Category Archives: Budget – United States

CDBG Works

Source: David W. Burns, Report on City Projects, June 2017

From the summary:
The Community Development Block Grant (CDBG) program is the key tool cities use to revitalize low and moderate-income neighborhoods and serve the people who live in them. Administered by the Department of Housing and Urban Development, CDBG was launched in 1974 and has served thousands of communities across the nation. “Entitlement” communities receive funds directly from the federal government based on a highly targeted formula. The balance of funds go to States which administer CDBG resources to smaller towns and communities on a competitive basis. CDBG allows local governments the flexibility to design their own comprehensive revitalization plans in the context of targeted objectives to serve low and moderate income people. ….

…. CDGB is not just another federal program. It is a lifeline to poor neighborhoods that for too long have suffered disinvestment in both their physical infrastructure and their people. This publication, CDBG WORKS, is designed to illustrate the types of projects CDBG makes possible. CDBG funds housing rehab programs for in-home seniors and those with disabilities, making it possible for them to gain access and stay in their homes. It funds Boys and Girls Clubs to provide youth productive activities as an alternative to the streets. It supports community and social service organizations that provide counseling to victims of domestic violence and those who suffer from homelessness and mental health problems. The list goes on and on. ….

The Trump team’s poor arguments for slashing SNAP

Source: Patricia Smith, The Conversation, June 25, 2017

The Trump administration aims to slash spending on the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, by US$193 billion over the next decade. The proposal would also overhaul how the nation’s main nutrition assistance program operates, potentially encouraging additional cuts by the states.

Curbing SNAP’s reach is only one way that Office of Management and Budget Director Mick Mulvaney and other officials are trying to trim the safety net to save taxpayer dollars – while simultaneously boosting military spending.

As an economist who studies nutrition policy, I don’t understand what good the administration thinks it can do by overhauling and paring back an effective and efficient program. By many measures, SNAP successfully satisfies an essential human need and fulfills its mandate to promote the general welfare….

The Water Infrastructure Finance and Innovation Act of 2014: Structure and Effects

Source: Sridhar Vedachalam, R. Richard Geddes, Journal – American Water Works Association, Volume 109 Number 4, April 2017

From the abstract:
Many US municipalities confront serious challenges due to aging water and wastewater infrastructure. Many systems require immediate repairs, upgrades, and replacement, but available funding is scarce. Readily available low-interest financing is of great help to such municipalities. The Water Infrastructure Finance and Innovation Act (WIFIA) approved by Congress in 2014 was a step in that direction. WIFIA is a five-year pilot program focused on supporting large-scale projects that may be under-served by existing state revolving funds (SRFs). The authors examine the structure and implementation of WIFIA and its impact on existing financing mechanisms. The cost of debt service in four representative communities in New York was compared under WIFIA, SRFs, and tax-exempt municipal bonds. Although WIFIA financing offered the lowest debt service cost, savings from WIFIA depended on the spread between US Treasury rates and borrowing rates of the SRF-administering agency.

The Trump Budget Threatens Children’s Health

Source: Thomas Huelskoetter, Center for American Progress, May 30, 2017

The Children’s Health Insurance Program (CHIP) has been a vital part of America’s health care safety net since its creation in the 1990s. Last year, it provided coverage for almost 9 million children. CHIP is traditionally considered a bipartisan success story and has played a critical role—together with Medicaid and the private market reforms in the Affordable Care Act—in reducing the rate of uninsured children to a historic low of 4.8 percent.

However, CHIP’s funding is not permanent and must be reauthorized this September. Recently, the bipartisan National Governors Association strongly recommended that Congress extend CHIP funding for five years, explaining that “access to health insurance is critical to ensuring a healthy start for our nation’s children.”

Unfortunately, the Trump budget rejects this bipartisan tradition of support by proposing to cut CHIP funding by 20 percent. At first glance, the budget’s proposal to extend CHIP funding for two years may appear to be a positive step. In reality, however, the budget pairs this extension with funding cuts and policy changes that would result in children losing CHIP coverage and potentially becoming uninsured. Even including the cost of the funding extension, the Trump budget would cut CHIP by a net $3.4 billion from fiscal year 2017 to fiscal year 2018—a 20 percent reduction….

Budget of the U.S. Government – Fiscal Year 2018

Source: Office of Management and Budget, May 2017

A New Foundation for American Greatness – President’s Budget FY 2018

Major Savings and Reforms

America First – A Budget Blueprint to Make America Great Again

Analytical Perspectives
Appendix
Historical Tables
Supplemental Materials
Fact Sheets
Supplementals, Amendments, and Releases
Past President’s Budgets

Related:
Greenstein: Trump Budget Proposes Path to a New Gilded Age
Source: Robert Greenstein, Center on Budget and Policy Priorities, CBPP Statement, May 22, 2017

President Trump’s new budget should lay to rest any belief that he’s looking out for the millions of people the economy has left behind.

President Trump’s Budget Includes a $2 Trillion Math Mistake
Source: Ryan Teague Beckwith, Time, May 23, 2017

President Trump’s budget includes simple accounting error that adds up to a $2 trillion oversight.

Trump releases budget hitting his own voters hardest
Source: Andrew Restuccia , Matthew Nussbaum and Sarah Ferris, Politico, Updated: May 23, 2017

The president’s proposal for next year’s federal spending calls for more than $1 trillion in cuts to social programs, including farm aid.

What Trump’s budget cuts from the social safety net
Source: Denise Lu and Kim Soffen, Washington Post, Updated May 23, 2017

On Tuesday, President Trump released his 2018 budget proposal. It makes deep cuts across many anti-poverty programs, slashing food stamps by more than a quarter and children’s health insurance by 19 percent.

