Fiscal Year 2011 Spending UpdateOn April 8, President Obama, Senate Majority Leader Harry Reid (D-NV), and Speaker of the House John Boehner (R-OH) announced an agreement on a $38 billion spending deal to fund the government for the remaining FY2011.Subsequently, the U.S. House of Representatives and the U.S. Senate passed a continuing resolution to prevent the government shutdown until details of the agreement are drafted.
The deal proposes a $17.8 billion in cut to mandatory programs and a $20 billion reduction to domestic discretionary programs with a $1.1 billion across-the-board cut in discretionary programs. While details of the cuts to programs have yet to be released, the Congressional Quarterly reports that White House Communication Director said the cuts included $13 billion from the Labor, Education and Health and Human Services departments, $8 billion from the foreign affairs programs and $30 million from a job training program for student loan processors. However, current level funding for Head Start and Pell grants are maintained.
House and Senate leaders will now have until April 15th to pass the final spending bill and to prevent the possibility of another government shutdown.
Stopgap Bill includes $2 billion in CutsOn April 9, President Obama signed into law a weeklong continuing resolution to keep the government operational until April 15th. While the stopgap spending measure was passed to allow Congress to work out the details of the compromise for FY2011 spending, the bill included more than $2 billion in cuts to the following programs:
Housing and Urban Development Fund including the Community Development Blockgrant ($220 million)
Eliminates funding for the Economic Development Initiative, Neighborhood Initiative grants, and the Universities Community fund
High speed and intercity passenger rail ($1.5 billion)
Transit new starts ($280 million)
Federal Aviation Administration Facilities and Equipment account ($8.7 million)
Transportation Planning, Research and Development account ($6.3 million)
FAA Research, Engineering and Development account ($3.5 million); and
Federal Railroad Administration Research and Development account ($2.5 million)
Deficit Reduction Discussions UnderwayWith Congress heading toward a final agreement on FY2011, spending President Obama is expected to release a long-term deficit plan aimed at reducing the nation's reliance on borrowed money. This is likely to be a contentious debate as lawmakers seek to address the issue of spending more money than what is received. Details of the proposal are expected later this week.
In addition, the House of Representatives is expected to take up the FY2012 budget resolution proposed by House Budget Chairman Paul Ryan (R-WI) that would set discretionary appropriations, excluding war costs, for the next fiscal year at $1.019 trillion, $102 billion below President Obama's budget request.
The budget resolution is the next step in the budget process after the President introduces his blueprint for spending the next fiscal year (October 1)-which was released in early February. This step in the process is were the House and Senate go to work to set overall spending and cuts for the coming fiscal year-typically this should be completed by mid-April-but usually last into mid-May.
Please stay tuned to Washington Weekly for details of the proposals.
To review Catholic Charities USA statement on the House budget resolution, please click on the following link,
CCUSA Budget Statement.
Virtual Hill DayOn Tuesday, April 12 Diocesan Directors from local Catholic Charities agencies, members of the Social Policy Committee and other advocates for social justice will visit with members of Congress to ask them to support legislation to reduce poverty in our country. Catholic Charities USA needs your help to make this event even larger! Please be on the lookout for a message on how you can participate virtually.