1 A BUDGET FOR A Better America PROMISES KEPT. TAXPAYERS FIRST. FISCAL YEAR 2020 BUDGET OF THE U.S. GOVERNMENT
2 THE BUDGET DOCUMENTS Budget of the United States Government, provided on certain activities whose transactions contains the Budget Message of Fiscal Year 2020 are not part of the budget totals. the President, information on the President’s priori- Major Savings and Reforms, Fiscal Year ties, and summary tables. 2020, which accompanies the President’s Budget, Analytical Perspectives, Budget of the United contains detailed information on major savings and contains States Government, Fiscal Year 2020 reform proposals. The volume describes both major analyses that are designed to highlight specified discretionary program eliminations and reductions - subject areas or provide other significant presenta and mandatory savings proposals. tions of budget data that place the budget in perspec - tive. This volume includes economic and accounting BUDGET INFORMATION AVAILABLE ONLINE analyses; information on Federal receipts and collec - - The President’s Budget and supporting materi tions; analyses of Federal spending; information on //www.whitehouse. https: als are available online at - Federal borrowing and debt; baseline or current ser . This link includes electronic ver gov/omb/budget/ - vices estimates; and other technical presentations. sions of all the budget volumes, supplemental ma- Supplemental tables and other materials that terials that are part of the Analytical Perspectives volume Analytical Perspectives are part of the volume, spreadsheets of many of the budget tables, / https: are available at //www.whitehouse.gov/omb and a public use budget database. This link also in - / . analytical-perspectives that provide data on budget Historical Tables cludes Appendix, Budget of the United States receipts, outlays, surpluses or deficits, Federal debt, contains detailed Government, Fiscal Year 2020 - and Federal employment over an extended time pe information on the various appropriations and funds riod, generally from 1940 or earlier to 2020 or 2024. that constitute the budget and is designed primarily Also available are links to documents and materials for the use of the Appropriations Committees. The from budgets of prior years. - contains more detailed financial infor Appendix The budget documents and other supplemental mation on individual programs and appropriation materials included at this link were previously in - accounts than any of the other budget documents. cluded on the Budget CD-ROM, which is no longer - It includes for each agency: the proposed text of ap made available. propriations language; budget schedules for each For more information on access to electronic ver - account; legislative proposals; narrative explana- sions of the budget documents, call (202) 512-1530 tions of each budget account; and proposed general - in the D.C. area or toll-free (888) 293-6498. To pur provisions applicable to the appropriations of entire chase the printed documents call (202) 512-1800. agencies or group of agencies. Information is also GENERAL NOTES All years referenced for budget data are fiscal years unless otherwise noted. All years referenced for economic 1. data are calendar years unless otherwise noted. 2. At the time the Budget was prepared, five of the annual appropriations bills for 2019 had been enacted (the Energy and Water Development and Related Agencies Appropriations Act, 2019; the Legislative Branch Appropriations Act, 2019; the Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, 2019; the Department of Defense Appropriations Act, 2019; and the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2019). The programs and activities provided for in the seven remaining 2019 annual appropriations bills were operating under a continuing resolution (Public Law 115-245, as amended). For these programs, references to 2019 spending in the text and tables reflect the levels provided by the continuing resolution (except for the Major Savings and Reforms (MSV) volume which was written following enactment of all appropriations and reflects 2019 enacted for all programs). Detail in this document may not add to the totals due to rounding. 3. U.S. GOVERNMENT PUBLISHING OFFICE, WASHINGTON 2019 978-0-16-095071-1 ISBN tn emn r evo G .S.U ,s tn e mu co D fo tn edn e tnir epu S eh t yb el as ro F eciff O P ublishing I C D ;0081-215 )668 ( eer f l lot : enohP vog.opg. e ro tskoob :t en re tn a 0081-215 )202 ( a er 90000 CCD :li aM 4012-215 )202 ( :x aF 1000-20402 I potS D , W , notgn ihsa C ISBN 978-0-16-095071-1 9 780160 950711
3 Table of Contents Page ������������������������������������������������������������������������������������������������ 1 The Budget Message of the President 5 ������������������������������������������������������������������������������������������������������������ A Budget for a Better America ��������������������������������������������������������������������������������������������������������������������� Modernizing Government 7 Cutting the Red Tape: Unleashing Economic Freedom 13 ��������������������������������������������������������������� Department of Agriculture ����������������������������������������������������������������������������������������������������������������� 15 19 ������������������������������������������������������������������������������������������������������������������� Department of Commerce 23 Department of Defense ������������������������������������������������������������������������������������������������������������������������ 29 Department of Education ������������������������������������������������������������������������������������������������������������������� 35 Department of Energy ������������������������������������������������������������������������������������������������������������������������� ���������������������������������������������������������������������������������� 39 Department of Health and Human Services Department of Homeland Security ��������������������������������������������������������������������������������������������������� 49 ������������������������������������������������������������������������ 53 Department of Housing and Urban Development ����������������������������������������������������������������������������������������������������������������� Department of the Interior 57 Department of Justice 61 ������������������������������������������������������������������������������������������������������������������������� ���������������������������������������������������������������������������������������������������������������������������� 65 Department of Labor 71 Department of State and Other International Programs ����������������������������������������������������������� ���������������������������������������������������������������������������������������������������������� 77 Department of Transportation Department of the Treasury ��������������������������������������������������������������������������������������������������������������� 81 ��������������������������������������������������������������������������������������������������������� 85 Department of Veterans Affairs ������������������������������������������������������������������������������������������������������ Corps of Engineers—Civil Works 89 Environmental Protection Agency 93 ��������������������������������������������������������������������������������������������������� ������������������������������������������������������������������������� National Aeronautics and Space Administration 97 ������������������������������������������������������������������������������������������������������� 101 Small Business Administration Summary Tables 105 ���������������������������������������������������������������������������������������������������������������������������������� OMB Contributors to the 2020 Budget ������������������������������������������������������������������������������������������� 139
5 THE BUDGET MESSAGE OF THE PRESIDENT T The C ongress of The U niTed o TaTes : s In just over 2 years, together with the American people, we have launched an unprecedented economic boom. Since I was elected, we have created more than 5 million new jobs, including half a million manufacturing jobs. Nearly 5 million Americans have been lifted off food stamps. Unemployment is the lowest in nearly half a century. African American unemployment, Hispanic American unemployment, and Asian American unemployment rates have all reached historic lows. Our Nation is experiencing an economic miracle—and it is improving the lives of all our citizens. We have achieved these extraordinary gains thanks to historic tax cuts and an unprecedented regulatory reduction campaign, through unleashing American energy production, systematically fixing bad trade deals, and remaining absolutely committed to putting the needs of the American worker first. My Administration worked with the Congress to pass unprecedented legislation to confront the opioid crisis, a sweeping new farm bill, groundbreaking criminal justice reform, major investments to rebuild the military, and historic Department of Veterans Affairs reforms to ensure that our great veterans have access to high quality healthcare. We are also making our communities safer. To target violent crime, my Administration has in - creased support for Federal, State, and local law enforcement. We have added nearly 200 new violent crime prosecutors across the United States. And last year, the Department of Justice pros - ecuted more violent crimes than ever before. As a result, violent crime is falling. My Administration is confronting the national security and humanitarian crisis on our southern border, and we are accepting the moral duty to create an immigration system that protects the lives and jobs of our citizens. This includes our obligation to the millions of immigrants living in the United States today who followed the rules and respected our laws. In the 20th century, America saved freedom, transformed science, and defined the middle class standard of living. Now we must write the next chapter of the great American adventure, turbo- charging the industries of the future and establishing a new standard of living for the 21st century. An amazing quality of life for all of our citizens is within reach. We can make our communities safer, our families stronger, our culture richer, our faith deeper, and our middle class bigger and more prosperous than ever before. We are now addressing our challenges from a position of strength. My 2020 Budget builds on the tremendous progress we have made and provides a clear roadmap for the Congress to bring Federal spending and debt under control. We must protect future generations from Washington’s habitual deficit spending. 1
6 2 THe BUDgeT MeSSAge OF THe PreSIDeNT - This year, I asked most executive departments and agencies to cut their budgets by at least 5 per cent. In addition to reflecting those reductions, my Budget invests in the following priorities: Securing our Borders and Protecting our Sovereignty. As President, my highest duty is the defense of our Nation—which is why finishing the border wall is an urgent national priority. All who are privileged to hold elected office must work together to create an immigration system that promotes wage growth and economic opportunity, while preventing drugs, terrorism, and crime from entering the United States. Immigration policy, like all policy, must serve the interests of Americans living here today—including the millions of new Americans who came here legally to join our national family. The American people are entitled to a strong border that stops illegal immigration, and a responsible visa policy that protects our security and our workforce. My Budget continues to reflect these priorities, and I look forward to working with the Congress to finish the border wall and build a safe, just, and lawful immigration system that will benefit generations of Americans to come. Preserving Peace through Strength. A strong military, fully integrated with our allies and all our instruments of power, enables our Nation to deter war, preserve peace, and, if necessary, defeat aggression against United States interests. To that end, my Budget requests $750 billion for national defense, an increase of $34 billion, or 5 percent, from the 2019 enacted level. The Budget funds the National Security Strategy and National Defense Strategy, building on the major gains we have al - ready made throughout the world. Protecting our Veterans. Our Nation’s brave warriors and defenders deserve the best care America has to offer—both during and after their active service. Last year, I signed into law the his - toric VA MISSION Act of 2018 to reform and transform the Department of Veterans Affairs health - care system into an integrated system for the 21st century. My Budget fully funds all requirements for veterans’ healthcare services and provides additional funding to implement the VA MISSION Act of 2018. To help protect taxpayer dollars, my Budget Investing in America’s Students and Workers. - continues my request to create an educational finance system that requires postsecondary institu tions that accept taxpayer funds to have skin in the game through a student loan risk-sharing pro - gram. My Administration will also continue to seek expanded Pell grant eligibility for high-quality, short-term programs in high-demand fields, so that students and workers can quickly gain valuable skills at a more affordable cost and obtain family-sustaining jobs. We must create and invest in bet - ter opportunities for our Nation’s students and job seekers, while ensuring that we do so in a more efficient and effective manner. Research for Childhood Cancers. Many childhood cancers have not seen new therapies in de - cades. My Budget initiates a new effort that invests $500 million over the next 10 years to support this critical life-saving research. Defeating HIV/AIDS in America. The HIV epidemic still plagues our Nation, with more than 38,000 Americans infected every year. In response, my Budget provides $291 million to the Department of Health and Human Services to defeat the HIV/AIDS epidemic. The goal is to eliminate most new infections within 5 years (75 percent) and nearly all within 10 years (90 percent). This initiative will focus efforts on diagnosis, prevention, and treatment efforts in the locations where intense transmis - sions of the virus are driving the epidemic. Confronting the Opioid Epidemic. My Budget continues historic levels of funding for our law enforcement, prevention, and treatment efforts to combat the opioid and drug addiction epidemic.
7 THe BUDgeT FOr FISCAL YeAr 2020 3 America must also lead in supporting the families of our work Supporting Working Families. - force so that they can balance the competing demands of work and family. My Budget includes a one-time, mandatory investment of $1 billion for a competitive fund aimed at supporting under - served populations and stimulating employer investments in child care for working families. My Administration has also pledged to provide paid parental leave to help working parents, and we are committed to partnering with the Congress to enact this important policy. ****** We must always strive to uphold our oaths to promote and protect the personal and economic free - doms the Constitution guarantees to us all. We must work together to renew the bonds of love and loyalty that link us to one another—as friends, as citizens, as neighbors, as patriots, and as Americans. My Budget reflects my Administration’s commitment to these worthy goals as it seeks to make the United States of America wealthier, stronger, safer, and greater for every American family and neighborhood. DONALD J. TrUMP T he W hiTe h oUse , M arCh 11, 2019
9 A BUDGET FOR A BETTER AMERICA to threaten the Nation’s progress, and any un - Over the past two years, the President has foreseen shocks to the economy could make defi - restored faith in the American dream and ex - cits unsustainable. Without action to restore the tended a more prosperous future—an American proper size and role of the Government, deficits future—that is secure, sovereign, and affordable. will remain over a trillion dollars per year for the The President’s pro-growth economic agen - foreseeable future. Debt, already run up by the da, MAGAnomics, has unleashed the American excesses of previous administrations’ economic economy. Working alongside Republicans in the policies, will soon surpass a percent of GDP not - Congress, the President signed historic tax re seen since 1947. form into law, marking the first time in more than 30 years that the Nation’s tax laws were If financial obligations continue to grow at the current pace, the Nation’s creditors may demand overhauled to provide much-needed relief to higher interest rates to compensate, potentially American Families, all while allowing U.S. small leading to lower private investment and a small - businesses to flourish. Unemployment is the - lowest in 50 years, millions of jobs have been cre - er capital stock, harming both American busi ated, and GDP grew by 3.1 percent over the four nesses and workers. If nothing is done, interest quarters of 2018. For the first time in history, payments alone on the Federal Government’s debt will double by 2023 and exceed spending on there are more vacant jobs than job seekers to fill them. The economic health of the Nation is as the U.S. military by 2024. strong as it has ever been. Even with a booming economy, excluding - The Administration’s ongoing efforts to cut red Social Security and Medicare spending and rev tape are also key to continued economic growth. enues, the Federal Government is still running - Over the past year, Federal agencies have elimi a net deficit of $608 billion. During the Great nated 12 unnecessary or duplicative regulations - Recession, this figure increased from $664 bil lion in 2008 to $1,354 billion in 2010, illustrating for every one new regulation implemented, which has saved the economy more than $23 billion what can happen during changes in the business in Washington-imposed costs. The President’s - cycle when there is a complete lack of fiscal re straint. Since the end of the recession, little has deregulatory efforts are providing relief for all been done to rein in excessive spending as net Americans through real wage growth and more jobs, ushering in a new era of optimism. The deficits averaged $759 billion from 2010–2016. weight of Washington’s presence is now a more The President is committed to protecting and distant memory, and Americans feel confident to respecting American taxpayers. Recognizing the invest in their families, businesses, and future. importance of controlling excessive spending, the However, for economic growth to endure, President directed Federal agencies to reduce Washington must fix its longtime spending prob - their programmatic spending to five percent below lem, which has driven the Nation’s debt to more the non-Defense discretionary budget cap. Only than $22 trillion this year. Even with high levels in Washington would that be considered impos - sible. Ordinary, hard-working American families of economic growth, excessive deficits continue 5
10 6 A BUDGET FOR A BETTER AMERICA the Nation’s infrastructure and addressing high make necessary sacrifices daily to provide for their families. Washington should be no different. drug prices. Yet, facing up to fiscal reality does not mean The 2020 Budget builds off the foundation of the ignoring the other needs facing the Nation. The - President’s previous budgets and provides an ave Budget demonstrates how, even within this con - nue toward spending restraint. The Budget meets - the President’s directive on spending reductions strained discretionary topline, the President pro by agency, proposing over $2.7 trillion in spending - poses to fund critical national priorities by repri reductions—more proposed spending reductions oritizing other spending. The Budget protects than any previous administration in history—and or increases funding for border security, national - closing out the 10-year budget window with spend defense, opioids, law enforcement, childcare, vet - erans’ healthcare, emerging technologies that ing below the post-war average of 20 percent of support the industries of the future, and work GDP. Once again, with the Budget, the President - force development. The Budget also illustrates provides his vision to get the Nation’s fiscal house back in order to provide a better America for you. the Administration’s commitment to rebuilding ag er Av storical et Outlays Below Hi 2020 Budg e Share of GDP 22% 20% Baseline Outlays 2020 Budget Outlays 8 "Post-War" 1945-201 18% 2026 2027 2025 2022 2021 2020 2019 2028 2029 2023 2024
11 MODERNIZING GOVERNMENT The 2020 Budget supports the Administration’s - provide financial resources and technical exper st tise to improve Federal technology. A key com - work to modernize Government for the 21 ponent of the MGT provisions is the TMF, which Century. The American people deserve a modern enables agencies to reimagine and transform Government that will refocus efforts on core mis - how technology is used to deliver mission and sion areas, provide excellent customer service, services. Agencies propose projects to a TMF and ensure accountable stewardship. Board and, if selected and funded, repay funds The President’s Management Agenda (PMA) within five years. - lays the foundation for a portfolio of work to ad dress critical challenges where Government has • From among nearly 50 proposals totaling over $500 million in the first 10 months, failed to keep up with technical advances and business process improvements. - the Board has so far funded seven proj ects totaling almost $90 million. Projects / are listed at https : / tmf.cio.gov. PRESIDENT’S MANAGEMENT AGENDA The PMA outlines a long-term vision for an The Administration requests $150 mil • - effective Government that better achieves its lion for the TMF in 2020 to provide seed missions and enhances key services on which funding for additional projects and to the American people depend. It advances three allow the TMF to tackle more complex, drivers of change—technology, data, and the Government-wide efforts. workforce—through multiple paths, recognizing - In addition, MGT provisions authorized agen that real transformation requires cross-func - cies to establish IT Working Capital Funds tional change across disciplines. The PMA sets - (WCFs) as a dedicated resource for IT modern 14 Cross-Agency Priority (CAP) Goals where ization. The Budget requests necessary transfer Executive Branch agencies can collaborate to authority to better enable agencies to operation - drive modernization, including critical areas - alize these IT WCFs and fully implement flex such as cybersecurity, customer experience, pay - - ibilities of the MGT provisions. The Budget re ment accuracy, information technology (IT), hu - flects instances where agencies are establishing man resources, and procurement. IT WCFs. IT Modernization Modernizing IT to Increase Productivity The 2020 Budget supports agency investments Through this goal, and Security (CAP Goal 1). to modernize IT systems and improve the value the Administration is building and maintaining they provide to the American people. more modern, secure, and resilient IT to enhance mission delivery and productivity. Modernizing Government Technology 1 and the Technology (MGT) Provisions • Federal Agencies have delivered on the MGT provisions Modernization Fund (TMF). Report to the action items provided in the 1 Pub. L. No. 115-91, National Defense Authorization Act for Fis - President on Federal IT Modernization , cal Year 2018, Title X, Subtitle G (§§ 1076 through 1078). 7
12 8 MoDErNIzING GovErNMENT studies for future complementary Federal completing all of the 52 tasks outlined data management and use. and informing further priorities and next steps included in this goal. The Budget supports the Federal Data • The Administration released office Strategy by establishing a U.S. Federal • Data Service within the Department of of Management and Budget (oMB) Commerce’s office of the Undersecretary Memorandum M-19-03, Strengthening for Economic Affairs. the Cybersecurity of Federal Agencies by enhancing the High value Asset Program, • The Administration will begin implement - creating a formal program to support ing the Foundations for Evidence-Based value Asset identi - all agencies in High Policymaking Act of 2018, including fication, assessment, remediation, and designating agency Statistical officials response to incidents. - and Chief Data officers, requiring ma chine-readable data, improving secure • The Administration released the draft access to data, and strengthening privacy 2018 Federal Cloud Computing Strategy protections. - on September 24, 2018, for public com ment, soliciting feedback from industry, • The Budget supports the Federal agencies, and the American people. - Geographic Data Committee’s work to im • prove management of geospatial data and The Administration released a draft implement the provisions of the Geospatial memorandum, Strengthening the Cyber- Data Act of 2018. security of Federal Agencies through Improved Identity, Credential, and Access st Management, on April 6, 2018, for public Workforce for the 21 Century comment, to better control information ac - st Developing a Workforce for the 21 cess and protect information. Century (CAP Goal 3). The Federal workforce represents a critical part of realizing change. The Department of Homeland Security • Failure to address fundamental workforce needs (DHS) and oMB piloted enhancements to will render other modernization work ineffective. the cybersecurity controls required by the This goal reflects a transformational shift in stra - Trusted Internet Connection program. tegic human capital management based on three • Agencies continue to implement the pillars: Continuous Diagnostics and Monitoring Actively Managing the Workforce: 1. program, with all Chief Financial officers Improving employee performance man - Act agencies now sharing data with the agement and employee engagement; Federal Dashboard. 2. Developing Agile operations: reskilling Data, Accountability, and Transparency and redeploying human capital resources; Leveraging Data as a Strategic Asset (CAP and The Administration is creating the first Goal 2). 3. Acquiring Top Talent: Enabling simple - comprehensive Federal Data Strategy for manag and strategic hiring practices. ing and using Federal data. The goal is co-led by oMB, the office of Person- • In 2018, the Administration launched nel Management (oPM), and the Department the Federal Data Strategy outlining of Defense. DHS, the Departments of veterans Principles, Practices, and a Year 1 Action Affairs, Health and Human Services (HHS), and : / / strategy.data.gov . The Data Plan on https the Interior lead three subgoals. Almost all agen - Incubator Project creates practical case cies participate in some capacity.
13 BUDGET oF THE U. S. GovErNMENT For FISCAL YEAr 2020 9 The first year of implementation focused on Sharing Quality Services (CAP Goal 5). defining a baseline for how agencies address This goal created a new shared service model poor performers, distribute financial awards, to improve performance, customer experience, and hire staff. The Administration is using and operational costs. The new model estab - existing authority to remove barriers and fix lishes Government-wide centralized capabilities processes. Examples include issuing direct offered through Quality Service Management - hire authority for science, technology, engineer offices that each oversee one functional area, ing, and mathematics positions; modernizing such as financial management, procurement, Senior Executive Service processes; strength - payroll, etc. In an early effort to apply this model ening performance management; and acting to in 2018, GSA awarded blanket purchase agree - increase employee engagement. Going forward, ments for the NewPay initiative for software this goal will focus on continuous improvement as a service solutions for payroll and time and within agencies. attendance services across Government. The Budget provides funds to begin migrating the Departments of Agriculture and the Interior and Additional Focus Areas to Strengthen GSA to NewPay. Mission, Service, and Stewardship Improving Customer Experience (CAP Shifting from Low-Value to High-Value Customer satisfaction with Federal ser Goal 4). - The Administration has Work (CAP Goal 6). vices lags by as much as nine points behind the pri - - lifted nearly 60 redundant, obsolete, or unnec vate sector. To close this gap, the Administration essary requirements from all Federal agencies has identified Federal programs that provide the and proposed to eliminate or modify more than highest impact customer-facing services. These 400 congressionally required plans and reports programs are implementing Government-wide that are outdated or duplicative. In addition, customer feedback measures aligned with pri - oMB is coordinating with oPM and GSA to re - vate-sector best practices and creating action form burdensome data collection and reporting plans for improvement. Performance data and requirements. action plans will be posted online for the public. Category Management (CAP Goal 7). Increasing the use of proven, enterprise solu - tions for more than $300 billion in common Agency Initiatives to Transform Customer goods and services allows the Government to Experience leverage its buying power and reduce unnec - essary, expensive duplication. As a result, the The General Services Administration (GSA) and Government has avoided $17 billion in costs, the U.S. Digital Service launched https://www. applied category management principles to , a single, common identity platform that login.gov nearly 45 percent of common spend, exceeded - lets users access Government services more se metrics for use of top-tier Government-wide so - curely, easily, and quickly. This site has grown to - lutions by $11 billion, and exceeded small busi nesses goals. more than 12 million users and continues to grow. The Departments of Labor, Education, Defense, Results-Oriented Accountability for - and Veterans Affairs; the Small Business Adminis - This goal helps maxi Grants (CAP Goal 8). mize the value of grant funding by applying a tration; GSA; and OPM have created an interagency risk-based, data-driven framework to balance journey map of how servicemembers interact with compliance requirements with demonstrating programs across Government during their transition successful results for the American taxpayer. The to civilian employment. With this perspective, the chapter 17 “Aid to State Analytical Perspectives team is now identifying improvements that matter and Local Governments” provides more informa - most to the customer. tion about this Goal.
14 10 MoDErNIzING GovErNMENT - governance as well as tracking investments us ing portfolio management principles. Shifting to High-Value Work: Leveraging Technology Modernizing Infrastructure Permitting (CAP Goal 12). The Administration is working The Administration is using Robotics Process Au - to reduce the overall time to make decisions for tomation and other emerging technologies to reduce - major infrastructure projects with the goal of re error, improve compliance, and focus the Federal ducing time to an average of two years. These ef - workforce on higher-value work. forts have already resulted in $1 billion in cost savings through avoided permitting delays. The GSA’s Office of the Chief Financial Officer shifted public can now track agency performance online staff to higher-value work after automating tasks that https at : / / www.permits.performance.gov . consumed approximately 12,000 labor hours per Security Clearance, Suitability, and year at an estimated half the cost. This Credentialing Reform (CAP Goal 13). The National Aeronautics and Space Administra - goal promotes a Federal workforce that reliably tion’s Shared Services Center has four bots running protects Federal Government people, property, nine different processes, including distributing funds, systems, and information through an enhanced procurement, documenting images, scanning files, risk management framework. and creating folders to establish grants packages. Improving the Transfer of Federally HHS is using artificial intelligence to help identify Funded Technologies from Lab-to-Market opportunities to consolidate contract vehicles, which This goal will strengthen the (CAP Goal 14). will offer significant cost savings. - ability of federally funded innovations to transi tion from discovery in the laboratory to impact in the marketplace, including by reducing regu - Getting Payments Right (CAP Goal 9). latory burden, strengthening partnerships, and Preventing improper payments that result enhancing how to measure return on Federal in a monetary loss is a high priority for the investment. See Analytical Perspectives - chap Administration. For additional details, please ter 21, “research and Development,” for more refer to the Analytical Perspectives volume information. chapter 9, “Payment Integrity,” which includes Budget proposals aimed at preventing these im - OTHER PRIORITIES TO proper payments. MODERNIZE GOVERNMENT Improving Outcomes through IT Cost Government Reform and Reorganization. This goal aims Transparency (CAP Goal 10). Another tool to modernize the Federal Government to leverage budget, acquisition, and financial for today’s mission needs is reorganization. In data from authoritative sources using automa - Delivering Government Solutions June 2018, the st - tion. Federal employees will be able to shift ef plan laid out specific examples Century in the 21 forts to analysis and strategy recommendations of organizational misalignment. The Analytical rather than duplicating data entry, often not from volume chapter 8 provides more in Perspectives - authoritative sources. - formation about the Administration’s reform pri orities and phased implementation approach. Improving the Management of Major Federal agencies Acquisitions (CAP Goal 11). The Federal Acquisition Modernization. will ensure contracts supporting transformative Government spends a half trillion dollars through - and other priority projects will meet or beat deliv contracts each year to help deliver the mission in ery schedules, provide exceptional customer ser - - hundreds of agencies. While user-driven and in vice, and achieve savings or cost avoidance for the novative acquisitions continue to achieve results, taxpayer. The implementation strategy includes - most agencies remain encumbered by an anti strengthening talent management and agency quated and complex system. The Administration
15 BUDGET oF THE U. S. GovErNMENT For FISCAL YEAr 2020 11 - In 2018, agencies continued quarterly, data-driv will unveil an Acquisition Modernization Plan to guide incremental transformation through con en performance reviews of over 80 Agency Priority - tinuous process improvement testing, feedback, Goals. oMB held strategic review meetings with the major agencies to discuss management suc re-testing, and scaling. The Administration will - cesses, challenges, and risks for over 265 stra - work with the Congress on appropriate pilot au - tegic objectives and identify course corrections thorities to allow tailored flexibility, if necessary, - where needed. The Administration also issued a to test ideas to improve value and efficiency, con five-year strategic plan with key strategies and - sistent with principles of impartiality, transpar ency, and a robust supplier base. guidance to implement the Program Management Improvement Accountability Act. Enterprise Risk Management (ERM). ErM Strengthen Use of Evidence. is a tool to support strategic planning, improve To further performance, and foster a more risk-aware cul - implement the Foundations for Evidence-Based ture. In June 2018, oMB updated oMB Circular Policymaking Act of 2018, the Administration No. A-123, Appendix A, Management of reporting will direct agencies to establish multiyear learn - and Data Integrity risk, to integrate prior guid ing agendas to strategically plan their evidence- - ance for internal controls with current ErM poli building activities in order to improve policy - and programs. Agencies will also designate an cy. Agencies will now use a risk-based approach to - assess, document, test, and report on internal con Evaluation officer to help lead evidence-building trols over reporting and data integrity. Increasing activities. - maturity among agency ErM programs will sup Real Property. The Administration has pri - port decision making across the PMA. oritized optimizing the Federal real property portfolio to achieve the mission and minimize Performance Management. The Admin- istration continues to leverage best practices cost. The Analytical Perspectives volume chapter from across sectors to drive improvement via the - 10 describes recent accomplishments and the vi Federal Performance Management Framework. sion to achieve this reform.
16 12 MoDErNIzING GovErNMENT
17 CUTTING THE RED TAPE: UNLEASHING ECONOMIC FREEDOM Since taking office, the President has rein access healthcare providers, expanding options - vigorated the economy through an historic reg - for those who live in rural and underserved ar - eas. The Administration rolled back regulations ulatory reform agenda. The American people - on America’s fishermen, providing a net econom can feel the effects of economic freedom as the Administration eliminates unduly burdensome ic benefit of over $654 million to that industry. regulations and pulls back the long reach of The Department of Health and Human Services Federal mandates. reduced healthcare paperwork burdens, saving $8.2 billion in regulatory costs and providing In 2018, the Administration removed 12 old much-needed relief to Medicare providers. In a regulations for every one new significant regula - major report, the Council of Economic Advisers tion and saved the American people $23 billion estimates that key Administration healthcare in overall regulatory costs. In just his first 21 - deregulatory actions that expanded choice of in months in office, the President achieved a total of surance coverage will produce massive economic $33 billion in net regulatory cost savings for the benefit—on the magnitude of nearly $250 billion American people, a stark contrast to the $245 over a decade. billion in net regulatory costs imposed by the Obama Administration during the same amount The Administration plans even bolder efforts - during the remainder of 2019. Agencies plan de - of time. The President’s regulatory reform agen da represents a fundamental change of direction regulatory actions on Corporate Average Fuel for the Federal Government. The strategy is sim - Economy standards, Waters of the United States, ple: by eliminating or amending regulations that and automated vehicles, resulting in even more - benefits for the American people. While continu - are duplicative, unnecessary, ineffective, or un ing to protect health and safety, the President’s - duly burdensome, the Administration is unleash ing the ingenuity, determination, and know-how regulatory reform allows individuals and small businesses to produce and innovate. These bold of the private sector, which has always been the principal driver of American prosperity. actions will create jobs, spur innovation, and yield billions of dollars in benefits for American Comprehensive regulatory reform has pro - businesses and families. vided relief to millions of Americans. The Getting Washington out of the way promotes Department of Labor eased the burden on - - the American dream. The Administration’s com small business owners, affording them new op monsense regulatory policy has renewed confi portunities to provide healthcare to their em - - ployees through association health plans. The dence in the economy so the American people can Department of Veterans Affairs has expanded once again confidently invest in their families, veterans’ ability to use telecommunications to businesses, and future. 13
19 DEPARTMENT OF AGRICULTURE Funding Highlights: • The U.S. Department of Agriculture (USDA) provides leadership and direction on issues related to food, agriculture, and natural resources based on sound public policy, the best available science, and effective management. • The Budget focuses on core Departmental activities such as agricultural research, rural lending, and protecting the Nation’s forested lands and private agricultural lands, while also supporting the Secretary’s efforts to improve services and expand broadband. The Budget also proposes that USDA responsibly and efficiently use taxpayer resources by making targeted reforms to duplicative programs and overly generous subsidy programs. • The 2020 Budget requests $20.8 billion for USDA, a $3.6 billion or 15-percent decrease from the 2019 estimate (including changes in mandatory programs and receipts). The President’s 2020 Budget: - USDA works to promote American agricultural products and exports, support rural economic de velopment, maintain access to a safe and nutritious food supply, and strengthen the productive and sustainable use of National Forest System Lands and stewardship of private lands. USDA’s broad mission encompasses everything from domestic feeding programs and assistance in rural America, to farm loans and the National Forest System. Throughout rural America, USDA’s programs provide financing to help grow job prospects and raise income levels as well as improve utilities and infrastructure. The Department works to promote agricultural production while also protecting the long-term availability of safe and affordable food. USDA programs safeguard and protect America’s food supply by reducing the incidence of food-borne hazards through the inspec - tion of meat, poultry, and egg products. The Department’s programs also improve nutrition and health through food assistance and nu - trition education. USDA works to increase foreign market access for U.S. agricultural products and provides data and analysis of foreign market conditions. This helps U.S. agricultural producers make informed decisions on international trade opportunities, and supports the U.S. economy through increased exports. In addition, USDA manages and protects America’s public and private lands by working cooperatively across Federal, State, and local governments and the private sector and the private sector to preserve and conserve the Nation’s natural resources through restored forests, 15
20 16 Dep ArTmeNT oF AgrIcULTUre improved watersheds, and healthy private working lands. The Budget supports critical investments across core mission areas within USDA to best deliver results and support rural America. Protects Health Outcomes for Pregnant Women, Infants, and Young Children. The Budget requests $5.8 billion to serve all projected participants in the Special Supplemental Nutrition program children. This program provides nutritious supplemental food packages, for Women, Infants, and nutrition education, and health and immunization referrals to low-income and nutritionally at-risk pregnant and postpartum women, infants, and children. Promotes Work and Reforms the Food Safety Net. The Budget includes bold proposals to help able- “[W]e will continue to provide the best bodied adults participating in the Supplemental Nutrition Assistance program (SNAp) enter the job possible service to our customers – the market and work toward self-sufficiency. The Budget farmers, ranchers, foresters, and producers continues the America’s Harvest Box proposal, allowing of American agriculture and ‘do right and innovative partnerships with the private sector to com - feed everyone’.” bine the traditional SNAp electronic Benefits Transfer - benefits with 100 percent American grown foods pro USDA Strategic Goals vided directly to households. The proposal ensures that May 2018 Americans in need have access to a nutritious diet while significantly reducing the cost to taxpayers. States maintain the ability to provide choice to their partici - pants, including innovative approaches for the inclusion of fresh products. The Budget also includes proposals to reserve benefits for those most in need, promote efficiency in State operations, and strengthen program integrity. Invests in Rural America. - In today’s information-driven global economy, e-connectivity has be come an essential component to attract and grow rural businesses. To that end, the Budget supports continued implementation of the Secretary’s e-connectivity pilot program to foster thriving agricul - tural economies. The Department also helps to maintain and modernize rural utilities by providing critical support for infrastructure, such as $528 million in funding for water and wastewater grants and loans that support $1.2 billion in water and wastewater direct loans, $5.5 billion in electric loans, and $690 million in telecommunications loans. Through USDA’s $24 billion portfolio of guaranteed housing loans, the Department assists lenders in providing low- to moderate-income rural Americans - with access to affordable housing. In addition, the Budget supports a $3 billion loan level for com munity facility direct and guaranteed loans, which assist communities in developing or improving essential public services and facilities across rural America, such as health clinics or fire and rescue stations. According to the centers for Disease Combats the Opioid Challenge Facing Rural America. - control and prevention, the rates of drug overdose deaths are rising in rural communities, surpass ing the rate in urban areas. Through the Secretary’s leadership of the Task Force on Agriculture and rural prosperity, the Department has identified specific actions to combat the opioid crisis and improve the quality of life in rural communities. USDA is approaching the opioid crisis with a dedi - cated urgency by partnering with local communities to provide program resources for prevention, treatment, and recovery. For example, USDA has launched an interactive data tool to help rural com - munities as they plan and build a local response to this monumental challenge. The Budget proposes $44 million in distance learning and telemedicine grants, of which $20 million would be dedicated to projects that combat the opioid crisis. In addition, the Budget proposes $60 million in community facilities grants, which can be used to support treatment centers and other community needs.
21 BUDgeT oF THe U. S. go VerNmeNT For FISc 17 AL YeAr 2020 USDA funded research helps to protect, secure, and improve Prioritizes Agricultural Research. the Nation’s food, agricultural, and natural resource systems. Because the challenges facing the agri - culture industry are immense, the Budget prioritizes competitive research through the Department’s flagship grant program, the Agriculture and Food research Initiative (AFrI). The Budget requests $500 million for AFrI, an increase of $100 million above the 2018 enacted level, and maintains for - mula-based research and extension grants at the level requested in the 2019 Budget. In 2020, the Budget also invests in the Nation’s aging research infrastructure by proposing $50 million for a new competitive grant program to modernize agriculture research facilities at land grant universities. - The Budget proposes $1.2 billion for the Agricultural research Service, which conducts in-house ba sic and applied research. This includes additional funding for the National Bio- and Agro-Defense Facility, currently under construction in manhattan, Kansas. USDA is assuming the responsibility for operational planning and future operations of the facility, which will provide the United States the ability to conduct comprehensive research, develop vaccines, and provide enhanced diagnostic capa - bilities to protect against emerging foreign animal and zoonotic diseases that threaten the Nation’s food supply, agricultural economy, and public health. The Budget also proposes $50 million for mod - ernizing Agricultural research Service facilities. Implements Firefighting Funding Fix and Supports Forest Management Priorities. In 2018, Forest Service wildfire suppression spending was $2.6 billion, a record level for the second consecutive year. extreme fire behavior fueled by dry forest ecosystems and aggressive suppression - operations in the wildland-urban interface to protect life and property were primary factors contrib uting to this unprecedented outlay of resources. The Administration’s work with the congress to en - act a wildfire funding fix culminated last march with the wildfire cap adjustment in the consolidated Appropriations Act, 2018. In 2020, the wildfire cap adjustment would provide the Forest Service and the Department of the Interior with additional funding of up to $2.25 billion if the agencies fully ex - pend their base funding levels for wildfire suppression. This funding aims to eliminate the need for disruptive “fire borrowing” from other uses to fund shortfalls during times of emergency. In addition, the Administration has been direct and unequivocal about the need to accelerate active forest management. The Budget reflects this critical priority by requesting $450 million for hazard - ous fuel mitigation work and $375 million for the forest products program, higher amounts than in any prior Budget or enacted appropriation for both programs. Hazardous fuel removal is pivotal in ensuring Federal forests and watersheds are sustainable, healthy, and productive, which helps to - make them safer and more resilient to the destructive impacts of wildfire. These programs also gen erate jobs in rural forest communities. Improves Customer Service. The Budget supports new and continuing investments in infor - mation technology modernization by USDA to improve customer service and streamline and mod - ernize rural and farm program and service delivery. Through the https : / / www.Farmers.gov service portal, the Department is working toward greater online service delivery and fewer in-person and paper-based transactions. In addition, the Budget continues support for the Secretary’s realigned Farm production and conservation mission area by streamlining service delivery between the Farm Service Agency, Natural resources conservation Service, and risk management Agency to improve efficiency, effectiveness, and accountability. Supports Comprehensive Farm Safety Net Reforms and Reduces Waste. The Budget pro - poses to optimize and improve crop insurance and commodity programs in a way that maintains a strong safety net. The Budget does this while also achieving savings, eliminating subsidies to higher income farmers, and reducing overly generous crop insurance premium subsidies to farmers and payments made to private sector insurance companies. The Budget includes a bold set of proposals, including those that would reduce the average premium subsidy for crop insurance from 62 percent
22 18 ArTmeNT oF AgrIcULTUre Dep to 48 percent and limit commodity, conservation, and crop insurance subsidies to those producers that have an Adjusted gross Income of $500,000 or less. In addition, the Budget proposes reductions to overly generous subsidies provided to participating insurance companies by capping underwriting gains at 12 percent, which would ensure that the companies receive a reasonable rate of return given the risks associated with their participation in the crop insurance program. The Budget proposes to tighten commodity payment limits, including eliminating an unnecessary and separate payment limit for peanut producers and limiting eligibility for commodity subsidies to one manager per farm. Ensures Commodity Purchases and Donations and Improves Program Transparency. During times of market disruption, low prices, or oversupply, USDA has the ability to purchase com - modities from the marketplace and donate them to domestic feeding programs and soup kitchens. The Budget includes a suite of proposals to ensure stable historical levels of funding for all the nutri - tion programs that benefit from these activities while also increasing transparency and improving operational efficiency.
23 DEPARTMENT OF COMMERCE Funding Highlights: The Department of Commerce (DOC) ensures fair and secure trade; provides data that empowers and • informs American businesses and citizens; prevents U.S. technologies from being exploited, misused, or stolen through export controls and an effective system of patents and trademarks; and conducts foundational research and development. The Budget request for DOC prioritizes and protects investments in core Government functions such as • preparing for the 2020 Decennial Census, providing the observational infrastructure and personnel to produce timely and accurate weather forecasts, and enforcing laws that promote fair and secure trade. The Budget requests $12.2 billion for DOC, a $1.0 billion or a 9.3-percent increase from the 2019 estimate. • The President’s 2020 Budget: The Budget continues to invest in critical priorities such as the 2020 Decennial Census, trade enforcement, intellectual property, weather and Earth observations, and spectrum management. In order to fund these priorities in a fiscally disciplined manner, the Budget reduces grant funding and consolidates or eliminates duplicative or unnecessary programs. Supports a Fair, Modern, and Accurate 2020 April 1, 2020, is Census Day and Decennial Census. Did you know? - marks the culmination of nearly a decade of design, re search, and testing to meet the Administration’s goal The census is the Nation’s largest peace- of conducting a complete, accurate, and fair Decennial - time mobilization of its workforce, an exer Census. Required every 10 years by the Constitution, cise that requires collaboration across Fed - the Decennial Census is responsible for the allocation eral agencies, non-Federal organizations, of congressional representation and more than $675 State and local governments, and the public. billion of Federal funds to local communities. The These efforts help to ensure an accurate and 2020 Census will be the most modern census in the complete count of U.S. residents as required Nation’s history, as households will have the choice to by the Constitution every 10 years. To make participate via the internet, telephone, or by paper. An this a success, the Census Bureau will re - accurate Decennial Census is imperative because of - cruit more than three million applicants be - the role its data play in shaping and informing poli tween now and 2020. cymaking for the next decade. The Budget recognizes 19
24 20 DEp ARTmENT oF CommERCE the importance of the Census Bureau’s mandate by supporting $7.2 billion in total budget authority in 2020. The Budget in - Promotes Free and Fair Trade. cludes $16 million to support the president’s robust “The era of economic surrender is over. From trade agenda in order to protect critical elements of now on, we expect trading relationships to be U.S economic security and level the playing field for fair and to be reciprocal.” American workers, farmers, and manufacturers. The Budget supports the implementation of the John S. President Donald J. Trump mcCain National Defense Authorization Act of 2019, September 28, 2018 which expanded the jurisdiction of the Committee on Foreign Investment in the United States and provided DoC with new responsibilities to identify emerging and foundational technologies that are essential to national security. The Budget also establishes a new initiative within the International Trade Administration to counter the circumvention or evasion of U.S. trade actions aimed at those who engage in unfair and illegal trade practices. Supports America’s Prominence in Critical Technologies. The Budget provides $688 million for the National Institute of Standards and Technology to conduct cutting-edge research, including quantum computing, artificial intelligence, and microelectronics. Together, these investments would drive innovation for national security and economic competitiveness. The Budget also provides $10 olicy Directives, including new million to support functions assigned in the Administration’s Space p capacity to manage commercial space traffic and provide real-time data to serve the civilian space sector. In addition, the Budget supports the application of innovative spectrum access techniques, spectrum sharing technologies, and spectrum leasing options to enable smarter and more efficient ways to leverage the Nation’s valuable and finite spectrum resources. As part of the Administration’s commitment to the Heartland, the Budget funds broadband mapping work to support ongoing efforts to increase the availability of affordable, reliable, and modern high-speed internet access in rural and underserved communities. Protects Lives and Property with Weather Data. America’s satellites are vital to keeping America safe and secure, providing space-based observations that improve the accuracy and timeli - ness of weather predictions. The Budget provides $1.2 billion in funding to support the development of these critical satellite systems, including polar weather satellites, space weather instruments, and satellite data collection systems. The Budget also includes funding to study how commercial tech - nologies could be leveraged to help support future satellite architectures, assure data continuity, and reduce lifecycle costs. Funding these priorities reduces the risk of a weather satellite coverage gap, which would have devastating consequences for public safety and the national economy. Improves the Delivery of America’s Economic Statistics. The president and the - Administration are changing a once-stagnant economy with pro-growth policies, and the Nation’s eco nomic data tells the story of this success. The Budget recognizes the importance of economic statistics for businesses and everyday citizens to make informed decisions and confidently invest in America’s Delivering Government Solutions in future. The Administration urges the Congress to consider the st the 21 Century plan’s recommendation to consolidate critical economic statistics programs at Census, the Bureau of Economic Analysis, and the Bureau of Labor Statistics, making agency operations more efficient, improving products, and reducing respondent burden. As part of the Administration’s commitment to deploy effectively Government resources to the neediest communities, the Budget also provides funding to improve poverty measurement in America.
