriations,“Departments of Labor, Health and Human Services,and Education, and Related Agencies Appropriations

Bill, 2016.”

53 House Committee on Appropriations, “Departmentsof Labor, Health and Human Services, and Education,and Related Agencies Appropriations Bill, 2016”; Sen-ate Committee on Appropriations, “Departments ofLabor, Health and Human Services, and Education, andRelated Agencies Appropriations Bill, 2016.”

54 U.S. Department of Education, Fiscal Year 2016 BudgetSummary and Background Information.

55 Ed Feulner, “The Year of School Choice,”The WashingtonTimes, August 22, 2011, available at http://www.washingtontimes.com/news/2011/aug/22/the-year-of-school-choice/.

56 House Committee on Appropriations, “Departmentsof Labor, Health and Human Services, and Education,

and Related Agencies Appropriations Bill, 2016”; Sen-ate Committee on Appropriations, “Departments ofLabor, Health and Human Services, and Education, andRelated Agencies Appropriations Bill, 2016.”

57 Ibid.

58 U.S. Department of Education, Innovation and Improve-ment Fiscal Year 2016 Request (2015), available at http://www2.ed.gov/about/overview/budget/budget16/

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59 This American Life, “563: The Problem We All Live With- Part Two,” August 7, 2015, available at http://www.thisamericanlife.org/radio-archives/episode/563/tran-script.

60 U.S. Department of Education, Student Financial As-sistance Fiscal Year 2016 Budget Request (2015), availableat http://www2.ed.gov/about/overview/budget/bud-get16/justifications/p-sfa.pdf.

61 House Committee on Appropriations, “Departmentsof Labor, Health and Human Services, and Education,

and Related Agencies Appropriations Bill, 2016”; Sen-ate Committee on Appropriations, “Departments ofLabor, Health and Human Services, and Education, andRelated Agencies Appropriations Bill, 20 16.”

62 Association of Community College Trustees, “New PellGrant Estimates and the Future Shortfall”(2015) avail-able at http://www.acct.org/files/Capital%20Connec-tion/April%202015/pell%20baseline.pdf.

63 Letter from Committee for Education Funding to HouseAppropriations Committee, June 19, 2015, available athttp://cef.org/cef-letter-on-fiscal-year-fy-2016-labor-hhs-education-appropriations-bill/.

64 Concurrent Resolution on the Budget for Fiscal Year2016; Isaac Shapiro and Richard Kogan, “CongressionalBudget Plans Get Two-Thirds of Cuts From Programs forPeople With Low or Moderate Incomes” (Washington:

Center on Budget and Policy Priorities, 2015), availableat http://www.cbpp.org/research/federal-budget/congressional-budget-plans-get-two-thirds-of-cuts-from-programs-for-people.

65 Letter from Donovan to Rogers, June 23, 2015; SenateCommittee on Appropriations, “Departments of Labor,Health and Human Services, and Education, andRelated Agencies Appropriations Bill, 20 16.”

66 House Committee on Appropriations, “Departmentsof Labor, Health and Human Services, and Education,and Related Agencies Appropriations Bill, 2016”; Sen-ate Committee on Appropriations, “Departments ofLabor, Health and Human Services, and Education, andRelated Agencies Appropriations Bill, 20 16.”

67 Letter from Donovan to Rogers, June 23, 2015.

68 U.S. Department of Education, School ReadinessFiscal Year 2016 Request (2015), available at http://www2.ed.gov/about/overview/budget/budget16/

justifications/b-schoolreadiness.pdf.

69 House Committee on Appropriations, “Departmentsof Labor, Health and Human Services, and Education,and Related Agencies Appropriations Bill, 2016”; Sen-ate Committee on Appropriations, “Departments ofLabor, Health and Human Services, and Education, andRelated Agencies Appropriations Bill, 20 16.”

