Senate Budget Committee FY18 Budget Resolution Sets Topline Spending Levels at $549B for Defense & $516B for Non-defense
The Senate Budget Committee will debate and vote on its FY18 budget resolution October 4-5, 2017. The resolution, released on September 29, 2017, sets topline spending levels at $549 billion for defense and $516 billion for non-defense discretionary programs.
These spending levels adhere to the spending caps required under the Budget Control Act (BCA) of 2011. These spending levels may be increased, however, if Congress can reach a bipartisan deal to lift the BCA spending caps.
The budget resolution also slashes non-defense spending by $632 billion between 2018 and 2027. The resolution does not propose similar cuts to defense spending.
In addition to setting FY18 spending levels, the resolution includes reconciliation instructions to allow Republicans to pass a tax reform package that increases the national deficit by $1.5 trillion over a decade.
The resolution does not propose large cuts to mandatory programs, like Medicaid and Social Security. The resolution contrasts with the House’s budget resolution, which will likely receive a floor vote sometime this week.
According to the U.S. Senate Committee on the Budget:
Provides a path to balance by restraining federal spending, reducing tax burdens, and boosting economic growth.
Reduces spending by $5.1 trillion.
Provides reconciliation instructions to spur economic growth.
Finance Committee—$1.5 trillion for comprehensive tax reform.
Energy and Natural Resources—$1 billion in deficit reduction.
Provides an on-budget surplus of $197 billion in 2027 because of fiscal constraint and economic growth.
Provides maximum level of regular defense funding allowed under the law—preventing sequestration cuts. The resolution includes a mechanism to adjust these levels if an agreement on revised funding levels is reached.
Reduces non-defense discretionary spending by $632 billion, consistent with previously agreed upon limits in the last conferenced budget resolution.
Honors Social Security’s off-budget status.
The House is also expected to move its long-awaited fiscal year (FY) 2018 budget resolutions his week. The House is looking to bring its version to the floor sometime before Thursday afternoon.