25 BUDGET oF THE U. S. Go VERNmENT FoR FISCAL YEAR 2020 21 The Budget supports the ongoing, multi-agency work Supports Infrastructure Permitting. to streamline Federal permitting processes by increasing the National oceanic and Atmospheric Administration’s (NoAA) capacity to complete environmental reviews for permitting applications mammal protection Acts. Allocating additional funding under the Endangered Species and marine to this initiative would allow NoAA to reduce the burden on the regulated community by providing more timely, consistent, and clear consultations and authorizations, resulting in faster reviews and a reduced backlog for permits, including those supporting energy, oil and gas, and transportation proj - ects. This investment in America’s future would contribute to prosperity and economic growth. Eliminates Redundant, Ineffective, and Inefficient Programs. Americans deserve a Government that makes investments that are transparent, accountable, and provide the great - est return for their hard-earned tax dollars. The Budget eliminates the Economic Development Administration, which provides small grants with limited measurable impacts and duplicates other Federal programs. The Budget also proposes to eliminate funding for several lower priority NoAA grant and education programs, including Sea Grant, Coastal Zone management Grants, and the pacific Coastal Salmon Recovery Fund. These eliminations would allow NoAA to better target re - maining resources to core missions and services. In addition, the Budget eliminates Federal funding for the manufacturing Extension partnership program, assuming its transition to solely non-Federal revenue sources, as originally intended when the program was established. The Budget also proposes the modernization of the minority Business Development Agency, reforming its operations to expand its reach and better help meet its programmatic objective of helping minority businesses.
27 DEPARTMENT OF DEFENSE Funding Highlights: • The Department of Defense (DOD) provides the combat credible military capabilities needed to compete, deter, and if necessary, fight and win wars to protect the security of the United States. • The Budget funds the National Defense Strategy to support DOD’s three lines of effort: rebuilding readiness and lethality; strengthening alliances and partnerships; and improving performance and affordability through reform. The Budget requests $718 billion for DOD, a $33 billion or 5-percent increase from the 2019 enacted level. • The President’s 2020 Budget: The Budget provides the necessary resources for DOD to defend the homeland, remain the pre- eminent military power in the world, ensure balances of power in key regions remain in America’s favor, and advance an international order that is most conducive to U.S. security and prosperity. The Budget enhances the military’s readiness and lethality, prioritizing strategic competition with China and Russia. The Budget also sustains efforts to deter and counter rogue regimes such as North Korea and Iran, defeat terrorist threats, and consolidate gains in Iraq and Afghanistan through a resource-sustainable approach. DOD will increase the impact of its investments, as it rebuilds more lethal force, strengthens the network of allies and partners, and implements reform. The Budget builds on steady gains that have restored military readiness, enhanced lethality, increased force size, and driven the Islamic State of Iraq and Syria (ISIS) out of territory it once held. On this foundation of strength, the Budget reflects the full integration of the National Defense Strategy across DOD, and supports dominance across all domains. The Budget provides the Army, Navy, Air Force, and Marine Corps the capabilities to bolster advantage in the air, on land, and at sea, leveraging advances in key technologies, including long-range precision fires, hypersonic mis - siles, and missile defense systems. For space, the Budget supports the creation of a new branch of the Armed Forces, the United States Space Force, and a new combatant command, U.S. Space Command, while the Space Development Agency, which is being established in 2019, fosters inno- vation. For cyber, the Budget continues to integrate efforts and operationalize U.S. cyber strategy, while scaling artificial intelligence throughout the Department. The Budget funds these advanced capabilities for the force needed to achieve the objectives in the National Defense Strategy. In 2020, the Budget funds an end strength of 2,140,300 active and reserve military personnel, buys 12 battle 23
28 24 Dep ARTMeNT OF DeFeNSe force ships and two large experimental unmanned surface ships, procures 110 fighter aircraft, and modernizes nearly two armored brigade combat teams. The Budget provides the resources necessary Ensures the Readiness of U.S. Armed Forces. to continue rebuilding military readiness, which had been degraded by budget reductions imposed by the Budget Control Act and more than 17 years of warfighting. The Budget includes increased fund - ing for the U.S. Army to modernize existing forces, provides additional training for soldiers to meet readiness goals by 2022, and increases readiness of security assistance brigades to train, advise, and enable foreign security forces to build partner capacity. The Budget funds continuing efforts to im - prove Navy and Marine Corps aviation readiness, with - robust funding for maintenance, spare parts, and fly ing hours, while prioritizing close combat investments “My Administration’s National Security in lethality and enablers to provide every advantage to Strategy lays out a strategic vision for America’s tactical warfighters. The Budget also funds protecting the American people and ship depot maintenance and ship operations accounts preserving our way of life, promoting our to the maximum executable levels. In addition, the prosperity, preserving peace through Budget funds Air Force flying hours to the maximum strength, and advancing American influence executable levels and continues to fund maintenance at in the world.” a high level to achieve desired readiness gains, in ad - dition to an aggressive program to recruit and retain President Donald J. Trump additional pilots. The Budget also expands multiyear December 18, 2017 investments in training for high-end combat to ensure the United States remains able to defeat any adversary. Modernizes the Nuclear Deterrent. The return of great power competition demonstrates the need for flexible, adaptable, and resilient nuclear capabili - ties to keep America safe and secure. The Budget continues the Administration’s implementation of osture Review through investments in nuclear ballistic missile submarines, strategic the Nuclear p bombers, nuclear air-launched cruise missiles, intercontinental ballistic missiles, and the associated nuclear command, control, and communications systems. The rapid advance - Pursues Technological Innovation for Decisive Military Advantage. ment and proliferation of new technologies is changing the character of war. To prevent the erosion of the U.S. competitive military advantage, DOD is investing in new technologies to compete, deter, and if necessary, fight and win the wars of the future. The Budget’s key areas of focus include autonomous systems, hypersonics, and artificial intelligence, including $208 million to scale DOD’s Joint Artificial Intelligence Center. In addition, in 2020 the Army’s newly formed Army Futures Command would be at full operating capability, designed to increase the efficiency of Army modernization, by leveraging technology across the enterprise and reducing development time. The Budget requests more than $59 billion in research, engineering, and prototyping activities to maintain the military’s technological superiority and conventional overmatch against priority challenges. The Budget supports the creation of Establishes the United States Space Force (USSF). USSF as the sixth branch of the Armed Forces. For the first time in 70 years, DOD will establish a - new service to organize, train, and equip DOD’s forces in order to protect and defend America’s na tional interests in the fourth domain of warfare. The USSF will initially realign existing space forces and materiel from the military services and will scale up responsibly and deliberately over the next several years in order to address increasing threats and maintain strategic stability. The Budget pro - vides funding to establish the USSF as a new service within the Department of the Air Force while continuing to accelerate the development and procurement of vital capabilities to the Joint Force, allies, and partners. Central to achieving this new acquisition paradigm is the Space Development
29 BUDGeT OF THe U. S. GOVeRNMeNT FOR FISCAL YeAR 2020 25 - Agency, which is being established in 2019 under existing authorities to foster innovation by leverag ing the thriving domestic commercial space sector. The Budget also supports U.S. Space Command as the newest Combatant Command, which will employ the forces and capabilities presented by the USSF. st Advances Airpower for the 21 - Century. The Budget request supports the continued modern ization of DOD’s aircraft fleets to enable them to meet the challenges they will face in the contested environment of the future. The Air Force’s tactical fighter investment program is focused on procuring the advanced F-35A stealth fighter while improving its fleet of current fighters such as the F-15 and F-16. The Navy and Marine Corps would also continue to procure their own variants of the F-35, as well as modernize their current F/A-18e/F fighters. In addition, the Budget continues to fund the - development of the next generation stealth bomber and procurement of KC-46 aerial refueling tank ers. These investment programs would ensure that DOD will be able to successfully counter the wide variety of threats that could be encountered in future combat situations. Builds a More Lethal and Ready Navy. The Budget enhances lethality to meet the Nation’s security challenges today while preparing for tomorrow. The Budget balances between moderniza - tion and readiness as well as capability and capacity. Notably, the Budget accelerates acquisition for several key systems, including Unmanned Undersea Vehicles, and invests in advanced tactical munitions, such as Tactical Tomahawks and the Standard Missile 6 Block 1B. The Budget also buys two large experimental unmanned surface ships and 12 battle force ships, including three guided missile destroyers, three fast attack submarines, and the first of a new class of guided missile frig - ates. The Budget also supports the Navy’s recent innovative procurement of nuclear aircraft carriers, which should enable the shipbuilder to achieve unprecedented efficiencies from the construction of two ships. Improves Ground Combat Lethality. The Budget invests in enhancements to close combat lethality of small infantry units, and the modernization of armored brigades. Most combat deaths suffered by infantry squads happen while engaging with the enemy at close range. The Budget makes investments in improved equipment and training to enhance the overmatch of Army, Marine Corps, and Special Operations small combat units. By investing in new weapons and body armor, warfighter recruitment and training, tactical communications and sensors, the Budget makes these front line units more lethal, resilient, and capable in a close combat environment. The Budget also accelerates the modernization of the Army’s armored brigades to nearly seven over the five-year window while investing in the development of a next generation ground combat vehicle. Strengthens Missile Defense. The Budget supports the president’s commitment to expand and improve state-of-the-art missile defense systems as articulated in the recently released Missile Defense Review (MDR). The Budget sustains deployed missile defense assets, improves system re - liability against today’s threats, increases engagement capability and capacity, and makes strides to rapidly address the advanced threat. The Budget continues work to build a new missile field at Fort Greely, Alaska, with 20 silos and 20 additional Ground-Based Interceptors (GBIs) in support of the Administration’s plans to increase the number of deployed GBIs to 64, to protect the homeland against North Korean and other intermediate- and long-range ballistic missile threats. In addition to enhancing current capabilities, the Budget embraces the MDR principles of exploring promising new technologies, including in space, and enhancing offensive capabilities to neutralize missile threats prior to launch during a conflict. Invests in Cyber Activities. The Budget continues to place a high priority on cybersecurity and cyber operations by requesting more than $9.6 billion in 2020 to advance DOD’s three primary cyber missions: safeguarding DOD’s networks, information, and systems; supporting military commander
30 26 Dep ARTMeNT OF DeFeNSe objectives; and defending the Nation. This investment provides the resources necessary to grow the capacity of U.S. military cyber forces (including the recently elevated United States Cyber Command), invest in the cyber workforce, and continue to maintain the highest cybersecurity standards at DOD. Continues to Promote Stability and Security in South Asia. The Budget furthers the U.S. goal of a stable and secure South Asia by supporting the Afghan government and security forces in their fight against jihadist terrorist organizations. The Budget requests funding for continued U.S. training and assistance for the Afghan National Defense and Security Forces and enables U.S. forces to conduct counterterrorism operations. Secures the Enduring Defeat of ISIS, al Qaeda, and other Jihadist Terrorists. The Budget requests the funding necessary to ensure the lasting defeat of ISIS. Building on ISIS’s territorial de - feat in Iraq and the liberation of ISIS-controlled territory in Syria, DOD will continue to work with partner forces to destroy remnants of ISIS, strengthen border security, retain territorial control, and disrupt ISIS’s capability to attack the U.S. homeland and America’s allies. The Budget also requests funding for DOD to address the threat from ISIS branches outside Iraq and Syria, and to protect the United States against other terrorist threats. Military Increases Compensation for Servicemembers and Supports Military Families. compensation must be competitive to recruit and retain the most qualified men and women to serve in an All-Volunteer Force. The Budget proposes a 2020 military pay raise of 3.1 percent—the largest in - crease in a decade. The Budget also requests funding for a full range of compensation programs, from monthly incentive pays to recently modernized retirement benefits. In addition, the Budget requests funding to continue important programs that improve the quality of life for military families, and ensure they receive the support they need throughout every stage of their family members’ service. Strengthens the Defense Industrial Base. In September 2018, DOD released a whole-of-Gov - ernment report titled Assessing and Strengthening the Manufacturing and Defense Industrial Base pursuant to executive Order 13806. Following and Supply Chain Resiliency in the United States, through on the report’s recommendations, the Budget invests $286 million in DOD efforts to ensure a robust, resilient, secure, and ready manufacturing and defense industrial base. DOD’s investments to implement this comprehensive, Government-wide effort demonstrate that manufacturing and the de - fense industrial base are vital not only to the Nation’s economic security, but also to national security. DOD continues Reforms Business Practices for Greater Performance and Accountability. to pursue management reforms to increase affordability and redirect savings to higher priorities. For example, DOD will continue achieving savings by reducing management overhead and the size of headquarters staff in 2020. DOD is also modernizing business processes and systems and eliminating duplication, which will yield significant savings and transparency, and improve decision support. In addition, the Department is looking holistically at contract management for services and commodi - ties, to identify better approaches to demand management, requirements definition, and contracting strategies. DOD has also reviewed spending priorities in light of the new National Defense Strategy, and realigned funds from outdated legacy capability to better support the Department’s lethality against near peer threats. In total, DOD achieved $4.7 billion in reform savings in 2017 and 2018 and is targeting $6 billion in savings in 2019. The objective is not simply savings over time, but a sustain - able change in process and culture that will continue to ensure the most effective use of resources and increased lethality. Audits the Department and Invests in Fixing Audit Findings. Better management be - gins with effective financial stewardship of taxpayer dollars. With more than $2.6 trillion in assets spread across 24 stand-alone reporting entities, the Department’s recent full financial statement audit was DOD’s first comprehensive audit and the largest ever undertaken by an agency of the U.S.
31 BUDGeT OF THe U. S. GOVeRNMeNT FOR FISCAL YeAR 2020 27 Government. Under the president’s leadership, DOD continues to place a high priority on performing annual financial statement audits to bolster accountability and public confidence in the Department’s fiscal discipline and to modernize its business practices and systems. The Department will address findings by holding the military departments and defense agencies accountable for the development and implementation of corrective actions, with a goal of meaningful, persistent progress toward a clean audit opinion. Armed with audit findings and remediation plans, DOD will leverage better data to inform decision-making, while enhancing internal controls and business procedures to improve ef - ficiency and effectiveness.
33 DEPARTMENT OF EDUCATION Funding Highlights: • The Department of Education focuses its mission on supporting States and school districts in their efforts to provide high-quality education to the Nation’s most vulnerable students, on streamlining and simplifying funding for college, and on expanding access to new postsecondary options. • The Budget demonstrates fiscal discipline while maintaining funding for key K-12 education formula grants and making targeted investments in school safety, workforce development, teacher quality, and school choice. The Budget devotes an unprecedented level of resources to promoting school choice by proposing a • Federal tax credit of up to $50 billion over 10 years for donations to scholarship programs for families of elementary and secondary students who are seeking State-defined public or private education options. • The Budget ensures students can successfully pursue various pathways of postsecondary education and training by investing in career and technical education, streamlining and improving student loan repayment, increasing institutional accountability, and offering the opportunity to use Pell Grants for high-quality, short- term training. • The Budget requests $62.0 billion for the Department of Education, an $8.5 billion or 12.0-percent decrease compared to the 2019 enacted level (including cancellations of Pell Grant unobligated balances). Excluding cancellations, the Budget requests a program level of $64.0 billion for the Department of Education, a $7.1 billion or 10.0-percent decrease compared to the 2019 enacted level. The President’s 2020 Budget: The President’s Budget achieves two equally important goals: fiscal discipline in discretionary spending and support for priorities that would improve the Nation’s schools and make the United st Century. The Budget reduces States stronger by preparing the workforce for the jobs of the 21 the Federal role in education, and prioritizes targeted investments in school safety, teacher quality, school choice, and workforce development. By modernizing U.S. education and training programs, the Budget would increase competition and transparency, reduce student debt, and ensure that what students are learning matches the needs of emerging industries. By increasing accountability for institutions of higher education and helping students complete postsecondary education more quickly, the Budget would help make higher education more affordable and protects both students 29
34 30 DeP aTioN arTmeNT oF eDUC - and taxpayers. in addition, the Budget includes a Federal school choice tax credit to provide scholar ships for both private schools and qualifying public education expenses. These policies would initiate tremendous strides toward the administration’s goal of providing all students with the opportunity to receive a high-quality education and achieve future success. K-12 Education - The Budget request for elementary and secondary education reflects this administration’s contin ued commitment to providing States and school districts with the resources and flexibility to ensure administration’s that all children receive an excellent education. in addition, the Budget builds on the efforts to give families more choices for their children’s education and to ensure that all students learn in safe and secure schools. Ensures Families Have the Resources and “Parents have the greatest stake in Choices to Provide the Best Education for Their the outcome of their child’s education. Children. Families should be empowered to decide Accordingly, they should also have the power which schools and academic supports are best for their to make sure their child is getting the right children. That is why the Budget makes a first-of-its- education.” kind proposal to equip families with the financial re - sources necessary to choose the education that best Betsy DeVos serves their children. The Budget proposes to make Secretary available annually $5 billion worth of tax credits for March 13, 2018 individual and corporate donations to State-authorized nonprofit education scholarship-granting organizations (SGos). SGos would use donated funds to provide fami - lies with scholarships or additional educational resourc - es that can be used on a range of educational activities such as career and technical dual-enrollment - programs, afterschool tutoring programs, tuition for private schools, courses not available in their as signed schools, special education services, and additional qualifying public education expenses. States would determine family eligibility requirements and allowable uses of scholarship funds. in addition to this historic Federal tax-credit scholarship proposal, the Budget provides over $650 million to support public school choice. The Budget requests $500 million to fund the opening and expansion of high-quality public charter schools and the financing of charter school facilities. The Budget also requests $107 million to expand magnet schools, which offer specialized curricula and instructional programming. in addition, the Budget invests $50 million in funding for districts participating in i student-centered funding pilot. The pilot program would help districts transition to more the Title transparent funding systems that enable Federal, State, and local funding to follow the student to the public school of his or her choice. Supports High-Need Students through Essential Formula Grant Programs. The Budget - i grants, maintaining a historic level of funding for a program that pro invests $15.9 billion in Title vides critically-important support to students in high-poverty schools. Title i serves approximately 25 million students in nearly 60 percent of all public schools, and is the foundation for the State-developed accountability systems under the elementary and Secondary education act (eSea). The Budget also aid programs that support school districts that educate federally-con proposes $1.4 billion for impact - nected children, such as those living on military bases and indian lands. The Budget continues to act (iDea) formula maintain the Federal investment in the individuals with Disabilities education and discretionary grant programs. The Budget invests $13.2 billion for iDea formula grants to States to support special education and early intervention services for more than seven million children with disabilities, and requests $226 million for discretionary grants to support research, demonstrations, technical assistance and dissemination, and personnel preparation and development.
35 BUDGeT oF THe U. S. Go VerNmeNT For FiSC 31 aL Year 2020 The administration is committed to ensuring that stu Protects Students and Secures Schools. - after the tragedy in Parkland, dents are able to learn in a safe and secure educational environment. Florida, the President established the Federal Commission on School Safety to assess and develop - Federal, State, and local policy recommendations to help prevent violence in schools. The recom mendations were published in December 2018. The Budget provides approximately $700 million, an increase of $354 million compared to the 2019 Budget, in Departments of education, Justice, and Health and Human Services grants to give States and school districts resources to implement the Commission’s recommendations, such as expanding access to mental healthcare, developing threat assessments, and improving school climate. at the Department of education, the Budget requests $200 million for School Safety National activities, which provide grants to States and school districts to develop school emergency operation plans, offer counseling and emotional support in schools with pervasive violence, and implement evidence-based practices for improving behavioral outcomes. Invests in Innovation to Elevate the Teaching Profession. administration is committed The to ensuring teachers have access to high-quality professional development opportunities that meet their individual needs. The Budget proposes $200 million for the Teacher and School Leader incentive - grant program to improve teacher induction and recognize and reward teaching excellence. The pro gram would support performance-based compensation systems and human capital management sys - tems that include either high-quality mentoring of novice teachers or increased compensation for effective teachers, particularly in high-need subjects such as science, technology, engineering, and mathematics (STem) and coding. The Budget also includes $300 million for education innovation and research to support a rigorously evaluated demonstration of empowering teachers to choose the individualized continuing education and training that contributes to their own professional growth and improved student outcomes. Within the program, the Budget proposes to pilot vouchers for teach - ers, enabling them to select training opportunities that are tailored to their unique needs. Higher Education The Budget continues support for Federal programs that: help prepare low-income and minor - ity students for postsecondary education; target student financial aid to help students and fami - lies pay rising college costs; promote multiple pathways to obtaining family-sustaining careers; and strengthen postsecondary institutions serving large proportions of minority students. The Budget also includes proposals that would address student debt by simplifying student loan repayment and redirecting inefficiencies in the student loan program to prioritize debt relief for undergraduate bor - - rowers. These proposals would support congressional ef forts to modernize and reauthorize the Higher education act to be responsive to the needs of both students and “If the Federal Government is going to employers. The Budget also addresses student debt and subsidize student loans, it has a right to higher education costs while reducing the complexity of expect that colleges work hard to control student financial aid. costs and invest their resources in their investing Increases Institutional Accountability. students. If colleges refuse to take this in higher education generally provides strong value for responsibility seriously, they will be held students and taxpayers. However, some postsecondary accountable ... And we must hold all schools programs fail to deliver a quality education that enables equally accountable for their performance.” students to repay Federal student loans—leaving borrow - a better system would ers and taxpayers holding the bill. President Donald J. Trump require postsecondary institutions accepting taxpayer as Presidential Candidate - funds to share a portion of the financial responsibility as October 13, 2016 administration plans to sociated with student loans. The work with the Congress to address these issues.
36 32 DeP aTioN arTmeNT oF eDUC in recent years, income-driven repayment (iDr) plans, which Reforms Student Loan Programs. offer student borrowers the option of making affordable monthly payments based on factors such as income and family size, have grown in popularity. However, the numerous iDr plans currently of - fered to borrowers overly complicate choosing and enrolling in the right repayment plan. The Budget proposes to streamline student loan repayment by consolidating multiple iDr plans into a single plan. The Single iDr plan would cap a borrower’s monthly payment at 12.5 percent of discretionary income. For undergraduate borrowers, any balance remaining after 180 months of repayment would be forgiven. For borrowers with any graduate debt, any balance remaining after 30 years of repay - ment would be forgiven. - To support this generous pathway to debt relief for all undergraduate borrowers, the Budget elimi nates the Public Service Loan Forgiveness program, establishes reforms to guarantee that all borrow - iDr pay an equitable share of their income, and eliminates subsidized loans. To further improve ers in and simplify loan repayment, the Budget proposes auto-enrolling severely delinquent borrowers and instituting a process for borrowers to consent to share income data for multiple years. To facilitate these program improvements and to reduce improper payments, the Budget proposes to streamline the Department of education’s ability to verify applicants’ income data held by the internal revenue Service. These reforms would reduce inefficiencies and waste in the student loan program, and focus all student loan proposals would apply to assistance on needy undergraduate student borrowers. loans originating on or after July 1, 2020, except those provided to borrowers to finish their current course of study. Continues Investment in the NextGen Servicing and Processing Environment. The Budget invests $1.8 billion in Student aid administration at Federal Student aid (FSa), which has 42 million customers and manages one of the largest consumer loan portfolios in the United States. Nearly 6,000 institutions of higher education participate in the Federal student aid programs. FSa ’s customers deserve a world-class experience, but they do not consistently receive one today. Currently, when customers apply for, receive, and repay Federal student aid, they interface with multiple brands and vendors. FSa is investing in best-in-class financial services technologies to deploy a mobile-first, mobile-complete digital customer experience. This transformation will provide better outcomes for customers, streamline processes and procedures for FSa employees, and improve value for american taxpayers. Expands Pell Grant Eligibility for Short-Term Programs. - There are many paths to a suc cessful career in addition to a four-year degree. The Budget expands Pell Grant eligibility to include high-quality short-term programs. This would help more americans access education and training programs that can equip them with skills to secure well-paying jobs in high-demand fields more quickly than traditional two-year or four-year degree programs. Advances Grantmaking and Supports for Minority-Serving Institutions (MSIs) and The Budget supports important invest - Historically Black Colleges and Universities (HBCUs). ments in the academic quality, institutional management and capacity, infrastructure, and student support services for mSis and HBCUs. in particular, the Budget proposes to improve grantmaking by consolidating six mSi programs into a $148 million formula grant, providing funds more institutions can count on and yielding program management efficiencies. The Budget also continues to recognize the extraordinary contributions of HBCUs and requests more than $404 million to maintain fund - ing for HBCU formula and competitive grant programs that strengthen their capacity to provide the highest quality education. Empowers States to Deliver Evidence-Based Postsecondary Preparation Programs. The Budget proposes to restructure and streamline the Trio and Gear UP programs by consolidating
37 BUDGeT oF THe U. S. Go VerNmeNT For FiSC 33 aL Year 2020 - them into a $950 million State formula grant. These grants would support evidence-based postsec ondary preparation programs designed to help low-income students progress through the pipeline from middle school to postsecondary opportunities. Given the statutory prohibition limiting the - Department’s ability to evaluate overall Trio program effectiveness using the most rigorous meth odologies, as well as budget constraints, the Budget supports a restructuring of the programs that leverages evidence-based activities and allows States more flexibility in meeting the unique needs of their students. Workforce in today’s rapidly changing economy, it is more important than ever to prepare workers to fill both administration has placed a priority on science, technology, and com - existing and future jobs. The puter science skills, devoting a minimum of $200 million annually to prepare students, especially girls and minorities who are underrepresented in these industries, for the growing role technology american economy. These skills open the door to jobs and drive solutions is playing in driving the to complex problems across industries. The U.S. education system must provide access to affordable and quality education and training that includes in-demand career and vocational tracks as well as opportunities for work-based and experiential learning. The Budget supports programs that help students obtain the skills necessary to secure high-paying jobs in today’s workforce and contribute to the Nation’s economy. Invests in Career and Technical Education (CTE). as part of the administration’s commit - ment to ensuring the Nation’s students have the knowledge and skills to succeed in today’s competi - tive economy, the Budget includes $1.3 billion for CTe State grants. The recently reauthorized pro - gram helps ensure students have access to technical education, including work-based learning during high school and a wide array of post-secondary options including certificate programs, community colleges, and apprenticeships. The Budget also includes $20 million for CTe National Programs to support quality STem and coding-focused CTe programs. in addition, the Budget proposes to double american Competitiveness and Workforce improvement act fee for the H-1B visa program and the direct 15 percent of the revenues to the CTe State grants. Refocuses Federal Work Study to Emphasize Workforce Development. The Budget pro - poses to reform the Federal Work Study program to support workforce and career-oriented training opportunities for low-income undergraduate students, not just subsidized employment as a means of financial aid, in order to create more available pathways to high-paying jobs. The program would allo - cate funds to schools based in part on enrollment of Pell recipients. Schools could fund individual stu - dents through subsidized employment, paid internships, or other designs, as long as the placements were career or academically relevant. Schools could also serve groups of students through programs and initiatives that expose students to or build their preparedness for careers. Reduces Waste: Eliminates Ineffective or Redundant Programs. The Budget eliminates funding for 29 discretionary programs that do not address national needs, duplicate other programs, are ineffective, are poorly targeted, or are more appropriately supported by State, local, or private funds. These eliminations would decrease taxpayer costs by $6.7 billion and include the Supporting effective instruction State Grants, 21st Century Community Learning Centers, and Federal Supplemental educational opportunity Grants.
39 DEPARTMENT OF ENERGY Funding Highlights: The mission of the Department of Energy (DOE) is to advance U.S. national security and economic growth • through transformative science and technology innovations that promotes affordable and reliable energy through market solutions, and meets America’s nuclear security and environmental clean-up challenges. • The 2020 Budget makes strategic investments to maintain global leadership in scientific and technological innovation and aggressively modernize the nuclear security enterprise that underpins the safety and security of Americans both at home and abroad. • The 2020 Budget requests $31.7 billion for DOE, an 11-percent decrease from the 2019 enacted level. The President’s 2020 Budget: The Budget for DOE enables advancement of American leadership in science and technology, a cornerstone to enhancing national security, economic growth, and job creation. American ingenu - ity combined with free-market capitalism can drive tremendous technological breakthroughs. The Budget reasserts that the proper role of the Federal Government is to focus resources on early-stage research and development (R&D) of energy technologies. Refocusing on the appropriate role of the Federal Government ensures that taxpayer dollars are being effectively used while implementing fiscal discipline. The Budget addresses the challenges that face the Nation and reflects the critical role DOE has in protecting the safety and security of the American people, including by ensuring that nuclear and radiological materials worldwide remain secured against theft by those who might use them against the U.S. homeland or U.S. interests abroad. The Budget also funds the modernization of nuclear weapons and ensures that the U.S. nuclear force remains superior in the world. In addition, the Budget ensures continued progress on cleaning up sites contaminated from nuclear weapons production and nuclear energy R&D. The Budget also demonstrates the Administration’s commit - ment to nuclear waste management by supporting the implementation of a robust interim stor - age program and restarting the Nuclear Regulatory Commission licensing proceeding for the Yucca Mountain geologic repository. The Budget further protects taxpayers by eliminating costly, wasteful or duplicative programs. The private sector is better positioned to provide financing for the deployment of commercially vi - able projects. As a result, programs proposed for elimination include: the Title XVII Innovative Technology Loan Guarantee Program; the Advanced Technology Vehicle Manufacturing Loan 35
40 36 D OF E NERGY EPARTMENT Program; and the Tribal Energy Loan Guarantee Program. To further achieve fiscal discipline and reduce taxpayer risk, the Budget proposes to repeal the Western Area Power Administration’s bor - rowing authority that finances the construction of electricity transmission projects. Investments in transmission assets are best carried out by the private sector where there are appropriate market and regulatory incentives. To promote effective and efficient use of taxpayer funds, the Advanced Research Projects Agency-Energy (ARPA-E) is also proposed for elimination. This elimination facilitates oppor - tunities to integrate the positive aspects of ARPA-E into DOE’s applied energy research programs. In addition, the elimination enables the Department to efficiently direct scarce resources as part of an integrated national energy strategy. Modernizes the Nuclear Deterrent. The Budget supports the Administration’s Nuclear Posture Review by maintaining a tailored and flexible nuclear deterrent that protects the homeland, assures allies, and, above all, deters adversaries. While the investments in America’s nuclear weapons are large, given their importance in keeping America safe, the investments should be regarded as both necessary and affordable. The Budget increases investments in the nuclear stockpile to guarantee it is modern, robust, safe, and effective. Specifically, the Budget completes development and produc - tion of the W76-2 warhead, begins production of the B61-12 and the W88 Alteration 370, and contin - ues development of the W80-4 and the W87-1. The Budget also continues support of the underlying Stockpile Stewardship Program, which facilitates stockpile modernization while advancing scientific understanding that can be applied to other national security missions. Rebuilds Nuclear Weapons Infrastructure. The National Nuclear Security Administration’s (NNSA) nuclear security enterprise of national laboratories, production plants, and the Nevada National Security Site is a critical component of the U.S. nuclear deterrent. However, the physical infrastructure is in acute need of updating to better support the stockpile, as more than half the facilities are over 40 years old. To maintain a modern, resilient infrastructure, the Nation must in - vest in facilities needed to produce strategic materials and components for U.S. nuclear weapons. The Budget makes these significant investments, such as construction of the Uranium Processing Facility in Tennessee. The Budget also increases funding to repurpose the Mixed-Oxide (MOX) Fuel Fabrication Facility in South Carolina for production of nuclear weapons plutonium pits to meet Department of Defense requirements. NNSA must have a modern enterprise with the capacity to respond to unforeseen developments. Reduces Global Nuclear Threats. Nuclear terrorism and proliferation remain serious threats to the security of the United States and its allies. The Nation must maintain vigilance in its nuclear nonproliferation, counter-proliferation, and counterterrorism efforts to provide for the safety and se - curity of the American people. The Budget makes the necessary, fiscally disciplined investments in these capabilities. Specifically, the Budget supports enhanced capabilities within the United States to respond more quickly to a nuclear terrorism threat. The Budget continues efforts to prevent terrorists from acquiring nuclear materials by removing these materials from around the world and helping countries protect remaining materials. Disposes of Surplus Plutonium. With the termination of the MOX project, the Budget ag - gressively moves forward with the Dilute and Dispose approach to disposing of surplus plutonium. Consistent with the Administration’s commitments to South Carolina, the Budget expedites removal of plutonium from the State. The Budget also makes investments in key facilities at the Savannah River Site and the Los Alamos National Laboratory to further accelerate plutonium disposition. Provides Safe Naval Nuclear Propulsion. The Budget continues DOE’s support of a strong U.S. Navy through NNSA’s Naval Reactors (NR) program. NR works to provide the U.S. Navy with safe, environmentally conscious operation of nuclear propulsion plants for submarines and aircraft
41 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 37 Columbia -class ballistic carriers. The Budget continues development of the reactor systems for the missile submarine, maintaining alignment with the Navy for lead ship delivery. The Budget also sup - ports recapitalization of the Navy’s spent fuel handling infrastructure while making other needed investments at the four Naval Nuclear Laboratory sites. Supports Cutting-Edge Basic Research and Leading Scientific User Facilities. The Budget provides $5.5 billion for the Office of Science to continue its mission to focus on early-stage re - search, operate the national laboratories, and continue high priority construction projects. Within this amount, $500 million is budgeted for Exascale computing to help secure a global leadership role in supercomputing, $169 million for Quantum Information Science, $71 million for artificial intelligence and machine learning, and $25 million to enhance materials and chemistry foundational research to support U.S.-based leadership in microelectronics. Invests in Laboratory Infrastructure and Testbeds to Enable Future Breakthroughs in DOE supports 17 national laboratories that offer world class scientific user facilities and Energy. the critical laboratory infrastructure necessary to operate them. Within the Office of Science, Science Laboratory Infrastructure focuses on strengthening the backbone of the labs with $118 million to modernize aging critical infrastructure and laboratory space. The Budget continues to ensure access to the scientific user facilities of the future, including $104 million for the Long Baseline Neutrino Facility/Deep Underground Neutrino Experiment and $40 million to complete the Facility for Rare Isotope Beams. The Budget prioritizes select infrastructure and testbeds to maintain the world-class - nature of national laboratory facilities and better enable private sector demonstration and deploy ment of energy technologies. For example, the Budget includes $100 million to put DOE on a path to construct the Versatile Advanced (Fast) Test Reactor, a facility that would enable development and testing of advanced fuels and materials for the next generation of commercial nuclear reactors. The Budget also includes $5 million for a new Grid Storage Launchpad initiative, which would support a new lab-based grid-scale battery testing center to help push technologies forward, and $15 million to accelerate the conversion of the National Wind Testing Facility site into an experimental microgrid capable of testing grid integration at the megawatt scale. Enhances Support for Cyber and Energy Security Initiatives. Ranging from cybersecurity - of the bulk electrical system to prioritization of early-stage R&D focused on hardening energy infra structure, the Budget prioritizes energy security for all Americans through continued investments that address the many cyber threats across the Nation’s energy sector. To ensure robust cybersecurity pro - grams across the energy sector, the Budget provides funding in multiple programs, including over $156 million for the recently established Office of Cybersecurity, Energy Security, and Emergency Response. This funding would support early-stage R&D activities that improve cybersecurity and resilience to - enable the private sector to harden and evolve critical infrastructure, including protecting critical infra structure from both natural and man-made events. Launches an Era of Energy Dominance through Strategic Support for Energy Technology Innovation. The United States has among the most abundant and diverse energy resources in the world, in - cluding oil, gas, coal, nuclear, and renewables. The abil - “America’s future has never been brighter, ity of entrepreneurs and businesses to commercialize and American energy is leading the way in technologies that take full advantage of those resources providing jobs, opportunity, and security for is paramount to promoting U.S. economic growth, se - our Nation.” curity, and competitiveness. That is why the Budget provides a programmatic funding level of $2.3 billion President Donald J. Trump across the applied energy programs at DOE to support September 28, 2018 early-stage R&D that will enable the private sector to
42 38 DEPARTMENT OF ENERGY deploy the next generation of technologies and energy services that usher in a more secure, resilient, and integrated energy system. The Budget emphasizes two new intra-departmental initiatives within the Applied Energy Office portfolio that coordinate and build upon existing capabilities and expertise and seek to replicate suc - cessful program models to achieve results more effectively. Specifically, the Budget requests $158 million for the Advanced Energy Storage Initiative, a coordinated effort jointly led by the Office of Electricity and the Office of Energy Efficiency and Renewable Energy (EERE) to advance energy stor - age R&D as a key to increasing energy security, reliability, and resilience. The initiative takes a broad, holistic view of energy storage as a set of capabilities that enable the conversion of energy resources to useful energy services. Assuring grid security and resilience will require greater grid flexibility and the deployment of grid assets, such as energy storage, that can efficiently buffer increased vari - able supply and demand. The Budget also requests $59 million for the Harsh Environment Materials Initiative, a coordinated effort led by the Office of Nuclear Energy and the Office of Fossil Energy, in coordination with the Advanced Manufacturing Office within EERE, to exploit synergies in materials and component manufacturing R&D for advanced thermoelectric power plants. This initiative lever - ages activities related to advanced reactor technologies and high efficiency low emissions modular coal plants to align the R&D of novel materials, integrated sensors, and manufacturing processes relevant for advanced thermoelectric power plants. Continues Reforms in the Environmental Management Program to Address the The Budget Challenge of Waste and Contamination from Nuclear Weapons Production. includes $6.5 billion for 16 sites remaining to be cleaned up to meet environmental regulatory re - quirements. The Budget provides within this total $128 million to advance the initiative to accelerate deactivation and decommissioning of selected high-risk excess facilities to protect human health and the environment, and to support the modernization of the Nuclear Security Enterprise. Proposes to Divest Federally Owned and Operated Transmission Assets and Authorize the Power Marketing Administrations (PMAs) to Charge Market Based Rates for Power. The Budget proposes to sell the transmission assets owned and operated by the PMAs, including those of Southwestern Power Administration, Western Area Power Administration, and Bonneville Power Administration. The Budget also proposes to authorize the PMAs to charge rates comparable to those charged by for-profit, investor-owned utilities, rather than being limited to cost-based rates, for electricity. The vast majority of the Nation’s electricity needs are met through investor-owned utilities. Reducing or eliminating the Federal Government’s role in electricity transmission infra - structure ownership, thereby increasing the private sector’s role, and introducing more market-based incentives, including rates, for power sales from Federal dams would encourage a more efficient al - location of economic resources and mitigate risk to taxpayers.
