OMB FY 2012 Budget Directives Could Put State Programs at Risk

On June 8, 2010, the Office of Management and Budget (OMB) directed federal agencies to develop fiscal year (FY) 2012 budget plans that would cut at least 5% from FY 2011 discretionary spending request levels. The directive is intended to achieve a freeze on overall non-security discretionary spending, as pledged by the president, while allowing funding for some new initiatives.

As a result of this new policy, as well as recent concern over the federal budget deficit, it is possible that some programs targeted to states will be cut or eliminated. This report identifies some of the potentially targeted programs of interest to states.