President's FY 2012 Budget Request Includes Spending Freeze/Cuts, Big Increase for DOT
On February 14, 2011, President Obama transmitted his $3.73 trillion budget for the 2012 fiscal year. According to the Office of Management and Budget, the proposal includes more than $1 trillion in deficit reduction, two-thirds of which would come from spending cuts, in an effort to bring the U.S. deficit down to about 3% of the economy by the middle of the decade.
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(FY 2011 is from October 1, 2011 through September 30, 2012.)
Includes 5 Year Non-Security Spending Freeze, Cuts/Reductions to 211 Programs
The Budget includes a five-year non-security discretionary spending freeze which is not an across-the-board cut, but rather an overall freeze with increases in certain areas considered critical for long-term economic growth and job creation.
The proposal’s spending cuts include a 2-year freeze on Federal civilian worker salaries and the termination or reduction of 211 Federal government programs. Though security spending would not be frozen, the White House states that the proposed budget would also cut $78 billion from the Pentagon’s spending plan over the next five years.
Large Increase Proposed for DOT, Modest Increases for DHS, HHS, Etc, & Cuts for USDA, Commerce, EPA
For individual, trade-related agencies, the FY 2012 budget requests are a mixture of modest and larger increases (with one very large increase for the Department of Transportation (DOT) for infrastructure investments), as well as certain decreases.
The agency budget proposals for the Department of Homeland Security (DHS), U.S. Department of Agriculture (USDA), the Environmental Protection Agency (EPA), DOT, Health and Human Services (HHS), Department of Defense, Department of Energy (DOE), Commerce Department (DOC), Justice Department (DOJ) are as follows:
Increases. The budgets for the following trade-related agencies would increase:
- DHS -- $43.2 billion, an increase of $309 million above the 2010 enacted level. The proposal includes funding to support 21,370 Border Patrol agents and funds an additional 300 new U.S. Customs and Border Protection (CBP) Officers for passenger and cargo screening, as well as expansion of pre-screening operations at foreign airports and land ports of entry. (DHS press release here)
- HHS - $79.9 billion, which is slightly above the 2010 funding level. (HHS press release here.)
- DOT - $129 billion, a significant, 66% increase above FY 2010. The proposal includes $336 billion, a 48% increase over the previous authorization, to rebuild U.S. roads and bridges and $119 billion, a 128% increase over the previous authorization, in funding for transit options. (DOT press release here.)
- CPSC - $122 million, a 3.2% increase or $3.8 million over 2011 levels. (CPSC budget here.)
- DOE - $29.5 billion, a 12% increase over the 2010 enacted level. (DOE press release here.)
- DOD - $553 billion for the base budget, an increase of $22 billion above the 2010 appropriation and $117.8 billion for the wars in Iraq and Afghanistan. (DOD press release here)
- DOJ - $28.2 billion, a 2% increase above 2010. (DOJ press release here.)
Decreases. The budgets for the following trade-related agencies would decrease:
- EPA - $8.973 billion, a 13% decrease from FY 2010. (EPA press release here)
- USDA -- $23.9 billion in discretionary funding to support USDA missions, a decrease of $3.2 billion from the FY 2010. (USDA press release here)
- DOC - $8.8 billion in discretionary spending, a decrease of $5.1 billion from the 2010 enacted level. (DOC press release here)
(Though not true for the trade-related agencies, the White House states that half of all agencies would see their budget levels reduced in FY 2011 from 2010 enacted levels.)
(See future issues of ITT for details of individual agency budget requests.)
White House press releases, dated 02/14/11, available here and here.
White House graphic showing visual breakdown of budget by sector available here.