43 DEPARTMENT OF HEALTH AND HUMAN SERVICES Funding Highlights: • The mission of the Department of Health and Human Services (HHS) is to protect and strengthen the health and well-being of Americans through effective health and human services for the American people and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services. The Budget addresses the Nation’s critical public health needs through investments that combat the opioid • epidemic and support mental health services, increase efforts to eliminate infectious diseases, support high priority biomedical research, speed access to new innovative technology, and enhance emergency preparedness and health security. The Budget also offers strategies to reduce drug-related costs, improve the health of older Americans, and strengthen work requirements to promote self-sufficiency. • The Budget also invests in child care to support America’s working families, and promotes work among able-bodied adults receiving assistance. • The 2020 Budget requests $87.1 billion for HHS, a 12-percent decrease from the 2019 estimated level. The Budget proposes $1,248.8 billion in net mandatory health savings, reducing longer-term deficits. The President’s 2020 Budget: The Budget supports the mission of HHS while creating a streamlined Federal Government that promotes the most efficient and effective use of taxpayer dollars. The Budget invests in the highest priority public health needs of the Nation—combatting the opioid epidemic, supporting services for serious mental illness, and preparing for public health threats. The Budget launches an initiative to end HIV/AIDS in America, an ambitious, yet necessary effort to eliminate a disease that has plagued the Nation for more than three decades. In addition, the Budget takes bold steps to increase access and reduce drug costs for Americans, empowers consumers and States to regain control over health - care and increase affordability and consumer choice, and strengthens and protects the Medicare program for America’s seniors. Combats the Opioid Epidemic. In addition to progress already being made by the Administra- tion, the Budget makes significant investments to combat the drug abuse and opioid epidemic, which claimed more than 70,000 lives in 2017. In the last year, the President released a new Initiative to Stop Opioid Abuse and Reduce Drug Supply and Demand, secured $6 billion in new resources in the 2018 and 2019 to combat the epidemic, and signed the SUPPORT for Patients and Communities 39
44 40 DePARTMeNT OF HeAl AND HUMAN SeRVICeS TH Act, which enhances the Federal response to the opioid epidemic. The number of opioid prescriptions dispensed monthly has fallen by more than 20 percent since the beginning of 2017 and preliminary data from the Centers for Disease Control and Prevention (CDC) suggests that the number of drug overdose deaths are finally starting to level off or even decline. The Budget sustains critical investments in surveillance, prevention, treatment, access to overdose reversal drugs, recovery support services, and research. For example, the Budget includes $1.5 billion for State Opioid Response grants, which fund prevention, treatment, and recovery support services in all States and Territories. The Budget maintains more than $1 billion in the National Institutes of Health (NIH) for opioid and pain research, including the continuation of the Helping to end Addiction long-term Initiative that began in 2018. The Budget includes $221 million to expand the behavioral health workforce, including an addi - tional $4 million for a new effort authorized in the SUPPORT for Patients and Communities Act to increase the number of providers that are able to prescribe medication-assisted treatment. In addi - - tion, the Budget maintains $120 million to support treatment and prevention of substance use disor der, including opioid abuse, in rural communities at the highest risk. The Budget also enables States to more easily provide one year of post-partum Medicaid coverage for women with a substance use disorder, to improve health outcomes for mothers and their infants. The Budget provides $476 million for CDC to continue current activities in support of all 50 States and Territories, as well as local jurisdictions, to track and prevent overdose deaths. CDC would priori - tize expanding support to States and Territories to collect and report real-time overdose and robust overdose mortality data. The Budget also provides $58 million for CDC to address the infectious dis - ease consequences of the opioid epidemic. Approximately 95 percent of new Hepatitis C infections and one of every seven new HIV infections is due to injection drug use. CDC would focus on areas most at risk for outbreaks of HIV and hepatitis due to injection drug use. Addresses Mental Health Needs. Mental illness, especially serious mental illness, takes a toll on individuals, families, and communities all across the United States. In 2017, only 7.5 million of the 11.2 million adults suffering from serious mental illness received mental health services in the past - year. The Budget invests in activities that increase access to mental health services. The Budget in cludes $723 million for the Community Mental Health Services Block Grant, which provides funding to every State to provide services to seriously mentally ill adults and children with serious emotional disturbances, and $150 million for Certified Community Behavioral Health Centers, which provide comprehensive healthcare services, including 24-hour crisis response services to individuals with serious mental illness. The Budget also makes new targeted investments to help divert seriously mentally ill individuals away from the criminal justice system and into treatment, and to increase the access to evidence-based comprehensive services. In addition, the Budget contains important invest - ments for children and young adults, including $125 million for Children’s Mental Health Services and $133 million for school violence prevention. The Budget funds important suicide prevention ac - tivities, such as the suicide lifeline and activities to address the high suicide rates in middle-age and older adults. Reforms Drug Pricing and Payment. The Administration’s comprehensive drug pricing strat - egy addresses the problem of high drug prices, provides greater access to lifesaving medical products, and ensures that the United States remains the leader in biomedical innovation. Consistent with the Administration’s American Patients First Blueprint, the Budget proposes strategies targeted at increasing competition, encouraging better negotiation, incentivizing lower list prices, and lowering out-of-pocket costs for beneficiaries.
45 BUDGeT OF THe U. S. GOVeRNMeNT FOR FISCAl YeAR 2020 41 Modernizes the Medicare Part D Prescription • Drug Benefit—In the past year, the Administration “One of my greatest priorities is to reduce made great strides to better equip plans with the the price of prescription drugs. In many tools necessary to manage drug spending in the other countries, these drugs cost far less Part D program. The Budget builds on this prog - That than what we pay in the United States. ress by addressing the misaligned incentives is why I have directed my Administration to of the Part D benefit structure. The proposed make fixing the injustice of high drug prices changes are designed to: encourage utilization of Prices will come one of our top priorities. higher value drugs by eliminating cost-sharing down.” for generic drugs for beneficiaries who receive the low-income subsidy; remove the competi - President Donald J. Trump tive disadvantage placed on generic drugs that January 30, 2018 increases spending for both beneficiaries and the Government; and provide beneficiaries with more predictable annual drug expenses through the creation of a new out-of-pocket spending cap. Reduces Costs for Part B Drugs—The Budget addresses unnecessary barriers to free-market • competition in Part B and proposes reforms to payment for Part B drugs, which heavily in - fluences physician-prescribing behavior. longstanding challenges in Part B include the lack of competition among drugs with similar health effects and limited tools to encourage lower drug prices. To address these challenges, the Budget includes proposals targeted at: remov - ing the three-year payment protection of average sales price (ASP) plus six percent for certain new drugs provided in outpatient hospitals; deterring anti-competitive behavior from drug manufacturers that exploit aspects of the patent system to keep out competition; and moving coverage of some Part B drugs to Part D to reduce spending while protecting beneficiaries from increased out of pocket costs. In addition, the Budget limits growth in Part B drug payment to an inflation benchmark and mandates manufacturers report ASP data for all Part B drugs to improve payment accuracy. The Budget also modifies hospitals’ payment for drugs acquired through the 340B drug dis - count program by rewarding hospitals that provide charity care and reducing payments to hospitals that provide little to no charity care. • Increases Access to More Affordable Generics Through Greater Competition—The Budget would include a number of proposals to speed development of generics and eliminate loopholes that have allowed drug companies to use the regulatory framework to hinder competition. The Budget would: Reform the current 180-day exclusivity forfeiture provision for first generics so that first ○ generics do not block subsequent generics from U.S. Food and Drug Administration (FDA) approval. ○ Clarify FDA’s approach in determining whether a new drug is a new chemical entity to ensure that only truly innovative new drugs receive an additional five years of exclusivity. enhance FDA authority to address abuse of petition process so FDA has greater flexibility ○ to summarily deny petitions when circumstances indicate that the primary purpose of the petition is to delay FDA approval.
46 42 DePARTMeNT OF HeAl TH AND HUMAN SeRVICeS enable FDA to tentatively approve a subsequent generic application, which would start ○ the 180-day exclusivity clock, when a first to file generic application cannot be approved due to deficiencies. • Improves Program Integrity—The Budget proposes to improve the integrity of the 340B program and ensure that benefits are used to help low-income and uninsured patients. This proposal includes broad regulatory authority for the 340B Drug Pricing Program to set en - forceable standards of program participation and requires all covered entities to report on use of program savings. • lowers Costs and Increases Flexibility for Medicaid Prescription Drugs—The Budget propos - es removing the cap on Medicaid manufacturer drug rebates, to ensure rebates reflect all price increases for a drug. In addition, the Budget includes new demonstration authority allowing - States to test innovative approaches for Medicaid prescription drug coverage. Under the dem onstration, participating States would test a closed formulary and negotiate prices directly with manufacturers. The Budget also prevents manufacturers from using authorized generics to lower their rebate obligations, and includes payment changes so State Medicaid programs do not overpay for generic drugs, saving money for States and taxpayers. Empowers States and Consumers to Reform Healthcare. Under the Patient Protection and “[U]nder this Administration, we are putting Affordable Care Act (PPACA) healthcare spending American patients first...I’ve instructed has increased significantly, particularly premiums for Secretary Azar to begin moving forward on families without employer-sponsored coverage who reforms that will bring soaring drug prices don’t qualify for Obamacare subsidies. To help expand back down to earth.” families’ health coverage options, the President signed into law the Tax Cut and Jobs Act, which eliminated President Donald J. Trump Obamacare’s individual mandate penalty, and took May 11, 2018 swift administrative actions that empower individuals to purchase health coverage that best suits their needs. - Some new flexibilities already implemented include ex - panding access to Association Health Plans for employers and many self-employed individuals, ex tending the duration and renewability of Short-Term limited Duration Insurance, and proposing to allow employers to offer health reimbursement arrangements to employees for purchasing individual market coverage. The Budget supports several initiatives to empower States and consumers to regain control over healthcare and increase affordability and consumer choice. The proposals in the Budget strive to put States back into the healthcare driver’s seat as States are best situated to make decisions to improve the health and healthcare delivery of their citizens. First, the Budget continues to support a two-part approach, starting with enactment of legisla - tion modeled after the Graham-Cassidy-Heller-Johnson bill proposed in September 2017, followed by enactment of additional reforms to help set Government healthcare spending on a sustainable fiscal path that leads to higher value spending. Beginning in 2021, the Market-Based Health Care Grant Program, the Medicaid block grant, and the per capita cap program are set to grow at the Consumer Price Index. These programs would support States as they transition to more sustainable healthcare programs and encourage States to pursue innovative ideas that aim to curb costs moving forward. The Budget acknowledges the importance of ensuring protections for individuals with pre- existing conditions and States would be required to include such plans in their applications for these grants. Specifically, States would be required to allocate at least 10 percent of their grant funding to
47 BUDGeT OF THe U. S. GOVeRNMeNT FOR FISCAl YeAR 2020 43 be used to ensure protections for high-cost individuals, including those with pre-existing conditions. States would have the flexibility to design an approach that best allows States to meet this goal. The two-part approach would also provide relief for States and consumers from many of the PPACA’s insurance rules and pricing restrictions that have resulted in a lack of affordable coverage options. This new flexibility would build on the Administration’s regulatory actions and would empower more people to buy insurance plans that work for them, a substantial benefit to middle class families who do not receive coverage through the workplace or do not qualify for subsidies. The Budget also proposes to give States additional flexibility over their Medicaid programs by transferring control of Medicaid transformation efforts locally where it belongs. The Administration recognizes that the only way to reform Medicaid and set it on a sound fiscal path is by putting States on equal footing with the Federal Government to implement comprehensive Medicaid financing reform through a per capita cap or block grant. A new Federal-State partnership is necessary to eliminate inefficient Medicaid spending, including repeal of the Medicaid expansion, and reducing financing gimmicks such as provider taxes. The Budget would empower States to design State-based solutions that prioritize Medicaid dollars for the most vulnerable and support innovation. - The Budget emboldens individuals to take charge of their healthcare needs and own their health care spending, while protecting them from large unexpected costs. Currently, too many Americans are gouged by unfair and often surprise bills for hospital care and for pharmaceutical drugs. The - President is committed to addressing this issue and proposes that the Congress partner in these ef forts to increase healthcare price transparency of providers, suppliers, and insurers, including curtail - ing surprise medical bills. This would not only help protect consumers from unexpected healthcare costs, but would also empower them to make more informed healthcare decisions. Such price trans - parency may lead to more robust competition between actors in the healthcare supply chain, ulti - mately lowering costs for patients and plan sponsors such as employers, associations, and unions. To further encourage increased consumer engagement, the Budget immediately requires all subsidized individuals that purchase health coverage on the Federal exchange to contribute something to their healthcare coverage. Health savings accounts (HSAs) are a tool to increase consumer engagement and lower healthcare spending without negatively affecting quality. The Budget includes a series of reforms to expand ac - cess to HSAs. Under tax provisions originally enacted in 2003, persons enrolled in certain high de - ductible health plans—which are generally referred to here as HSA-qualified plans—may contribute to savings accounts to pay for healthcare expenses on a tax-preferred basis. The Budget proposes that all plans with an actuarial value of up to 70 percent may be integrated with HSAs. This would enable consumers to utilize the benefits of HSAs with a larger number of innovative plan designs. Together, these reforms and consumer protections aim to encourage innovation from States, help consumers with the costs of their healthcare, and focus Medicaid resources on the most vulnerable individuals, while continuing to protect those with high healthcare needs. Modernizes Medicaid to Enhance State Flexibility. The Budget would empower States with additional tools to strengthen their Medicaid programs and empower States to further modernize Medicaid benefits and eligibility. The Budget would give States additional flexibility around benefits and cost-sharing, such as increasing copayments for non-emergency use of the emergency department to encourage appropriate use of healthcare resources, as well as allowing States to consider savings and other assets when determining Medicaid eligibility. In addition, the Budget would allow States to streamline appeals processes and delegate authority to another entity, to help eliminate duplicative appeals and reduce beneficiary confusion. The Budget would also bolster the safety net available to
48 44 DePARTMeNT OF HeAl AND HUMAN SeRVICeS TH - States experiencing Children’s Health Insurance Program (CHIP) funding shortfalls, while eliminat ing funding streams that do not support children’s health. Reduces Wasteful Medicaid Spending. The Budget takes numerous steps to reduce wasteful Medicaid spending. The Budget proposes eliminating loopholes that some States use to shift and in - crease costs to Federal taxpayers, and for the Centers for Medicare and Medicaid Services (CMS) to issue guidance ensuring that State Medicaid supplemental payments to hospitals and other providers are supported by robust and timely data. The Budget also proposes realigning the Federal match - ing payments for State Medicaid eligibility workers with other administrative costs, providing a fair balance between Federal and State resources for these activities. In addition, the Budget extends current law reductions in Medicaid disproportionate share hospital payments, and proposes to limit reimbursement to Government providers to no more than the cost of providing services to Medicaid beneficiaries. The Budget includes sev Improves Program Integrity for Medicare, Medicaid, and CHIP. - eral legislative proposals and administrative actions to reduce monetary loss from improper pay - ments and strengthen the integrity and sustainability of Medicare, Medicaid, and CHIP. Combined with additional funding investments in the Health Care Fraud and Abuse Control program, these policies provide CMS with additional resources and tools to combat waste, fraud, and abuse and to promote high-quality and efficient healthcare. The Budget proposes to expand the Medicare program’s authority to conduct prior authorization on items or services at high risk of fraud and abuse. The proposal helps ensure that the right pay - ment goes to the right provider for appropriate services and saves taxpayer dollars from paying for Medicare services that are not medically necessary. The Budget also addresses healthcare over - - utilization and waste by expanding CMS’s work in notifying providers that prescribe drugs or per form procedures in excess of their peers. In addition, the Budget proposes to strengthen Medicare Advantage program integrity by ensuring initial risk-adjustment payments are paid correctly and expanding risk-adjustment data validation audits. Addressing vulnerabilities to Medicaid program integrity is a key priority for the Administration, and the Budget includes a number of proposals to ensure sound stewardship and oversight of Medicaid - resources. For example, the Budget proposes to strengthen CMS’s ability to partner with States to ad dress improper payments and ensure Federal recovery of incorrect eligibility determinations, an area of concern identified by the HHS Office of Inspector General. In addition, the Budget allows States flexibility to more frequently assess beneficiary eligibility, ensuring resources are available for the millions of Americans who depend on Medicaid’s safety net. Strengthens and Protects the Medicare Program. The Budget proposes to reduce wasteful spending and incentivize efficiency and quality of healthcare in Medicare, extending the solvency of the program for America’s seniors consistent with the President’s promise to protect Medicare. The Budget brings transparency to several Medicare payments to hospitals, by financing payments not directly related to Medicare’s health insurance role outside the Medicare Trust Fund and tying fu - ture growth to inflation growth; the Budget also reduces Medicare’s spending on beneficiaries’ unpaid cost sharing obligations, consistent with private sector business practices. In addition, the Budget proposes realigning incentives through site neutral payment reform to ensure accurate payments across different healthcare provider types are based on patient characteristics rather than site of care. By ensuring payments are accurately aligned with the costs of care and strengthening provid - ers accountability to improve quality and health outcomes, the Budget protects seniors from exces - sive out-of-pocket costs and improves the standard of care they receive. The Budget also supports the Administration’s commitment to reduce provider burden so providers can focus on patient care by
49 BUDGeT OF THe U. S. GOVeRNMeNT FOR FISCAl YeAR 2020 45 eliminating reporting burden and low-value metrics in performance-based payment for physicians, improving incentives for physicians to participate in advanced payment models that reward high- value healthcare delivery, and providing CMS with greater flexibility in beneficiary education and quality assurance. The Budget demonstrates the Administration’s commitment to ensuring Medicare beneficiaries have access to timely and appropriate care, by reprioritizing primary care through a budget neutral increase to payments for primary care providers. The Budget proposes to expand seniors’ personal control and introduce more consumer power into the healthcare market by allowing Medicare benefi - ciaries to make tax-deductible contributions to HSAs associated with high deductible health plans of - fered by their employers or Medicare Advantage plan. The Budget would extend Medicare’s solvency by roughly eight years. Supports Access to Innovative New Medical Technology. Consistent with the Administration’s commitment to addressing barriers to healthcare innovation, the Budget includes several administra - tive actions and a legislative proposal aimed at ensuring Medicare beneficiaries have access to critical and life-saving new cures and other technologies that improve beneficiary health outcomes. In par - ticular, the policies would instill greater transparency and consistency in how Medicare covers and pays for innovative technology. The Budget also proposes to test new ways of covering and paying for certain devices. For Medicare beneficiaries with diabetes, to improve health outcomes and cost sav - ings for both beneficiaries and the Government, the Budget proposes expanding coverage of dispos - able devices that substitute for a durable device for use in the management and treatment of diabetes. Launches an Initiative to End the HIV Epidemic in America. For more than three decades, the Nation and the world have confronted the challenges posed by HIV and AIDS. More than 700,000 Americans have lost their lives to HIV since 1987. each year, there are approximately 40,000 new HIV infections in the United States, the majority clustered in a limited number of counties. For the first time in modern history, America has the ability to end the epidemic, with the availability of biomedical interventions such as antiretroviral therapy and pre-exposure prophylaxis (PreP). This initiative is the first step toward this goal. The Administration is proposing a new multiyear initiative focused on accelerating progress to eliminate new HIV infections in America, with the goal of reducing new infections by 75 percent within five years, and by 90 percent within 10 years. The 2020 Budget provides a total of $291 million to HHS for the ending HIV epidemic Initiative. Of this amount, the Budget provides $140 million for CDC to reduce new HIV infections by working closely with State and local health departments on intensive testing and referral to care efforts in areas of the Nation that constitute the majority of new infec - tions. The Budget also includes $120 million for the Health Resources and Services Administration to deliver additional care and treatment for people living with HIV through the Ryan White HIV/AIDS Program and to supply testing, evaluation, prescription of PreP, and associated medical costs for peo - ple who are at risk for HIV infections through the Health Centers program. In addition, the Budget prioritizes the reauthorization of the Ryan White program to ensure Federal funds are allocated to address the changing landscape of HIV across the United States. Reauthorization of the Ryan White Program should include data-driven programmatic changes as well as simplifying and standardizing certain requirements and definitions. These changes would ensure Federal funds may be allocated to populations experiencing high or increasing levels of HIV infections/diagnoses while continuing to support Americans already living with HIV across the Nation. The Indian Health Service would also receive funding to enhance HIV testing and linkages to care. In addition, the Initiative would lever - age NIH current regional Centers for AIDS Research to refine implementation strategies to assure effectiveness of prevention and treatment.
50 46 AND HUMAN SeRVICeS DePARTMeNT OF HeAl TH Reforms and Improves the U.S. Public Health Service Commissioned Corps (Corps). The Budget Game-changing Progress proposes to transform the Corps into a leaner and more on HIV Drugs efficient organization that would be better prepared to respond to public health emergencies and provide vital With advances in research and develop - health services. The Budget significantly reduces the ment, biomedical tools are now available to number of Corps officers working in non-mission criti - end the HIV epidemic in America. HIV antiret - cal positions and increases the number of officers work - roviral therapy has progressed substantially ing in mission critical positions. The Budget creates a from the drugs available in the 1990s. What Ready Reserve Corps similar to those used by other were formerly multi-pill, high-toxicity regi - - uniformed services to provide additional surge capac mens have progressed to more potent, one ity during public health emergencies. The Budget also pill per day regimens with few side effects. makes changes to the funding structure of the Corps’ In addition, there is now a groundbreaking retirement pay and survivor’s benefits to align with how single pill, pre-exposure prophylaxis (PrEP), - the Government pays for almost all civilian and mili tary retirement costs. which is proven to prevent HIV transmission. There are more than 1.2 million Americans Prioritizes Critical Health Research. The Bud- - at high risk for HIV for whom PrEP is indicat get provides $33 billion to improve public health by ed, yet only about 10 percent are currently advancing knowledge of living systems to tackle major on preventive therapy. health challenges and improve diagnosis, prevention, - and treatment of diseases and disorders. With this in vestment, NIH would continue to address the opioid epidemic, make progress on developing a universal flu vaccine, and support the next generation of researchers. NIH has provided upfront funding for certain projects in recent years and would con - tinue this approach in 2019 and 2020 to facilitate efficient management of NIH resources across multiple years. The Budget also supports cutting-edge intramural research by addressing the backlog of repair and improvement across NIH facilities. In addition, the Budget includes a new, dedicated effort to support research and develop new treatments for childhood cancer. Cancer is the leading cause of death from disease among children and adolescents in the United States. The basic biology of childhood cancers is not fully understood and differs from that of adult cancers. The Budget includes increased funding and an innovative initiative to enable the Nation’s best researchers and doctors to learn from every child with cancer, providing the opportunity to comprehend finally the unique causes and the best cures for childhood cancer. The Budget ex Strengthens Health Services for American Indians and Alaska Natives. - - pands access to direct health services for American Indians and Alaska Natives by funding the staff ing and operations of new facilities and extending services to newly recognized Tribes. In addition, the Budget boosts recruitment and retention efforts for qualified health professionals by funding competitive employment packages for positions with high vacancies and building new staff quarters at remote sites. The Budget also begins a multiyear effort to modernize the Indian Health Service’s electronic health record (eHR) system to promote interoperability between Federal health systems, as the Department of Veterans Affairs transitions to a new eHR system. Infectious disease outbreaks Enhances Emergency Preparedness and Health Security. - whether naturally occurring, such as an influenza pandemic, deliberate, or accidental, remain a se rious threat to the U.S. homeland. HHS undertakes a variety of activities to prevent, mitigate, and respond to outbreaks and other public health threats. The Budget continues support for a variety of preparedness and response programs across HHS.
51 BUDGeT OF THe U. S. GOVeRNMeNT FOR FISCAl YeAR 2020 47 The Budget includes an increase of $10 million for the Strategic National Stockpile, compared to 2019 enacted, to enhance medical preparedness for chemical, biological, radiological, and nucle - ar threats. The Budget supports priority HHS biodefense and emergency preparedness such as the Biomedical Advanced Research and Development Authority, BioShield, and pandemic influenza. This funding would enable HHS to continue to build on investments to protect the civilian population in the event of public health emergencies related to infectious disease outbreaks, and other man-made crises. As newly evolved strains of drug-resistant influenza viruses emerge that pose a significant threat to public health, as seen with the 2017 H7N9 avian influenza outbreak in China, the Budget contin - ues to build on previous investments in pandemic preparedness and response capacity. Through the Assistant Secretary for Preparedness and Response and the Office of Global Affairs, the Budget pro - vides $260 million to support investments in critical domestic influenza vaccine manufacturing facil - ity infrastructure, continue the advanced research and development of improved vaccines, therapeu - tics, and rapid in-home diagnostics, and support international pandemic preparedness. The Budget also includes an increase of $10 million for CDC’s influenza activities compared to 2019 enacted to support vaccine effectiveness studies, help expand the production capacity of cell-grown vaccine candidates, and undertake other high priority flu activities in support of the Administration’s efforts to modernize influenza vaccines. The Budget also includes $50 million within CDC to build up the Infectious Diseases Rapid Response Reserve Fund. These funds provide needed flexibility for HHS agencies to quickly respond to emerging health threats as they arise. The Budget includes $100 million to support CDC’s global health security activities, an increase of $50 million compared to 2019 enacted. The Global Health Security Agenda is a multiyear global ini - tiative to reduce infectious disease threats by strengthening the capacity of other countries to contain outbreaks at their source. Containing the spread of deadly infectious diseases through efficient biode - fense capabilities is vital to protect the homeland and preserve U.S. national and economic security. CDC will implement a regional hub office model, allowing staff to more efficiently work in multiple countries in a region, as needed, to support health security priorities. CDC will primarily focus its activities on areas where it has seen the most success: lab and diagnostic capacity; surveillance sys - tems; training of disease detectives; and establishing strong emergency operation centers. Advances Medical Product Safety. The Budget provides $6.1 billion in total resources for FDA, $643 million more than the 2019 estimated level. The Budget includes $55 million to strengthen FDA’s activities in response to the Nation’s opioid crisis, $55 million to advance digital technology, $13.5 million for ensure that compounded drugs are safe and effective, and $20 million for a pilot pro - gram to develop and test technology that could detect pathogens in the blood supply. Tackles the Epidemic of Youth E-Cigarette Use. The Budget includes a new user fee on e- cigarettes and other electronic nicotine delivery system products and proposes new FDA authority to collect user fees in support of its regulatory oversight of new tobacco and nicotine related products in the future as appropriate. The proposal would amend current law to add e-cigarette manufacturers and importers to a list of product categories subject to the user fee. The FDA’s annual user fee cap of $712 million would be increased by $100 million and future collections of all tobacco related products would be indexed to inflation. This proposal would ensure that FDA has the resources to address today’s alarming rise in youth e-cigarette use as well as new public health threats of tomorrow. New tobacco or nicotine products that are regulated by FDA should also pay a user fee, just as other to - bacco related products that are subject to FDA’s user fee. Serves Older Americans. The Budget prioritizes funding for programs that address the needs of older Americans, many of whom require some level of assistance to continue living independently
52 48 DePARTMeNT OF HeAl AND HUMAN SeRVICeS TH or semi-independently within their communities. This funding provides critical help and support to seniors, providing direct services such as respite care, transportation assistance, and personal care - services. These services also include $907 million for senior nutrition programs. This funding is esti mated to provide 221 million meals to more than 2.3 million older Americans nationwide. Strengthens Work Requirements to Promote Self-Sufficiency. The Budget improves consis - tency between work requirements in federally funded public assistance programs, including Medicaid and Temporary Assistance for Needy Families (TANF), by requiring that able-bodied, working-age - individuals find employment, train for work, or volunteer (community service) in order to receive wel fare benefits. This would enhance service coordination for program participants, improve the financial well-being of those receiving assistance, and ensure federally funded public assistance programs are reserved for the most vulnerable populations. Supports Children and Families in Achieving Their Potential. The Budget continues to in - vest in programs that help American families and children thrive. The Budget’s investments in child care and early learning would help families access and afford the care they need while they work, go to school, or enroll in job training. The Budget maintains funding for Head Start and the Child Care and Development Block Grant at HHS. The Budget also proposes a $1 billion one-time mandatory investment for States to build the supply of care and stimulate employer investment in child care. The Budget also supports States in providing key services to children and youth by increasing State flexibilities and reducing administrative burdens in foster care. These child welfare reforms focus on preventing the need for foster care unless absolutely necessary to ensure families can remain intact. In addition, the Budget promotes evidence-building and innovation to strengthen America’s safety net, proposes improvements to the TANF program, and supports efforts to get noncustodial parents to work. Together, these proposals reflect the Administration’s commitment to helping low-income families end dependency on Government benefits and promote the principle that gainful employment is the best pathway to financial self-sufficiency and family well-being. Expands Statutory Access to the National Directory of New Hires ( NDNH) for Program Integrity and Evidence Building. The Budget includes a package of proposals to provide valu - able employment and earnings data—NDNH—for program integrity and evidence building activities, while ensuring privacy and security safeguards. Program integrity proposals to strengthen eligibility verification and/or reduce improper payments include those at HHS’s CMS, the Railroad Retirement Board, and the Department of the Treasury’s Do Not Pay Business Center on behalf of agencies with statutory access to NDNH. evidence-building proposals include providing access for statistical agen - cies and evaluation offices, as well as access for State agencies to administer child support, workforce, and vocational rehabilitation programs. The package is detailed in Analytical Perspectives , Chapter 6, “Building and Using evidence to Improve Government.”
53 DEPARTMENT OF HOMELAND SECURITY Funding Highlights: • The Department of Homeland Security (DHS) protects Americans by safeguarding the homeland. The Department accomplishes its mission by: preventing terrorism; securing and managing the Nation’s borders; administering and enforcing U.S. immigration laws; defending and securing Federal cyberspace; and ensuring disaster resilience, response, and recovery. The 2020 Budget prioritizes funding to secure the Nation’s borders, strengthen and enforce U.S. immigration • laws, and respond to and recover from major disasters and large-scale emergencies. • High priority 2020 Budget investments include $5 billion for construction of the border wall, and $506 million to hire over 2,800 additional law enforcement officers and critical support personnel at U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement (ICE). An additional $19.4 billion is available to help communities across the United States recover from the devastating impact of major disasters. • The 2020 Budget requests $51.7 billion in discretionary appropriations for DHS, a $3.7 billion or 7.8-percent increase from the 2019 estimate (excluding 2019 amounts for Overseas Contingency Operations). The President’s 2020 Budget: DHS protects Americans from threats by land, sea, air, and cyberspace, 24 hours a day, 365 days a year. The Department prioritizes smart, innovative, and effective programs to prevent terrorism, promote cybersecurity, manage America’s borders, and enforce U.S. immigration laws, and it leads the Federal Government’s coordinated and comprehensive Federal response to major disasters and other large-scale emergencies. The men and women of the Department work tirelessly to ensure the safety, preparedness, and resilience of the Nation. The Budget includes increased funding for border security, immigration enforcement, cybersecurity, and law enforcement capabilities. The Budget would allow the Department to adapt to new and evolving threats and challenges in order to protect the American people, the homeland, and U.S. values. In addition to aggressively pursuing the resources necessary to support border security and im - migration control, the Administration is calling upon the Congress to enact immigration reforms, including ending chain migration, canceling the visa lottery program, and moving from low-skilled migration to a merit-based immigration system, thereby raising wages, shrinking the deficit, and raising living standards for both U.S.-born and immigrant workers. 49
54 50 Dep ArTmeNT oF HomelAND SeCUrITy Secures the Borders of the United States. each day, DHS works to protect the American people and “Our policy at DHS in the face of growing economy by preventing the illegal movement of people dangers will not be ‘strategic patience.’ and contraband across U.S. borders while facilitating Instead, we are reasserting U.S. leadership. - legitimate trade and travel to advance American pros And we are building the toughest homeland perity. As depicted in the chart below, the number of security enterprise America has ever seen.” people determined to be inadmissible at a port of entry or apprehended for illegally crossing the border grew Kirstjen M. Nielsen by over 25 percent from 2017 to 2018, with illegitimate Secretary border crossers travelling as a family increasing by 53 September 5, 2018 percent. - Border security remains a top Administration prior ity, and the Budget continues to implement the president’s direction to secure the U.S. Southwest border. The Budget requests $5 billion to construct approximately 200 miles of border wall along the officers, and U.S. Southwest border; provides $192 million to hire 750 Border p atrol agents, 171 CBp support staff; and invests $367 million in CBp aircraft, vessels, surveillance technology, and equip - ment. In addition, the Budget includes $1.2 billion to continue to modernize U.S. Coast Guard vessels and aircraft that patrol and provide life-saving rescue missions across the Nation’s coastal borders. The men and women of CBp work to keep the Nation safe from those seeking to smuggle people and contraband across America’s borders. The Incr Illegitim at e Cross- Activity ea sed Border Administration is pursuing innovative and effective solutions to hire and retain these On the Southwes t Borde r valuable Government employees. 400,00 0 Enforces the Nation’s Immigration 379,272 301,317 Laws and Strengthens Border 0 300,00 - The Budget provides discre Security. - tionary and mandatory funding to pro 261,513 mote the Administration’s immigration 0 200,00 and border security priorities and ensure 3 161,11 104,997 103,376 the safety and security of American com - 100,00 0 munities. While the Budget provides dis - 58,660 cretionary funding and investments to 70,370 48,681 support a robust level of immigration and 0 border security activities, these resources 2016 2017 2018 are insufficient to close existing loopholes s Family Unit Single Adults Unaccompanied Children in U.S. immigration laws and provide the Source: Department of Homeland Security, 2018. full range of programs, activities, and staff - ing necessary. To bridge this gap, the Budget proposes the creation of a new Border Security and Immigration enforcement Fund to be financed from mandatory receipts. Provides Discretionary Funding to Support Enhanced Immigration and Border Security. - The Budget provides $314 million to hire an additional 1,000 ICe law enforcement officers, 128 im migration court prosecuting attorneys, and 538 additional critical support staff to carry out this vital national security mission. Funding of $2.7 billion is provided for 54,000 detention beds to ensure ICe has the ability to detain criminal aliens and those apprehended at the border—including aliens with meritless asylum claims—so they can be safely removed. The Budget also makes additional invest - ments in the Alternatives to Detention program for active monitoring of a total alien population of approximately 120,000. moreover, the Budget increases funding for the Transportation and removal
55 BUDGeT oF THe U. S. Go VerNmeNT For FISCAl 51 yeAr 2020 - programs to manage the growing numbers of family units and unaccompanied alien children appre hended at the border. Provides Additional Mandatory Border and Immigration Enforcement Funding. The Administration proposes the creation of a Border Security and Immigration enforcement Fund to - provide the additional mandatory funding resources necessary to meet the president’s border se curity and immigration enforcement goals. These goals include the expansion of immigration de - tention capacity to 60,000—including 10,000 family detention beds—and the hiring of 15,000 DHS - law enforcement officers, 600 new ICe immigration court prosecuting attorneys, 100 new immigra tion judge teams and associated support at the Department of Justice’s (DoJ) executive office for Immigration review, and 50 new Federal prosecutors at DoJ’s offices of the United States Attorneys. The Administration plans to work with the Congress to identify offsets for these activities. The employment of illegal aliens by companies Reduces Illegal Immigration Work Incentives. is a violation of the law, harms U.S. workers, and contributes to human smuggling, document fraud, identity theft, money laundering, and labor violations. The Budget proposes mandatory, nationwide use of the e-Verify system, an online tool that allows businesses to determine the eligibility of their employees to work in the United States. e-Verify is available at no cost to employers and has an 1 The Administration continues to require the use of e-Verify by accuracy rate of over 99.8 percent. Federal contractors to ensure the proper utilization of Federal dollars. The Transportation Security Administration (TSA) se Secures U.S. Transportation Systems. - cures not just aviation, but also mass transit systems, passenger and freight railways, pipelines, highways, and ports. The Budget aggressively supports the deployment of new technologies, includ - ing 320 Computed Tomography units to the Nation’s highest risk airports, and other new technolo - gies to increase the effectiveness and efficiency of security operations for all modes of transportation. Approximately $7.8 billion is included in the Budget to support the TSA employees and technology that ensure the free movement of people and commerce. The Budget provides significant investments for the Disaster Ensures Resilience to Disasters. relief Fund to help affected communities that are continuing to recover from disasters in 2017 and 2018. The Budget proposes a $430 million all-hazards competitive grant program that would be rigorously evaluated to demonstrate how the Federal emergency management Agency is supporting communities to make the Nation safer and more resilient. Flood insurance is the first line of defense for survivors to recover after flooding events. The Budget - continues to hold the Administration’s position that flood insurance rates should reflect the risk home owners face by living in flood zones, while protecting low-income policyholders from rate increases they may otherwise face. The Administration is committed to the principle that homeowners share in the financial burden of protecting their property against the threat of flooding. Supports the Cybersecurity of Government Networks and Critical Infrastructure. The president’s National Cyber Strategy highlighted DHS’s role in securing and building cybersecurity resilience for the Nation’s most critical infrastructure, including Government networks. DHS works with key partners and stakeholders to identify and manage national cybersecurity risks. The Budget includes more than $1 billion for DHS’s cybersecurity efforts. These resources would increase the number of DHS-led network risk assessments from 473 to 684—including assessments of State and local electoral systems—as well as for additional tools and services, such as the eINSTeIN and the Continuous Diagnostics and mitigation programs, to reduce the cybersecurity risk to Federal infor - mation technology networks. 1 https : performance / www.uscis.go v/ e-verif y/ about-progra m/ /
56 52 Dep ArTmeNT oF HomelAND SeCUrITy The Addresses the Federal Cybersecurity Workforce Shortage. Delivering Government st Solutions in the 21 Century plan, released in June of 2018, included an initiative to solve the Federal cybersecurity workforce shortage by establishing a unified cyber workforce capability across the civil - ian enterprise. The Budget includes funding to support DHS’s Cyber Talent management System, which reflects the exemption of DHS’s cyber workforce from many of the hiring and compensation requirements and restrictions in existing law under Title 5. Under this new initiative, DHS would hire at least 150 new cybersecurity employees using this system by the end of 2020. In this way, DHS would be better positioned to compete with the private sector for cyber talent. Protects the Nation’s Leaders by Strengthening the U.S. Secret Service. The Budget pro - vides $2.3 billion for the U.S. Secret Service, fully supporting the Agency’s dual missions of protect - ing the Nation’s leaders while securing America’s financial systems. The Budget proposes hiring an additional 177 special agents, officers, and professional staff at the U.S. Secret Service to continue to rightsize the Agency to perform its important missions. The Budget also provides funding for the 2020 presidential campaign and proposes investments in protective equipment and technology, con - sistent with recommendations of independent reviews of U.S. Secret Service operations.
57 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Funding Highlights: • The Department of Housing and Urban Development (HUD) supports safe and affordable housing for Americans and provides access to homeownership opportunities. • The Budget reflects the President’s commitment to fiscal discipline by reforming programs to promote work and self-sufficiency, and focusing support on critical cost-effective programs that assist vulnerable households. The Budget also recognizes a greater role for State and local governments and the private sector. • The Budget requests $44.1 billion in gross discretionary funding for HUD, an $8.7 billion or 16.4-percent decrease from the 2019 estimate. The President’s 2020 Budget: HUD supports affordable housing for low-income families and provides access to homeownership for traditionally underserved first-time, low- and moderate-income, and minority homebuyers. The Budget provides $44.1 billion to support HUD’s core functions. For HUD’s rental assistance pro - grams, the Budget provides $37.9 billion to maintain services to all currently assisted low-income families and proposes reforms that build on the Administration’s Making Affordable Housing Work Act (MAHWA). This legislative proposal would not only reduce program costs, but also promote ten- ant work and self-sufficiency. In addition, the Budget continues to support efforts to remove lead and other hazards from housing, reduce homelessness, and make targeted investments in designated Opportunity Zones. For first-time and low- to moderate-income homebuyers, HUD’s Federal Housing Administration (FHA) remains a critical source of mortgage financing. The Budget also provides critical resources for HUD’s Financial Transformation Plan to address audit findings, ensure strong stewardship of taxpayer dollars, and increase transparency. The Budget also redefines the proper role of the Federal Government by proposing to eliminate programs that have failed to demonstrate effectiveness, such as the Community Development Block Grant (CDBG) program, recognizing that State and local governments are better equipped to ad - dress local community and economic development needs. Reforms Rental Assistance and Incorporates Uniform Work Requirements. The funding level for HUD’s rental assistance programs provides sufficient resources to continue assistance to all 4.7 million currently served low-income families. To reduce the significant costs of these programs, the Budget re-proposes MAWHA and rent reforms that would require work-able individuals to 53
58 54 DePArTMenT OF HOUSInG AnD UrBAn DevelOPMenT shoulder more of their housing costs while providing an incentive to increase their earnings. Proposed rent reforms, however, would mitigate the impact on currently assisted elderly individuals and people with disabilities by phasing in a reduced rent increase over six years. The Administration’s legislative proposal would also reduce administrative and regulatory burdens and allow communities further flexibility to develop rent requirements for tenants that are consistent with local needs and objectives. In addition, the Budget incorporates the principles of the Administration’s policy on uniform work require - ments for non-elderly and non-disabled persons to work “The RAD program is a win-win. It preserves a minimum of 20 hours per week, or participate in - training or educational activities. As a part of its imple affordable housing for the people who need - mentation, HUD would explore ways to leverage exist it most and transforms aging public housing ing compliance and enforcement mechanisms with the into safer places to live...” goal of avoiding additional burden on Public Housing Brian Montgomery Authorities and private multifamily property owners. FHA Commissioner Leverages Capital for Housing Improvements. September 19, 2018 The Budget provides investments and statutory author - ities to facilitate a shift from the Public Housing funding vouchers and Project-Based rental platform to Housing voucher and PBrA programs benefit from leveraging both public Assistance (PBrA). The Housing and private financing to invest in long-term affordable housing stock. To advance this objective, the Budget requests $100 million for the rental Assistance Demonstration (rAD) program, which sup - ports the redevelopment of Public Housing units through conversion to Housing voucher and PBrA units. Additional authorities in the Public Housing program, such as repositioning certain troubled public housing assets, would also assist in this effort. recognizing this shift and that State and local governments should bear greater responsibility in providing affordable housing, the Budget does not request funding for the Public Housing Capital Fund. lead-based paint in housing presents Reduces Lead Exposure for Low-Income Children. one of the largest threats to the health, safety, and dreams of America’s next generation, with more - than 23 million homes having significant lead-based paint hazards. The Budget requests $290 mil lion to promote healthy and lead-safe homes, $60 million above the 2019 estimated level. research has shown that lead-based paint hazard control is an efficient and effective approach to reducing and preventing lead exposure, generating high returns on investments due to increased lifetime earnings and reduced medical costs. This funding level also includes resources for enforcement, education, and research activities to further support this goal. Continues Supporting Communities’ Efforts to Reduce Homelessness - . The Budget pro vides $2.6 billion for the Homeless Assistance Grant (HAG) programs. HAG primarily funds the Continuum of Care (CoC) program, which is a coordinated community-based network of programs to prevent and address local homelessness. HUD awards CoC grants through a competitive funding process that promotes cost-effective and evidence-based strategies. As a part of the total, the Budget requests $270 million for emergency Solutions Grants, which would enable municipalities to support emergency shelter, rapid re-housing, and homelessness prevention. The Budget requests $75 mil - Promotes Economic Mobility and Improves Quality of Life. - lion for the Family Self-Sufficiency program and $15 million for the Jobs-Plus Initiative. These pro grams connect HUD-assisted households to social services and employment resources, helping ten - ants maximize their earning potential and improve their financial situations and quality of life. A rigorous evaluation has shown that the Jobs-Plus Initiative produces lasting increases in tenant
59 BUDGeT OF THe U. S. GO vernMenT FOr FISCAl YeAr 2020 55 ision Center research dem - wages. The Secretary’s env - onstration will also support this goal by providing com “...I’ve seen the negative impact lead munities centralized hubs that offer holistic approach - exposure can have on a child’s developing es to self-sufficiency. In addition, the Budget requests brain. HUD’s Office of Lead Hazard Control funding for research and demonstrations to continue to and Healthy Homes has been a significant build the evidence base for the most effective policies contributor to the ongoing development of a that promote economic self-sufficiency. [F]ederal strategy to eliminate childhood lead poisoning, ensuring kids have a foundation Targets Investments in Opportunity Zones. and a home environment that contribute to The Budget provides targeted resources aligned with the Administration’s focus on encouraging investment their ability to thrive.” in Opportunity Zones. The $100 million request for Ben Carson - rAD, referenced above, would prioritize the redevelop Secretary ment of Public Housing properties that are located in October 22, 2018 Opportunity Zones. The Budget also funds Technical - Assistance to local municipalities that are seek ing to attract public and private investments to their communities. Supports Sustainable Homeownership Opportunities. The Budget preserves access to sus - tainable homeownership opportunities for creditworthy borrowers through FHA and Ginnie Mae credit guarantees. FHA provides a crucial source of mortgage financing for first-time homebuyers, who accounted for more than 80 percent of FHA-insured home purchase loans in 2018. The Budget requests $20 million above the 2019 estimated level to modernize FHA’s outdated and burdensome information technology systems. This additional funding is fully offset by a modest new fee on FHA lenders, better aligning the responsibilities for the costs and benefits of this program. In addition, the Budget includes legislative proposals that would align FHA authorities with the needs of its lender enforcement program and limit FHA’s exposure to down-payment assistance practices that not only increase the risk of taxpayer losses, but oftentimes are not in the best interest of borrowers. The Budget includes $20 million for HUD’s Strengthens HUD’s Financial Management. Financial Transformation Plan, a multiyear effort to strengthen the agency’s financial reporting, ac - counting operations and internal controls. This effort is critical to addressing recurring audit issues, ensuring strong stewardship of taxpayer dollars, and increasing transparency. The Administration continues to redefine the proper role of the Eliminates Major Block Grants. Federal Government and proposes eliminating funding for programs that lack measurable outcomes - or are ineffective. The Budget would eliminate several of HUD’s community and economic devel opment programs as well as affordable housing production programs. The Budget would eliminate CDBG, a program that has expended more than $150 billion since its inception in 1974, but has not demonstrated sufficient impact. Studies have shown that CDBG’s allocation formula, which has not - been updated since 1978, is ineffective at targeting funds to the areas of greatest need, and many as pects of the program have become outdated. The Budget would also eliminate the HOMe Investment Partnerships Program, which has not been authorized since 1994. The Budget devolves responsibility - to State and local governments, which are better positioned to assess local community needs and ad dress unique market challenges.