Trump budget slashes money for federal lands, needy and health care
Source: Thomas Burr, The Salt Lake Tribune, May 23 2017

President Donald Trump’s proposed 2018 fiscal budget would hit Utah’s needy and disabled, cut block grants to communities, slash funding for public lands and public transit projects and could hurt rural airport services.

How the Trump Budget Undermines Economic Security for Working Families
Source: Rebecca Vallas, Harry Stein, Eliza Schultz, Neil Campbell, Kate Bahn, Regina Willensky, Kevin DeGood, Antoinette Flores, Ethan Gurwitz, Alexandra Thornton, and Angela Hanks, Center for American Progress, May 23, 2017

With an administration chock full of self-serving millionaires and billionaires, it comes as little surprise that President Donald Trump’s proposed budget would be an enormous windfall for the wealthiest Americans. But the degree to which it privileges the 1 percent at the expense of nearly everyone else—breaking Trump’s campaign promises to restore prosperity to everyday Americans—is staggering. Notably, by calling for cuts to Social Security, the budget violates one of Trump’s most significant promises.

Indeed, his proposed repeal of the estate tax alone—a tax that only affects the wealthiest 0.2 percent of estates—would cost the same as feeding more than 6 million seniors for a year through Meals on Wheels, a program facing deep cuts under the Trump budget.

And that is just one of several massive giveaways to the wealthy that President Trump calls for in this budget proposal while slashing critical investments in education, infrastructure, jobs, and more that make it possible for workers and families to get ahead. Here are seven ways that President Trump’s budget proposal threatens to do them serious damage.

Trump’s Budget Would Hit These States the Hardest
Source: Sam Petulla, NBC News, May 23, 2017

The Trump administration unveiled a budget for 2018 on Tuesday that seeks to overhaul many of the country’s safety-net programs for low-income and struggling Americans. Though these cuts are popular among Republican lawmakers, they affect programs that are actually more commonly used in Republican-leaning states than in Democratic ones, and that in many cases benefit white voters without college degrees — a demographic group that strongly supported President Donald Trump in the 2016 election.
The programs experiencing the deepest cuts provide assistance for health care services to children, the poor and disabled, and that supplement food and housing for those with low incomes. Most of the programs were created decades ago by Democratic presidents.

What Trump’s Proposed 2018 Budget Would Mean for Higher Ed

Source: Adam Harris, Chronicle of Higher Education blog, May 23, 2017

Updated (5/23/2017, 2:19 p.m.) with details on the budget proposals for scientific and medical research.

The Trump administration on Tuesday released its budget proposal for the 2018 fiscal year. All told, the budget would cut federal education programs by more than $10 billion. The Department of Education’s total operating budget would be slashed by $9 billion, and spending on secondary-education programs would be redirected to school-choice initiatives — the chief policy goal of Betsy DeVos, the education secretary.

President Trump’s budget would eliminate the public-service loan-forgiveness program, subsidized Stafford Loans, and Supplemental Educational Opportunity Grants; begin to phase out the National Endowments for the Arts and for the Humanities; and allow the Perkins Loan program to expire. It would also cut spending in half on Federal Work-Study programs, slash the budget of the National Institutes of Health by a fifth, eliminate programs that foster foreign-language study, and reduce spending that supports international-education programs and exchanges, such as the Fulbright Scholar program, by 55 percent….

New Trump Budget Eliminates Arts, Humanities, Library Agencies

Source: Jackie Zubrzycki, Education Week, Curriculum Matters blog, May 23, 2017

The National Endowment for the Arts, the National Endowment for the Humanities, and the Institute of Museum and Library Sciences would begin shutting down in 2018 if President Donald Trump’s 2018 budget, released today, is approved by Congress.

The $4.1 trillion budget, called “A New Foundation for American Greatness,” involves significant tax cuts, an increase in spending on the military and border security, and cuts to domestic programs like Medicaid along with the arts, humanities, and library agencies.

Trump’s initial budget proposal, released in March, involved cutting the endowments and IMLS, which support education programs around the country. Supporters breathed a sigh of relief when the endowments received extra funds through the end of 2017. ….

But Trump’s new budget again calls for the elimination of the agencies, asserting that the endowments are not “core federal activities” and that getting rid of the IMLS will likely not cause “a significant number” of libraries and museums to close.

Jim Martin Table: FY 2018 President’s Budget

Source: Federal Funds Information for States, May 2017
(subscription required)

The Jim Martin table is an homage to Jim Martin, a long-time director of federal relations at the National Governors Association and a big supporter of FFIS in its early days. He requested the table because he wanted to show changes in federal funding for major programs on one sheet of paper. We’re told he carried it wherever he went, including Washington, DC’s metro, where he was seen distributing it to anyone who was interested. Alas, Jim is gone but his eponymous table lives on.

Jim Martin Table: FY 2018 President’s Budget
May 23, 2017
The Jim Martin Table has been updated to reflect the president’s FY 2018 budget request.
Full Report

Jim Martin Table: FY 2017 Omnibus
May 2, 2017
The Jim Martin Table has been updated to reflect funding under the Consolidated Appropriations Act, 2017 (H.R. 244).

Policymakers Cut Housing Vouchers in 2017

Source: Douglas Rice, Center on Budget and Policy Priorities, Off the Charts blog, May 18, 2017

The bill that President Trump signed into law to fund the government for the rest of fiscal year 2017 has insufficient funding to renew all of the Housing Choice Vouchers in use last year, leaving a gap of roughly 60,000 vouchers. While some state and local housing agencies can use emergency reserves to close part of the gap, tens of thousands fewer low-income families will likely receive help this year, worsening the shortage of affordable housing. Already, 3 in 4 low-income families that struggle to pay rent receive no federal rental aid….