70 Althea Arnold and others, “Out of Reach 2014: Twenty-Five Years Later, The Affordable Housing CrisisContinues” (Washington: National Low Income HousingCoalition, 2014), available at http://nlihc.org/sites/de-fault/files/oor/2014OOR.pdf.

71 Bipartisan Policy Center, “Housing America’s Future:

New Directions for National Policy” (2013), available athttp://bipartisanpolicy.org/wp-content/uploads/sites/default/files/BPC_Housing%20Report_web_0.pdf .

72 Letter from Shaun Donovan to Thad Cochran, July 9,2015, available at https://www.whitehouse.gov/sites/default/files/omb/legislative/letters/senate_thud_let-ter_7-9-15_cochran.pdf ; Office of Management andBudget, Statement of Administration Policy: H.R. 2577—Transportation, Housing and Urban Development, andRelated Agencies Appropriations Act, 2016.

73 Ibid.

74 Senate Committee on Appropriations, “Transportationand Housing and Urban Development, and RelatedAgencies Appropriations Bill, 2016”; Rice, “Tight Spend-ing Caps Force Cuts in Low-Income Housing Assistance.”

75 House Committee on Appropriations, “Departments of Transportation, and Housing and Urban Development,and Related Agencies Appropriations Bill, 2016.”

76 National Low Income Housing Coalition, “THUD House

Appropriations Bill Deeply Underfunds HousingPrograms, Defunds National Housing Trust Fund,” Pressrelease, April 28, 2015, available at http://nlihc.org/press/releases/5773.

77 Abt Associates, “Capital Needs in the Public HousingProgram: Revised Final Report” (2010), availableat http://portal.hud.gov/hudportal/documents/huddoc?id=PH_Capital_Needs.pdf.

78 House Committee on Appropriations, “Departments of Transportation, and Housing and Urban Development,and Related Agencies Appropriations Bill, 2016”; SenateCommittee on Appropriations, “Transportation andHousing and Urban Development, and Related Agen-cies Appropriations Bill, 2016.”

79 Coral Davenport, “EPA Funding Reductions Have Knee-capped Environmental Enforcement,” National Journal ,

March 3, 2013, available at http://www.nationaljournal.com/daily/epa-funding-reductions-have-kneecapped-environmental-enforcement-20130303.

80 House Committee on Appropriations, “Department ofthe Interior, Environment, and Related Agencies Ap-propriations Bill, 2016.”

81 Senate Committee on Appropriations, “Department ofthe Interior, Environment, and Related Agencies Ap-propriations Bill, 2016.”

82 Environmental Protection Agency, “EPA’s Budget andSpending,” available at http://www2.epa.gov/planand-budget/budget (last accessed August 2015).

83 Department of the Interior, Environment, and Related Agencies Appropriations Act , H.R. 2822, 114 Cong. 1 sess.(Library of Congress, 2015), available at https://www.

congress.gov/bill/114th-congress/house-bill/2822/text; Department of the Interior, Environment, and Related Agencies Appropriations Act,S. 1645, 114 Cong. 1 sess.(Library of Congress, 2015), available at https://www.congress.gov/bill/114th-congress/senate-bill/1645/text.

84 Davenport, “EPA Funding Reductions Have KneecappedEnvironmental Enforcement.”

85 Americans for Prosperi ty, “Stop the EPA Power Grab!”,available at http://americansforprosperity.org/stop-theepa/ (last accessed August 2015).

86 Pew Research Center, “Most View the CDC Favorably;VA’s Image Slips” (2015), available at http://www.people-press.org/2015/01/22/most-view-the-cdc-favorably-vas-image-slips/.

87 Gallup, “Climate Change: Environment,” available athttp://www.gallup.com/poll/1615/environment.aspx(last accessed August 2015).

88 National Park Service, “A Quick History of the Land andWater Conservation Fund Program: 1964 and All That,”available at http://www.nps.gov/ncrc/programs/lwcf/history.html (last accessed August 2015).

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