61 DEPARTMENT OF THE INTERIOR Funding Highlights: • The Department of the Interior (DOI) conserves and manages natural resources and cultural heritage for the benefit and enjoyment of the American people, provides scientific and evidence-based information about America’s natural resources and hazards, supports safe and responsible development of Federal energy resources, fosters rural prosperity, and honors the Nation’s trust responsibilities and special commitments to American Indians, Alaska Natives, and U.S.-affiliated island communities to help them prosper. The 2020 Budget request for DOI prioritizes wildland fire risk mitigation, energy development programs, • infrastructure improvements on public lands, and DOI-wide reorganization efforts. The Budget eliminates funding for unnecessary or duplicative programs while reducing funds for lower priority activities, including land acquisition and various grant programs. • The Budget requests $12.5 billion for DOI, a $2 billion or 14-percent decrease from the 2019 estimate (including 2019 changes in mandatory programs). The President’s 2020 Budget: DOI protects and manages the Nation’s natural resources and cultural heritage, manages devel - opment of energy and mineral resources on Federal lands and waters, provides scientific and other - information about the Nation’s natural resources, manages water infrastructure, honors trust re sponsibilities to American Indians and Alaska Natives, and fulfills commitments to Insular areas. The 2020 Budget reflects the Administration’s strong commitment to promoting economic security and energy dominance by developing domestic energy resources. These efforts invest in America’s future and prioritize the safety and security of American taxpayers by reducing U.S. dependency on foreign nations. Strengthens America’s Energy Security. The Budget increases funding for DOI programs that support the safe and responsible development of energy on public lands and offshore waters. DOI has proposed an aggressive strategy for leasing offshore oil and gas under its Draft Proposed Program for 2019-2024. Onshore, the Administration is working aggressively to carry out congres - sional direction to implement oil and gas leasing in the coastal plain of the Arctic National Wildlife Refuge. The Department will also continue to make new areas available for renewable energy de - velopment—both onshore and offshore—and will prioritize renewable project permitting consistent with industry demand. The Budget also maintains funding for scientific research and data collec - tion by the U.S. Geological Survey (USGS) to inform responsible energy and mineral development 57
62 58 DePARTmeNT OF The INTeRIOR and minimize the environmental impacts of these activities. Combined with administrative reforms to streamline permitting processes, these efforts would provide industry with access to the energy resources America needs, while ensuring that taxpayers receive a fair return from the development of these public resources. Supports Reorganization of DOI. The Budget pro - vides $28 million to continue implementing DOI’s vision for a reorganized Department, focusing resources on its “Together, we are going to start a new energy new unified regions, moving headquarters staff west, revolution—one that celebrates American and expanding the use of shared services. Through its production on American soil.” - 12 new unified regions, DOI hopes to improve collabo ration and coordination across its bureaus on key DOI President Donald J. Trump missions—such as recreation, conservation, and permit - March 28, 2017 ting—and to focus regions on the same resources and constituents. By relocating staff, the Department brings employees closer to the public that they serve and the - resources they manage. efforts to expand shared ser vices will reduce duplicative capacity within DOI and increase the Department’s ability to deliver on DOI’s missions and responsibilities. In light of historically catastrophic wild - Supports Federal Efforts to Reduce Wildfire Risk. fire seasons in recent years, the Budget significantly increases funding for wildland fire management - programs to reduce hazardous fuel loads and support wildfire preparedness efforts. The Budget re sponsibly funds base suppression costs pursuant to the Consolidated Appropriations Act, 2018, which would be bolstered by $300 million in additional suppression resources under the recently enacted wildfire cap adjustment. In addition, the Administration is unequivocal about the need to acceler - ate active forest management. The Budget reflects this critical priority by requesting $194 million for DOI’s hazardous fuel mitigation work and $172 million for DOI timber programs; together, these programs help ensure that Federal lands and watersheds are sustainable, healthy, and productive. These programs also generate jobs in rural communities and help make them safer and more resilient to the destructive impacts of wildfire. DOI and the U.S. Department of Agriculture’s Invests in Public Lands Infrastructure Fund. Forest Service manage an infrastructure asset portfolio with a replacement value exceeding $300 billion. The buildings, trails, roads, water systems, and Bureau of Indian education (BIe) schools managed by the Departments are deteriorating, as evidenced by a deferred maintenance backlog that exceeds $18 billion. To address this backlog, the Budget proposes a $6.5 billion Public Lands Infrastructure Fund (Fund) to improve and repair facilities at national parks and forests, wildlife refuges, BIe schools, and on other public lands. The Fund would be supported by the deposit of 50 percent of the proceeds received from Federal offshore and onshore energy leases over the 2020-2024 period, subject to an annual limit of $1.3 billion. These investments would improve some of America’s most visited parks and public lands that support a multi-billion dollar outdoor recreation economy. Preserves National Park Service (NPS) Assets for Future Generations. NPS has a long - history of preserving and protecting the natural and cultural sites that tell America’s story. To con tinue this tradition and ensure preservation of national parks for generations to come, the Budget provides $293 million to help address NPS’s $12 billion deferred maintenance backlog. Along with the mandatory funding provided by the Public Lands Infrastructure Fund, this funding would help NPS maintain and preserve America’s highest priority assets.
63 BUDGeT OF The U. S. GOVeRNmeNT FOR FISCAL YeAR 2020 59 Prioritizes Land Management Operations at NPS, United States Fish and Wildlife Service, and Bureau of Land Management. To protect and conserve America’s public lands, the Budget provides $5 billion for land management operations. These resources would ensure access to recreational activities such as hunting, fishing, and camping, and provide safe experiences for visitors. The Budget also advances efforts to streamline operations and reduce unnecessary spending. The Budget invests in USGS science related to natu - Invests in Essential Science Programs. ral hazards; water, energy, minerals, and other natural resources; and the health of America’s ecosys - tems and environment. The Budget supports development of the Landsat 9 ground system, as well as research and data collection to inform sustainable energy and mineral development, responsible resource management, and natural hazard risk reduction. Supports Tribal Sovereignty and Self-Determination across Indian Country. The Budget supports Federal trust responsibilities and tribal needs related to education, social services, law en - forcement, infrastructure maintenance, and stewardship of land, water, and other natural resources. Funding priorities include core operational activities and services that support tribal sovereignty, sus - tain tribal governments, including assisting tribal law enforcement initiatives and training, and fos - ter effective stewardship of trust resources, such as fully funding contract support costs. The Budget also supports BIe’s efforts to foster the success of the approximately 47,000 students it serves. Streamlines Reviews and Permitting. DOI is responsible for administering foundational en - vironmental and historic preservation laws nationwide and for managing more than 20 percent of the Nation’s lands, which affects the American public and many private stakeholders. The Budget supports DOI in fulfilling these important permitting and review responsibilities in a timely and thorough manner. As an example, the Budget maintains core funding for the United States Fish and - Wildlife Service to conduct endangered Species Act (eSA) consultations, which help facilitate devel - opment of infrastructure projects while ensuring threatened and endangered species receive the pro tections intended by the eSA. The Budget also strengthens the Bureau of Land management’s ability to efficiently facilitate and administer development of energy transmission projects. The Budget includes Eliminates Unnecessary, Lower Priority, or Duplicative Programs. elimination of discretionary Abandoned mine Land economic development grants that overlap with existing mandatory reclamation grants, National heritage Areas that are more appropriately funded locally, Indian Guaranteed Loan Program funding that largely duplicates other existing loan pro - grams serving Indian Country, and National Wildlife Refuge Fund payments to local governments that are duplicative of other payment programs. Reduces Funding for Land Acquisition. The Budget continues to focus on using resources to manage existing lands and assets managed by DOI. For example, the Budget reduces funding for land acquisition to $8 million, including balance cancellations. Less funding for land acquisition would allow DOI to focus resources on supporting activities and asset repair in existing national parks, ref - uges, and public lands which encompass more than 500 million acres. Supports Law Enforcement Capacity on Public and Trust Lands. DOI serves as the stew - ard of more than 500 million acres of public lands and more than 55 million acres of tribal trust lands. The Budget keeps visitors and natural resources safe on the Nation’s public lands and supports safe tribal communities on trust lands through law enforcement efforts. The Budget supports a strong and secure border, with DOI law enforcement efforts focused on the 12 million acres of DOI lands along the United States-mexico border. The Budget also invests in the United States Park Police, who safeguard lives and protect America’s national treasures. In addition, the Budget invests in
64 60 DePARTmeNT OF The INTeRIOR - efforts to combat illegal wildlife trafficking using United States Fish and Wildlife Service law enforce ment capacity, in support of the President’s executive Order on combatting transnational criminal organizations. each year, Expands Recreational Access and Supports the Outdoor Recreation Economy. hundreds of millions of Americans visit U.S. national parks, wildlife refuges, and other public lands to hike, hunt, fish, view wildlife, and participate in other recreation opportunities. Visitors to public lands spend money in local gateway regions, and these expenditures generate and support economic prosperity within these local communities. In addition, through the purchases of hunting and fish - ing licenses and equipment—and associated excise taxes—sportsmen and women have generated billions of dollars to fuel wildlife and habitat conservation efforts. To serve these visitors, the Budget supports expanded public access to lands and waters administered by DOI. The Budget also invests in increased access to encourage sportsmen and women conservationists, veterans, minorities, and underserved communities that traditionally have low participation in outdoor recreation activities. Invests in Water Resources and Infrastructure. The Budget invests in the safe, reliable, and efficient management of water resources throughout the United States. The Budget requests $1.1 bil - lion for the Bureau of Reclamation, with an emphasis on operating, maintaining, and rehabilitating existing water resources infrastructure throughout the western United States. Through the Bureau of Reclamation and Bureau of Indian Affairs, the Budget requests $179 million for the implementation of enacted Indian water rights settlements in support of Federal trust responsibilities to Tribes. The Budget also invests $194 million in water-related science at USGS and the Bureau of Reclamation to sustain and enhance ground and surface water quality and quantity research and monitoring, and to develop new technologies to respond to the water resource challenges facing the Nation.
65 DEPARTMENT OF JUSTICE Funding Highlights: • The Department of Justice defends the interests of the United States and protects all Americans as the chief enforcer of Federal laws. • The Budget prioritizes and protects investments in core Government functions such as national security, cybersecurity, violent crime reduction, immigration law, drug enforcement, and also addresses the opioid epidemic. • The Budget requests $29.2 billion for the Department of Justice, a $698 million or 2-percent decrease from the 2019 estimate. The Budget targets funding increases to support public safety and national security while reducing or eliminating lower priority spending. The President’s 2020 Budget: The Department of Justice enforces the laws and defends the interests of the United States; en - sures public safety against foreign and domestic threats; provides Federal leadership in preventing and controlling crime; seeks just punishment for those guilty of crimes; and ensures the fair and im - partial administration of justice for all Americans. After two consecutive years of increases in the vi - olent crime rate, the estimated number of violent crimes in the Nation decreased 0.2 percent in 2017 when compared with 2016. The Department is committed to building on this success by expanding efforts to dismantle criminal networks, disrupt and prosecute human trafficking rings, halt the flow of illegal drugs, and restore law and order to communities. The Budget requests a total of $29.2 bil - lion to expand the capacity of key law enforcement agencies and strengthen the Department’s ability to address the most pressing public safety needs. Enforces Immigration Laws. The Administration is committed to strengthening the Nation’s security through robust enforcement of the Nation’s immigration laws. Because of this increased enforcement, the Executive Office for Immigration Review (EOIR) received more than 230,000 new cases last year, bringing the pending caseload to over 750,000. To support this adjudicative need, the Budget provides a total of $673 million for EOIR, which includes funding to hire an additional 100 immigration judge teams and expand both physical and virtual courtroom space to conduct admin - istrative immigration hearings. Provides Additional Mandatory Border and Immigration Enforcement Funding. The Administration proposes the creation of a Border Security and Immigration Enforcement Fund to provide the additional mandatory funding resources necessary to meet the Administration’s 61
66 62 DEp ARTmENT OF JUSTIcE - border security and immigration enforcement goals. These goals include the expansion of immigra tion detention capacity to 60,000—including 10,000 family detention beds—and the hiring of 15,000 Department of Homeland Security law enforcement officers, 600 new Immigration and customs - Enforcement immigration court prosecuting attorneys, 100 new immigration judge teams and as sociated support at EOIR, and 50 new Federal prosecutors at DOJ’s Offices of the United States Attorneys. The Administration plans to work with the congress to identify offsets for these activities. Strengthens National Security. The Federal Bureau of Investigation (FBI) has responsibility for protecting U.S. citizens from harm both at home and abroad. In support of this vital work, the Budget provides $9.3 billion in Salaries and Expenses for the FBI. These resources would maintain and ex - pand efforts across a wide array of important mission Calling for Bipartisan Action areas, including cybersecurity, transnational organized crime, and background checks for firearms purchases. “Our whole Nation benefits if former inmates In addition, the National Security Division is provided - with $110 million, including resources to support ad are able to reenter society as productive, ditional work associated with the Foreign Investment law-abiding citizens.” Risk Review modernization Act. President Donald J. Trump Supports Criminal Justice Reform. In addition November 14, 2018 to prosecuting crime and enforcing the Nation’s laws, the Administration proposes to promote public safety by helping prevent individuals who have reentered society from returning to prison. Approximately 95 percent of incarcerated persons will eventually leave - prison. However, individuals released from State prisons have a five-year recidivism rate of 77 per cent, and those released from Federal prisons have a five-year recidivism rate of 42 percent. The Administration is committed to breaking this cycle of recidivism by better preparing individuals to reenter communities and to mitigating the collateral consequences of incarceration. In addition to backing criminal justice reform through the FIRST STEp Act, the Administration supports efforts - to bolster evidence-based programming in Federal correctional institutions. The Budget provides ap proximately $754 million for reentry programming in the Bureau of prisons, including funding for education, career and technical training, substance abuse, and residential reentry centers. Of this amount, the Budget provides $14 million for the development of new and innovative pilot programs designed to address the needs of individuals incarcerated in Federal prisons. In addition, through State and local assistance programs, the Budget provides $85 million for the Second chance Act grant program to reduce recidivism and help returning citizens lead productive lives. The Department of Justice is committed to restoring law and order by Combats Violent Crime. providing Federal resources where they are most needed and most effective. The Budget provides $14.9 billion for Federal law enforcement, including FBI, the Drug Enforcement Administration (DEA), the United States marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Organized crime and Drug Enforcement Task Forces. These resources support the Department’s ability to respond to national security crises; investigate violent and drug-related crime; and appre - hend, detain, and prosecute offenders. The Budget would transfer the entirety of the ATF alcohol and tobacco regulatory and enforcement responsibilities to the Alcohol and Tobacco Tax and Trade Bureau (TTB) in the Department of the Treasury. This transfer would enable ATF to hone its focus on activities that protect U.S. communi - ties from violent criminals and criminal organizations, while consolidating duplicative alcohol and tobacco enforcement mechanisms within TTB. In addition, the operating capability of DEA’s Special
67 BUDGET OF THE U. S. GOVERNmENT FOR FISc AL YEAR 2020 63 - Investigative Unit program would retain its critical role in enhancing the Federal Government’s abil ity to pursue threat networks to their source, as prioritized in the National Security Strategy. Tackles the Opioid Epidemic. Today, the United States faces the deadliest drug overdose crisis in American history. more than 70,000 Americans lost their lives to drug overdoses in 2017. Evidence shows that fentanyl, heroin, or prescription opioids were responsible for nearly 48,000 of these tragic - deaths. The Department of Justice recognizes its critical role in combating prescription opioid mis use and illicit heroin and fentanyl use. The Budget provides $2.3 billion in discretionary resources for DEA, including an additional $35 million to enhance heroin enforcement efforts, end anonymous - online drug trafficking, and pursue transnational criminal organizations profiting from these dead ly substances. The Budget also provides $443 million in fee-funded resources for DEA’s Diversion control Fee Account to combat the diversion of licit drugs and precursor chemicals. These efforts are - bolstered by an additional $4 million to deploy 23 United States Attorney opioid prosecutors to dis tricts hardest hit by this crisis. In addition, the Budget includes $330 million for opioid-related State and local assistance including: $145 million for the comprehensive Opioid Abuse program to support treatment and recovery, diversion, and alternatives to incarceration programs; $125 million for Drug courts, mental Health courts, and Veterans Treatment courts; $30 million for Residential Substance Abuse Treatment; and $30 million for prescription Drug monitoring programs. Supports State and Local Law Enforcement. The Budget also supports key State and lo - cal assistance programs, including $405 million for the Byrne Justice Assistance Grants program, which pro - vides State and local governments with crucial Federal Protecting America’s Children funding to prevent and control crime. In addition, the Budget provides $100 million for the Violent Gang “Through the STOP School Violence grants, and Gun crime Reduction/project Safe Neighborhoods we are giving local schools and police (pSN) program. pSN creates safer communities through departments the resources they need to sustained reductions in gang violence and gun crime by hire more officers, and train more teachers, leveraging Federal, State, and local partnerships. The and better detect and address early warning - Budget further reflects the Administration’s commit signs of mental illness before it’s too late.” - ment to keeping children safe by providing $100 mil lion in STOp School Violence Act funding. This critical President Donald J. Trump program supports a variety of school safety programs October 8, 2018 including training for school personnel, preventative tip lines and threat assessments, and coordination between schools and law enforcement. In addition, the Budget supports critical victim assistance programs, including $492 million in Violence Against Women Act funding and $77 million to support victims of human trafficking.
68 64 DEp ARTmENT OF JUSTIcE
69 DEPARTMENT OF LABOR Funding Highlights: • The Department of Labor (DOL) supports the Nation’s wage earners, job seekers, and retirees. • The Budget focuses DOL on its highest priority functions and restores fiscal discipline by eliminating programs that are duplicative, unnecessary, unproven, or ineffective. The Budget also takes steps to reorganize and modernize the Agency’s operations so taxpayer dollars are spent efficiently. • The Budget requests $10.9 billion for DOL, a $1.2 billion or 9.7-percent decrease from the 2019 enacted level. The President’s 2020 Budget: DOL supports American workers, job seekers, and retirees by providing resources and opportuni - ties to improve their skills, find work, and enter or return to the workforce. The Department also safeguards their working conditions, health and retirement benefits, and wages. Workers are the backbone of the American economy, and the Nation needs a skilled and productive workforce to keep the economy growing. The Budget improves the quality of life for all workers by making targeted, evidence-based investments to help workers remain competitive in the workforce and by eliminating duplicative, wasteful, and non-essential activities. Builds a Highly Skilled and Competitive Workforce Expands Access to Apprenticeship. The Budget invests $160 million in apprenticeship, a proven earn-while-you-learn strategy that equips workers with the skills they need to fill open, high-paying jobs. The Budget also proposes to increase H-1B fee revenues in order to fund addi- tional apprenticeship activities. Apprenticeship is a great solution for employers looking for a skilled workforce and workers looking for an affordable path to a secure future. As part of implementing the President’s Executive Order “Expanding Apprenticeships in America,” the Department is establish - ing a new industry-recognized apprenticeship system to modernize and expand the U.S. approach to apprenticeships. In 2018, there were 238,549 new apprentices, a 20-year high. DOL is working to further expand apprenticeships by empowering third party “accreditors” to recognize new, industry- driven apprenticeship programs, focusing on those in high-growth sectors where apprenticeships are underutilized, such as healthcare, information technology, and advanced manufacturing. Closes the Skills Gap by Training American Workers. The Budget proposes to double the American Competitiveness and Workforce Improvement Act of 1998, as amended, fee for the H-1B 65
70 66 DEPArTmENT Of LABOr visa program to prepare American workers for jobs that are currently being filled by foreign workers, especially in science, technology, engineering, and mathematics fields. The increased revenue would support DOL’s grants to expand apprenticeship and provide additional support for technical skills instruction at the K-12 and community college levels through the Department of Education’s Career and Technical Education formula grants. Moves toward Reorganizing and Consolidating the Nation’s Workforce Development Programs. Currently, the f ederal Government has more than 40 workforce development programs spread “[W]e recognize the importance of - across 15 agencies with a total annual cost of ap apprenticeships in helping our country’s Delivering Government proximately $18 billion. In its st hardworking people develop the competencies Century Solutions in the 21 plan, the Administration st proposed Government-wide workforce development pro - that enable success in today’s dynamic, 21 gram consolidation, streamlining separate programs in [C]entury economy.” order to increase efficiencies and better serve American President Donald J. Trump workers. The Administration looks forward to working November 9, 2018 with the Congress to achieve this necessary restruc - turing, and the Budget takes steps in this direction by eliminating programs that are ineffective, unproven, or duplicative. - The Budget invests in the Nation’s veterans, transitioning ser Supports America’s Veterans. vicemembers, and their spouses by better assisting their transitions from active duty to civilian life. The Budget increases funding for the Transition Assistance Program to assist servicemembers in their transition to civilian employment. The Budget also provides funding to support military spouses, who are often required to find new opportunities after their spouse has been relocated. In addition, the Budget provides funding for the Veterans Employment and Training Services’ core programs, which help improve skills and provide employment opportunities for veterans across the United States. Job Corps educates and provides skills instruction to approximately 50,000 Reforms Job Corps. disadvantaged youth at 123 primarily residential centers across the United States. The Budget takes aggressive steps to improve Job Corps for the youth it serves by: improving center safety; empower - ing new, more effective entities to operate centers; focusing the program on the older youth for whom the program is more effective; and closing centers that inadequately prepare students for jobs. As - part of this reform effort, the Budget ends the Department of Agriculture’s (USDA) role in the pro gram, unifying responsibility in DOL. Workforce development is not a core USDA role, and the 25 centers it operates are overrepresented in the lowest performing cohort of centers. The Budget also proposes new legislative flexibilities that would enable the Department to more expediently close low-performing centers, target the program to groups more likely to benefit, and make the necessary capital investments to ensure successful pilot programs. These reforms would save money and im - prove results by eliminating ineffective centers and finding better ways to educate and provide skills instruction to youth. Improves the Delivery of America’s Economic Statistics. The Budget recognizes the im - portance of economic statistics for businesses and everyday citizens to make informed decisions and confidently invest in America’s future. The Administration urges the Congress to favorably consider st Century plan’s recommendation to consolidate within the Delivering Government Solutions in the 21 the Department of Commerce critical economic statistics programs at the Census Bureau, the Bureau of Economic Analysis, and the Bureau of Labor Statistics, making agency operations more efficient, improving products, and reducing the burden on respondents, while preserving the Agencies’ brand recognition and independence.
71 BUDGET Of THE U. S. GOVErNmENT fOr fISCAL YEAr 2020 67 Modernizes the Unemployment Safety Net to Emphasize Work Combats Waste, Fraud, and Abuse in the Unemployment Insurance Program. The federal- State Unemployment Insurance (UI) program has continually had one of the highest rates of improper ederal Government. more than 13 percent of the program’s payments, representing payments in the f $3.7 billion, are paid to individuals that do not meet all of the program’s eligibility requirements. The Budget takes aggressive steps to address this problem by providing grants to States to combat the top two root causes of improper payments in their programs. The Budget also reduces waste, fraud, and abuse in the UI program with a package of program integrity proposals. These proposals to combat improper payments are based on tools that States already have at their disposal but would require that States use those tools to spend certain UI program funds on activities that reduce waste, fraud, and abuse in the system. The Budget also supports the UI Integrity Center of Excellence, which is developing a data hub to allow States to access a fraud analytics database to identify fraud as effec - tively as possible. Focuses Trade Adjustment Assistance on Apprenticeship and Other Work-Based Training. - The Trade Adjustment Assistance (TAA) program, which provides cash benefits and train ing to workers who have been displaced as a result of international trade, is in need of reform. A rig - orous 2012 evaluation of the program demonstrated that workers who participated in the program 1 had lower earnings than the comparison group at the end of a four-year follow-up period, in part because they were more likely to participate in long-term job training programs rather than imme - diately reentering the workforce. However, this training was not targeted to in-demand industries and occupations—only 37 percent of participants became employed in the occupations for which they trained. The Budget proposes to refocus the TAA program on apprenticeship and on-the-job training, earn-as-you-learn strategies that ensure that participants are training for relevant occupations in to - day’s competitive workforce. States would also be encouraged to place a greater emphasis on intensive reemployment services for workers who are not participating in work-based training, getting those workers back into the workforce more quickly. Protects American Workers Makes Health Insurance More Affordable for Small Businesses. The President’s Executive Order “Promoting Healthcare Choice and Competition Across the United States” directed the Secretary of Labor to consider expanding access to health coverage by allowing more employers to - form Association Health Plans (AHPs), arrangements under which small businesses may band to gether to offer competitive and affordable health insurance to their employees. The Budget supports this initiative by increasing funding for the Employee Benefits Security Administration to develop policy, regulations, and enforcement capacity to enable more employers to adopt the AHP model and expand health insurance access for American workers. Secures Safe and Healthy Workplaces. The Budget maintains targeted investments in the Occupational Safety and Health Administration (OSHA) and mine Safety and Health Administration (mSHA) aimed at preventing worker fatalities, injuries, and illnesses through enforcement, outreach, and compliance assistance. The Budget includes funding for additional OSHA inspectors to conduct more inspections in high-hazard industries and for protecting whistleblowers’ rights. The Budget proposes a new budget activity within mSHA, consolidating the Coal mine Safety and Health and the metal and Nonmetal mine Safety and Health budget activities. The new enforcement structure would provide the flexibility to address industry changes and maximize the efficient use of mSHA’s resources. 1 https : / / www.mathematica-mpr.co m/ our-publications-and-finding s/ publication s/ the-evaluation-of-the-trade-adjustment-assistance-pro - gram-a-synthesis-of-major-findings
72 68 DEPArTmENT Of LABOr To help safeguard labor union democracy Rebuilds DOL’s Role in Overseeing Union Integrity. and financial integrity, the Budget takes steps to restore the Office of Labor-management Standards’ investigative workforce, which has fallen by more than 40 percent during the past 10 years. The - Budget would strengthen protections for union members by supporting more audits and investiga tions to uncover flawed officer elections, fraud, and embezzlement. Protects Americans’ Pensions. The Pension Benefit Guaranty Corporation’s (PBGC) multi - employer program, which insures the pension benefits of 10 million workers, is at risk of insolvency by 2025. As an important step to protect the pensions of these hardworking Americans, the Budget proposes to add new premiums to the multiemployer program, raising approximately $18 billion in premiums over the 10-year window. At this level of premium receipts, the program is projected to remain solvent over the next 20 years, helping to ensure that there is a safety net available to work - ers and retirees whose multiemployer plans fail. The Budget proposes to rebalance premiums in the single-employer program, which insures pension plans that are maintained by individual employers. The Budget proposes to freeze for one year premium rates for well-funded plans, which have faced numerous premium increases since 2012, and shift the premium burden to underfunded plans that pose a greater solvency risk to PBGC. Reforms the Federal Employees’ Compensation Act. The Budget proposes to reform the federal Employees’ Compensation Act program, which provides workers’ compensation benefits to federal employees injured or killed on the job and their survivors. The proposed reforms would save taxpayer dollars by modernizing program administration, simplifying benefit rates, and introducing controls to prevent waste, fraud, and abuse. Puts American Workers First. DOL administers the labor certification component of foreign temporary work visa programs, which ensure that American workers are not unfairly displaced or disadvantaged by foreign workers. The certification programs lack a reliable workload-based source of funding, which has created recurring seasonal backlogs for employers. The Budget proposes to es - tablish fees to create a workload-based funding source and place responsibility for funding this work on the program’s users rather than taxpayers. Supports Working Families Provides for Paid Family Leave for New Parents. The Budget invests in a better future for Americans with a proposal to provide paid family leave to new mothers and fathers, including adoptive parents, so all families can afford to take time to recover from childbirth and bond with a new child. The proposal would allow States to establish paid parental leave programs in a way that is most appropriate for their workforce and economy. The Administration looks forward to working with the Congress to advance policies that would make paid pa - “Paid family leave enables parents to balance rental leave a reality for families across the Nation. the competing demands of work and family, pursue their careers, and build strong and Makes Government More Efficient thriving families. It is an investment in the Tackles Duplication and Inefficiency at DOL. future of our workers, our families, and our - DOL is acting to implement in-house reforms consis country.” tent with the President’s directive to reorganize and im - - ederal Government. many of DOL’s admin prove the f Ivanka Trump istrative activities, including information technology, Advisor to the President procurement, human resources, financial management, July 11, 2018 and physical security, are separated across its subcom - ponents. This creates duplication, limits economies
73 BUDGET Of THE U. S. GOVErNmENT fOr fISCAL YEAr 2020 69 of scale, and prevents resources from being spent on core mission-related work. DOL is working to centralize these activities to improve oversight, eliminate duplication, save money, and achieve economies of scale. In addition, the Budget includes funding and more flexibilities for DOL’s Chief Information Officer to modernize the Department’s legacy case management systems by reallocating base resources.
75 DEPARTMENT OF STATE AND OTHER INTERNATIONAL PROGRAMS Funding Highlights: The Department of State, the U.S. Agency for International Development (USAID), and other international • programs promote the national security and economic prosperity of the United States by advancing diplomacy, security, and fair economic competition. • The Budget for the United States’ international programs advances the Nation’s strategic objectives, including those outlined in the National Security Strategy of the United States. The Budget supports new tools to allow the United States to respond flexibly to international challenges, as well as organizational reforms to increase agency effectiveness. These reforms prioritize the efficient use of taxpayer dollars and increased burden-sharing to rebalance U.S. contributions to international organizations. • The Budget requests $40.0 billion for the Department of State and USAID, a $12.3 billion or 23-percent decrease from the 2019 estimate. The Budget also requests $1.6 billion for Department of the Treasury international programs, approximately equal to the 2019 estimate. The President’s 2020 Budget: The President’s Budget supports the Department of State, USAID, and other international pro - grams to protect U.S. citizens, increase American prosperity, and advance the development of demo - cratic societies. The Budget provides the necessary resources for the United States to expand its influence and safeguard its economic interests, even as competition from rising powers increases. To achieve this, the Budget invests in new capabilities to defend American interests and values across the security, trade, and information domains. The Budget supports America’s reliable allies, but reflects a new approach toward countries that have taken unfair advantage of the United States’ generosity. The Budget restores fiscal discipline by eliminating ineffective programs and initiating wide-reaching agency reforms. The Budget also recalibrates American contributions to international organizations to a more sustainable level, maintaining American leadership while asking other na - tions to increase participation. Through the strategic, efficient use of resources, the Budget would reduce spending while adapting U.S. international agencies to the current era and providing better results for the American people. Supports More Effective American Diplomacy Supports the U.S. Diplomatic Presence to Advance America’s Interests and Protect The Budget requests $4.7 billion for diplomatic programs supporting National Security. 71
76 72 DePArTmenT of STATe AnD oTher InTernATIonAl ProgrAmS Department of State professionals working every day to achieve U.S. foreign policy objectives and advance American interests through a network of 277 embassies, consulates, and diplomatic missions around the world. This funding level sustains and invests in the State Department’s workforce, allow - ing the Department to recruit and develop its personnel to meet high priority needs while promoting - efficient operations. The Budget would enable the Department to continue modernizing its informa tion technology platform to allow its workforce to do their jobs efficiently, effectively, and securely. In addition, the Budget includes $3.8 billion for consular and border security programs, financed through fee collections, to carry out passport and visa functions. This critical component of U.S. border security protects the American people while facilitating legitimate travel. The Budget also requests $1.3 billion for USAID operating expenses to support USAID personnel in 87 missions. The Budget requests $4.7 bil - Prioritizes Embassy Security to Protect Diplomats and Staff. lion to protect overseas personnel and facilities, including the Department’s share of the $2.2 billion requested government-wide for new, secure embassy construction, as recommended by the Benghazi Accountability review Board. This security funding supports the protection of every U.S. diplomatic mission and the thousands of employees who serve U.S. interests overseas in dangerous and challeng - ing security environments. With the proposed level of funding, the Department of State would con - tinue to protect American personnel representing more than 30 agencies, as well as provide services to Americans overseas, in a safe and secure environment. The Budget fully supports the Supports Strategic Partners and Diplomatic Progress. U.S.-Israel memorandum of Understanding and includes $3.3 billion in f oreign military f inancing grant assistance to bolster Israel’s capacity to defend itself against threats in the region and main - tain its qualitative military edge. The Budget also fully supports the U.S.-Jordan memorandum of Understanding and the U.S. diplomatic and security partnership with egypt. The Budget includes a Diplomatic Progress fund, which would allow the United States to incentivize and take advantage of diplomatic openings and opportunities to advance the nation’s foreign policy priorities as they arise. This fund provides flexibility to respond to improved engagement from governments for which the Budget has not proposed specific bilateral funding, such as non-security assistance for the West Bank and gaza, should diplomatic progress be achieved in support of U.S. objectives and regional peace. - The Administration continues to assess how best to advance regional peace and stability, counter de stabilizing activities and influence, and ensure resources are appropriately aligned with U.S. national security and economic interests. The Budget also continues robust assistance to support religious and ethnic minorities across the middle east and elsewhere. Supports a Peaceful Resolution to the Afghan Conflict. The Budget provides $533 million for assistance to Afghanistan. The Budget prioritizes economic growth and reconciliation, investments to help Afghanistan to work toward peace. The Budget supports programs that target private-sector led economic growth, including by increasing the country’s export capability and attracting international - investment. The Budget also supports education, health, governance, and other sectors that are nec essary for a stable and thriving Afghanistan. Emphasizes Great Power Competition Advances a Free and Open Indo-Pacific. The nation’s future security, prosperity, and leader - ship depends on maintaining a free and open Indo-Pacific region. The Budget provides over $1 billion for the Indo-Pacific, reflecting the Administration’s commitment to the region. This funding supports democracy and good economic governance, private sector mobilization and competitiveness, critical infrastructure standards and financing, and security cooperation. The new Development f inance Corporation’s (DfC) work in the region will also advance U.S. strategy by leveraging private sector capital in much needed, high-quality regional infrastructure. Together, these programs ensure that
77 BUDgeT of The U. S. go VernmenT for fISCAl YeAr 2020 73 the United States remains the preferred security and economic partner in the region. “We believe that when nations respect the Counters Russian Malign Influence. The Budget rights of their neighbors, and defend the provides over $500 million for assistance to europe, interests of their people, they can better work eurasia, and Central Asia to: advance shared secu - together to secure the blessings of safety, rity; safeguard the territorial integrity of U.S. allies; prosperity, and peace.” support partner countries’ efforts to transition away from russian military equipment, particularly through President Donald J. Trump - foreign military f inance lending; and address weak September 25, 2018 nesses in the macro-economic environment that the - government of russia seeks to exploit, such as depen dence on energy and trade. The Budget increases funding for the office of the U.S. Advances Fair and Reciprocal Trade. - Trade representative (USTr) in support of the President’s trade agenda. The Administration has re negotiated outdated agreements with Canada, mexico, and South Korea, and is pursuing new agree - ments with the european Union, Japan, and the United Kingdom. These efforts will help ensure that fair trade grows the economy and supports jobs at home. The Administration further protects American workers and businesses by identifying trade violations and pursuing enforcement options foreign robust support for USTr would also help support implementation of the to end abuses. modernization Act, which helps protect U.S. businesses and technology from risk review Investment intellectual property theft. The Budget supports a fully functioning Supports Fair Competition for American Exporters. export-Import Bank (exIm) to implement reforms and help American exporters compete in an in - creasingly unfair global marketplace. The Budget ensures exIm would be able to help correct market failures, especially by supporting small businesses, sectors with national security importance, and American companies with foreign-government supported competitors. Makes Programs More Effective While Increasing Burden Sharing Maintains U.S. Global Humanitarian Leadership while Expecting Others to Do More. The Budget requests significant humanitarian assistance resources that would enable the United States to remain the largest single humanitarian donor in the world. These resources would address major humanitarian crises, including those driven by conflict, such as in Syria, Yemen, and Iraq. The Budget continues the new approach to relief announced in the 2019 Budget to influence other donors to give a greater funding share and to demand improved performance by United nations (Un) and other implementers in order to maximize benefits for recipients. The new approach strives for greater accountability by international partners along with donor burden sharing that is more balanced, while reducing suffering and meeting the needs of refugees and displaced persons close to their homes until they can return safely. As conflict-based crises increase and force multiple displacements of populations within and outside their national borders, the Budget proposes to adapt and significantly improve America’s ability to respond flexibly by consolidating all overseas humanitarian assistance in a single account so that funds can adjust as needed to reach affected persons. U.S. refugee admis - sions will continue to be funded through the migration and refugee Assistance account, a separate State Department account. Pushes Multilateral Organizations Toward Fairer Burden Sharing and Advancing U.S. The Budget supports the aims of the national Security Strategy that the United States Interests. will “compete and lead in multilateral organizations so that American interests and principles are
78 74 DePArTmenT of STATe AnD oTher InTernATIonAl ProgrAmS - protected” and therefore “will prioritize [our] efforts in those organizations that serve American in terests...” but “where existing institutions and rules need modernizing, the United States will lead to update them.” In line with these objectives, the Budget prioritizes U. S. contributions to organiza - tions that most closely align with American interests. The Administration continues to seek greater transparency and reform across the multilateral sphere, including by strategically assessing United nations peacekeeping missions and demanding increased efficiency and effectiveness from all inter - national organizations, while also seeking a more equitable distribution of financial responsibility. The Budget requests Maintains U.S. Leadership at Multilateral Development Banks (MDBs). $1.6 billion in funding for mDBs, including a new commitment for the World Bank’s International Bank for reconstruction and Development where the United States remains the largest shareholder. - As a leading donor, the United States demands financial discipline, high performance and account ability, fair burden sharing, and strategic investments that serve U.S. development, foreign policy, and national security goals. Continues U.S. Leadership Against HIV/AIDS, and Mobilizes Others to Contribute More. for the next replenishment of the global fund to f ight AIDS, Tuberculosis and malaria, the Budget offers to match $1 for every $3 pledged by other donors, providing a $1.1 billion contribution in 2020 and up to $3.3 billion over the three-year replenishment period, using unmatched funds appropriated by the Congress for 2019 from the last replenishment. This new match will support a global target of $13.2 billion, an increase from the previous replenishment, and challenges other donors to make significant new commitments to fighting the three diseases. The Budget also provides $3.4 billion for the U.S. President’s emergency Plan for AIDS relief (PePf Ar), fully funding the final year of the Administration’s Strategy for Accelerating HIV/AIDS Epidemic Control (2017-2020) , when coupled with additional resources appropriated by the Congress in 2019. With these resources, PePf Ar would provide lifesaving support in more than 50 countries, maintain all current patients on treatment, and continue the United States’ position as the world’s top hIV/AIDS donor. Protects the United States and the World From Infectious Disease Through the Global Health Security Agenda (GHSA). To prevent, detect, and respond to infectious disease threats before they reach U.S. borders, the Budget continues significant support through a renewed commit - ment for the next five-year phase of - ghSA. This commitment would bolster an international partner ship to reduce the likelihood of outbreaks abroad and strengthen the capacity of countries to respond. The Budget also requests more than $2 billion for lifesaving programs to address maternal and child health, family planning, nutrition, malaria, neglected tropical diseases, and for the U.S. contribution to gavi, the Vaccine Alliance. The Budget prioritizes resources to combat tuberculosis, the most lethal infectious disease in the world, with an emphasis on drug-resistant tuberculosis through a new busi - ness model that promotes sustainable partnerships with local organizations. Reorganization and Reform: Supports New Tools and Needed Reforms Strengthens U.S. Allies and Bilateral Security Relationships by Helping Partner Countries Buy More U.S. Defense Articles and Services. The Budget proposes to expand the U.S. government’s toolkit for financing U.S. defense sales by requesting expanded authority to pro - vide f oreign military f inancing (fmf) loans. new for 2020, the Budget requests interest rate flex - ibility for the fmf direct loan program to make U.S. defense equipment a more competitive and more affordable option for partner countries. The Budget also requests authority to provide partial U.S. government-backed loan guarantees to incentivize the private sector to fill the defense financing gap, reducing the risk to U.S. taxpayers. This reformed fmf loan program would serve to complement the Budget’s request for $5.4 billion in fmf grant assistance so that America can still be the defense supplier of choice for partner countries for which loans are not the best option. This expanded set of
79 BUDgeT of The U. S. go VernmenT for fISCAl YeAr 2020 75 fmf tools would help support increased U.S. defense sales and increase opportunities for allies and partners to build their militaries around U.S. innovation and quality. Implements New Development Finance Legislation to Increase U.S. Influence. on october 5, 2018, the President signed into law the Better Utilization of Investments leading to Development Act. The legislation consolidates, modernizes, and reforms the U.S. government’s “development finance” capabilities—primarily, the overseas Private Investment Corporation and USAID’s Development Delivering Credit Authority—into the U.S. International DfC, consistent with the Administration’s st Century or its first year in operation, the Budget pro - Government Solutions in the 21 reform plan. f vides $300 million to the DfC for its operations and to extend loans, guarantees, and political risk - insurance. This amount also supports a new equity investment program and other support to facili tate private-sector investment in emerging markets that would have positive developmental impact. These are transactions that the private sector will not undertake on its own. These tools would allow the U.S. government to better partner with allies and deliver financially-sound alternatives to state- led initiatives from countries like China. In its Delivering Optimizes Fragmented and Outdated Humanitarian Assistance Structure. st Government Solutions in the 21 Century - reform plan, the Administration committed to make fun damental changes to optimize the effectiveness of the nation’s fragmented and outdated humanitar - ian assistance structure. In addition to the previously-announced merger of USAID’s humanitarian offices, the Budget consolidates the overseas humanitarian assistance programming currently con - ducted by the Department of State into the new bureau at USAID. In addition, all humanitarian as - sistance would be funded through a single, flexible appropriations account. This reorganization builds on each organization’s comparative advantages by leveraging USAID’s program implementation and partner oversight expertise with the State Department’s expertise on humanitarian policy, diplomacy, and refugee issues. The Budget pairs this restructuring with a high-level, dual-hat humanitarian leadership structure at the Department of State and USAID under the authority of the Secretary of State. The Department of State would continue management and implementation of the U.S. refugee Admissions Program through the migration and refugee Assistance account. This restructuring and consolidation would facilitate dynamic funding allocations and program coordination across refugees abroad, those displaced within their own country, and other victims as conflict-driven crises evolve. This restructuring is critical to establishing a strong, unified U.S. voice that can extract optimal Un reforms and deliver long-overdue optimal outcomes for beneficiaries and taxpayer dollars. The Budget reflects the Administration’s Transforms USAID and Promotes Self-Reliance. goal of reducing the long-term need for foreign assistance by helping partner countries become self- reliant. The Budget prioritizes investments in private-sector led growth, domestic resource mobi - lization, and economic and governance reforms, informed by objective metrics and roadmaps that track progress and identify areas for emphasis. These programs aim to catalyze sustainable economic growth in recipient countries, and to allow countries to solve their own development challenges. The recently launched Women’s global Development and Prosperity Initiative represents the type of re - sponsible spending the Administration seeks to achieve, through establishing a cohesive whole-of- government approach to women’s economic empowerment, tracking rigorous metrics, and leveraging partners’ resources to achieve shared goals. In addition, the Budget supports implementation of the comprehensive set of reforms outlined in the Administration’s Delivering Government Solutions in the st Century 21 reform plan, including a major structural reorganization of USAID to strengthen core ca - pabilities, increase efficiency, and reduce costs. This also includes the creation of a small grants office that would consolidate the African Development f oundation and the Inter-American f oundation into USAID, thus elevating the small-grants function as a tool of development and diplomacy and sharing best practices with USAID.
