If Congress doesn't repeal sequestration budget cuts for fiscal 2016, the government won't have the resources to do its job effectively, says OMB. Governmentwide budget cuts will force agencies to reduce their discretionary spending by nearly $91 billion, collectively.
Barack Obama is sending Congress a $4 trillion fiscal 2016 budget request that includes about $1.1 trillion in discretionary spending and a 1.3 percent pay increase for federal workers, says White House budget documents released Feb. 2.
Obama plans to announce his budget request Feb. 2 and with that will come a $585 billion request for the Defense Department, a Jan. 27 Politico article says. That's a $38 billion increase over the current fiscal year's DoD budget. The request includes $534.3 billion for the base DoD budget and $50.9 billion in overseas contingency operations.
Agencies won't have to deal with sequestration related budget cuts this fiscal year because discretionary appropriations have come in under the budget caps established in the bipartisan budget deal back in 2013, says a Jan. 20 Office of Management and Budget report and letter to Congress.
House Republican budget leaders released a fiscal 2015 plan that would bolster defense spending, but to the detriment of domestic programs. The plan, released April 1 by Sen. Paul Ryan (R-Wisc.), seeks to cut spending by $5.1 trillion over the next ten years and sets a topline of $3.66 trillion for fiscal 2015 with discretionary spending adhering to the Ryan-Murray budget agreement at $1.014 trillion.
Project ten-year deficits shrunk since 2010 by almost $5 trillion due federal program cuts and increased revenue, said a Center on Budget and Policy Priorities report.
Sequestration caused Internal Revenue Service to help about 300,000 fewer taxpayers, the Agriculture Department to give food stamp aid to fewer people in need and agencies to furlough more than 770,000 workers, a March 6 Government Accountability Office report says.
Defense Secretary Chuck Hagel told service leaders to ignore sequestration in the out years when drawing up force levels in the DoD five year budget plan.
Faced with $200 million in mandatory cuts required by sequestration, the Coast Guard responded by decreasing drug interdiction efforts along ocean transit routes, Coast Guard Commandant Adm. Robert Papp said. He said the lessened Coast Guard presence in maritime routes between South and Central America resulted in about a 30 percent reduction in drug interdiction.
Defense Department costs between 2014 and 2021 will increase far beyond the caps set by the Budget Control Act, Congressional Budget Office analysis of the DoD future years defense plan report. The CBO conducted its projection of DoD base budget costs and said it would be about $30 billion higher than the DoD projected in the FYDP.