If a Budget Falls in the Forest…

The president’s proposed budget for fiscal year (FY) 2017 was released on February 9, 2016. The budget adheres to the defense and non-defense discretionary spending caps for FY 2017 included in the Bipartisan Budget Act of 2015 (BBA). However, it also includes many new mandatory spending proposals, and would eliminate sequestration of mandatory programs. Nevertheless, all of the budget’s tax cuts and spending increases are fully offset by tax increases and other savings over 10 years—the Center for a Responsible Federal Budget estimates that the budget would reduce deficits by $2.9 trillion by FY 2026.

This Budget Brief highlights the major themes of the budget, proposals for new programs, program eliminations, and other provisions of interest to states. Under the proposed budget, funding would increase 1.4% for major discretionary programs, 6.6% for mandatory programs, and 5.1% overall.