81 T R F A O N S T P N O E R M T T A R T A I O P E N D U A N C I I T R E E D M S A T A F T O E S DEPARTMENT OF TRANSPORTATION Funding Highlights: • The mission of the Department of Transportation (DOT) is to ensure that the Nation has the safest, most efficient and modern transportation system in the world; the system improves the quality of life for all American people and communities, from rural to urban; and the system increases the productivity and competitiveness of American workers and businesses. • The Budget request for DOT focuses on its critical transportation safety mission and provides targeted investments in competitive programs that effectively leverage Federal resources to spur larger, partnership- driven investment in infrastructure in key areas. • The Budget requests $21.4 billion in discretionary budget authority for 2020, a $5.9 billion or 22-percent decrease from the 2019 discretionary estimate. The Budget also provides $62.2 billion in mandatory funds and obligation limitations. The President’s 2020 Budget: DOT is responsible for supporting and enabling a high functioning transportation system—to move both people and goods safely and efficiently in order to support jobs and economic growth. The Budget supports necessary investments that ensure the Nation’s air, surface, and maritime trans - portation systems are safe. - The Budget also funds initiatives to improve the condition and performance of the Nation’s trans portation infrastructure. In 2018 and 2019, DOT received large discretionary increases for sur - face transportation and airport infrastructure investments, meeting the Administration’s call for increased infrastructure investments. The 2020 Budget continues certain important transporta - tion infrastructure investments, but in a way that also recognizes that the Federal Government is not—and should not be—the primary funder of the Nation’s transportation systems. The Budget also proposes robust competitive funding for programs that fund projects of national- or regional- significance, or that would result in improved safety outcomes. In addition, DOT will be bolstering its capabilities necessary to improve the efficiency and effectiveness of policy, economic analysis, and regulatory reform. Invests in America’s Surface Transportation Infrastructure. The 2020 Budget fully funds Highway Trust Fund-supported programs at levels consistent with the fifth and final year of the FAST Act. The Administration looks forward to working with the Congress to enact a long-term surface transportation reauthorization to follow the FAST Act. A long-term bill is necessary to 77
82 78 Dep ArTmeNT OF TrANSpOrTATION provide certainty to America’s State, local, and private partners, so they can plan and invest in projects with Invests in Emerging Transportation confidence. In addition, the 2020 Budget includes $200 Technologies billion for additional infrastructure investments. The - Administration will work with the Congress on allocat - DOT must keep pace with emerging en ing this funding, to advance projects that provide the trants and technologies such as Unmanned most benefit to Americans. Aircraft Systems (UAS), commercial space transportation, and autonomous vehicles, Prioritizes the Safety of the Nation’s Transportation System. - The Budget funds impor to ensure that the transformative benefits of tant investments to ensure the safety of the Nation’s these emerging technologies are realized. aviation, surface transportation, and maritime trans - The Budget supports key investments in the portation networks. The Nation has made good progress - Federal Aviation Administration (FAA) to ex in reducing overall transportation-related fatalities and pand the integration of UAS into the National - injuries during the past two decades. Through its over Airspace and develop tools to automate the sight of safety standards, outreach, and investments, - launch and reentry of commercial space op DOT is committed to continuing this trend. The majority erations and improve the efficiency of the of transportation-related fatalities occur on the Nation’s launch license process. For autonomous highways: 37,133 in 2017. To help address this issue, the - vehicles, which could revolutionize the Na Budget provides the Federal Highway Administration’s tion’s surface transportation system, DOT Highway Safety Improvement program with $2.7 bil - has had a number of important accomplish - lion. The Budget also provides FAST Act authorized - ments, including the release of the Depart funding of $929 million to the National Highway Traffic Safety Administration and $676 million to the Federal Preparing for the Future ment’s multimodal motor Carrier Safety Administration to reduce fatalities of Transportation: Automated Vehicles 3.0 and improve the safety of the Nation’s infrastructure. guidance document, which will help the pri - vate sector, States, and localities continue Emphasizes Competitive Programs that research and deployment activities safely. Generate Large Returns on Investment. The The Department will continue efforts in 2020 Budget makes targeted investments emphasizing in - to enable the safe testing and integration novation, leveraging, and partnerships to improve of autonomous vehicles within the Nation’s the Nation’s surface transportation infrastructure. - transportation systems by reducing regula The Budget provides $1 billion to the Better Utilizing Investments to Leverage Development competitive tory barriers and conducting research. grant program, which supports innovative projects that enhance quality of life and economic competitiveness in communities across the Nation, particularly in rural areas. The Budget allocates $2 billion to the Infrastructure for rebuilding America (INFrA) competi - tive grant program, which is a $1 billion increase above the FAST Act-authorized level. The INFrA program has been successful in providing the seed money necessary to spur non-Federal investment in large projects that relieve congestion on the Nation’s strategic multimodal freight network. The Budget includes $300 million in competitive highway bridge grants, which would reward States that use innovative and efficient procurement practices to repair or replace rural bridges that are in poor condition. Modernizes FAA Infrastructure. The Budget invests $3.3 billion in FAA infrastructure. modernizing the Nation’s air traffic control infrastructure would improve the safety of the Nation’s airspace, while reducing flight delays. Specifically, FAA would invest $136 million to further ex - - pand its Data Communication program, which would improve the communication between control lers and pilots across all phases of flight. The Budget would also invest $127 million to support the
83 BUDGeT OF THe U. S. GOVerNmeNT FOr FISCAL YeAr 2020 79 safe integration of unmanned aerial systems into the Nation’s airspace, ensuring that the United States re - Leveraging Federal Investment for mains the world’s aviation leader for decades to come. Critical Projects Significantly Improves Amtrak and Rural The INFRA program, which makes awards Amtrak’s network has not Transportation Services. to large projects that relieve congestion and been significantly modified since Amtrak’s inception reduce freight bottlenecks, is an example of over 40 years ago, and long distance routes continually underperform, suffering from low ridership and large - how DOT effectively “leverages” Federal dol - operating losses of roughly half a billion dollars annual lars to maximize overall investment in top ly. Simply put, Amtrak trains inadequately serve many priority infrastructure projects. For example, rural markets while not serving many growing metro - in 2018, DOT awarded a $184 million grant politan areas at all. The Administration believes that (paired with $70 million from other Federal restructuring the Amtrak system can result in better sources) to an express lanes highway proj - service (at a lower cost) by focusing trains on shorter ect in Georgia that has an estimated total distance (less than 750 miles) routes, while providing cost of $1.6 billion. In the second round of robust intercity bus service to currently underserved ru - INFRA awards, each Federal dollar invested - ral areas via a partnership between Amtrak and bus op in an INFRA project was matched by $1.65 erators. To accomplish this transformation, the Budget in investment by State, local, and private provides $550 million in transitional grants as States partners. - and Amtrak begin the process to restructure the net work and States prepare to incrementally take financial responsibility for the newly created State-supported routes. The Budget also provides $936 million in direct grants to Amtrak, to support investment on the Northeast Corridor and existing State-supported lines, and to assist Amtrak in this transition. Focuses the Capital Investment Grants (CIG) Program on the Most Impactful Projects. - The CIG program supports the construction of new, or extensions of, fixed guideway transit, com muter rail, light rail, and bus rapid transit projects. The Administration believes that the program needs to be refocused on projects that have high non-Federal funding commitments and provide the greatest impact to improving mobility and access for riders who depend on public transit. The Budget includes $1.5 billion for the CIG program, which includes $500 million in funding for new projects. eAS provides subsidized commercial air Reforms the Essential Air Service (EAS) Program. service to rural airports. Originally designed as a temporary program 40 years ago, today many eAS flights are left unfilled and obtain high per passenger subsidy costs. In addition, several eAS eligible communities are relatively close to major airports. The Budget proposes to reduce the discretionary funding for eAS and reform the program to target Federal funds for communities most in need of their services. The Budget would continue the mandatory resources for eAS at approximately $145 million. The Budget builds on the work Invests in Information Technology (IT) Transformation. started in 2018 to consolidate and transform the Department’s IT efforts to better support the Department’s mission, strengthen cyber security, and achieve greater efficiencies in IT across DOT’s Operating Administrations. The Budget proposes $502 million for DOT’s Working Capital Fund, which would allow the Department to continue to consolidate IT investments into the Office of the Secretary of Transportation.
85 DEPARTMENT OF THE TREASURY Funding Highlights: • The Department of the Treasury (Treasury) manages the U.S. Government’s finances, promotes conditions that enable stable economic growth, protects the integrity of the financial system, and combats financial crimes and terrorist financing. • The Budget proposes reforms to bring greater accountability and efficiency to Treasury’s operations and requests targeted new investments to protect the Nation from malign economic and cyber intrusions, secure and modernize the taxpayer experience, and lower the deficit. The Budget requests $12.7 billion in base discretionary resources for Treasury’s domestic programs, a • $0.2 billion or 1-percent decrease from the 2019 estimate. • The Budget also proposes a program integrity initiative to narrow the gap between taxes owed and taxes paid that is estimated to reduce the deficit by $33 billion over 10 years. The President’s 2020 Budget: The President’s Budget would improve stewardship of taxpayer dollars by focusing on the - Department’s core economic and financial responsibilities. The Budget prioritizes resources to com bat terrorist financing, proliferation financing, and other forms of illicit finance. The Budget also supports Treasury’s role as chair of the Committee on Foreign Investment in the United States (CFIUS) to address current and future national security risks. In addition, the Budget invests in the Department’s functions as the Federal Government’s revenue collector, financial manager, and economic policymaker. The Budget would ensure that taxpayers, investors, and job-creators operate in an economy that is secure, fair, and free from unnecessary bureaucratic impediments. Strengthens Review of Foreign Investments. CFIUS, a multi-agency body chaired by the Secretary of the Treasury, determines potential national security risks arising from certain foreign investments. The Foreign Investment Risk Review Modernization Act (FIRRMA), enacted in 2018, expands CFIUS’s jurisdiction and strengthens its authorities to protect critical U.S. technologies and infrastructure from new and evolving threats, while preserving an open investment environ - ment. The Budget requests $35 million for Treasury, as CFIUS chair, to ensure swift, robust, and effective implementation of FIRRMA. Prioritizes Safeguarding Markets and Protecting Financial Data. Treasury’s Office of Terrorism and Financial Intelligence (TFI) possesses a unique set of authorities and tools 81
86 82 DePARTMenT OF The TReASURy - to combat terrorists, rogue regimes, proliferators of weapons of mass destruction, and other il licit actors by denying their access to the financial system, disrupting their revenue streams, and degrading their capabilities to inflict harm. The Financial Crimes enforcement network (FinCen) links law enforcement and the intelligence communities with financial institutions and regulators facilitating the discovery and prosecution of illegal activities and money-laun - dering schemes. The Budget requests $167 million for TFI to continue its work safeguarding the financial system from abuse and combatting other national security threats using economic sanctions. These funds would support TFI’s growing workforce through critical investments in information technology and mission-support capabilities. The Budget requests $125 million for FinCen to - administer the Bank Secrecy Act and focus on the prevention of terrorist financing, money laun dering, and other financial crimes. These resources would expand FinCen’s special measures enforcement activities and enhance its efforts to combat cybercrime and cryptocurrency threats. The Budget also requests $18 million to protect Treasury information technology (IT) systems that carry out these activities, as well as those that account for and process trillions of dollars in revenue and payments against cybersecurity threats. These funds are requested in addi - tion to bureau-level investments, and would be centrally managed to strengthen the security of Treasury’s highest-value IT assets and improve Treasury’s response and recovery capabilities. The U.S. financial services sector faces a range of cybersecurity vulnerabilities and physical - hazards. The nation’s adversaries have grown in technical capability, and their attacks have in creased in sophistication. The Budget requests $13 million for the Office of Critical Infrastructure Protection and Compliance Policy to enhance the Department’s capacity to identify and remedi - ate new vulnerabilities before they can be exploited. st Century Internal Revenue Service (IRS). The IRS collects approxi - Invests in a 21 mately $3.5 trillion in tax revenue annually and processes more than 253 million tax returns and forms resulting in more than $464 billion in tax refunds. The Budget proposes $11.5 billion in base funding for IRS to ensure that IRS can fulfill its core tax filing season responsibilities, continue critical IT modernization efforts, and pro - vide acceptable levels of taxpayer service. The Budget provides $290 million for the The Budget also proposes legislation enabling ad - IRS’s multi-year IT modernization efforts, ditional funding for new and continuing investments - including upgrading its antiquated infra - to expand and strengthen tax enforcement. These ad structure and integrating its multiple case - ditional proposed investments are estimated to gen management and tax processing systems. erate approximately $47 billion in additional revenue - Approximately 90 percent of individual tax at a cost of $15 billion, yielding a net savings of $33 payers file their taxes electronically and can - billion over 10 years. The Budget also includes sev eral proposals to ensure that taxpayers comply with check on the status of their funds electroni - their obligations and that tax refunds are only paid - cally. However, for most other taxpayer inter - to those who are eligible, including: improving over actions, taxpayers and the IRS must interact sight of paid tax preparers; giving IRS the authority through the mail, which slows the resolution to correct more errors on tax returns before refunds of issues. These funds would also be used are issued; requiring a valid Social Security number to increase taxpayers’ ability to interact with - for work in order to claim certain tax credits; and in IRS securely and electronically, improving creasing wage and information reporting. the time it takes for IRS to resolve concerns.
87 BUDGeT OF The U. S. GOVeRnMenT FOR FISCAL yeAR 2020 83 The Bureau of the Fiscal Service (Fiscal Manages the Nation’s Finances More Effectively. Service) conducts all Treasury debt financing operations, provides central payment services for Federal agencies, runs Government-wide accounting and reporting services, and manages the collection of delinquent debt. In 2018, the Fiscal Service issued approximately $10 trillion in marketable Treasury securities, processed the collection of more than $4 trillion in Federal re - ceipts, and distributed more than $3.5 trillion in payments, including Social Security payments, IRS tax refunds, and veterans’ benefits. The Budget supports increased efforts to monitor and protect the vital IT systems that implement these critical functions. The Fiscal Service performs the vast majority of payment and collection transactions elec - tronically, but in 2018, it still issued almost 56 million paper checks and collected more than $592 billion in payments by mail or in person. The Budget supports Treasury’s efforts to move more payments to electronic methods to increase options for citizens and customers to conduct - transactions with the Federal Government in a secure and more convenient electronic environ ment. It also includes proposals to help the Fiscal Service improve payment integrity. Increases Treasury’s Efficiency and Effectiveness by Streamlining Operations. The Budget eliminates funding for Community Development Financial Institutions (CDFI) Fund discretionary grant and direct loan programs. More than two decades ago, the CDFI Fund was created to jumpstart an industry at a time when CDFIs had limited access to private capital. The industry has now matured and has ready access to the capital needed to extend credit and provide financial services to underserved communities. Brings Accountability and Transparency to Treasury’s Regulatory Oversight Functions. The Budget proposes that the Congress establish funding levels for the Office of Financial Research (OFR) and the Financial Stability Oversight Council (FSOC) through annual appropriations bills. OFR and FSOC, established by the Dodd-Frank Act, are currently able to set their own budgets, which circumvents congressional approval and oversight. Bringing OFR and FSOC into the congressional appropriations process is consistent with recommendations made in Treasury’s June 2017 report to the President on banks and credit unions. OFR has taken administrative steps to further the goals laid out in the Treasury report, including initiat - ing an organizational realignment that has resulted in significant reductions to its staffing and operating expenses. In addition, Treasury is continuing efforts to make FSOC decision-making procedures more transparent and to implement more rigorous cost-benefit analysis standards. The Federal Insurance Office within Treasury is coordinating with State insurance regulators and insurance industry groups to improve oversight and administration of the Terrorism Risk Insurance Program (TRIP), consistent with Treasury’s October 2017 report to the President on asset management and insurance. Treasury is also evaluating reforms, to be included in any leg - islation extending TRIP beyond its current sunset date of December 31, 2020, to further decrease taxpayer exposure. Streamlines Oversight of Alcohol and Tobacco Industries. The Budget proposes to transfer all alcohol and tobacco responsibilities from the Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and explosives (ATF) to Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB). This transfer would leverage TTB’s resources and expertise relating to the alcohol and tobacco industries and allow ATF to continue to focus on its firearms and explosives mandates, enabling both agencies to more efficiently and effectively carry out their core mission of protecting the public. Consolidates and Streamlines Federal Financial Literacy and Education Efforts. The Budget proposes that Federal efforts to promote financial literacy focus on the high-impact
88 84 DePARTMenT OF The TReASURy areas of: basic financial capability; housing; higher education; military and veteran programs; and investment and retirement planning. More than 20 Federal agencies have some form of fi - nancial education or literacy programs. Collectively, Federal agencies spent an estimated $250 million on financial literacy and education activities in 2017. Streamlining and consolidating programs and activities would be a multi-year effort.
89 DEPARTMENT OF VETERANS AFFAIRS Funding Highlights: • The Department of Veterans Affairs (VA) is committed to providing military veterans and their survivors with the benefits, care, and support they have earned through sacrifice and service to the Nation. • The 2020 Budget fulfills the President’s promise by making critical investments in high priority initiatives that ensure veterans receive top quality care, benefits, and services—wherever they work or live. The Budget provides dedicated resources to implement the historic VA MISSION Act of 2018 and gives veterans greater choice and access to the medical care they deserve. The Budget also provides resources to improve the veteran experience across all programs and services, as well as promote efficiency, transparency, and accountability within the Department. • The Budget requests $93.1 billion for VA, a $6.5 billion or 7.5-percent increase from the 2019 enacted level. In addition, the Budget requests $87.6 billion in advance appropriations for VA medical care programs in 2021 to ensure the Department has sufficient resources to continue providing the premier services that veterans have earned. The request also includes new legislative authorities and $123.1 billion in mandatory budget authority, including $129.5 billion in 2021 advance appropriations for other critical veteran and survivor benefits. The President’s 2020 Budget: VA’s mission is to deliver world-class benefits, care, and support to America’s military veterans, their families, and survivors. The Budget provides the necessary resources to meet the Nation’s com - mitment to veterans to help them recover from illnesses, injuries, or wounds sustained in service and to enable their successful reintegration into civilian life. The Budget fully funds VA to operate one of the largest integrated healthcare systems in the United States with over 9.3 million enrolled veterans, provide disability compensation benefits to nearly 5.5 million veterans and their survivors, and administer pension benefits for approximately 440,000 veterans and their survivors. In addition, the Budget makes investments across a broad range of veteran services and programs including: educational assistance for nearly one million students; rehabilitation and employment benefits for approximately 149,000 veterans; servicemember and veteran group life insurance plans for approximately six million enrollees; home mortgages, including more than three million active loans; and memorial and burial benefits in more than 137 national cemeteries and thousands of other cemeteries across the Nation. 85
90 86 ArTmeNT of VeTerANS Aff Dep AIrS Expands Veterans’ Choice and Access to Medical Care The Budget proposes $80.2 billion to fully fund VA medi - Invests in World-Class Healthcare. cal care requirements in 2020, a $7.0 billion or 9.6-percent increase from the 2019 enacted level. The Budget also proposes $87.6 billion in advance appropriations for VA medical care programs in 2021. Implements the VA MISSION Act of 2018. The Budget fully supports implementation of the VA “Our Nation’s veterans fulfilled their duty to this mISSIoN Act of 2018 and provides veterans greater country with brave and loyal service; it is our - choice on where they receive their healthcare—wheth moral and solemn obligation to demonstrate er at VA or through a private healthcare provider. The to them our continuing gratitude, unwavering Budget consolidates all veterans’ community care pro - support, and meaningful encouragement.” grams into a single program, reducing bureaucracy and making it easier for veterans to navigate their health - President Donald J. Trump care needs. October 31, 2018 Increases Veterans’ Access to Urgent Care and Expands the Caregivers Program. As part of the VA mISSIoN Act of 2018, the Budget supports VA’s brand new urgent care benefit. Veterans would be able to use more convenient, urgent care facilities in the community, often times closer to home. The Budget also supports the VA mISSIoN Act of 2018’s ex - pansion of the Caregivers program to include eligible veterans who incurred or aggravated a serious injury in the line of duty before September 11, 2001. expansion of the Caregivers program would coincide with new information technology (IT) updates necessary to effectively manage the program. Prioritizes Funding for Suicide Prevention. reducing deaths by suicide among the Nation’s veterans continues to be VA’s top clinical priority. The Budget provides essential resources for VA’s suicide prevention programs and supports the expansion of key initiatives aimed at advancing VA’s National Strategy for preventing Veteran Suicide. Improves the Veteran Experience The Budget provides $4.3 billion for essential investments in Provides Critical Funding for IT. IT to improve the online interface between the veteran and the Department. This includes an increase of more than $200 million to recapitalize aging network infrastructure, to expedite VA’s transition to the cloud, and to support emerging VA mISSIoN Act of 2018 IT requirements. In addition, the Budget includes $1.6 billion as part of a multiyear effort to continue implementation of a new “More importantly, the interoperability of the record (eHr) system. The eHr is a electronic Health new electronic health records system will high-priority initiative that would ensure a seamlessly connect VA to the DOD, private doctors and integrated healthcare record between the Department private pharmacies to create a continuum of of Defense and VA, by bringing all patient data into one care and organize the healthcare around our common system. veteran’s needs.” The Addresses Infrastructure Deficiencies. Budget provides $1.6 billion for VA’s construction pro - Robert L. Wilkie gram to complete high priority major and minor con - Secretary more than $1.2 billion is provided to struction projects. June 27, 2018 begin construction of a new hospital in Louisville, KY, complete construction of other ongoing major medical facilities, make critical seismic corrections, and expand
91 BUDGeT of THe U. S. Go VerNmeNT for fISCAL YeAr 2020 87 - VA’s national cemeteries. An additional $399 million would be used to renovate existing office and pa tient care space across the Department. The Budget also provides $1.2 billion for non-recurring main - tenance projects to maintain and modernize medical facilities. These critical investments enhance the safety and security of VA facilities, help implement new patient-centered designs, and ensure VA programs and services keep pace with modern technologies. Modernizes the Veteran Appeals Process. The Budget provides sufficient resources for the Board of Veterans Appeals and the Veterans Benefits Administration to implement the Veterans Appeals Improvement and modernization Act of 2017, a new streamlined framework that will provide quicker decisions on new veteran compensation appeals and resolve the remaining legacy appeals inventory. The new framework will provide veterans with increased options to resolve their appeals and improve the timeliness of appeals decisions. Increases Access to Burial and Memorial Benefits. The Budget includes $329 million, a 4.2-percent increase from the 2019 enacted level, to expand veteran access to memorial benefits, deliver premier services to veterans’ families, and provide perpetual care for more than 3.9 million gravesites. This funding would sustain 144 cemeteries and sites, including the initial activation of five new cemeteries to support VA’s goal of providing veterans with a burial option within 75 miles of their home. The Budget also funds the transfer of 11 cemeteries from the Department of Defense as part st of the president’s Century plan. In addition, the Budget Delivering Government Solutions in the 21 increases funding by $13 million to improve customer service, responsiveness, and efforts to better memorialize veterans and tell their stories. Promotes Efficiency, Transparency, and Accountability Targets Investments to Create Efficiencies. The Budget prioritizes investments in areas that - would create cost savings over time, as well as improve the efficiency and effectiveness of VA pro grams. Targeted investments to IT systems, to include more than $200 million for cloud migration and replacing aging infrastructure to support the new eHr system, would result in cost savings as VA consolidates data centers and reallocates resources to higher priority needs. VA is also committed to modernizing the disability compensation program and identifying innovative pilot programs aimed at providing meaningful empowerment opportunities for disabled veterans seeking employment. The Budget promotes fiscal discipline by implementing f ederal re - Streamlines Government. organization proposals that would more effectively and efficiently utilize taxpayer funds. The Budget better aligns small business certification programs across Government by ensuring proper manage - ment of Service Disabled Veteran owned Small Business certification programs under the Small Business Administration. Reduces Waste, Fraud, and Abuse. The Budget provides $229 million for VA programs designed to improve oversight, accountability, and performance within the Department. This includes $22 mil - lion, a 25-percent increase from the 2019 enacted level, in direct funding for the office of Accountability and Whistleblower protection. Since the president’s signing of the Department of Veterans Affairs Accountability and Whistleblower protection Act of 2017, which has allowed the Department to more efficiently discipline poor-performing VA employees, more than 4,300 employees have been removed, demoted, or suspended. The Budget also provides $207 million, a 7.8-percent increase above the 2019 enacted level, for the office of the Inspector General to strengthen accountability, promote transpar - ency, and reduce waste, fraud, and abuse.
93 CORPS OF ENGINEERS—CIVIL WORKS Funding Highlights: • The Army Corps of Engineers civil works program (Corps) develops, manages, restores, and protects water resources primarily through the construction, operation and maintenance, and study of water-related infrastructure projects. The Corps is also responsible for regulating development on navigable waters of the United States and works with other Federal agencies to help communities respond to and recover from floods and other natural disasters. • The Budget focuses Federal investment where it is most warranted within the three primary mission areas of the Corps to address the most significant risks to public safety or to provide a high economic or environmental return to the Nation. The Budget also proposes reforms to how the Nation invests in water resources projects, reducing the reliance on Federal funding and control and providing State and local governments, as well as the private sector, more flexibility to make investments they deem a priority. • The Budget requests $4.8 billion for the Corps, a $2.2 billion or 31-percent decrease from the 2019 enacted level. The President’s 2020 Budget: The Corps has three main missions: flood and storm damage reduction; commercial navigation; and aquatic ecosystem restoration. The Corps also regulates development in navigable waters and wetlands. While the Agency has had a significant impact on water resources development through - out its history, current approaches to funding, constructing, and maintaining projects often do not deliver benefits in either a timely or cost-effective manner. The current paradigm for investing in water resources development is not optimal; it can deter rather than enable local communities, States, and the private sector from making important investments on their own, even when they are the primary beneficiaries. The Budget lays the foundation for accelerating the construction of infrastructure and increasing competition in the delivery of projects, thereby resulting in faster completion of projects and cost savings. The Budget focuses Federal resources where they are most warranted, encourages more non-Federal leadership, and removes barriers that can impede the ability of non-Federal parties to move forward on their own with investments in water resources infrastructure they deem priorities. 89
94 90 CorpS oF EnginEErS—Civil WorkS Invests in America’s Future Emphasizes Investments in Ongoing Construction of Projects that Address a Significant The Budget Risk to Public Safety or Provide a High Economic or Environmental Return. keeps the Federal government’s promise to complete ongoing construction projects that provide a high return to the nation or address a significant risk to public safety more quickly and at a more ef - fective cost. By proposing not to start any new construction projects, the Budget enables the Corps to focus on completing these ongoing priority projects faster and at a reduced cost, allowing the affected - communities to see their benefits sooner. The Budget also recognizes the need to change the way fu ture construction investments are funded with less reliance on Federal appropriations. For example, the Budget provides $150 million for innovative partnerships between the Federal government and non-Federal sponsors to accelerate completion of projects. The Budget gives priority Prioritizes Operating and Maintaining Existing Infrastructure. to operating and maintaining existing water resources infrastructure and improving its reliability. Maintenance of the key features of this infrastructure is funded; this includes navigation channels that serve the nation’s largest coastal ports and the inland waterways with the most commercial use, such as the Mississippi and ohio rivers and the illinois Waterway. Promotes More Local Control in Constructing Water Resources Projects. The Budget expands Transforming How Water Resources the Corps’s current use of section 1043 of the Water Infrastructure is Delivered for the Nation resources reform and Development Act of 2014, as “For the first time, the work plan provides amended, by including $150 million for an innovative - program under which the Corps would transfer appro funds for two projects where the local spon - priated funds to non-Federal sponsors that decide to sor could use [s]ection 1043 of the Water - construct a project on their own. non-Federal imple Resources Reform and Development Act - mentation of projects, where appropriate, would acceler of 2014 to complete project construction. ate the construction of more infrastructure projects and This section authorizes [Corps] to provide create efficiencies in their delivery. Under this program, its share of a project’s construction costs di - the Corps would issue a solicitation for proposals from rectly to a non-[F]ederal sponsor who is able non-Federal sponsors to construct their own projects us - to assume responsibility for construction of a ing a combination of Federal and non-Federal funding. [Corps] project.”— Army Corps of Engineers other projects specifically funded in the Budget may FY 2018 Work Plan press release, June 11, also qualify for implementation under section 1043. 2018. The Budget builds on this progress, The Budget also proposes to extend section 1043 which, providing $150 million in funding for non- under current law, expires in 2019. Federal sponsors that propose to construct projects on their own under section 1043 of Respects and Protects American Taxpayers the Water Resources Reform and Develop - The Budget Reforms Inland Waterways Funding. ment Act of 2014, as amended. proposes to reform the laws governing the inland Waterways Trust Fund, including an annual per-vessel fee for commercial users, to help finance future capital investments on these waterways and a portion of the cost of operating and maintaining them. The current diesel fuel tax is insufficient to support the users’ share of these costs. Divests the Washington Aqueduct. The Budget proposes to sell the Washington Aqueduct, the wholesale supply system for Washington D.C.; Arlington County, virginia; the City of Falls Church, virginia. The Corps owns and operates the Aqueduct, which virginia; and parts of Fairfax County, is the only local water supply system in the nation owned and operated by the Corps. ownership of
95 BUDgET oF THE U. S. govErnMEnT For FiSCAl YEAr 2020 91 local water supply is best carried out by a State or local government, or by the private sector where there are Working with States and Local appropriate market and regulatory incentives. Selling Communities to Improve Infrastructure - the Aqueduct to a public or private utility would con The Budget funds transfer of ownership tribute to American prosperity through a more efficient allocation of economic resources. of the Kentucky River Locks and Dams 1, 2, 3, and 4, to the Kentucky River Association. The Budget establishes Increases Accountability. Transferring infrastructure such as these clear priorities based on objective criteria for invest - locks and dams, which no longer serve a - ment decisions. This approach ensures the best over Federal role, to the primary beneficiaries en - all use of available funds and allows the American ables greater local control and management - taxpayer to understand how Federal resources are allo of infrastructure that is important to the local cated. For example, the Budget funds dam safety stud - communities. ies and dredged material management plans within the investigations account, instead of the operation and Maintenance account, where they appropriately belong. poplar The Budget also classifies the island project, which serves as the primary dredged-material ort of Baltimore, as a navigation project. disposal site for the p Increases Fiscal Discipline and Transparency. - The Budget proposes revisions to the ap propriations language for the Construction, operation and Maintenance, and Mississippi river and Tributaries accounts, and new appropriations language for the Harbor Maintenance and inland Waterways Trust Funds, to provide greater transparency in how these funds are spent. Establishing separate appropriations accounts for the navigation trust funds would improve accountability, ensure appropriations are used for the purpose for which the Congress intended, and increase transparency for the public, including the users that pay fees to finance some of these costs.
97 ENVIRONMENTAL PROTECTION AGENCY Funding Highlights: • The Environmental Protection Agency (EPA) is responsible for implementing and enforcing statutes designed to protect human health and the environment. • The 2020 Budget continues EPA’s work to ensure clean air, water, and land, and safer chemicals, while reducing regulatory burden and eliminating lower-priority activities. Focusing on the core mission makes EPA a better steward of taxpayer dollars and promotes operational efficiencies that enhance the Agency’s performance. The Budget requests $6.1 billion for EPA, a $2.8 billion or 31-percent decrease from the 2019 estimate. • The President’s 2020 Budget: Environmental protection and public health are key to U.S. prosperity and essential to America’s quality of life. Through cooperative federalism, EPA works with States and Tribes, as well as local governments, businesses, and the public to protect human health and the environment. The Budget proposes to eliminate many voluntary and lower-priority activities and refocus the Agency on strategic and regulatory reforms such as implementation of: • Cooperative federalism activities under various environmental statutes; • Requirements under Executive Order 13807, “One Federal Decision;” • Activities to support attainment of the national ambient air quality standards and imple- mentation of air toxics standards; • Waters of the United States (WOTUS) definitional changes; • The 2016 Amendments to the Toxic Substances Control Act (TSCA); and • The Affordable Clean Energy rule, a replacement to the Obama-era Clean Power Plan. Continues Focus on Core Agency Activities. The Budget maintains EPA’s focus on its core mission—providing Americans with clean air, land, and water, and ensuring chemical safety. EPA will continue streamlining programs and processes, eliminating many voluntary and lower-prior - ity activities, and empowering States and Tribes as the primary implementers of environmental 93
98 94 EnviROnmEnTAl PROTECTiOn AgEnCy programs. This prioritization supports an efficient, effective approach that will provide tangible envi - ronmental results for the American people within the scope of EPA’s core statutory obligations. Promotes Regulatory and Permitting Reforms, and Enhances Cooperative Federalism. The Budget provides resources to ensure EPA is able to meet pressing demands in priority areas - including reviewing and revising regulations, improving the permitting process, and enhancing col laboration with State, tribal, and Federal partners. For example, several significant rulemakings are expected to be completed before 2020, including replacement rules for WOTUS and the 2015 Clean Power Plan. EPA will work to provide technical assistance and implementation guidance to States, Tribes, and regulated entities as they adapt to these changes. Efforts to identify and address potential hold-ups in the permitting process will also continue, to ensure that unnecessary delays do not get in the way of environmental protection or economic growth. in addition, EPA will promote joint gover - - nance in order to enhance shared accountability between EPA, States, and Tribes, including facilitat ing and promoting the delegation of environmental programs. Approximately 50 million American children spend their time in Supports Healthier Schools. K-12 school facilities every day. many of these buildings are old and contain environmental hazards that could pose a risk to children’s health. To address this issue, the Budget establishes a $50 million multi-media grant program to identify and help resolve these hazards. Activities supported by this grant program would result in safer and healthier school environments for American children. Sets and Implements Appropriate Air Pollution The Budget funds EPA’s activities to con - Standards. trol air pollution and radiation exposure at $425 mil - User Fee Proposals lion. Prioritizing funding would help reduce the number nation, ensuring of areas of nonattainment across the By administering select EPA programs that the United States continues to lead the world in through the collection of user fees, entities having both clean air and a strong economy. EPA will - benefiting from those programs would di continue its implementation of national air quality rectly pay for the services and benefits that standards and, in close collaboration with States and - the programs provide. The 2020 Budget out - Tribes, will seek to improve the efficiency and effective lines legislative proposals to authorize EPA ness of State implementation Plan review processes. to administer a handful of mature programs in addition, funding for EPA’s vehicle programs would through the collection and expenditure of support the review of approximately 5,000 vehicle and user fees. For instance, the Budget includes engine emissions certification requests. a proposal to fee-fund the ENERGY STAR Strengthens Protections from Toxic Chemicals. program, a voluntary certification program in 2016, the Congress passed the Frank R. lautenberg - that aims to help businesses and individu st Chemical Safety for the 21 Century Act to modern - als save money and protect the environment ize TSCA. TSCA, as amended, requires EPA to evalu - through improved energy efficiency. Other ate whether existing chemicals may pose unreasonable proposals would authorize EPA to collect risks and, if so, take immediate steps to protect human and spend fees to provide compliance assis - health and the environment. EPA must also affirm that tance services related to risk management new chemicals entering the market are safe and that and spill prevention and response planning at appropriate measures are taken to address risks. in industrial facilities. The Budget also includes - 2020, this work would accelerate as the Agency reach es statutory deadlines to complete the first set of risk a proposal to expand the range of activities evaluations for existing chemicals and begins the next that EPA can fund with existing pesticide reg - phase of work. The Budget provides support to these istration service fees and maintenance fees. efforts, which would supplement fees paid by chemical manufacturers and processors.
99 BUDgET OF THE U. S. gO yEAR 2020 vERnmEnT FOR FiSCAl 95 The Budget Invests in Water Infrastructure Construction, Repair, and Replacement. funds water infrastructure through the State Revolving Funds, the Water infrastructure Finance and innovation Act (WiFiA) credit program, and the recently authorized America’s Water infrastructure Act (AWiA). The 2020 capitalization of the State Revolving Funds would supplement approximately $80 billion currently revolving at the State level. Credit subsidy funding for WiFiA would continue the program’s momentum by supporting more than $2 billion in direct loans which, when combined with other funding sources, would spur more than $4 billion in total water infrastructure investment. in addition, the Budget proposes funds for AWiA grant programs that would assist in lead testing and drinking water fountain replacement in schools, sewer overflow control, and water infrastructure workforce investment. These resources would complement State and local drinking water and waste - water infrastructure investments as well as funding provided through other Federal channels. Optimizes the Approach to Clean-Up Efforts at the Nation’s Most Complex Hazardous Waste Sites. The Budget provides $1 billion for the Hazardous Substance Superfund Account to ad - dress the release of hazardous substances and clean up hazardous waste sites. With EPA on track to complete all of the recommendations made in EPA’s Superfund Making Decisions and Saving Taxpayer - Task Force Report by the end of 2019, the Budget sup Dollars ports the full implementation of the optimized approach - to cleaning up Superfund sites. EPA has made signifi In meeting its commitment to the com - cant progress identifying impediments to expeditious munity of Bridgeton, Missouri, EPA signed clean up at sites with significant exposure risks and de - a final Record of Decision (ROD) setting veloping action plans to overcome those impediments. forth a $205 million clean-up plan for the EPA is also working with prospective purchasers, de - West Lake Landfill Superfund site. The ROD velopers, and responsible parties to bring more private amends a controversial version from 2008 funding for redevelopment, saving taxpayer dollars for that caused a near stalemate in remedial the sites that truly need Federal funding. Reducing ex - activity at the site. EPA leadership identified posure to hazardous substances and revitalizing con - this site as a priority and worked through taminated land for use by the community is a priority for the Administration and a fundamental part of EPA’s the challenges to settle on a final remedy core mission. that will take less time to complete and cost $30 million less, while still maintaining the Reinforces Emergency Preparedness and desired public health protections. Response Capabilities. Recognizing weather im - pacts on U.S. communities and intentional threats made against the homeland, the Administration continues to support capabilities across the Federal government to prepare for and respond to these hazards. EPA plays a critical role in this capacity, providing technical assistance to drinking water and wastewater utilities, responding to the release of hazardous sub - stances, and advising on disease vector control and waste disposal. Within the Hazardous Substance Superfund Account, the Budget supports EPA’s efforts by providing $176 million to the Superfund Emergency Preparedness and Emergency Response and Removal programs, as well as $81 million for EPA’s Homeland Security programs. This funding supports the development of hazard mitigation and - resilience guidance, specialized regional emergency response planning documents, sampling meth ods, and decontamination technical support tools. Protecting the safety and security of the American people is a Federal priority that ensures a prosperous nation. The Budget funds programs to Enhances Monitoring of America’s Significant Watersheds. measure and assess the health of the lakes and Chesapeake Bay. These watersheds require great coordination and collaboration among numerous States, Tribes, and local governments. in the case great lakes, international coordination is also necessary. The availability of accurate and of the
100 96 EnviROnmEnTAl PROTECTiOn AgEnCy continuous water quality data underpins ecosystem restoration efforts. The Budget provides support for basin-wide monitoring in these watersheds, including efforts to track and address harmful algal blooms and invasive species. These programs support cooperative federalism by building State and local capacity to conduct monitoring. Supports Leading-Edge Research and Development for American Safety, Prosperity, and a Better Future. The Budget funds EPA’s research and development activities in support of core mission areas, focusing on air quality, water resources, sustainable communities, chemical safety, and human health risk assessment. These interdisciplinary research programs provide the scientific foun - dation for EPA to execute its mandate to protect human health and the environment. EPA research programs also support cooperative federalism by developing new approaches and methodologies that States and Tribes leverage to address current and future environmental hazards. The Agency will continue aligning research resources to fulfill its statutory obligations and support EPA programs, regions, States, and Tribes in addressing their most pressing environmental and related public health challenges.
101 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION Funding Highlights: • The National Aeronautics and Space Administration (NASA) is responsible for leading an innovative and sustainable program of exploration with commercial and international partners to enable human expansion across the solar system and bring new knowledge and opportunities back to Earth. • The Budget takes steps to achieve lunar exploration goals sooner, improve sustainability of NASA’s exploration campaign, and increase the use of commercial partnerships and other procurement models to enhance the efficiency and effectiveness of NASA programs. The Budget includes $363 million to support commercial development of a large lunar lander that can • initially carry cargo and later astronauts to the surface of the Moon. • The Budget focuses funding for the Space Launch System (SLS) rocket, a heavy-lift expendable launch vehicle, to ensure the rocket is operational in the early 2020s when it will be needed to carry astronauts to the vicinity of the Moon. • The Budget requests $21 billion for NASA, a $283 million or 1.4-percent increase from the 2019 estimate. The President’s 2020 Budget: NASA supports growth of the Nation’s economy in space, increases understanding of the universe and America’s place in it, works with industry to improve America’s aerospace technologies, and ad - vances American leadership. The Budget supports an innovative and sustainable program of space exploration by using novel approaches to partner closely with American industry, funding transfor - mative technologies that will lower the cost and increase the capabilities of the Nation’s space activi - ties, while focusing on key capabilities to meet long-term exploration outcomes. Continues Building the Key Components that Would Send Astronauts to the Moon and Beyond. The Budget proposes funding for key components of NASA’s exploration campaign, in - cluding: the SLS and Orion crew capsule to support a first uncrewed test launch in the early 2020s and a steady crewed launch cadence thereafter; the Lunar Gateway, a small way station around the Moon in the mid-2020s; commercial launch capabilities to enable regular, low-cost access to the lu - nar vicinity and surface; and lunar landers to enable cargo delivery and human access to the lunar surface. The Budget proposes reforms to the SLS program to prevent the program’s significant cost and schedule challenges from further diverting resources from other exploration activities. Most 97
102 98 NATiONAL AerONA Ace AdMiNiSTrATiON uTicS ANd Sp notably, the Budget defers funding of upgrades (known as “Block 1B”) for the SLS, and instead focuses the pro - “My Administration is reclaiming America’s gram on the completion of the initial version of the SLS and supporting a reliable SLS and Orion annual flight heritage as the world’s greatest space-faring cadence. Lunar Gateway elements would be launched [N]ation. The essence of the American on competitively procured vehicles, complementing crew character is to explore new horizons and to transport flights on the SLS and Orion. This approach tame new frontiers.” would accelerate commercial lunar delivery capabilities critical to u .S. exploration objectives and speed up the President Donald J. Trump timeline for lunar surface exploration. June 18, 2018 Increases Funding for New Technologies, Partnerships, and Approaches to Accelerate Exploration while Making It More Affordable. The Budget supports robust funding for exploration technology research and development, with an increase in funding to support lunar surface activities. These efforts prioritize developing the capacity to understand and potentially utilize lunar resources to reduce transportation costs both to and from the Moon as well as to enhance lunar exploration capabilities. The Budget also supports use of com - mercial capabilities to deliver science and technology payloads to the Moon in preparation for future - exploration. in addition, the Budget supports a major new initiative to support competitive commer cial development of a large lander that would first carry cargo, and then crew, to the lunar surface. Drives toward a Vibrant, U.S.-Led Economy in The Budget provides funding for the Earth Orbit. international Space Station as well as for new commer - “President Trump and our entire cial space capabilities that will facilitate a transition Administration believe that America’s to a more robust and cost-effective approach to human space activities near the earth. By 2025, the Budget prosperity, security, and even our national envisions commercial capabilities on the international character, depend on American leadership Space Station as well as new commercial facilities and in space. And over the past year, the world platforms to continue the American presence in earth has seen the vital role that private enterprise - orbit. The Budget also increases funding for innova plays to advance American leadership in - tive activities conducted in orbit, including micrograv outer space.” ity research and in-space robotic manufacturing and assembly. NASA would also expand its reliance on Michael R. Pence existing commercial space activity by creating a new Vice President communications Services program that would begin February 21, 2018 to purchase commercial communications services to re - turn data generated by science missions back to earth. Supports an Ambitious Program of Solar System Exploration. - The Budget provides $2.6 billion for planetary Science, including approxi mately $600 million for a mission to Jupiter’s moon europa that would launch in 2023. By launching that mission on a commercial launch vehicle, NASA would save over $700 million, allowing multiple new activities to be funded across the Agency. The Budget would also initiate a mission to return - samples from Mars, a top priority of the science community that also supports future human explora tion. The Budget fully funds the James Webb Space Telescope, which is planned to be NASA’s premier observatory of the next decade. each NASA mission Replenishes Resources for Crosscutting Mission Support Activities. rests on a sound foundation of institutional capabilities that keep the Agency functioning. The Budget
103 BudGeT OF THe u . S. GOVerNMeNT FOr FiSc 99 AL YeAr 2020 increases investments in mission support areas such as facility maintenance, information technology and mission safety to ensure that critical services and assets are ready and reliable when needed. The Budget also funds numerous construction programs, including $126 million to consolidate research and production facilities at two NASA centers. Supports Transformative Aeronautics Technology Research. The Budget funds cutting- edge aeronautics research to boost u .S. technological and economic leadership and support high-qual - ity American jobs. The Budget funds continued development of the X-59 Quiet Supersonic Technology demonstrator to usher in a new era of u .S.-led supersonic transportation. The Budget also supports development of capabilities that could be used to make commercial air travel more efficient, enables expanded operation of commercial unmanned vehicles in u .S. airspace, and begins a new partnership with industry to enable a potential new urban air mobility market. Redirects Funds from Lower Priority Science and Education Programs to Higher Priorities. consistent with prior budgets, the Budget provides no funding for the WFirST space telescope, two earth science missions, and the Office of Science, Technology, engineering, and Mathematics (STeM) engagement. Lower-cost STeM-related activities such as internships and ro - botics competitions funded outside of the Office of STeM engagement continue to be supported.
105 SMALL BUSINESS ADMINISTRATION Funding Highlights: • The Small Business Administration (SBA) serves American entrepreneurs in their pursuit to start, grow, recover, and expand their businesses. As the Nation’s leading advocate for small businesses, SBA ensures that business owners have access to affordable capital, mentoring and counseling opportunities, and immediate support in the wake of disaster. • The Budget recognizes the vital role small businesses fulfill in contributing to the Nation’s economic strength, building America’s future, and helping the United States compete in today’s marketplace. The Budget emphasizes the importance of investing in growing and recovering American communities while upholding SBA’s commitment that its services are efficient, effective, and accountable. • The Budget requests $820 million in new budget authority for 2020, a $119 million or 17-percent increase from the 2019 estimate. This request is offset by fiscally responsible proposals to provide SBA the flexibility to adjust existing fee structures across its business loan guarantee programs, resulting in a net request of $665 million, a $36 million or 5-percent decrease from the 2019 estimate. The President’s 2020 Budget: Small businesses are the engines of the American economy. They are the job creators and inno - vators that fuel American neighborhoods and preserve U.S. prosperity. The SBA was established in 1953 to aid, counsel, assist, and protect the interests of small business concerns; preserve free competitive enterprise; and maintain and strengthen the overall economy of the Nation. Today, SBA continues to support the Nation’s 30 million small businesses through an array of tailored pro - grams and services. SBA’s lending programs complement credit markets by meeting demand when economic shocks reduce commercial lending to small businesses, and when the private market is unwilling to offer capital to credit-worthy borrowers. Its nationwide network of private-sector and non-profit partners educate, advise, and inspire a new generation of entrepreneurs. In 2020, SBA will be uniquely positioned to leverage the Administration’s pro-growth policies to equip small busi - ness owners with the right resources to be competitive in today’s market and promote economic security for their businesses and families. The agency will fulfill this mission while promoting fis- cal discipline by proposing policies that level the playing field with private sector support for small businesses. Expands Opportunity for Small Business Owners. The Budget supports $43 billion in busi - ness lending to assist U.S. small business owners in accessing affordable capital to start, build, and 101
106 102 SmAll BUSINeSS AdmINISTrATIoN grow their businesses. These products serve a variety of business needs, from funding general busi - ness operations like working capital and capital expenses, to fixed-asset financing for machinery and equipment, construction, and commercial real estate. They also provide the opportunity for small businesses to refinance existing loans. To ensure that SBA can provide these services without taxpay - ers subsidizing their costs, the Budget proposes that SBA have the flexibility to adjust fees across its business loan programs. This would allow the agency to finance both its anticipated lending and operational costs while ensuring it does not supplant services better provided solely by the private sector in periods of economic growth. Strengthens Support to Entrepreneurs in Emerging Markets. The Budget would support greater outreach and lending to socially and economi - cally disadvantaged urban communities and rural ar - eas. In 2020, the SBA would build on its ongoing rural “For many years, Washington tried to hold - outreach efforts by adapting and developing new plat you back and tear you down, crushing the forms to reach entrepreneurs in emerging markets. SBA American small business with crippling taxes would also work with other Federal agencies, such as and oppressive regulation. But all that has the U.S. departments of Agriculture and the Interior to changed starting in November 2016. The improve program effectiveness and increase access to Trump [A]dministration is with you, and we - capital through enhanced collaboration and coordina are with you 100 percent. And always will be.” tion. President Donald J. Trump Promotes Investment in the Nation’s Newest - Enterprises. Through its 7(m) direct microloan pro June 19, 2018 gram, the SBA supports low-interest financing for non- profit intermediaries that in turn provide loans of up to $50,000 to the smallest of small businesses and start- ups. In addition to the $25 million in technical assistance grant funds requested for the microloan program, the Budget requests $4 million in subsidy resources to support $40 million in direct lending. Modernizes the Government’s Role in Venture Capital. Created in 1958, the Small Business Investment Company (SBIC) program guarantees funds for privately owned and operated venture capital firms to make investments in small businesses. While the Budget supports $4 billion in new lending to continue this program, it also recognizes that the SBIC program has not kept pace with the evolution of the venture capital market, presenting an opportunity for sensible program reform. The Budget supports SBA’s efforts to comprehensively evaluate the program to ensure SBICs provide in - novative and modern financial products to American small businesses, regardless of their geographic location or industry focus. Supports Recovery Efforts in the Wake of Disaster. SBA continues to be a vital resource for American households and businesses that need to recover quickly in the wake of disaster. In 2018, SBA approved more than 140,000 disaster loans totaling nearly $7 billion in financial support to American communities. The Budget continues to support more than $1 billion in direct, low-interest lending to business owners, homeowners, renters, and property owners. Fosters Entrepreneurial Development and Education. SBA leverages its nationwide field personnel and diverse network of private sector and non-profit partners across each U.S. State and - Territory to provide counseling, mentoring, and training assistance to nearly one million small busi ness owners each year. The Budget requests $101 million for the Small Business development Center program and proposes the creation of a competitive set-aside within this total to reward partners who most efficiently serve small businesses. The Budget continues to invest in counseling and mentoring
107 BUdGeT oF THe U. S. Go VerNmeNT For FISCAl YeAr 2020 103 programs such as Women’s Business Centers, Veterans outreach, and SCore that provide essential coaching opportunities to developing small businesses and entrepreneurs. Creates Fair Competition in Federal Contracting and Research. The ability to enter into contracts with the Federal Government is one of the most direct forms “The tax cuts spearheaded by President of financial support the Federal Government grants to Trump mean more workers have gotten new U.S. small businesses. The Budget increases investment jobs, raises, and bonuses – giving them more in SBA’s 8(a) program to establish a full certification money to spend. Plus, as small businesses program for SBA’s women-owned business certification succeed, they create more revenue and programs. SBA continues to lead Federal efforts to de - more jobs for their communities – benefits liver 23 percent of contracts to U.S. small businesses, that propel our economy and our [N]ation which includes set-asides of five percent for women- toward even greater prosperity.” owned and small, disadvantaged 8(a) businesses, and three percent for historically underutilized business Linda McMahon zones and service-disabled veteran-owned businesses. Administrator The Budget also continues to support small business re - November 23, 2018 - search and innovation by supporting competitive fund ing agreements through its Small Business Innovation research program. The Budget supports $9.1 million for SBA’s office Advocates for the American Entrepreneur. of Advocacy. As the independent voice for small business interests within the Federal Government, the office of Advocacy promotes policies that minimize economic burdens faced by small business owners and analyzes the effects of proposed regulations and deregulatory efforts.
109 Summary Tables 105
111 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 107 2.8% 7,259 20.0% 17.3% 56,286 49,027 2029 2020– Totals 3.9% 4,827 16.8% 20.7% 20,824 25,651 2024 2020– 202 0.6% 6,495 6,292 18.1% 71.3% 18.7% 24,770 34,727 2029 508 1.5% 5,939 6,447 19.5% 74.0% 17.9% 24,519 33,116 2028 513 1.6% 6,122 5,608 75.9% 19.4% 17.8% 23,957 31,580 2027 577 1.9% 5,899 5,323 19.6% 17.7% 77.7% 23,390 30,116 2026 631 2.2% 5,040 5,671 19.8% 79.3% 17.6% 28,700 22,756 2025 700 2.6% 5,453 4,753 20.0% 80.7% 17.4% 27,326 22,064 2024 909 3.5% 5,330 4,421 17.0% 20.5% 81.9% 21,304 26,007 2023 4.2% 1,049 4,129 5,177 16.7% 20.9% 82.1% 24,753 20,334 2022 4.5% 4,945 3,877 1,068 21.0% 16.5% 81.6% 23,558 19,222 2021 4.9% 3,645 1,101 4,746 16.3% 21.2% 80.7% 22,410 18,087 2020 n billions of dollars and as a percent of GDP) Table S–1. Budget Totals (I 5.1% 3,438 4,529 1,092 79.5% 21.3% 16.1% 16,919 21,289 2019 779 3.8% 4,109 3,330 20.3% 16.5% 77.8% 15,750 20,236 2018 ... ... ... ... ... ... ... ... ... Deficit Deficit Outlays Debt held by the public Receipts Outlays Debt held by the public Receipts Gross domestic product (GDP) Budget Totals in Billions of Dollars: Budget Totals as a Percent of GDP:
112 ABLES 108 SUMMARY T 45 20 99 –69 183 –98 –61 510 –84 199 –406 –207 –659 –327 –102 –496 –285 7,259 1,058 2029 –1,105 –2,841 –3,899 10,100 2020– 7 46 49 21 Totals 367 –20 –31 –84 –11 –26 –53 –39 160 –75 650 –950 –301 –202 –151 –106 –151 4,827 5,128 2024 2020– 3 0 5 –7 32 13 10 63 –17 –23 –83 –28 –11 –72 –13 –36 202 927 –788 –724 2.7% 0.6% –233 –110 –154 2029 5 5 3 10 –7 30 17 70 –16 –77 –35 –28 –11 –13 –57 –19 –87 508 –687 –617 1.5% 3.4% –207 –130 1,125 2028 5 3 5 –7 10 28 25 76 –12 –14 –14 –70 –10 –68 –35 –18 –27 513 –487 –563 3.2% 1.6% –181 –107 1,000 2027 3 5 –7 25 –9 10 37 10 89 –51 –10 –30 –35 –86 –25 –64 –11 –13 984 577 –496 –407 3.3% 1.9% –154 2026 2 5 –7 22 –7 19 51 10 –9 –11 –37 –34 –10 –24 –23 –52 –75 937 110 631 –416 –306 2.2% 3.3% –127 2025 5 2 74 40 –4 –7 –7 18 –9 10 –22 –21 –57 –34 –25 –45 –99 –10 700 149 891 –191 –340 2.6% 3.3% 2024 5 2 79 50 –6 14 –9 –3 –7 10 –7 –20 –72 –19 –16 –33 –39 –40 909 159 –110 –270 3.9% 3.5% 1,019 2023 9 5 1 –8 –4 –6 40 83 –6 10 –8 –2 –53 –32 –46 –27 –32 –16 –14 148 –201 4.5% 4.2% 1,102 1,049 2022 4 5 1 14 –2 –8 –8 26 10 –3 –5 76 –3 –3 19 –11 –30 –18 –24 122 –103 4.5% 4.5% 1,049 1,068 2021 4 5 1 8 1 1 –0 55 –5 –6 –2 –1 –1 –4 23 34 71 –37 –22 –10 –12 4.8% 4.9% 1,101 1,067 2020 –* –6 –6 –6 5.1% 5.2% ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 1,098 1,092 2019 779 779 3.8% 3.9% ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2018 eficit increases (+) or decreases (–) in billions of dollars) ... (D ... ... Effect of Budget Proposals on Projected Deficits ... ... ... ... ... ... ... ... Table S–2. ... ... ... ... ... ... ... ... ... ... ... ... ... ... non-defense discretionary spending Total protect the Nation Total Reform disability programs and test new approaches Right-size Government and apply two-penny plan to Debt service and other interest effects Other spending reductions and program reforms Reform the Postal Service Improve the welfare system Empowering States and consumers to reform healthcare Provide defense funding to rebuild and restore the military and Improve drug pricing and payment policies Reform Federal student loans Debt service Address wasteful spending, fraud, and abuse in healthcare Provide paid parental leave Modify retirement and health benefits for Federal employees Establish Education Freedom Scholarships Implement the VA MISSION Act of 2018 Support major investment in infrastructure Implement agricultural reforms Percent of GDP Invest in critical national priorities: * $500 million or less. Percent of GDP Restrain spending to protect and respect American taxpayers: Projected deficits in the baseline Total proposals in the 2020 Budget Resulting deficits in the 2020 Budget Proposals in the 2020 Budget:
113 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 109 492 139 565 711 696 559 256 548 7,092 5,508 9,404 7,229 2,946 3,764 6,346 7,149 7,154 1,229 7,154 6,877 3,791 37,843 12,202 13,575 59,022 25,231 48,922 14,026 14,434 10,244 10,100 2029 2020– 61 Totals 210 110 576 231 247 260 288 242 1,626 6,199 3,395 3,316 2,365 4,136 3,403 2,978 5,301 3,018 1,642 4,918 3,018 6,373 3,231 2,110 6,719 5,128 10,476 25,927 16,191 20,800 2024 2020– 32 69 66 24 97 17 65 56 805 476 142 804 903 809 432 743 903 707 118 787 703 927 1,531 7,202 1,361 1,530 3,359 6,275 4,769 1,512 1,835 2029 63 16 31 63 90 66 54 122 101 836 868 690 452 257 428 727 767 785 664 868 4,685 1,494 3,146 5,923 1,385 1,456 7,048 1,024 1,737 1,475 1,125 2028 98 15 63 52 61 61 84 29 673 766 133 828 712 425 828 903 418 771 172 749 628 1,461 1,372 1,642 2,939 4,304 1,202 5,592 6,593 1,439 1,000 2027 50 60 86 58 28 15 60 79 195 747 404 789 789 428 657 731 130 748 697 898 593 984 1,121 6,290 1,427 1,405 5,306 1,306 4,073 2,748 1,553 2026 83 57 57 27 49 57 73 14 712 703 641 188 554 682 730 126 443 749 749 382 854 937 1,468 5,026 1,371 2,564 3,821 1,038 1,236 5,963 1,394 2025 1 13 54 68 25 55 68 47 53 362 823 418 712 668 182 709 525 672 709 698 136 625 920 891 2,392 1,387 1,337 4,742 1,371 5,634 1,175 3,554 2024 54 50 23 46 51 13 62 53 662 499 370 695 666 892 666 610 686 107 353 965 343 666 4,415 1,309 2,236 1,348 3,419 1,114 1,305 5,434 1,019 2023 52 56 40 48 46 12 22 48 658 674 611 314 325 490 666 679 595 114 470 861 611 1,062 5,228 1,332 1,274 2,081 1,059 3,284 1,235 4,126 1,102 2022 20 50 46 12 28 47 45 52 662 307 111 623 674 501 654 762 446 581 548 548 284 3,047 1,328 1,021 1,004 1,946 3,874 1,243 1,166 4,923 1,049 2021 20 19 49 46 50 44 11 48 n billions of dollars) 669 607 289 426 482 647 949 584 671 567 256 108 702 482 (I 4,709 3,643 1,822 1,102 1,047 1,214 2,887 1,340 1,067 2020 Baseline by Category 11 –2 49 99 44 56 19 69 44 911 674 685 716 419 394 645 216 394 704 276 622 621 3,438 2,783 1,337 4,536 1,100 1,041 1,359 1,698 1,098 2019 71 41 45 95 23 41 10 –6 46 722 454 639 325 523 205 623 855 701 785 325 982 582 261 389 779 2,522 4,109 1,684 1,423 3,330 1,262 Table S–3. 2018 .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Subtotal, discretionary programs Subtotal, mandatory programs Total receipts Non-defense Medicaid Other mandatory programs Other retirement Total outlays Defense Total, discretionary budget authority Medicare payroll taxes Medicare Social Security payroll taxes Social Security Exchange subsidies (including Basic Health Program) Unemployment insurance Baseline estimates are on the basis of the economic assumptions shown in Table S–9, which incorporate the effects of the Administration’s fiscal policies. Discretionary programs: Deposits of earnings, Federal Reserve System Estate and gift taxes 1 Individual income taxes Mandatory programs: Net interest Excise taxes Corporation income taxes Net interest Off-budget deficit/surplus (–) Customs duties Other miscellaneous receipts Primary deficit Social insurance and retirement receipts: programs: On-budget deficit Defense Non-defense Deficit Memorandum, budget authority for discretionary Receipts: Outlays:
114 110 SUMMARY T ABLES 59 717 256 550 –32 654 559 341 510 199 217 6,918 1,236 6,604 6,918 5,237 3,762 6,617 9,398 5,790 3,794 7,659 7,259 49,027 12,194 56,286 25,263 14,408 13,449 35,919 2029 2020- 83 59 Totals 290 247 110 –13 197 243 579 236 160 1,825 3,002 4,630 3,131 3,770 2,406 3,002 6,192 3,079 5,299 1,625 3,851 1,643 6,901 4,827 20,824 15,748 10,482 25,651 2024 2020- * 65 32 –4 69 97 91 58 29 823 111 143 716 602 511 476 432 823 799 202 –621 ... 6,292 1,212 1,310 1,831 3,365 4,361 6,495 1,530 2029 5 64 31 94 66 –4 91 56 28 123 810 414 451 428 810 585 759 520 785 508 –301 ... 5,939 1,251 6,447 1,305 3,151 4,333 1,733 1,455 2028 5 63 85 –3 91 62 29 54 27 422 788 710 788 774 134 418 531 425 567 513 –274 ... 5,608 4,029 6,122 1,638 1,371 1,109 2,944 1,305 2027 79 –4 60 60 81 28 10 26 54 762 496 130 542 403 550 767 693 762 429 577 –185 ... 5,323 3,828 1,025 2,752 1,550 5,899 1,309 1,305 2026 –4 79 57 74 57 24 27 52 19 127 733 552 555 527 949 381 443 659 733 763 631 –102 ... 5,040 5,671 2,568 1,319 1,235 3,619 1,465 2025 –4 69 53 25 65 –1 54 22 40 49 635 702 418 702 574 136 362 512 773 840 629 700 ... 4,753 1,346 3,405 1,174 1,384 2,394 5,453 2024 62 50 –4 51 23 51 19 48 50 664 857 245 664 343 630 822 502 108 592 371 765 909 ... 4,421 3,310 5,330 2,237 1,307 1,113 1,356 2023 –3 48 36 48 57 22 17 47 40 439 610 115 638 800 325 315 610 757 616 483 ... 4,129 1,012 1,059 1,373 3,195 5,177 2,081 1,234 1,049 2022 * 9 45 25 53 47 20 46 26 14 521 548 750 284 491 595 711 307 548 111 651 3,877 1,043 4,945 2,997 1,946 1,165 1,003 1,400 1,068 2021 5 19 45 –1 18 49 48 50 11 46 622 479 418 949 587 700 109 679 289 479 255 726 1,082 3,645 1,102 2,841 1,824 1,426 4,746 1,101 2020 n billions of dollars) 44 49 69 19 –2 44 56 99 11 393 698 674 276 393 615 685 216 911 419 645 (I ... ... 1,094 3,438 1,698 4,529 1,359 2,777 1,041 1,092 2019 41 41 71 –6 46 10 23 45 95 454 325 785 582 205 523 855 389 623 639 982 261 325 779 Proposed Budget by Category ... ... 3,330 4,109 1,262 2,522 1,684 2018 ... ... Table S–4. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Subtotal, mandatory programs Subtotal, discretionary programs Total receipts Total outlays Medicare payroll taxes Social Security Medicare Medicaid and Market-Based Health Care Grant Other mandatory programs Allowance for infrastructure initiative Defense Unemployment insurance Social Security payroll taxes Other retirement Exchange subsidies (including Basic Health Program) Non-defense Net interest On-budget deficit Other miscellaneous receipts Allowance for empowering States and consumers to reform healthcare Primary deficit/surplus (–) Customs duties Deposits of earnings, Federal Reserve System Off-budget deficit/surplus (–) Estate and gift taxes Social insurance and retirement receipts: Mandatory programs: Excise taxes Individual income taxes Discretionary programs: Net interest Corporation income taxes Deficit Outlays: Receipts:
115 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 111 59 1,212 7,739 5,028 4,025 5,296 12,767 2029 2020- 59 Totals 508 2,465 3,818 6,468 1,898 2,650 2024 2020- 602 458 455 147 817 ... 1,275 2029 441 800 466 585 144 ... 1,266 2028 475 784 141 567 427 ... 1,259 2027 413 550 485 138 768 ... 1,253 2026 134 752 495 392 527 ... 1,247 2025 512 784 381 506 131 ... 1,290 2024 502 517 778 374 128 ... 1,295 2023 527 357 483 126 760 ... 1,287 2022 9 746 368 500 538 123 1,284 2021 50 750 418 468 563 ... 1,313 2020 n billions of dollars) 56 716 621 475 419 (I ... 1,337 2019 46 435 701 389 722 ... 1,423 2018 - Proposed Budget by Category—Continued ... Table S–4. ... ... ... ... ... ... Total, outlays Total, discretionary budget authority Exchange Subsidies (including Basic Health Program) Market-Based Health Care Grant Non-defense Defense Medicaid erage: * $500 million or less. healthcare–Medicaid and other outlays for healthcare cov Memorandum, budget authority for discretionary programs: Memorandum, empowering States and consumers to reform
116 112 ABLES SUMMARY T * –* 1.9 0.1 0.4 0.3 2.4 3.3 2.4 2.4 5.1 8.9 0.2 0.1 0.2 4.9 1.3 0.1 0.2 0.2 4.3 0.3 2.1 1.3 2.8 2.5 2.8 17.3 12.7 20.0 2029 2020– –* 2.5 0.1 1.9 0.2 4.3 3.8 0.2 0.5 1.3 2.4 0.1 5.6 3.1 0.1 1.5 1.3 2.4 0.2 2.5 0.2 8.4 0.2 0.1 3.0 5.0 3.9 20.7 16.8 12.7 Averages 2024 2020– * –* 3.5 0.1 3.8 0.4 1.2 2.4 9.7 5.3 0.2 0.2 4.4 1.7 0.2 2.3 0.1 1.5 2.4 0.3 0.3 1.4 2.1 0.3 0.6 18.1 –1.8 18.7 12.6 ... 2029 * –* 1.3 2.4 0.3 0.4 1.8 1.4 4.4 0.3 0.1 2.4 0.2 3.8 1.6 9.5 1.3 2.3 5.2 0.2 3.9 2.4 0.1 0.2 1.5 17.9 –0.9 19.5 13.1 ... 2028 * –* 0.1 2.5 0.2 3.5 9.3 4.1 0.2 1.3 1.3 0.3 5.2 0.3 0.2 2.5 2.5 1.7 1.8 0.4 2.2 1.3 4.3 0.1 1.6 –0.9 17.8 12.8 19.4 ... 2027 * –* 1.8 0.2 2.3 4.3 0.1 1.6 1.8 1.4 0.3 2.5 2.5 3.4 2.5 0.2 0.4 4.3 1.3 0.3 0.2 5.1 9.1 0.1 1.9 19.6 –0.6 17.7 12.7 ... 2026 –* 0.2 0.3 8.9 0.1 1.3 2.7 5.1 0.1 0.4 3.3 2.6 1.5 2.3 1.9 4.6 2.6 0.2 0.3 0.2 0.1 4.3 1.8 1.9 2.2 12.6 17.6 19.8 –0.4 ... 2025 –* –* 2.6 2.8 0.5 1.9 2.3 2.3 4.9 3.1 8.8 0.2 2.6 0.2 1.3 0.2 1.5 0.1 2.1 0.1 0.1 0.2 5.1 0.3 4.3 2.6 12.5 17.4 20.0 ... 2024 –* 2.6 2.4 4.3 2.6 0.4 2.3 0.2 0.1 3.2 3.3 5.0 0.2 0.1 0.2 0.2 1.9 5.2 0.2 1.4 8.6 0.2 0.9 1.3 2.9 3.5 20.5 17.0 12.7 ... 2023 –* 3.1 4.3 5.5 0.2 1.3 2.5 5.0 8.4 2.6 0.2 0.1 0.5 0.1 1.8 3.2 0.2 2.5 0.2 2.0 2.5 1.3 0.2 0.1 4.1 4.2 12.9 16.7 20.9 ... 2022 * * 0.5 0.2 2.2 0.1 3.2 2.3 0.1 2.3 5.9 4.9 2.1 0.2 0.2 2.5 8.3 1.3 0.1 0.2 1.2 4.4 3.0 2.8 0.1 4.3 4.5 21.0 16.5 12.7 2021 * * –* 1.9 0.5 8.1 3.2 3.1 0.1 0.2 1.1 6.4 4.8 0.1 2.1 4.9 2.6 0.2 4.2 0.2 0.2 3.0 2.8 2.1 1.3 0.2 4.9 21.2 12.7 16.3 2020 –* 0.2 0.2 3.0 4.3 2.9 0.2 4.9 5.1 0.1 1.0 2.0 0.3 0.1 3.2 1.3 6.4 1.8 3.2 0.5 8.0 3.3 0.3 1.8 5.1 16.1 13.0 21.3 s a percent of GDP) ... ... 2019 (A –* 2.9 8.3 1.3 1.6 3.1 0.2 0.2 0.2 2.2 1.9 3.2 2.6 0.5 1.0 0.3 0.2 6.2 0.1 0.1 1.6 4.9 3.9 4.2 3.8 20.3 16.5 12.5 ... ... 2018 ... ... Proposed Budget by Category as a Percent of GDP ... ... ... ... Table S–5. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Subtotal, mandatory programs Subtotal, discretionary programs Medicaid and Market-Based Health Care Grant Allowance for infrastructure initiative Other mandatory programs Medicare Non-defense Other retirement Medicare payroll taxes Social Security Exchange subsidies (including Basic Health Program) Defense Total receipts Total outlays Unemployment insurance Social Security payroll taxes Corporation income taxes Allowance for empowering States and consumers to reform healthcare Estate and gift taxes Net interest Net interest Social insurance and retirement receipts: Primary deficit/surplus (–) Deposits of earnings, Federal Reserve System Other miscellaneous receipts Discretionary programs: Mandatory programs: Customs duties On-budget deficit Excise taxes Individual income taxes Off-budget deficit/surplus (–) Receipts: Outlays: Deficit
117 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 113 * 4.6 1.4 1.9 0.4 1.8 2.8 2029 2020– 2.0 0.1 2.2 5.2 3.1 1.5 0.4 Averages 2024 2020– 1.7 0.4 3.7 1.3 1.3 2.4 ... 2029 0.4 1.4 1.8 2.4 3.8 1.3 ... 2028 1.4 1.8 0.4 1.5 2.5 4.0 ... 2027 1.4 2.6 1.8 4.2 1.6 0.5 ... 2026 1.4 2.6 4.3 1.7 1.8 0.5 ... 2025 1.4 4.7 2.9 0.5 1.9 1.9 ... 2024 0.5 5.0 3.0 1.9 1.4 2.0 ... 2023 2.0 5.2 3.1 0.5 1.4 2.1 ... 2022 * 3.2 5.5 2.1 0.5 2.3 1.6 2021 1.9 5.9 0.2 2.5 3.3 2.1 ... 2020 0.3 2.9 6.3 2.2 3.4 2.0 s a percent of GDP) ... 2019 (A 0.2 1.9 7.0 3.5 3.6 2.2 ... 2018 - ... Proposed Budget by Category as a Percent of GDP—Continued ... ... Table S–5. ... ... ... ... Total, outlays Total, discretionary budget authority Market-Based Health Care Grant Non-defense Defense Medicaid Exchange Subsidies (including Basic Health Program) healthcare–Medicaid and other outlays for healthcare cover age: *0.05 percent of GDP or less. Memorandum, empowering States and consumers to reform Memorandum, budget authority for discretionary programs:
118 114 SUMMARY T ABLES –3 –10 –35 –250 –641 –936 –200 –620 –120 –238 ... –1,719 –5,940 –5,130 –1,660 –7,819 –2,948 –1,348 –8,872 –1,306 –61,291 –22,116 2020–2029 –3 Totals –10 –60 –40 –268 –679 –436 –100 –845 –830 –125 –550 –235 –705 –114 ... –9,569 –3,744 –2,272 –2,640 –3,117 –26,107 2020–2024 1 –26 –89 –25 –85 –12 –20 –660 –164 –100 –825 –126 –166 –218 –621 –422 ... ... ... –7,196 –2,542 –1,181 2029 1 –78 –25 –25 –12 –20 –80 –166 –660 –827 –164 –127 –100 –418 –596 –213 ... ... ... –7,133 –2,522 –1,181 2028 1 –80 –12 –25 –25 –20 –69 –817 –208 –100 –148 –571 –166 –128 –421 –660 ... ... ... –1,181 –7,054 –2,504 2027 1 –70 –12 –20 –25 –24 –68 –203 –100 –166 –547 –419 –154 –660 –130 –815 ... ... ... –2,482 –6,955 –1,131 2026 1 –20 –12 –70 –25 –24 –69 –791 –198 –100 –523 –126 –132 –166 –660 –423 ... ... ... –2,497 –6,846 –1,081 2025 1 –25 –12 –24 –65 –20 –68 –100 –499 –758 –166 –135 –193 –114 –428 –660 ... ... ... –1,040 –6,729 –2,488 2024 1 –5 –25 –60 –23 –20 –99 –12 –69 –476 –838 –137 –124 –759 –166 –188 –660 –417 ... ... –2,507 –6,524 2023 1 –5 –25 –97 –12 –23 –20 –35 –69 –166 –454 –141 –155 –769 –617 –132 –660 ... ... ... –5,665 –2,321 2022 –1 –14 –20 –35 –12 –86 –22 –25 –62 –117 –124 –166 –432 –412 –660 –778 –143 ... ... ... –5,327 –2,253 2021 Mandatory and Receipt Proposals eficit increases (+) or decreases (–) in millions of dollars) –2 (D –54 –19 –22 –29 –25 –63 –40 –12 –20 –411 –149 –210 –166 –680 ... ... ... ... ... ... –1,862 2020 Table S–6. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 - ... - ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Development program overtime user fee Section 32 user fee Total, Agriculture writing gains commodity payments to $500,000 Adjusted Gross Income (AGI) Program user fee program gram cost recovery fee Inspection Service user fee close loopholes $500,000 AGI programs subsidies Service (FSIS) user fee integrity program Eliminate lower priority Farm Bill Reform commodity purchases under Limit eligibility for agricultural Establish Agricultural Marketing Service Cap Crop Insurance companies’ under Lease Shared Secondary Licenses Improve Child Nutrition program Streamline conservation programs Eliminate Livestock Forage program Establish Animal and Plant Health Amend land uses cost recovery authority Establish Forest Service Mineral Pro Eliminate the Rural Economic Eliminate the crop insurance 508(h) Establish Food Safety and Inspection Tighten commodity payment limits and Adjust FSIS holiday and voluntary Eliminate Food for Progress food aid Establish Packers and Stockyards Reduce Crop Insurance premium Limit Crop Insurance eligibility to Agriculture: Commerce: Mandatory Initiatives and Savings:
119 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 115 416 –16 –215 –515 –416 –847 –501 ... ... –2,743 45,488 –5,743 –2,755 –3,771 –53,013 –24,347 –12,619 –52,716 –72,668 –207,016 –129,155 –161,743 2020–2029 Totals –16 166 –97 –501 –290 –166 –847 ... ... –1,246 –1,299 –1,062 –3,576 20,648 –7,090 –10,610 –18,979 –74,973 –23,112 –54,422 –44,883 –20,525 2020–2024 52 –52 –24 –580 –268 –337 –225 –459 ... ... ... ... ... 4,994 –2,767 –7,281 –1,289 –6,422 2029 –28,324 –11,274 –23,354 –18,276 52 –52 –24 225 –864 –538 –304 –337 –448 ... ... ... ... ... 4,960 –2,724 –6,568 –7,231 2028 –27,572 –10,511 –22,636 –17,617 50 –24 –50 –505 –298 –225 –337 –438 ... ... ... ... ... 4,934 –9,999 –6,819 –6,563 –2,769 –1,298 2027 –17,067 –26,655 –21,745 49 225 –49 –23 –457 –291 –427 –830 –337 ... ... ... ... ... 4,916 –9,129 –6,411 –6,477 –2,768 2026 –20,349 –15,997 –25,242 47 –23 –47 –283 –445 –225 –395 –345 ... ... ... ... ... 5,036 –1,248 –8,643 –6,226 –6,227 –2,709 2025 –19,237 –15,315 –24,250 47 –22 425 –47 –274 –634 –400 –353 –432 ... ... ... ... ... 4,974 –5,688 –5,840 –2,726 –7,643 2024 –13,883 –17,345 –22,297 42 –5 –42 –22 –266 –326 –354 –414 ... ... ... ... ... 5,006 –2,660 –1,039 –5,220 –4,975 –6,324 2023 –14,521 –19,505 –11,870 35 –35 455 –22 –555 –255 –259 –355 –396 ... ... ... ... ... 4,928 –4,725 –9,356 –2,471 –4,376 –4,015 2022 –15,842 –10,936 30 –21 –30 –16 –253 –847 –615 –170 ... ... ... ... 4,847 –6,479 –3,077 –2,094 –2,334 –2,842 –3,232 –4,065 –6,589 2021 –11,415 eficit increases (+) or decreases (–) in millions of dollars) 12 (D –10 893 –12 –95 –247 –501 –550 –797 –659 ... ... ... ... ... ... –5,914 –1,459 –5,031 –3,295 –1,857 –1,343 2020 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 ... ... ... ... ... Table S–6. ... ... ... ... ... ... ... 2 ... ... ... ... ... ... ... 1 ... ... student loan repayment plan Total, create single income-driven separately loan repayment plan payments for married filing Forgiveness payments to guaranty agencies Create single income-driven student Total, Reform Federal student loans Eliminate standard repayment cap loan repayment plan: Use combined AGI to calculate loan into the Pell Grant program Enact student loan risk sharing programs Create single income-driven student Eliminate account maintenance fee Total, Education transmission assets Marketing Administrations establish Eliminate Public Service Loan power rates Eliminate subsidized student loans transmission assets support short-term programs Scholarships Area Power Administration (WAPA) Total, Energy Reallocate mandatory Pell funding to Restart Nuclear Waste Fund Fee in 2022 Reduce improper payments in Pell Grants Move Iraq-Afghanistan Service Grants Expand Pell Grants to short-term Reform the laws governing how Power Divest Southwestern Power Administration Establish Education Freedom Divest Bonneville Power Administration Repeal borrowing authority for Western Divest WAPA transmission assets Reform Federal student loans: Energy: Education:
120 116 ABLES SUMMARY T 9 35 85 110 738 368 357 148 280 ... ... ... ... ... ... ... 2,155 1,000 –1,160 2020–2029 4 83 23 12 Totals 141 125 734 148 162 –455 ... ... ... ... ... ... ... 1,080 1,000 2020–2024 1 5 29 42 42 18 215 –145 ... ... ... ... ... ... ... ... ... ... ... 2029 5 1 18 35 42 42 215 –165 ... ... ... ... ... ... ... ... ... ... ... 2028 5 1 42 42 22 31 215 –145 ... ... ... ... ... ... ... ... ... ... ... 2027 4 1 43 40 30 21 215 –130 ... ... ... ... ... ... ... ... ... ... ... 2026 4 1 8 4 2 47 40 30 215 –120 ... ... ... ... ... ... ... ... ... 2025 4 3 2 1 8 4 40 41 50 30 216 –100 ... ... ... ... ... ... ... 2024 7 1 8 3 8 39 36 13 30 216 300 –100 ... ... ... ... ... ... ... 2023 1 2 7 38 32 22 53 30 18 216 –95 300 ... ... ... ... ... ... ... 2022 1 2 34 18 45 80 26 221 300 –85 216 ... ... ... ... ... ... ... ... 2021 eficit increases (+) or decreases (–) in millions of dollars) 2 9 3 5 50 14 11 (D 216 –75 480 ... ... ... ... ... ... ... ... ... 2020 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 - - ... Table S–6. ... ... ... ... 3 ... ... ... ... ... 3 ... ... ... ... ... ... ... ... ... forfeiture provision for first gener the 340B drug discount program ics to increase competition access to spur greater competition and from participating covered entities of petition process (FDA) authority to address abuse Establish and collect user fees from Reform 180-day exclusivity Improve 340B program integrity Reform exclusivity for first generics Enhance Food and Drug Administration Children Contingency Fund Responsible Fatherhood Grants incentives Opportunity Grants Improvement Program New Hires program Services Block Grant (SSBG) program Public Health: services for Needy Families (TANF) and Social option Avoidance education Education Program and Sexual Risk changes on child care spending Modernize and expand the Court Drug pricing and payment improvements: Expand Access to National Directory of Reauthorize Health Profession Mitigate Impact of Temporary Assistance Reauthorize Healthy Marriage and Fund States to provide parenting time Establish an Unaccompanied Alien Create child welfare flexible funding Increase repatriation ceiling Promote family based care Expand the Regional Partnership Grants Reauthorize Personal Responsibility Build the supply of child care Create Child and Family Services review Health and Human Services (HHS):
121 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 117 –930 –300 ... ... ... ... ... ... ... –1,160 14,030 –4,270 –74,730 2020–2029 Totals –350 –455 –120 ... ... ... ... ... ... ... 6,310 –1,500 –23,440 2020–2024 –40 –145 –680 –140 ... ... ... ... ... ... ... 1,220 2029 –10,760 –40 –165 –130 –610 ... ... ... ... ... ... ... 2,210 2028 –11,590 –40 –145 –550 –110 ... ... ... ... ... ... ... 1,450 –9,910 2027 –30 –130 –490 –110 ... ... ... ... ... ... ... 1,220 –9,170 2026 –30 –90 –440 –120 ... ... ... ... ... ... ... 1,620 –9,860 2025 –30 –90 –400 –100 ... ... ... ... ... ... ... 1,740 –8,230 2024 –30 –350 –100 –100 ... ... ... ... ... ... ... 1,930 –6,830 2023 –95 –20 –90 –320 ... ... ... ... ... ... ... 1,860 –5,260 2022 –85 –20 780 –70 –280 ... ... ... ... ... ... ... –3,120 2021 eficit increases (+) or decreases (–) in millions of dollars) (D –75 –20 –150 ... ... ... ... ... ... ... ... ... ... 2020 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 . 3 - - - Table S–6. - - ... 3 ... 3 ... ... 3 ... 3 ... ... ... ... ... ... 3 3 negotiating power for certain of Medicare Part B drugs inflation limit for reimbursement Total, public health manufacturers by establishing an manufacturers entering into new from the calculation of beneficiary out-of-pocket costs in the Medi contract with pharmaceutical purchased through the 340B discount program and require a minimum level of charity care for hospitals to receive a payment adjustment related to uncompen care Part D coverage gap sated care rate payment rates compendial requirements for biological products to encourage drugs covered under Part B average sales prices to set accu leverage Medicare Part D plans’ drugs and biosimilars for low-in biosimilar development come beneficiaries exclusivity pilot on retroactive Medicare Part ing new chemical entity D coverage for low-income beneficiaries maximum in the Medicare Part D catastrophic phase coverage gap discount program drugs, biologicals, and biosimilars agreements on a quarterly basis Eliminate pass-through payments for Establish a beneficiary out-of-pocket Authorize the HHS Secretary to Permanently authorize a successful Give the Secretary authority to Modify payment for drugs hospitals Codify FDA’s approach to determin Exclude manufacturer discounts Revise United States Pharmacopeia Eliminate cost-sharing on generic Improve manufacturers’ reporting of Address abusive drug pricing by Medicare:
122 118 ABLES SUMMARY T 245 245 –347 –980 –410 –150 ... ... ... ... ... ... –1,887 –69,247 –66,200 2020–2029 Totals –75 120 120 –143 –480 –818 –120 ... ... ... ... ... ... –19,100 –20,373 2020–2024 25 25 –70 –15 –48 –100 –233 ... ... ... ... ... ... 2029 –10,400 –10,778 25 25 –43 –65 –15 –223 –100 ... ... ... ... ... ... 2028 –10,160 –10,548 25 25 –38 –60 –15 –100 –213 ... ... ... ... ... ... –9,160 –9,518 2027 25 25 –15 –38 –50 –203 –100 ... ... ... ... ... ... –8,580 –8,913 2026 25 25 –45 –15 –37 –197 –100 ... ... ... ... ... ... –9,117 –8,800 2025 25 25 –32 –40 –15 –187 –100 ... ... ... ... ... ... –7,297 –7,010 2024 25 25 –15 –32 –35 –100 –182 ... ... ... ... ... ... –5,662 –5,380 2023 25 25 –25 –15 –27 –100 –167 ... ... ... ... ... ... –3,830 –4,092 2022 20 20 –90 –15 –26 –15 –146 ... ... ... ... ... ... –2,710 –2,941 2021 eficit increases (+) or decreases (–) in millions of dollars) –5 25 25 (D –90 –26 –15 –136 –170 –381 ... ... ... ... ... ... 2020 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 - - - Table S–6. - - ... 3 ... ... ... ... ... 3 ... ... ... 3 ... ... ... 3 ... ... 3 manufacturer rebates facturer Price Medicaid Drug Rebate Program Federal upper limit to prevent inappropriately low 100 percent of the Average Manu payments when the primary pat Program under the Medicaid Drug Rebate information or false product data manufacturer reporting of false with drug manufacturers and set formulary for coverage grams to negotiate prices directly improvements based payments tion and reduce gaming Total, Medicaid ent expires to increase competi under the Medicaid Drug Rebate program Total, Medicare generic drug prices from Medicaid Total, address opioids Reduce Wholesale Acquisition Cost- Impose greater penalties for postpartum substance use disorder to one year coverage for pregnant women with Allow rebates on drugs that exceed Total, drug pricing and payment Clarify definitions under the Reduce average sales price-based Exclude brand name and authorized Clarify authorized generic sales to terminate provider prescribing Drug Enforcement Administration Test allowing State Medicaid pro lishing HHS reciprocity with the authority Prevent abusive prescribing by estab Improve the Medicare appeals system Allow States to extend Medicaid Medicaid: Address opioids: Medicare Appeals:
123 119 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 680 –280 ... ... ... ... ... ... ... ... ... –38,510 –98,010 –47,860 2020–2029 Totals 310 –620 ... ... ... ... ... ... ... ... ... –11,260 –31,860 –12,910 2020–2024 80 120 ... ... ... ... ... ... ... ... ... –9,710 –5,750 2029 –15,790 90 80 ... ... ... ... ... ... ... ... ... –8,440 –5,420 2028 –14,460 70 50 ... ... ... ... ... ... ... ... ... –5,100 –7,220 2027 –13,180 70 20 ... ... ... ... ... ... ... ... ... –4,810 –6,120 2026 –11,940 60 70 ... ... ... ... ... ... ... ... ... –5,110 –4,520 2025 –10,780 70 220 ... ... ... ... ... ... ... ... ... –4,030 –4,250 –9,670 2024 70 100 ... ... ... ... ... ... ... ... ... –3,920 –8,620 –3,090 2023 70 –240 ... ... ... ... ... ... ... ... ... –2,940 –2,110 –7,540 2022 60 –350 ... ... ... ... ... ... ... ... ... –1,240 –1,390 –6,030 2021 eficit increases (+) or decreases (–) in millions of dollars) 40 (D –790 –410 –350 ... ... ... ... ... ... ... ... ... ... 2020 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 - - - - ... - - ... - Table S–6. - ... - ... ... ... ... 3 ... ... ... ... 3 ... ... ... program medical education payments dens for clinicians participating in program audits works funding to match Consumer Price Index of All-Inclusive Care for the Elderly ment of a face-to-face provider visit facility surveys to more efficiently use resources and alleviate burden for top-performing nursing homes educates beneficiaries about the tive Program Stage Renal Disease Quality Incen Payment Models meaningful measures for the End termine the frequency of Programs aid Services (CMS) flexibility to de pensated care for durable medical equipment System for End Stage Renal Disease facili ties under the Bipartisan Budget Act payment program that physicians certify that all ticipation in advanced Alternative of 2018 other burdens to encourage par critical access hospital patients are expected to be discharged within 96 the Merit-based Incentive Payment hours of admission Tailor the frequency of skilled nursing Allow Centers for Medicare and Medic Eliminate the unnecessary require Eliminate arbitrary thresholds and Create a consolidated hospital quality Remove the redundant requirement Authorize the Secretary to implement Modify payments to hospitals for uncom Reduce Medicare coverage of bad debts Increase End Stage Renal Disease net Consolidate and block grant graduate Simplify and eliminate reporting bur Improve and tailor the way Medicare abuse in Medicare: Remove timeframe for initial surveys Address wasteful spending, fraud, and
124 120 ABLES SUMMARY T –80 –210 ... ... ... ... ... ... ... ... –7,520 –28,660 –10,000 –101,150 –131,400 2020–2029 Totals –90 –30 ... ... ... ... ... ... ... ... –4,190 –2,615 –10,510 –27,230 –45,980 2020–2024 –10 –30 ... ... ... ... ... ... ... ... –1,110 –1,270 –4,340 2029 –20,890 –16,930 –30 –10 ... ... ... ... ... ... ... ... –3,940 –1,210 –1,045 2028 –18,840 –16,570 –20 –10 –985 ... ... ... ... ... ... ... ... –3,600 –1,150 2027 –16,940 –14,700 –20 –10 –910 ... ... ... ... ... ... ... ... –1,120 –3,280 2026 –15,170 –13,440 –20 –10 –855 ... ... ... ... ... ... ... ... –2,990 –1,060 2025 –12,280 –13,580 –20 –10 –795 ... ... ... ... ... ... ... ... –2,720 –1,000 2024 –12,170 –10,470 –20 –10 –950 –740 ... ... ... ... ... ... ... ... –7,670 –2,460 2023 –10,870 –10 –10 –890 –690 ... ... ... ... ... ... ... ... –9,670 –5,000 –2,220 2022 –20 –820 –390 ... ... ... ... ... ... ... ... ... –8,600 –2,010 –2,880 2021 eficit increases (+) or decreases (–) in millions of dollars) (D –20 –530 ... ... ... ... ... ... ... ... ... ... –1,210 –4,670 –1,100 2020 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 - - ... - Table S–6. - - - ... ... 3 ... 3 ... ... ... ... 3 ... 3 ... 3 ... ... ... ... ... Health Plans a unified payment system based on ambulatory surgical centers program for outpatient hospitals and patients’ clinical needs rather than address overutilization to better support and align with ment for Accountable Care ment of diabetes make risk-adjusted payments Surgical Center payment systems to Payment System and Ambulatory the site of care acute care providers by establishing ly eligible individuals in Integrated alternative payment models and to review of dual eligible Special Needs in Medicare Plan marketing materials Organizations ment for treatment and manage rate for certain services departments at the physician office neutral exceptions criteria relative to their peers natives to durable medical equip office rate located off-campus at the physician equipment competitive bidding cians order certain services excessively period for dually eligible beneficiaries Reprioritize primary and preventive care Clarify the Part D special enrollment Reform and expand durable medical Require prior authorization when physi Pay on-campus hospital outpatient Authorize long-term care hospital site Redesign Outpatient Prospective Pay all hospital-owned physician offices Improve appeals notifications for dual Implement value-based purchasing Support coverage for innovative alter Allow for Federal/State coordinated Address excessive payment for post- Expand basis for beneficiary assign Reform physician self-referral law
125 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 121 –32 –200 ... ... ... ... ... ... ... ... ... ... ... –6,260 12,597 –456,895 2020–2029 Totals –13 –100 ... ... ... ... ... ... ... ... ... ... ... 4,446 –2,660 –145,312 2020–2024 –4 –20 –800 ... ... ... ... ... ... ... ... ... ... ... 1,283 2029 –75,171 –4 –20 –760 ... ... ... ... ... ... ... ... ... ... ... 1,825 2028 –68,754 –4 –20 –720 ... ... ... ... ... ... ... ... ... ... ... 1,764 2027 –61,765 –4 –20 –680 ... ... ... ... ... ... ... ... ... ... ... 1,682 2026 –55,752 –3 –20 –640 ... ... ... ... ... ... ... ... ... ... ... 1,597 2025 –50,141 –3 –20 –610 ... ... ... ... ... ... ... ... ... ... ... 1,492 2024 –43,986 –3 –20 –570 ... ... ... ... ... ... ... ... ... ... ... 1,287 2023 –37,486 –3 –20 –540 ... ... ... ... ... ... ... ... ... ... ... 1,066 2022 –30,747 –2 –20 601 –510 ... ... ... ... ... ... ... ... ... ... ... 2021 –23,601 eficit increases (+) or decreases (–) in millions of dollars) –2 (D –20 –430 ... ... ... ... ... ... ... ... ... ... ... ... –9,492 2020 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 - - - - Table S–6. - ... ... ... ... ... ... ... ... ... 1 ... ... ... ... ... fraud, and abuse in Medicare to report in Open Payments make tax deductible contributions to Advantage pre-payment review in Medicare Fraud Prevention Partnership by accreditation organizations care’s safety requirements and have harmed patients cannot quickly re-enter the program high risk of fraud, waste, and abuse al Medicare fee-for-service items at update enrollment records and certification reports conducted Parts C and D gram integrity efforts in Medicare publicly reporting Medicare survey Medicare billing privileges based on ments reporting deadline organizations providers and suppliers who fail to duce Part B records to support Part D Health Savings Accounts or Medical investigations or audits overpayment collections onto debtor and billing agents when Medicare practitioners who order services or supplies without proper providers and suppliers enroll in the documentation program deductible health plans the option to medical board or independent review Savings Accounts Total, address wasteful spending, Ensure providers that violate Medi Pass Treasury collection fees for CMS Improve efficiency and strengthen pro Require providers and suppliers to pro Improve safety and quality of care by Create authority to revoke or deny Expand prior authorization to addition Assess a penalty on physicians and Implement targeted risk-adjustment Require physician owned distributors Prevent fraud by applying penalties on Require reporting on clearinghouses Extend flexibility in annual Open Pay Give Medicare beneficiaries with high Clarify authority for the Healthcare
126 122 SUMMARY T ABLES 9 –6 ... ... ... ... ... ... ... –1,550 –8,670 –2,310 –6,650 –2,110 –4,420 –39,007 –25,920 –130,400 2020–2029 4 –6 Totals –570 –790 ... ... ... ... ... ... ... ... –1,480 –2,520 –5,312 –1,010 –3,830 –55,600 2020–2024 1 –360 –660 –290 –290 –930 ... ... ... ... ... ... ... ... –1,060 –8,169 –6,450 2029 –16,500 1 –870 –620 –170 –280 –270 ... ... ... ... ... ... ... ... –1,010 –6,470 –8,099 2028 –15,700 1 –970 –160 –260 –260 –820 –590 ... ... ... ... ... ... ... ... –8,049 –6,490 2027 –14,900 1 –920 –250 –150 –780 –550 –250 ... ... ... ... ... ... ... ... –6,510 –7,979 2026 –14,200 1 –140 –240 –880 –230 –520 –730 ... ... ... ... ... ... ... ... ... –1,399 2025 –13,500 1 –230 –840 –220 –140 –490 –690 ... ... ... ... ... ... ... ... ... –1,329 2024 –12,800 1 –210 –130 –210 –800 –460 –650 ... ... ... ... ... ... ... ... ... –1,259 2023 –12,100 1 –760 –200 –200 –120 –430 –610 ... ... ... ... ... ... ... ... ... –1,189 2022 –11,500 1 –6 –730 –100 –100 –190 –570 –835 –120 ... ... ... ... ... ... ... ... 2021 –10,900 eficit increases (+) or decreases (–) in millions of dollars) (D –50 –60 –700 –700 –190 ... ... ... ... ... ... ... ... ... ... ... ... –8,300 2020 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 .. - 3 Table S–6. - ... ... ... ... ... ... ... 3 ... ... ... ... ... ... ... ... ... 3 fraud, and abuse in Medicaid services payments prevent inappropriate personal care equity for Medicaid eligibility department Total, address wasteful spending, Share Hospital (DSH) allotment reductions review to additional care settings standard populations party payments for DSH allotments gagement requirement Medicaid Improvement Fund for non-emergency use of emergency requirement to eliminate duplicative appeals viders process Medicaid state share by public pro immigration status before receipt of State providers in Medicaid Medicaid improper payments Medicaid benefits Insurance Program (CHIP) Medicaid and Children’s Health providers in excess of costs Modified Adjusted Gross Income Prohibit Medicaid payments to public Consolidate provider screening for Streamline the Medicaid terminations Increase limit on Medicaid copayments Modify the Medicaid fair hearing Clarify Medicaid treatment of third Implement pre-payment controls to Require documentation of satisfactory Rescind remaining balances from the abuse in Medicaid: Provide flexibility for enrolling out-of- Address inappropriate financing of Implement Medicaid community en Reduce maximum allowable home Continue Medicaid Disproportionate Allow States to apply asset tests to Strengthen CMS’s ability to recoup Expand Medicaid Fraud Control Unit Other Medicaid reforms: Address wasteful spending, fraud, and
127 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 123 76 12 600 253 479 620 325 ... ... ... ... ... ... ... ... ... 9,886 8,000 –143,020 2020–2029 12 76 Totals 253 590 152 614 479 ... ... ... ... ... ... ... ... ... 9,697 8,000 –60,490 2020–2024 36 36 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2029 –18,370 35 35 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2028 –17,290 1 35 36 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2027 –16,400 3 35 38 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2026 –15,630 6 6 32 44 ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2025 –14,840 99 11 16 40 32 ... ... ... ... ... ... ... ... ... ... ... ... ... 2024 –14,080 80 32 13 38 56 219 ... ... ... ... ... ... ... ... ... ... ... ... 2023 –13,300 4 59 32 107 226 ... ... ... ... ... ... ... ... ... ... ... 2,160 2,588 2022 –12,630 6 32 38 255 114 248 ... ... ... ... ... ... ... ... ... ... 3,920 4,613 2021 –11,880 eficit increases (+) or decreases (–) in millions of dollars) 2 24 67 68 38 (D 479 179 ... ... ... ... ... ... ... ... ... 2,178 1,800 –8,600 2020 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... –6,301 2019 - .. - ... - Table S–6. - ... 4 ... 1 ... ... ... ... ... ... ... ... ... ... ... ... ... 3 ... ... programs through 2021 dentiality protections and loan repayment programs Health Resources and Services Health Service (IHS) scholarship mation Centers through 2021 established Medicaid managed care Title 38 personnel authorities waivers Administration (HRSA) and Indian States and the IHS through 2021 for the National Institutes of Health Total, public health section 1915(b) managed care waivers age for IHS volunteers Corps through 2021 Program privacy protections with other confi Federal enclave properties Federal/State jurisdiction at IHS Cost-Sharing Reductions (CSR) Graduate Medical Education Total, other Medicaid reforms through 2021 time basis arship service obligations on a half- Provide IHS discretionary use of all Extend the Special Diabetes Programs Provide an appropriation to pay Authorize IHS to establish concurrent Extend Teaching Health Centers Extend the National Health Service Provide Federal Tort Claim Act cover Increase flexibility in the duration of Strengthen the CHIP safety net for Extend Family to Family Health Infor Reauthorize the Ryan White HIV/AIDS Extend Health Centers through 2021 Provide a pathway to make permanent Extend Medicare enrollment assistance Provide tax exemption for certain Meet IHS loan repayment and schol Align substance use disorder treatment Public Health: Other Health: CHIP:
128 124 SUMMARY T ABLES 61 517 200 –78 –150 –147 –345 ... ... ... ... ... 1,167 6,924 –5,089 –2,201 28,530 –5,282 –2,725 114,664 –31,511 –22,212 107,740 –11,088 –580,814 2020–2029 92 61 Totals –78 –72 –88 597 200 –968 –345 ... ... ... ... ... ... 5,008 2,614 –2,396 –5,344 –2,570 –6,836 37,910 40,524 11,588 –172,626 2020–2024 –4 –13 969 –15 111 –265 –546 –570 ... ... ... ... ... ... ... ... ... 3,650 –1,866 16,370 17,339 –5,109 –6,411 –5,516 2029 –96,602 –4 –4 –15 103 912 –543 –259 –554 ... ... ... ... ... ... ... ... ... 3,522 –6,288 15,892 14,980 –1,973 –5,495 –5,012 2028 –90,354 88 –15 861 –21 199 –538 –535 –249 –967 ... ... ... ... ... ... ... ... ... 3,392 –2,038 14,711 –1,669 –5,061 13,850 2027 –82,271 69 –5 807 –15 192 –523 –238 –536 ... ... ... ... ... ... ... ... ... ... 3,254 13,607 –4,716 –1,056 12,800 –1,462 2026 –75,712 54 761 –19 –15 187 –222 –763 –552 –508 ... ... ... ... ... ... ... ... ... ... 3,124 11,830 –1,075 12,591 –3,887 2025 –63,249 –3 39 239 713 –15 180 –210 –551 –494 ... ... ... ... ... ... ... ... ... ... 3,045 11,623 –2,806 10,910 –1,054 2024 –54,307 26 –10 –15 999 648 174 –486 –544 –196 ... ... ... ... ... ... ... ... ... ... 3,110 10,698 –1,051 –2,111 10,050 2023 –45,105 38 16 –2 19 –15 574 152 –539 –479 –186 ... ... ... ... ... ... ... ... 1,920 7,800 8,374 3,182 –1,034 –1,300 2022 –35,032 7 4 –9 56 91 –14 150 456 –115 –533 –478 –471 –177 ... ... ... ... ... ... 1,815 7,200 2,251 7,656 –1,053 2021 –24,210 eficit increases (+) or decreases (–) in millions of dollars) 4 35 12 (D –64 –85 223 –13 –11 –466 –141 –403 –230 –199 ... ... ... ... ... ... ... ... 2,173 1,950 –1,152 2020 –13,972 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... –6,301 –6,301 2019 .. - ... ... - ... ... Table S–6. 1 1 - 1 ... 5 ... ... ... ... ... ... 1 ... ... ... ... ... ... 1 ... ... ... ... 1, 6 ... 1 ... ... 1 1 premiums Total, interactions implementation funding tribution for premium tax credits welfare providers funding source against healthcare providers who refuse to cover abortion Savings Accounts Commissioned Corps retirement pay Total, other health Fund excise tax Prohibit governmental discrimination Total, Health and Human Services (HHS) available to CBP charge user fee Protection (CBP) fees Medicare interactions gram affordability assistance Medicaid interactions Introduce new minimum required con Protect the religious liberty of child Provide CMS Program Management Reduce the grace period for Exchange Reform medical liability Authorization receipts available to CBP Modify the U.S. Public Health Service Total, Homeland Security Improve and expand access to Health Increase customs user fees Increase immigration user fees Establish Electronic Visa Update System Transfer immigration examination fees Establish National Flood Insurance Pro Interactions: Reauthorize the Oil Spill Liability Trust Increase worksite enforcement penalties Establish an immigration services sur Make full Electronic System for Travel Extend expiring Customs and Border Eliminate BrandUSA; make revenue Homeland Security:
129 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 125 31 –40 –230 –220 –549 –660 –849 ... ... ... 6,230 6,500 –2,233 10,493 20,453 –7,727 –9,123 –10,022 –31,714 –17,918 2020–2029 Totals –20 –339 –660 –607 –122 –277 –230 ... ... ... 6,929 3,774 4,615 4,365 –1,103 –2,052 –9,022 –7,728 –5,620 –10,209 2020–2024 77 –4 –4 –19 –440 –200 –244 –102 ... ... ... ... ... ... ... 1,721 3,027 –3,284 –2,117 –1,062 2029 –4 –3 62 –4 –72 –21 –690 –193 –145 –200 ... ... ... ... ... ... 1,996 2,879 –3,771 –2,110 2028 –4 70 260 –20 256 100 –45 –223 –200 –133 –404 ... ... ... ... ... 2,718 2,181 –2,086 –4,371 2027 –4 –3 36 –16 581 –19 306 585 –190 –200 ... ... ... ... ... 2,543 –4,658 –2,047 –4,971 –4,351 2026 –4 19 –7 63 781 –19 515 –370 –200 ... ... ... ... ... 1,040 1,333 1,036 2,357 –1,472 –5,108 2025 6 –4 –18 861 –72 –54 –258 –200 ... ... ... ... ... 1,300 2,161 1,296 –1,228 –2,005 –4,352 –1,042 2024 9 –4 –19 –18 –259 –172 –360 –678 ... ... ... ... 1,021 1,296 1,958 1,300 –3,003 –1,182 –2,003 –1,347 2023 –4 83 –78 –29 958 720 –59 –109 –187 –258 –332 ... ... ... 1,040 1,310 –1,589 –1,925 –1,779 –1,616 2022 –3 –4 –26 525 642 715 –69 750 –225 –207 –233 –125 ... ... ... ... –1,014 –1,860 –1,926 –2,270 2021 eficit increases (+) or decreases (–) in millions of dollars) –4 65 –5 (D 750 –83 260 173 647 305 –31 –51 –325 –103 –224 ... ... ... ... ... –3,426 2020 Mandatory and Receipt Proposals—Continued –42 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 . - ... ... - 1, 7 Table S–6. - - ... 1 ... ... ... 1 ... ... ... ... ... ... ... ... ... ... ... 1 ... program (UI) solvency standard Total, establish a paid parental leave Total, Labor program Fund Provide paid parental leave benefits filing fee ness and Workforce Improvement Act Total, Interior ation Enhancement Act Improve UI program integrity Management Act balances charged by Government Sponsored Enterprises solvency Corporation (PBGC) Multiemployer ing and Printing to construct a new facility sation Act Establish an Unemployment Insurance for the Crime Victims Fund counties Expand Foreign Labor Certification fees Reauthorize the Federal Lands Recre Increase H–1B American Competitive Increase and extend guarantee fee Improve Pension Benefit Guaranty Establish a paid parental leave program: Establish a definite annual funding level Cancel Southern Nevada Public Land Establish a Public Lands Infrastructure Provide authority for Bureau of Engrav Repeal enhanced geothermal payments to Reform the Federal Employees’ Compen Eliminate Off-System Bridges Set-Aside Reform the Trade Adjustment Assistance Reform PBGC single-employer premiums Interior: Treasury: Justice: Labor: Transportation:
130 126 ABLES SUMMARY T 4 12 48 –60 –97 –68 –507 –123 –320 –329 –9,388 –1,903 –5,102 –2,699 –2,525 –2,065 14,544 –5,029 –1,780 –1,276 –17,426 –47,069 –116,101 2020–2029 4 6 20 Totals –37 –12 –30 –191 –890 –651 –123 –150 –160 5,176 –1,276 –1,367 –1,013 –2,456 –2,138 –1,499 –4,137 –7,712 –38,655 –10,597 2020–2024 5 2 –6 –5 –39 –17 –32 –75 –615 –178 –269 –314 –178 –352 –916 –156 ... ... ... 1,893 –8,241 –2,086 2029 –15,170 2 1 –6 –6 –32 –38 –69 –17 –103 –435 –448 –297 –178 –957 –178 –208 ... ... ... 1,885 –2,014 –7,942 2028 –15,473 1 –6 –6 13 –17 –62 –32 –35 –178 –282 –534 –634 –331 –221 –178 ... ... ... 1,875 –1,019 –7,510 –1,934 2027 –15,935 1 4 –7 –6 –32 –34 –57 –17 –178 –615 –320 –207 –622 –266 –178 ... ... ... 1,865 –6,880 –1,105 –1,871 2026 –15,778 4 1 –6 –7 –32 –53 –33 –17 –234 –309 –255 –178 –178 –690 –592 ... ... ... 1,850 –1,254 –5,899 –1,809 2025 –15,090 1 1 3 –6 –8 –32 –48 –32 –17 –554 –178 –298 –688 –178 –319 –229 ... ... 1,737 –1,750 –1,382 –4,558 2024 –13,214 1 8 1 –6 –8 –34 –44 –31 –32 –17 –173 –381 –482 –178 –178 –655 –288 ... 1,386 –3,166 –1,685 –1,457 2023 –10,848 3 1 1 –9 –6 –39 –30 –32 –12 –278 –432 –192 –301 –386 –178 –591 –129 –123 1,040 –1,895 –1,184 –7,511 –1,632 2022 1 1 3 –6 34 –10 –32 693 –29 –35 –84 –274 –178 –377 –395 –818 –269 –379 –676 –178 ... –1,584 –5,192 2021 eficit increases (+) or decreases (–) in millions of dollars) 3 2 –6 –2 (D –28 –34 320 –32 160 –25 –36 –234 –293 –374 –178 –160 –127 –178 ... ... ... –1,890 –1,061 2020 Mandatory and Receipt Proposals—Continued –42 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 - - - Table S–6. - ... ... ... 1 ... 1 ... ... ... ... ... 1 1 ... ... ... 1 ... 1 ... ... ... ... 1, 6 ... 1 ... ... ... ... 1 1 Adapted Housing programs subsidies cient property benefit programs Total, Veterans Affairs motor vehicle credit tional rehabilitation and education Total, Treasury appropriations non-tax debt correctable errors Internal Revenue Service to address unclaimed assets programs at public schools integrity cap adjustment tion and Pension benefit programs Total, Corps of Engineers newable energy property round-down enforcement program integrity cap preparers adjustment (non-add) Implement tax enforcement program Repeal exclusion of utility conservation Repeal the qualified plug-in electric drive Increase discretionary outlays from tax Standardize and improve Specially Divest Washington Aqueduct Repeal accelerated depreciation for re Provide more flexible authority for the Standardize and enhance VA Compensa Reinstate Cost-of-Living Adjustment Enhance burial benefits for veterans Increase oversight of paid tax return Standardize and improve veteran voca Reform inland waterways financing Increase and streamline recovery of Subject Financial Research Fund to Repeal credit for residential energy effi Cap Post–9/11 GI Bill flight training Increase collections of delinquent Federal Repeal energy investment credit Veterans Affairs (VA): Corps of Engineers:
131 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 127 29 913 –408 ... ... ... –1,884 –5,009 21,271 –3,950 –6,996 –6,600 –1,884 –16,474 –10,550 –18,565 –55,983 –85,144 –78,811 139,206 –102,467 2020–2029 21 Totals 403 –565 –158 –600 –565 ... ... ... 8,259 –2,050 –2,112 –5,269 –9,559 –1,450 –2,515 47,459 –32,833 –21,835 –14,896 –31,351 2020–2024 1 –50 106 –500 –294 –607 –294 ... ... ... 2,617 19,253 –3,196 –1,068 –6,000 –1,627 –6,500 2029 –10,046 –16,831 –11,819 –10,757 1 –50 104 –500 –500 –278 –278 –593 –980 ... ... ... ... 2,608 –2,918 18,958 –1,536 –9,409 2028 –15,559 –11,762 –10,346 1 102 –50 –500 –579 –500 –894 –263 –263 ... ... ... ... 2,602 –2,650 –1,415 –8,140 18,655 2027 –14,348 –11,699 –10,646 2 100 –50 –249 –810 –249 –566 –500 –500 ... ... ... ... 2,595 –6,949 –2,391 –1,305 18,219 2026 –13,168 –11,505 –10,873 3 98 –50 –729 –500 –500 –552 –235 –235 ... ... ... ... 2,590 –1,032 16,662 –5,832 –2,141 2025 –10,191 –10,400 –11,210 4 95 –50 –539 –650 –500 –806 –500 –222 –222 ... ... ... ... 2,412 –4,789 –1,900 –9,266 15,037 –9,816 –8,627 2024 4 93 –50 –450 –527 –575 –784 –450 –209 –209 ... ... ... ... 2,212 –3,815 –6,687 –1,529 –7,152 –8,908 13,050 2023 4 92 –41 –515 –300 –300 –502 –134 –134 ... ... ... ... 1,989 –2,263 –6,099 –1,045 –2,910 10,742 –4,400 –7,668 2022 4 90 –17 –508 –601 –450 –429 –300 –150 ... ... ... ... ... 1,646 8,630 –2,157 –2,074 –3,457 –6,441 –2,121 2021 eficit increases (+) or decreases (–) in millions of dollars) 5 33 (D –50 –23 –359 –194 –350 –300 ... ... ... ... ... ... ... ... ... ... –5,377 –3,549 –1,308 2020 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 - .. - : Table S–6. ... - ... ... 8 ... ... ... ... ... ... ... ... 1 ... ... 9 ... ... 1 ... ... Benefits (FEHB) Program Commission Employees Dental/Vision Program Total, Federal Employees Health gigahertz FEHB premiums Total, Federal Communications for term employees (FEHB) Program: tirement System COLA by 0.5 percent cent per year Conduct spectrum auctions below six tection Bureau percent of cost, phased in at one per from GSA proposals Total, General Services Administration System COLA, reduce Civil Service Re Provide tax preemption for Federal application fees high–three years to high–five years Modify the Government contribution to Enact Spectrum License User Fee Supplement Commission Reserve Fund Mandatory effects of agency eliminations Discretionary effect of GSA proposals Eliminate the Securities and Exchange Change retirement calculation from Federal Communications Commission: Reduce the G Fund interest rate Expand use of pesticide licensing fees Eliminate Federal Employees Retirement Loss of mandatory offsetting receipts Implement defined contribution system Postal effect of GSA proposals Restructure the Consumer Financial Pro Allow D.C. Courts to retain bar exam and Increase employee contributions to 50 Eliminate the Special Retirement Federal Employees Health Benefits General Services Administration (GSA) Other Independent Agencies: Environmental Protection Agency:
132 128 ABLES SUMMARY T 96 313 ... 2,000 –6,017 –5,506 –3,083 –2,167 –50,196 –15,284 –98,227 115,241 –40,500 –658,574 –446,684 –219,781 –257,440 –119,700 –477,875 –773,815 1,690,000 –1,128,075 2020–2029 33 Totals 170 –711 ... ... 2,000 –1,134 –4,886 –2,977 –7,230 –42,200 –48,305 112,232 –39,099 –36,750 650,000 –102,950 –150,910 –141,760 –106,478 –386,858 –218,710 2020–2024 27 15 –124 –750 –608 –337 –404 ... ... –1,600 2029 –23,209 –12,794 –57,200 230,000 –65,068 –20,075 –82,749 –13,246 –34,280 –178,178 –153,945 –140,699 14 27 –608 –401 –124 –750 –315 ... ... –1,624 –2,954 2028 –62,126 –76,060 220,000 –23,364 –25,932 –14,069 –12,802 –49,900 –126,710 –129,664 –160,828 13 28 –398 –750 –608 –124 –298 ... ... 5,070 –1,620 10,016 2027 –23,504 –11,991 –59,468 –13,244 –69,296 –42,500 210,000 –112,546 –145,462 –107,476 11 29 –608 –271 –750 –379 –124 ... ... ... 3,417 –1,601 2026 –12,393 –56,041 –89,719 190,000 –11,153 –23,659 –86,302 –52,459 –36,510 –130,542 32 10 –608 –235 –367 –124 –750 ... ... ... 10,722 –1,609 2025 –11,614 –29,130 –23,095 –85,431 –10,388 190,000 –53,071 –74,709 –55,551 –126,207 9 33 –750 –608 –206 –348 –124 ... ... ... 14,652 –1,613 –9,698 2024 –50,372 –56,812 –71,464 –22,533 –10,911 179,000 –23,140 –47,574 –113,976 8 36 –124 –293 –177 –608 ... ... ... ... 14,931 –1,552 –9,023 2023 –21,934 –40,458 –55,389 –10,174 168,000 –39,529 –50,008 –15,860 –103,061 7 39 250 –138 –220 –124 –608 ... ... –5,000 –8,384 12,045 –9,364 –1,519 –3,100 2022 –21,348 –27,222 –43,649 –39,267 157,000 –31,417 –101,306 5 37 750 –104 –145 –608 –100 ... ... –7,837 –1,447 13,585 –4,743 57,175 2021 –23,240 –19,030 –43,590 –13,555 –69,795 –19,734 –21,000 146,000 eficit increases (+) or decreases (–) in millions of dollars) 4 25 (D –86 229 –545 –128 ... ... ... ... ... 4,429 1,280 1,000 –4,301 –1,099 12,149 –9,000 13,429 –4,157 2020 –17,401 –10,000 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 .. - - 1 Table S–6. ... - ... ... - ... ... ... ... ... ... ... : 1 ... ... ... ... ... ... ... ... ... ... Graham-Cassidy-Heller- Johnson bill 1 Total, proposal modeled after the programs Total, additional deficit reduction programs Market-based healthcare grant Other transmission assets Other Medicaid reforms State implementation Medicaid reforms ham-Cassidy-Heller-Johnson bill: Market-based healthcare grant Total, other independent agencies ments and information reporting require Divest Tennessee Valley Authority Proposal modeled after the Gra sequestration Reform the Postal Service Additional deficit reduction: migrant Visas Trust Fund and Capital Magnet Fund tance Program reform healthcare Improve clarity in worker classification Get noncustodial parents to work Postal Service: Empowering States and consumers to Reform the Supplemental Nutrition Assis Extend Joint Committee mandatory Strengthen TANF Eliminate the TANF Contingency Fund Reduce TANF block grant Tennessee Valley Authority: Eliminate allocations to the Housing reform healthcare Authorize additional Afghan Special Im Cross-cutting reforms: Total, empowering States and consumers to Reform welfare programs:
133 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 129 181 500 214 –648 –181 –207 –671 ... ... ... ... –3,121 –8,596 –1,185 –2,288 –10,002 –16,592 –67,900 –47,552 –326,620 2020–2029 71 Totals –66 –17 300 104 500 –781 –236 –595 –264 –196 ... ... ... ... –8,092 –4,052 –3,609 –29,259 –150,531 2020–2024 2 22 22 13 –41 –32 –86 –257 –839 –885 –321 ... ... ... ... –1,700 –8,237 –1,409 2029 –35,658 –17,769 2 21 21 22 –30 –43 –84 –315 –742 –242 –997 ... ... ... ... –1,352 –1,700 –7,902 2028 –35,467 –13,636 40 22 22 –11 –35 –81 –28 –907 –580 –177 –306 ... ... ... ... –1,285 –9,094 –1,700 –7,702 2027 –35,317 22 59 24 –79 –26 –27 –23 –432 –888 –163 –293 ... ... ... ... –5,073 –1,700 –7,531 –1,214 2026 –35,249 78 22 21 –77 –34 –18 –25 –867 –292 –150 –272 ... ... ... ... –2,480 –7,269 –1,133 –1,700 2025 –34,398 22 98 28 –76 100 –74 –23 –11 –46 –158 –782 –264 ... ... ... ... –1,700 –7,104 –1,044 2024 –33,579 79 22 –5 25 –66 100 –39 –63 –22 –69 –821 –940 –241 ... ... ... ... –6,957 –1,700 2023 –32,771 60 –8 22 15 –1 100 –58 –52 –98 –21 –865 –741 –200 ... ... ... ... –6,754 –1,700 2022 –31,950 3 21 41 –40 100 –26 –42 –76 –800 –382 –568 ... ... ... ... ... ... –1,632 –6,664 2021 –30,100 eficit increases (+) or decreases (–) in millions of dollars) 35 –5 22 17 (D 100 –24 –784 –316 ... ... ... ... ... ... ... ... ... –1,780 –1,360 2020 –22,131 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 - ... - - Table S–6. ... ... ... 1 ... ... ... ... 1 ... ... ... ... ... ... ... ... ... ... ... ... ment or eligibility (SSI) youth transition to work tion of evidence to determine entitle Program disability payments approval process claimants’ representatives thority for civil monetary penalties structure for SSI disabled children reverse offsets in multirecipient families entry/exit data to prevent improper payments and assessments disability hearings force participation Insurance (DI) benefits to six months Total, reform welfare programs Offset overlapping unemployment and Reduce 12 month retroactive Disability and credit for other dependents Improve Supplemental Security Income Tax Credit, Earned Income Tax Credit, Modernize the commissioner’s collec Mobility Demonstrations Allow State hearing officers to hold fund Provide additional debt collection au Allow Government-wide use of CBP Test new approaches to increase labor Eliminate Workers Compensation and Permanency and establishment Create a family maximum benefit Simplify Administration of the SSI Change the representative fee and Eliminate travel reimbursement for Establish a Child Support technology improve payment integrity: Eliminate SSBG Shift SSBG expenditures to Foster Care Strengthen Child Support enforcement Require Social Security Number for Child Promote Opportunity and Economic Reform Federal disability programs and
134 130 ABLES SUMMARY T –10 –46 –38 –27 325 –319 –274 ... 8,987 –9,509 –1,518 45,488 12,357 198,987 190,000 –84,090 –925,430 –2,122,815 2020–2029 2020–2029 –5 Totals –14 –89 –38 –27 152 –177 –434 ... 8,317 4,396 –1,539 20,648 152,000 –11,043 160,317 –109,410 –506,952 2020–2024 2020–2024 1 1 –8 –2 36 –26 –43 –251 ... ... ... ... 4,994 1,223 –1,429 2029 2029 –23,020 –436,065 –247,616 67 –7 35 –39 –27 –254 ... ... ... ... 4,817 4,750 4,960 1,785 –1,547 2028 2028 –18,966 –205,901 –379,318 –6 –1 35 –37 –28 134 –237 ... ... ... 4,750 4,884 1,724 4,934 –1,645 2027 2027 –14,178 –142,739 –301,407 –1 –6 35 –34 –30 201 –181 ... ... ... 9,500 9,701 4,916 1,652 –9,939 –1,735 2026 2026 –122,410 –273,482 –5 32 –1 267 –32 –31 –161 ... ... ... 5,036 1,577 19,267 19,000 –6,944 –1,614 2025 2025 –97,354 –225,591 –5 32 –2 –32 –29 –135 ... ... ... 1,834 4,974 1,472 38,000 –3,538 –1,135 39,834 2024 2024 –54,616 –169,001 –4 –2 32 –33 –24 –110 –474 ... ... ... 2,001 5,006 1,267 47,500 49,501 –2,659 2023 2023 –26,821 –125,184 24 –3 –1 32 –20 –36 –100 ... ... ... 2,167 4,928 1,056 40,167 38,000 –1,955 2022 2022 –21,279 –100,649 28 –2 20 32 –12 –77 –37 –38 601 ... ... 7,220 2,046 4,847 –1,849 25,796 23,750 2021 2021 –60,368 eficit increases (+) or decreases (–) in millions of dollars) 18 –4 24 (D –12 –39 269 893 –47 ... ... ... ... ... 4,750 5,019 –1,042 2020 2020 –13,914 –51,750 Mandatory and Receipt Proposals—Continued ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... –6,343 2019 2019 . - - - ... - Table S–6. - - - ... ... ... ... ... ... ... ... ... ... ... ... 1 10 ... integrity programs and improve payment ... ... initiative Total, reform Federal disability Fund recover funds in certain scenarios tration to use all collection tools to Total, implement an infrastructure bankruptcy tion from States and localities structure er payments W–2s Disability Insurance threshold for Old Age, Survivors, and payments Expand mandatory electronic filing of Establish a Federal Capital Revolving Authorize Social Security Adminis Support major investment in infra Exclude SSA debts from discharge in Use death master file to prevent improp Total, cross-cutting reforms Improve collection of pension informa Increase overpayment collection Hold fraud facilitators liable for over Implement an infrastructure initiative: premiums Accounts tion for premium tax credits and IHS scholarship and loan repayment Savings Accounts or Medical Savings programs tax deductible contributions to Health ductible health plans the option to make The estimates for this proposal include effects on receipts. The receipt effects included in the totals above are as follows: Total, mandatory and receipt proposals Establish Education Freedom Scholarships Give Medicare beneficiaries with high de Introduce new minimum required contribu Note: For receipt effects, positive figures indicate lower receipts. For outlay effects, positive figures indicate higher outlays. For net costs, positive figures indicate higher deficits. 1 Provide tax exemption for certain HRSA Reduce the grace period for Exchange
135 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 131 913 –68 459 682 –670 –110 –549 –287 –147 –424 –574 –790 –2,525 26,971 –5,282 –1,780 –7,770 –7,727 –1,276 –5,089 –9,388 –7,422 –5,102 –78,811 –47,069 2020–2029 70 Totals 204 –58 403 –37 –72 –333 –339 –890 –109 –213 –427 ... 10,924 –2,052 –2,228 –3,155 –1,499 –2,570 –2,456 –2,396 –1,276 –4,137 –10,597 –21,835 2020–2024 –5 51 –15 140 –70 –10 –88 –43 106 –546 –178 –570 –352 –937 –916 –216 –156 ... ... ... 3,467 –1,241 –8,241 –1,062 2029 –11,819 51 –3 –6 169 –68 –79 –39 104 –10 –15 –690 –178 –209 –957 –208 –554 –448 –543 –893 ... ... 3,339 –1,180 –7,942 2028 –11,762 –6 51 –33 102 –15 –10 –35 –67 214 –72 –534 –223 –535 –221 –538 –178 –852 –404 ... ... 3,216 –1,019 –7,510 –1,113 2027 –11,699 –7 –3 51 100 –15 –32 –64 –66 –11 143 –812 –536 –622 –207 –178 –523 –147 ... ... 3,077 –2,047 –6,880 –1,042 –1,105 2026 –11,505 1 98 –7 19 51 –66 –11 –15 –58 –29 –54 –234 –690 –508 –773 –183 –178 –552 –966 ... 2,948 –5,899 –1,254 –1,472 2025 –10,191 –8 95 39 51 –26 –66 –11 –52 –54 –15 –494 –178 –551 –319 –134 –688 –736 –887 ... ... 2,872 –1,382 –4,558 –1,042 –8,627 2024 93 –8 22 51 –66 –34 –11 –24 –15 –47 –117 –655 –178 –700 –381 –486 –360 –544 –803 –678 ... 2,933 –6,687 –3,166 –1,457 2023 8 92 –9 83 51 –42 –65 –21 –94 –12 –15 –666 –539 –386 –479 –591 –192 –178 –538 –332 ... 2,997 –1,895 –1,184 –4,400 2022 1 –3 90 51 –64 –38 –19 –12 –72 –10 –14 –274 –818 –395 –676 –178 –379 –533 –471 –634 ... ... ... 2,122 –2,121 2021 eficit increases (+) or decreases (–) in millions of dollars) –2 –5 33 (D –64 –12 –13 –19 –34 –34 160 –18 –466 –374 –403 –127 –178 –419 –160 ... ... ... ... ... ... ... 2020 Mandatory and Receipt Proposals—Continued –42 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2019 - - - - Table S–6. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Authorization (ESTA) receipts available user fee to CBP property surcharge Internal Revenue Service to address correctable errors preparers year Fund and Capital Magnet Fund Fund excise tax subsidies term employees rity cap adjustment solvency standard able energy property motor vehicle credit priations percent of cost, phased in at 1 percent per ings Accounts and Printing to construct new facility Provide paid parental leave benefits Provide more flexible authority for the Establish Electronic Visa Update System Implement tax enforcement program integ Repeal accelerated depreciation for renew Repeal credit for residential energy efficient Increase oversight of paid tax return Establish an immigration services Reform inland waterways financing Eliminate allocations to the Housing Trust Provide authority for Bureau of Engraving Make full Electronic System for Travel Subject Financial Reasearch Fund to appro Repeal exclusion of utility conservation Improve UI program integrity Repeal energy investment credit Establish an Unemployment Insurance (UI) Expand mandatory electronic filing of W–2s Increase employee contributions to 50 Repeal the qualified plug-in electric drive Reform medical liability Reauthorize the Oil Spill Liability Trust Implement defined contribution system for Improve and expand access to Health Sav Increase worksite enforcement penalties
136 132 SUMMARY T ABLES 106 - - 31,615 –2,260 –38,406 –104,675 2020–2029 8 Totals –765 12,793 –24,591 –16,680 2020–2024 28 –341 3,901 –4,694 2029 –17,554 20 –321 3,737 –4,501 2028 –16,406 17 –302 3,415 –4,328 2027 –15,986 15 –282 3,688 –4,175 2026 –16,582 18 –249 4,081 –4,028 2025 –13,556 7 –220 4,355 –3,887 2024 –10,038 1 –188 4,014 –3,764 –6,950 2023 –147 ... 3,489 –2,711 –3,662 2022 –24 –124 ... –3,587 –2,720 2021 eficit increases (+) or decreases (–) in millions of dollars) (D 959 –86 ... volume. –1,780 –2,172 2020 Mandatory and Receipt Proposals—Continued –42 ... ... ... ... 2019 Table S–6. ... Analytical Perspectives ... ... ... ... proposals reform healthcare and credit for other dependents information reporting requirements Tax Credit, Earned Income Tax Credit, Total receipt effects of mandatory disability payments the Reorganization Chapter of the nues. Retained fees are estimated at $360,000 annually beginning in 2019. fects, $19.7 billion over 10 years, are included in the single income-driven repayment plan subtotal. the total outlays estimated from the fund over the 10-year window. However, the initial $10 billion in capitalization funding is fully expended by 2024. on other policyholders that currently do not pay full-risk premiums. The Federal Capital Revolving Fund is capitalized with $10 billion in mandatory funds in 2020. Agency repayments to the fund are reflected as offsetting collections, which reduce While this proposal increases outlays to provide means-tested assistance to low-income policyholders, the National Flood Insurance Program is also accelerating premium increases Estimates were not available at the time of Budget publication. Net of income offsets. The paid parental leave proposal consists of $28,233 million in benefit and program administration costs, offset by $7,770 million in savings associated with increased State reve The single income-driven repayment plan proposal has sizable interactive effects with the proposals to eliminate subsidized loans and Public Service Loan Forgiveness. These ef Fully fund CSR payments for qualified health plans that did not increase premiums to account for non-payment of CSRs. The President’s Budget proposes to transfer functions of the Office of Personnel Management to the GSA. For additional information on this reorganization proposal, please consult The proposal would allow the D.C. Courts to retain a portion of the bar examination and application fees it currently deposits into the D.C. Crime Victim’s Compensation Fund. 8 6 4 7 2 Empowering States and consumers to Offset overlapping unemployment and 9 5 Improve clarity in worker classification and 10 3 Require Social Security Number for Child
137 133 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 4 9 –5 23 40 86 –85 420 148 +861 ... ... 6,076 6,448 5,029 4,966 7,739 –1,110 12,768 Totals h year. 2020–2029 5 2 7 10 15 –10 719 677 +88 458 453 817 –224 ... ... 1,275 2029 7 2 5 10 15 –10 661 701 +89 466 800 462 –199 ... ... 1,266 2028 7 5 2 10 14 –11 645 684 +90 475 471 784 –174 ... ... 1,259 2027 * 7 2 5 10 14 –11 629 667 +91 484 768 481 –148 ... ... 1,252 2026 * 2 5 7 10 14 –10 651 613 +91 495 491 752 –122 ... ... 1,247 2025 * 7 2 4 10 14 –10 –98 635 599 505 784 501 +139 ... ... 1,289 2024 1 4 7 2 –9 20 13 –73 620 584 515 778 511 +138 ... ... 1,293 2023 1 7 2 3 –8 20 13 –49 605 570 526 760 521 +135 ... ... 1,286 2022 * 2 3 7 –6 12 –24 590 556 156 538 532 746 ... ... 1,284 2021 1 2 2 9 –5 19 24 543 165 576 567 543 750 et budget authority in billions of dollars) ... ... 1,317 2020 (N 1 2 7 2 12 69 23 597 647 620 597 716 ... 1,336 2019 Proposed Discretionary Funding Levels in 2020 Budget ... ... ... 8 7 Table S–7. ... ... 1 1 3 ... 2 2 4 ... ... ... ... 6 ... ... 5 Reduction Proposal: Emergency Requirements Overseas Contingency Operations (OCO) levels Budget proposes defense caps through 2029 that resource national defense requirements while NDD caps are proposed that would continue the 2-penny decrease for eac with separate categories of funding for “defense” (or Function 050) and “non-defense” (NDD) programs and include Office of Management and Budget (OMB) estimates of Joint Committee enforcement (also known as “sequestration”). For 2022 through 2029, programs are assumed to grow at current services growth rates. defense and NDD caps but would fund defense programs at the existing cap while beginning an annual two percent (or “2-penny”) decrease to NDD programs. After 2021, the 2020 Proposed Base Changes Proposed Base Changes Defense Cap Adjustments: The current law funding levels presented here are equal to the caps estimated for 2019 through 2021 in the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA) The 2020 Budget proposes funding levels at the existing 2020 BBEDCA caps for defense and NDD programs. In 2021, the Administration proposes no change to the existing 2 Non-BBEDCA Emergency Funding 21st Century Cures Appropriations * $500 million or less. 1 Federal Employee Retirement Cost Share Emergency Requirements Wildfire Suppression Disaster Relief Current Law Funding Levels Program Integrity OCO Current Law Funding Levels Memorandum - Appropriations Counted Outside of Discretionary Caps: Total, Non-Defense with all Adjustments Total, Discretionary Budget Authority Proposed Base Funding Total, Non-Defense Cap Adjustments Non-Defense: Total, Defense Non-Defense Cap Adjustments: Defense:
138 134 ABLES SUMMARY T - - et budget authority in billions of dollars) (N volume of the Budget. Proposed Discretionary Funding Levels in 2020 Budget—Continued Analytical Perspectives Table S–7. in 2020 to address significant and unprecedented recovery needs of recent hurricanes and wildfires. The Budget does not explicitly request disaster-designated appropriations in tinuing to fund contingency operations. The placeholder amounts for 2025 through 2029 do not reflect specific decisions or assumptions about OCO funding in any particular year. is requested in 2020 as an emergency requirement to address border security and hurricane recovery. After 2021, which is the final year of the discretionary caps in current law, outyear OCO amounts for 2022 and 2023 would be $20 billion in each year and $10 billion in 2024, consistent with the outyear OCO amounts included in OMB’s 2019 Mid-Session After 2021, the Administration supports reductions to its proposed NDD caps for this reform. cancellations. pursuant to BBEDCA. These cancellations are not being re-designated as emergency, therefore no savings are being achieved under the caps nor will the caps be adjusted for these levels. for the authorized purposes. These amounts are displayed outside of the discretionary totals for this reason and the levels included through the budget window reflect authorized the Robert T. Stafford Disaster Relief and Emergency Assistance Act. These amounts are held to a funding ceiling that is determined annually according to a statutory formula. Based on its 2020 Budget assumptions, OMB estimates the 2020 ceiling to be more than $21 billion and the Administration is requesting more than $19 billion for Disaster Relief billion and $156 billion, respectively. These amounts fund direct war costs, enduring in-theater support, and certain base budget requirements. In addition, more than $9 billion any year after 2020 and a placeholder set at the 10-year average level is included in each of the outyears. The Administration’s disaster relief request is discussed in greater detail in the Budget Process chapter of the Review. 2025 through 2029 amounts reflect a notional $10 billion placeholder for OCO consistent with a potential transition of certain OCO costs into the base budget while con source national defense requirements, funding above the current law caps will also be necessary. The Budget therefore increases OCO amounts in 2020 and 2021 to nearly $165 The 2020 Budget continues the Administration’s policy to shift NDD OCO amounts into base discretionary funding. No NDD OCO amounts are proposed in 2020 or the outyears. “Disaster Relief ” appropriations are amounts designated as such by the Congress provided they are for activities carried out pursuant to a Presidential disaster declaration under The 2020 Budget proposes to hold the national defense base budget to the current law BBEDCA cap levels for national defense programs in 2020 and 2021. In order to fully re This adjustment reflects savings from a reform proposed in the 2020 Budget that would reduce Federal agency costs through changes to current civilian employee retirement plans. The 21st Century Cures Act permitted funds to be appropriated each year and not counted towards the discretionary caps so long as the appropriations were specifically provided The 2020 Budget includes permanent cancellations of balances of emergency funding in the Departments of Energy and Housing and Urban Development that were not designated 8 5 6 4 3 7
139 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 135 N/A N/A N/A N/A –2.4% –3.5% –5.1% –9.0% –9.7% –2.3% +1.4% +7.5% +1.5% +7.4% +89% +0.4% +4.9% –300% –164% –254% –100% –10.0% –31.0% –31.2% –21.5% –23.3% –10.9% –11.9% –10.8% –12.0% –14.8% +163.7% Percent –* +* –86 –52 –14 –71 –1.7 –2.1 –0.4 –0.7 –2.8 –2.2 –5.9 –1.2 –0.7 –1.5 –3.8 –8.5 –3.6 +0.9 +0.3 +6.5 +0.2 +28 +3.6 +13 –31.7 –12.2 –13.0 –12.1 +12.1 +33.4 2019 Estimate 2020 Request less Dollar 0.7 7.1 4.8 6.1 –65 –20 19.4 19.1 10.1 21.0 93.1 13.1 21.4 42.8 10.9 29.2 12.5 441 51.7 152 89.6 165 31.7 640 62.0 12.3 20.8 ... ... –20.0 718.3 1,296.0 2020 Request 1 1.7 7.4 7.8 0.7 7.0 8.8 –93 –06 –0.9 –7.7 21.3 10.5 20.7 86.6 12.9 27.3 55.8 12.1 29.9 14.0 527 48.1 204 151 35.5 711 70.5 12.3 24.4 101.7 685.0 1,327.7 2019 Estimate et budget authority in billions of dollars) (N 2020 Discretionary Overview by Major Agency ... ... ... 2,6 Table S–8. ... ... ... 2 ... ... 4 ... 4,5 ... ... ... ... ... 8 ... ... 2 1 ... ... ... 7 ... 3 ... ... ... ... ... HUD receipts HUD gross total (excluding receipts) Other Energy National Nuclear Security Administration Pell Grant cancellations Education, excluding Pell Grant cancellations HUD DHS Social Security Administration National Science Foundation Small Business Administration National Aeronautics and Space Administration Corps of Engineers Environmental Protection Agency Veterans Affairs Treasury Transportation State and Other International Programs Labor Justice Interior Housing and Urban Development (HUD): Homeland Security (DHS) Health and Human Services: Energy Education Defense Commerce Agriculture Emergency Requirements: Disaster Relief: Adjustment for 2019 Assumptions Changes in mandatory programs Other Agencies Major Agencies: Cabinet Departments: Subtotal, Base, OCO, and Program Integrity Funding Other Non-Defense Funding, including Cap Adjustments: Base, OCO, and Program Integrity Discretionary Funding:
140 136 SUMMARY T ABLES N/A N/A N/A N/A –93% –46% –1.8% +47% +85.8% Percent –4.9 +2.0 +2.3 +0.3 +7.8 –276 –580 –24.0 +340 2019 Estimate 2020 Request less Dollar 2.3 0.3 2.0 –64 –4.9 16.8 –197 5628 5694 7500 5432 1,312.8 2020 Request 1 9.0 ... ... ... ... 7160 6207 5970 1,336.7 2019 Estimate et budget authority in billions of dollars) (N volume of the Budget. 2020 Discretionary Overview by Major Agency—Continued ... ... volume of the Budget for more information on this adjustment. Analytical Perspectives ... Table S–8. ... 9 Analytical Perspectives ... ... Energy and HUD any year after 2020 and a placeholder set at the 10-year average level is included in each of the outyears. The Administration’s disaster relief request is discussed in greater detail the Robert T. Stafford Disaster Relief and Emergency Assistance Act. These amounts are held to a funding ceiling that is determined annually according to a statutory formula. Proposed cancellations This total also includes some smaller emergency cancellations in HUD. These cancellations are not being re-designated as emergency, therefore no savings are being achieved in the Budget Process chapter of the HHS changes in mandatory programs Interior in 2020 to address significant and unprecedented recovery needs of recent hurricanes and wildfires. The Budget does not explicitly request disaster-designated appropriations in Based on its 2020 Budget assumptions, OMB estimates the 2020 ceiling to be more than $21 billion and the Administration is requesting more than $19 billion for Disaster Relief Agriculture Department of Energy. This proposal includes a permanent cancellation of most of the remaining balances of emergency funding that were not designated pursuant to BBEDCA. under the caps nor will the caps be adjusted for these cancellations. chapter of the the discretionary caps so long as the appropriations were specifically provided for the authorized purposes. agencies funded in Public Law 115–244 and in divisions A and B of Public Law 115–245. For all other agencies, the 2019 column reflects annualized continuing appropriations provided under the Continuing Appropriations Act, 2019 (division C of Public Law 115–245, as amended). Any changes in mandatory programs (CHIMPs) enacted in full-year bills have been rebased as mandatory while any CHIMPs continuing under the 2019 continuing resolution are included in the 2019 column. The 2019 levels are further adjusted to illustratively reflect an alternative level in 2019 for the 2020 Decennial Census. An allowance is also included to reflect the current law caps for 2019 for defense and NDD. included in the HHS total and not in the SSA total. the funds are administered by the U.S. Agency for International Development (USAID). Funding for Food for Peace Title II Grants is included in the State and Other International Programs total. Although the funds are appropriated to the Department of Agriculture, The Department of Defense funding level in this presentation includes $9.2 billion requested as an emergency requirement to address border security and hurricane recovery. Funding from the Hospital Insurance and Supplementary Medical Insurance trust funds for administrative expenses incurred by the SSA that support the Medicare program are The total for HHS includes amounts authorized under the 21st Century Cures Act, which permitted funds to be appropriated each year for certain activities and not counted toward At the time the 2020 Budget was prepared, 2019 appropriations remained incomplete. The 2019 column reflects at the account level enacted full-year appropriations provided for The State and International Programs total includes funding for the Department of State, USAID, Treasury International, and 12 international agencies. The total for the Department of the Treasury includes $0.4 billion for a new cap adjustment related to program integrity in the Internal Revenue Service. See the Budget Process “Disaster Relief ” appropriations are amounts designated as such by the Congress provided they are for activities carried out pursuant to a Presidential disaster declaration under The 2020 Budget proposes to eliminate the Title 17 Innovative Technology Loan Guarantee Program and the Advanced Technology Vehicles Manufacturing Loan Program in the 6 2 7 5 1 * $50 million or less. 3 8 4 Significant Non-Defense Offsets: Wildfire Suppression: Subtotal, Wildfire Suppression Defense Total Non-Defense Total 9 Non-BBEDCA Emergency Appropriations: Subtotal, Other Non-Defense Funding Total, Discretionary Budget Authority Memorandum, Non-Defense “Program Level” Budget Authority: 2020 Non-Defense “Program Level” Compared to 2019 Cap Non-Defense Discretionary Budget Authority at 2020 cap
141 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 137 4.9 2.8 3.7 2.8 2.0 3.0 4.2 2.3 35,141 2029 2.8 3.0 2.0 3.7 4.2 4.9 2.8 2.3 33,512 2028 2.8 4.2 4.9 2.0 3.7 2.3 2.8 3.0 31,957 2027 3.7 3.0 2.8 2.8 4.2 2.0 2.3 4.9 30,475 2026 volume of the Budget. 2.3 2.0 5.0 2.9 3.7 4.2 3.0 2.9 29,050 2025 5.1 3.0 3.0 2.0 3.0 2.3 4.1 3.7 27,665 2024 Analytical Perspectives 3.0 3.7 2.3 4.0 2.0 3.0 5.1 3.1 1 Projections 26,330 2023 3.9 2.0 3.0 3.0 3.8 3.2 2.3 5.1 25,061 2022 3.0 2.3 3.0 3.2 2.0 3.7 3.8 5.1 23,851 2021 2.3 2.0 3.1 3.6 3.6 3.1 5.2 3.1 22,694 2020 alendar years) (C 2.7 2.1 3.2 3.2 2.0 3.6 5.2 3.4 21,565 Economic Assumptions 2019 2.9 3.1 3.9 1.9 2.9 5.2 2.5 2.2 20,497 2018 2.2 4.2 2.5 2.3 2.1 0.9 4.4 1.9 Table S–9. 19,485 2017 Actual .. ... ... ... 3 ... ... ... ... 3 percent change, year/year ... 2 4 Based on information available as of mid-November 2018. Seasonally adjusted Consumer Price Index for all urban consumers. Annual average. Average rate, secondary market (bank discount basis). Real GDP, percent change, year/year Real GDP, percent change, Q4/Q4 91-day Treasury bills 1 10-year Treasury notes 2 GDP chained price index, percent change, year/year 3 Percent change, nominal GDP, year/year 4 Nominal level, billions of dollars Note: A more detailed table of economic assumptions appears in Chapter 2, “Economic Assumptions and Overview,” in the Consumer Price Index, Interest rates, percent: Gross Domestic Product (GDP): Unemployment rate, civilian, percent
142 ABLES 138 SUMMARY T 2 –* –* –3 52 60 48 47 49 11 823 202 251 251 312 0.6% –621 ... ... 90.7% 31,495 31,495 31,543 31,506 2029 2 –* –* –3 58 12 47 54 54 508 810 562 503 –62 562 1.5% –301 ... ... 94.2% 31,183 31,230 31,183 31,195 2028 2 –* –* –* –3 58 46 54 54 13 513 788 570 567 567 1.6% –274 ... ... 97.2% 30,695 30,682 30,727 30,682 2027 2 –* 61 –3 –1 57 15 45 57 577 762 744 634 634 108 1.9% –185 ... ... 30,158 30,128 30,113 30,113 100.0% 2026 2 –* 65 –1 –3 61 61 45 16 733 631 113 692 806 692 2.2% –102 ... ... 29,370 29,386 29,414 29,370 102.4% 2025 2 –* –1 –1 65 –4 60 18 45 60 700 702 760 760 176 939 2.6% ... ... 28,564 28,564 28,608 28,582 104.6% 2024 Estimate 2 –* 65 –3 –1 61 19 61 44 909 664 245 970 970 131 3.5% ... ... 1,103 27,625 27,645 27,669 27,625 106.3% 2023 2 –* –2 –1 66 42 63 20 63 99 610 439 4.2% ... ... 1,049 1,112 1,112 1,213 26,524 26,544 26,524 26,566 2022 107.2% * 2 –* –1 68 67 21 41 67 548 521 140 4.5% ... ... 1,068 1,135 1,135 1,278 25,353 25,333 25,312 25,312 2021 107.5% 2 3 –* 67 –1 40 22 67 68 622 479 114 4.9% ... ... 1,101 1,168 1,285 1,168 24,035 24,075 24,035 24,057 2020 107.4% * 2 –* –1 48 31 77 78 24 39 698 393 144 ollar amounts in billions) 5.1% ... 1,092 1,169 1,169 1,316 (D 22,776 22,752 22,752 22,790 107.0% 2019 * –* 91 –2 –9 10 37 24 779 454 225 325 305 305 172 3.9% 1,084 1,084 1,266 21,438 21,438 21,462 21,475 106.1% 2018 Actual Federal Government Financing and Debt ... ... ... 2 ... ... 3 ... ... ... ... 1 Table S–10. 4 ... ... ... ... ... ... ... ... ... ... ... ... ... ... 5 ... change in debt held by the public) equity purchase accounts Total, requirement to borrow from the public (equals As a percent of GDP Direct loan and Troubled Asset Relief Program (TARP) Railroad Retirement Investment Trust (NRRIT) Guaranteed loan accounts As a percent of GDP Subtotal, changes in financial assets and liabilities borrowing from the public Unified budget deficit Change in Treasury operating cash balance Net disbursements of credit financing accounts: Net purchases of non-Federal securities by the National Net change in other financial assets and liabilities Total, other transactions affecting Total, gross Federal debt Primary deficit/surplus (–) Changes in financial assets and liabilities: Net interest Total, debt subject to statutory limitation Debt issued by other agencies Debt issued by Treasury Seigniorage on coins Total, change in debt subject to statutory limitation Other transactions affecting borrowing from the public: Unified budget deficit: Adjustment for discount, premium, and coverage Change in debt held by the public Change in debt held by Government accounts Gross Federal debt: Debt issued by Treasury Change in other factors Financing: Changes in Debt Subject to Statutory Limitation: Debt Subject to Statutory Limitation, End of Year: Debt Outstanding, End of Year:
143 BUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2020 139 19 13 –60 385 113 - 6,736 2,514 2,044 71.3% 64.1% 24,770 24,770 22,256 2029 19 16 –60 385 113 2,465 6,676 1,992 66.6% 74.0% 24,519 22,054 24,519 2028 19 19 113 385 –60 2,411 6,738 1,934 68.2% 75.9% 23,957 21,546 23,957 2027 20 22 –60 113 385 2,356 6,738 1,877 77.7% 69.8% 23,390 21,033 23,390 2026 25 20 113 385 –60 1,815 6,630 2,299 79.3% 71.3% 22,756 20,457 22,756 2025 21 29 –60 385 113 6,517 2,238 1,750 80.7% 72.6% 22,064 19,826 22,064 2024 Estimate 32 21 385 –60 113 6,341 1,686 2,178 81.9% 73.5% 19,126 21,304 21,304 2023 36 22 113 –60 385 2,116 6,210 1,620 73.6% 82.1% 20,334 18,218 20,334 2022 23 37 –60 385 113 2,053 6,111 1,554 81.6% 72.9% 19,222 19,222 17,169 2021 24 37 113 –60 385 5,971 1,986 1,486 71.8% 80.7% 18,087 16,101 18,087 2020 36 25 385 113 –60 ollar amounts in billions) 1,918 5,857 1,420 70.5% 79.5% (D 16,919 16,919 15,001 2019 5 26 113 –60 385 5,713 1,840 1,372 68.7% 77.8% 13,910 15,750 15,750 2018 Actual ... ... ... Federal Government Financing and Debt—Continued ... ... ... ... Table S–10. ... ... ... ... 6 ... ... As a percent of GDP Debt held by the public net of financial assets Total, financial assets net of liabilities Direct loan and TARP equity purchase accounts Guaranteed loan accounts As a percent of GDP is a liability) is also a means of financing a deficit and therefore also has a negative sign. Debt held by Government accounts Government-sponsored enterprise preferred stock (other than zero-coupon bonds), and the unrealized discount on Government account series securities. Treasury operating cash balance Other assets net of liabilities Credit financing account balances: discount (if any). mium. Agency debt securities are almost all measured at face value. Treasury securities in the Government account series are otherwise measured at face value less unrealized Non-Federal securities held by NRRIT an offset, cash and monetary assets (other than the Treasury operating cash balance), other asset accounts, and profit on sale of gold. Debt held by the public not estimated for future years. A decrease in the Treasury operating cash balance (which is an asset) is a means of financing a deficit and therefore has a negative sign. An increase in checks outstanding (which At the end of 2018, the Federal Reserve Banks held $2,313.2 billion of Federal securities and the rest of the public held $13,436.4 billion. Debt held by the Federal Reserve Banks is Includes checks outstanding, accrued interest payable on Treasury debt, uninvested deposit fund balances, allocations of special drawing rights, and other liability accounts; and, as Treasury securities held by the public and zero-coupon bonds held by Government accounts are almost all measured at sales price plus amortized discount or less amortized pre Consists mainly of debt issued by the Federal Financing Bank (which is not subject to limit), the unamortized discount (less premium) on public issues of Treasury notes and bonds Legislation enacted February 9, 2018 (Public Law 115–123), temporarily suspended the debt limit through March 1, 2019. 3 4 1 5 * $500 million or less. Less financial assets net of liabilities: Debt held by the public 2 6 Held by: Debt Held by the Public Net of Financial Assets:
144 140 SUMMARY T ABLES
145 OMB CONTRIBUTORS TO THE 2020 BUDGET The following personnel contributed to the preparation of this publication. Hundreds, perhaps - thousands, of others throughout the Government also deserve credit for their valuable contribu tions. A Eric Cardoza Bradley Bishop Pennee Cumberlander Lindsay Abate Kevin Carpenter Samuel J. Black Laura Cunliffe Andrew Abrams Curtis M. Carr Robert B. Blair C. Tyler Curtis Chandana L. Achanta Kerrie Carr Mathew C. Blum William Curtis Charles R. Cutshall Brenda Aguilar William S. S. Carroll Fernandez Boards Matthew Cutts Shagufta Ahmed Scott D. Carson James Boden P. Joseph Ahn Sean C. Casey Sharon A. Boivin Steve Aitken Mary I. Cassell Amira C. Boland D Lina Al Sudani James Chase Cassie L. Boles Nadir Dalal Joseph Albanese Nida Chaudhary Melissa B. Bomberger D. Michael Daly Jason Alleman Michael Chelen David Bottom Rody Damis Victoria Allred Anita Chellaraj William J. Boyd Neil B. Danberg Lois E. Altoft Peter Choi Mollie Bradlee Elisabeth C. Daniel Vishal Amin Gezime Christian Sean W. T. Branchaw Charlie Dankert Jessica A. Andreasen Michael Clark Michael Branson Quadira R. Dantro Rachel Arguello Gregory A. Clayton Alex M. Brant Kristy L. Daphnis Anna R. Arroyo Angela Colamaria Joseph F. Breighner Alexander J. Daumit Emily Schultz Askew William P. Cole Julie A. Brewer Joanne Chow Lisa L. August Victoria W. Collin Andrea M. Brian Davenport Renee Austin Debra M. Collins Candice M. Bronack Kenneth L. Davis Kristin B. Aveille Kelly T. Colyar Katie Broomell Margaret B. Davis- Ann Conant Dustin S. Brown Christian Jose A. Conde Sheila Bruce B Chad J. Day Alyson M. Conley Michael T. Brunetto Jessie W. Bailey Brandon F. DeBruhl David Connolly Pearl Buenvenida Ally P. Bain Tasha M. Demps Jeannette Mandycz Tom D. Bullers Coalter Baker Paul J. Denaro Connor Scott H. Burgess Paul W. Baker Laura Dennehy Matthew Conway Ben Burnett Michelle Balch Catherine A. Derbes Aaron Cooke Jordan C. Burris Carol A. Bales Antonio Diaz-Agosto LaTiesha B. Cooper Meghan K. Burris Pratik S. Banjade John H. Dick Matthew T. Cornelius John C. Burton Avital Bar-Shalom Amie Didlo Drew W. Cramer Nicholas S. Burton Jody M. Barringer Kerry Wisdom Catherine E. Crato Mark Bussow Andrew Beehler Dittmeier William Creedon Sean Butler Jennifer Wagner Bell Angela M. Donatelli Tyler Overstreet Dylan W. Byrd Nathaniel Benjamin Paul S. Donohue Cromer Joseph J. Berger Vladik Dorjets Rose Crow C Scott Bernard Michelle Dorsey James Crowe Steve E. Cahill Elizabeth A. Bernhard Anjelica B. Dortch Juliana Crump Alexandra Campana William Bestani Emma Doyle Craig Crutchfield Anthony Campau Madison Biedermann Megan Dreher David M. Cruz- Amy Canfield Mark Bigley Lisa Cash Driskill Glaudemans Benjamin B. Cantrell Emily R. Bilbao Mark A. Dronfield Lily Cuk 111
146 DGET 112 T O THE 2020 Bu OMB C u ONTRIB TORS Whitney Duffey-Jones Hunter S. Kellett Thomas O. Gates Amanda M. Hill John Dugan Nancy B. Kenly Daniel Giamo Jonathan Hill Carolyn R. Dula- Suzette Kent Paul A. Gill Elaine P. Ho Wilson Meshach E. Keye Brian Gillis Elke Hodson-Marten Saha Khaterzai Janelle R. Gingold Jennifer E. Hoef Shubha Khot Nicoletta S. Giordani Jason Hoffman E Jordan T. Kiesel Jacob Glass Stuart Hoffman Matthew C. Eanes Paul E. Kilbride Joshua S. Glazer Troy Holland Jacqueline A. Easley Jung H. Kim Andrea L. Goel Michele Holt Calie Edmonds Rachael Y. Kim Jeffrey D. Goldstein Lynette Hornung Jeanette Edwards Barry King Anthony A. Gonzalez Jack Hoskins Tonya L. Ellison-Mays Kelly C. King Oscar Gonzalez Grace Hu Michelle Enger Kelly A. Kinneen Alex Goodenough Jamie W. Huang Diana F. Epstein David E. Kirkpatrick Margie Graves Rhea A. Hubbard Edward V. Etzkorn Benjamin W. Klay John W. Gray Kathy M. Hudgins Patrick Evans Robert T. Klein Aron Greenberg Jay Huie April Kluever Brandon H. Greene Shristi Humagai James O. Knable Justin Grimes Sally J. Hunnicutt F Andrea G. Korovesis Gina K. Grippando Alexander T. Hunt Farnoosh Faezi-Marian Katelyn V. Koschewa Hester C. Grippando Lorraine D. Hunt Robert Fairweather Faride Kraft Joe Grogan William Hunt Ladan Fakory Lori A. Krauss Andrea L. Grossman James C. Hurban Edna Falk Curtin Steven B. Kuennen Kerry Gutknecht Veta Hurst Hunter Fang Jennifer J. Kuk Nathan Hurwitz Kara L. Farley-Cahill Yaropolk T. Kulchyckyj H Christine E. Christine Kymn I Michael B. Hagan Farquharson Tae H. Im Tia Hall Emily R. Feagans L Mason C. Ingram Tamara S. Hamaty Christopher M. Felix Christopher D. LaBaw Elizabeth R. Irwin William F. Hamele Lesley A. Field Erik LaDue Amy Hamilton Leah R. Fine Jon W. Ladyga Daniel Hanlon Jonathan K. Finer J Leonard L. Lainhart Brian Hanson Sean Finnegan Manish Jain James A. Laity Jennifer L. Hanson Mary S. Fischietto Varun M. Jain Chad A. Lallemand David T. Hardin Brette Fishman Harrison M. Jarrett Lawrence L. Lambert Linda W. Hardin John J. Fitzpatrick Bryan E. Jefferson Michael Landry Dionne Hardy Daniel G. Fowlkes Carol Jenkins Kelley C. Lane Robert Harkinson Nicholas A. Fraser Carol Johnson Daniel LaPlaca Deidre A. Harrison Haley Friedman Michael D. Johnson Anthony Larkins Edward Hartwig Jake Fuller Danielle Y. Jones Derek B. Larson Paul Harvey Denise Bray Jones Connie LaSalle Kyle Hathaway G Lisa M. Jones Ashley P. Lau Laurel Havas Scott D. Gaines Othni A. Jones Eric P. Lauer Nichole M. Hayden James Galkowski Colby Ryan Jordan Jessie L. LaVine Mark Hazelgren Janice D. Gallant Hee Jun Suzette Lawson John David Henson Christopher D. Christopher Leach Kevin W. Herms Gamache Jessica Lee Rachel Hernández K Mar Gamboa Susan E. Leetmaa Jim Herz Paul A. Kagan Joseph R. Ganahl Annika N. Lescott David Hester Daniel S. Kaneshiro Kyle Gardiner Kerrie Leslie Alexander G. Jacob H. Kaplan Mathias A. Gardner Malissa C. Levesque Hettinger Regina L. Kearney Marisol Garibay John C. Levock- Gretchen T. Hickey Matthew J. Keeneth Marc Garufi Spindle Michael J. Hickey
147 B S. GOVERNMENT FOR FISCAL YEAR 2020 113 u DGET OF THE u . P Bryan León Donovan Robinson P. Thaddeus Messenger Sheila Lewis Marshall J. Rodgers William L. Metzger Benjamin J. Page Wendy L. Liberante Christina Rodriguez Daniel J. Michelson- Heather C. Pajak Richard Alan Colin Rom Horowitz Rosario Palmieri Lichtenberger Meredith B. Romley Julie L. Miller Mark R. Paoletta Kristina E. Lilac Jeffrey R. Ross Kimberly Miller Farrah Pappa Erika Liliedahl Sean Rough Susan M. Minson Peggy A. Parker John E. Lindner David J. Rowe Mia Mitchell John C. Pasquantino Adam Lipton Mario D. Roy Emily A. Mok Jagir Patel Kimberly Lopez Danielle Royal Kirsten J. Moncada Neal A. Patel Sara R. López Jacqueline Rudas Claire Monteiro Mary Beth E. Pavlik Adrienne Lucas Erika H. Ryan Joseph Montoni Brian Paxton Gideon F. Lukens Caroline Moore Terri Payne Kelly Morrison S Liuyi Pei William Morrison M Fouad P. Saad Falisa L. Peoples-Tittle Morgan Mosack Patrick D. Macatangga John Asa Saldivar Michael A. Perz Robin McLaughry Deborah Macaulay Alvand A. Salehi Whitney L. Peters Mullins Ryan MacMaster Dannia Salem Andrea M. Petro Mick Mulvaney Claire A. Mahoney Mark S. Sandy Alexandra Petrucci Jonathan Murphy Dominic J. Mancini Ruth Saunders Amy E. Petz Christian G. Music Noah S. Mann Joel Savary Stacey Que-Chi Pham Hayley W. Myers Sharon Mar Jeff Schlagenhauf Carolyn R. Phelps Kimberley L Myers Brendan A. Martin Grant Schneider Karen A. Pica Rochelle Martinez Daniel K. Schory Brian Pipa N James Massot Nancy E. Schwartz Joseph Pipan Jennifer Nading Nicholas T. Matich IV Mariarosaria Adrian Plater Jeptha E. Nafziger Kimie Matsuo Sciannameo Ruxandra Pond Larry J. Nagl Salim Mawani Jasmeet K. Seehra Julianne Poston Barry Napear Shelly McAllister Kimberly Segura Nancy Potok Robert Nassif Jessica Rae McBean Robert B. Seidner Larrimer S. Prestosa Kimberly P. Nelson Alexander J. Andrew Self Jamie M. Price Melissa K. Neuman McClelland Megan Shade Alanna Pugliese Joanie F. Newhart Malcolm McConnell Shahid N. Shah Robert B. Purdy Kimberly Armstrong Jeremy P. McCrary Shabnam Newman Connor G. McCrone Sharbatoghlie R Anthony (Tony) Jennifer McDannell Amy K. Sharp Lucas R. Radzinschi Nguyen Anthony W. McDonald Dianne Shaughnessy Latonda Glass Raft Teresa O. Nguyen Cheryl McDonald Paul Shawcross Moshiur Rahman Tim H. Nusraty Christine A. McDonald David Shorkrai Aaron D. Ray Frederick Nutt Katrina A. McDonald Gary F. Shortencarrier James M. Read Joseph B. Nye Renford McDonald Letticia Sierra Alex Reed Kevin E. McGinnis Sara R. Sills Rudolph G. Regner Kyle L. McIntyre Daniel Liam Singer O Paul B. Rehmus Natalie McIntyre Robert Sivinski Erin O’Brien Thomas M. Reilly Charlie E. McKiver Benjamin J. Skidmore Matthew J. O’Kane Bryant D. Renaud Moutray McLaren Richard A. Skokowski Brendan J. O’Meara Keri A. Rice Michael McManus Jonathan Slemrod Matthew Oreska Shannon A. Richter William McNavage Curtina O. Smith Frederick H. Orndorff Natalie Rico Melissa R. Medeiros Somer Smith Noah J. Osman Kyle S. Riggs Inna L. Melamed Stannis M. Smith Jared Ostermiller Emma K. Roach Barbara A. Menard Rachel B. Snyderman Beth Higa Roberts Flavio Menasce Silvana Solano Taylor C. Roberts Roderic A. Solomon
148 OMB CONTRIBuTORS 114 THE 2020 BuDGET TO W Amanda L. Thomas Debra (Debbie) L. Timothy F. Soltis Payton A. Thomas Williams Amanda R.K. Sousane Dana Wade Will Thomas Michael B. Williams Rebecca L. Spavins James A. Wade Raquel A. Spencer Rebecca Williams Philip Tizzani Ken D. Willis Valeria Spinner Thomas Tobasko Brett Waite Jamie S. Wilson Gia Tonic Nicole Waldeck Sarah Whittle Spooner Paul A. Winters Travis C. Stalcup Heather V. Walsh Gil M. Tran Minzy Won Alyssa Trinidad Kan Wang Scott R. Stambaugh Tim Wang Kim Marie V. Nora Stein Raymond J.M. Wong Tuminaro Jacob Wood Peter Warren Lamar R. Stewart Rachel P. Wood Austin Turner Gary Waxman Ryan Stoffers Sophia M. Wright Bess M. Weaver Gary R. Stofko Terry W. Stratton Jacqueline K. Webb Bert Wyman U Margaret Weichert Thomas J. Suarez Alec J. Sugarman Nicholas J. ufier Jeffrey A. Weinberg Y Kevin J. Sullivan Shraddha A. David Weisshaar Jessica L. Sun Jason Yaworske upadhyaya Philip R. Wenger Yasaman S. Sutton Melany N. Yeung Darrell J. upshaw Max W. West Sin Yeung Taylor J. urbanski Christina Swoope Steve Wetzel Euler V. Katherine M. Sydor David Y. Yi Arnette C. White uy Katey Yoast Ashley M. White Rita Young Catherine E. White T V Curtis C. White Robert A. Yu Matthew J. Vaeth Kim S. White Jamie R. Taber John Tambornino Sherron R. White Cynthia Vallina Z Naomi S. Taransky Sarita Vanka Chad S. Whiteman Jay Teitelbaum Brian Widuch Eliana M. Zavala Areletha L. Venson Mary Ellen Wiggins Alexandra Ventura Emma K. Tessier Jen Q. Zhu Rayna Wilkins Russ Vought Matthew A. Tetteh Erica H. Zielewski Rich Theroux
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