President Biden Releases FY 2024 Budget Request
This week, President Joe Biden unveiled his third budget request marking both a campaign pitch and an opening shot at House Republicans who have demanded significant spending cuts with their new majority. The budget request, which is subject to approval by Congress, outlines the administration's spending priorities and goals for the upcoming year. In addition to the partisan political landscape on Capitol Hill, the President and his budget face the typical September 30 deadlines for appropriations packages and a potentially dramatic debt ceiling showdown over the summer.
The President's budget includes a total if $6.9 trillion in spending, but is expected to result in $2.9 trillion in deficit reduction over ten years. Even still, the deficit in 2024 would increase from $1.6 trillion to $1.8 trillion, and the gross federal debt would swell to $51 trillion after a decade.
Further complicating matters, the President's budget meets a divided Congress in a year that GOP leaders have committed to pursuing at least $150 billion in spending cuts and no tax increases. President Biden's budget request adds $77 billion in defense and non-defense spending, and would increase taxes by $5.5 trillion over the next decade.
More budget documents—including analytical perspectives—are set to be released Monday, an administration official said. Several agencies have also announced they’ll release more budgetary information Monday, including the Department of Defense, NASA, and the Centers for Disease Control and Prevention.
While the overall request is likely doomed in the halls of Congress, the details within illustrate the specific priorities of the Administration and its congressional allies. Particularly for the tax provisions, the President's budget request can be seen as a core list of items that can be used in future negotiations over the debt ceiling and overall government appropriations.
For a deep-dive on a variety of energy and environment proposals within the President's budget request, please review an earlier alert from Constitution Partners.
Here are some key takeaways covering select federal agencies and departments:
Tax
The tax proposals within the President's budget request would raise $2.2 trillion over the next decade. Proposals include, but are not limited to:
Increase corporate tax rate to 28% (from 21%)
Raise additional Medicare tax for high-income households
Impose a 25% minimum tax on the wealthiest 0.01% of taxpayers
Increase the excise tax on repurchasing of corporate stock buybacks
Elimination of various fossil fuel tax incentives
Agriculture
The President requests just over $30 billion in funding for the Department of Agriculture, a 14.3% increase over last year's funding. A few highlights include:
$7.1 billion for nutrition programs, including $6.3 billion to fully fund WIC
$7 billion for climate-related funding
$6.5 billion in authority for rural electric loans to support clean energy projects
More than $4 billion for agricultural research and outreach to compete with China
Calls for 2023 Farm Bill focused on climate-smart agriculture, clean energy programs, a strengthened crop insurance program, and animal health
Commerce
The President requests $12.3 billion in funding for the Department of Commerce, a 10.7% increase over last year's funding. A few highlights include:
$4 billion in mandatory funds for the Economic Development Administration’s Regional Technology and Innovation Hub Program
$2.1 billion for next generation weather satellites, a $371 million boost
$1.6 billion for the Census Bureau, a $121 million increase
$375 million for NIST’s Industrial Technology Services, a $163 million boost
$231 million for NOAA climate research programs and $60 million to expand offshore wind permitting activities
Energy
The President requests just over $52 billion in funding for the Department of Agriculture, a 8.7% increase over last year's funding. A few highlights include:
$23.8 billion for National Nuclear Security Administration
$11.9 billion for climate and clean energy R&D, a 20% increase
$8.8 billion for the Office of Science, a 9% increase, for climate innovation
$8.3 billion to clean up communities affected by nuclear weapons production
$2 billion for clean energy workforce and infrastructure projects
Use Defense Production Act to rebuild domestic uranium production and enrichment capacity to reduce reliance on foreign supplies
Review the in-depth energy budget alert from Constitution Partners
Environmental Protection Agency
The President requests just over $12 billion in funding for the Environmental Protection Agency, a 19.2% increase over last year's funding. A few highlights include:
$5 billion for greenhouse gas emissions reduction, climate resiliency
$4 billion for drinking water infrastructure upgrades, a $1 billion increase
$1.8 billion for several environmental justice initiatives, including Justice40
$356 million for the Superfund program to clean up contaminated lands
$219 million for lead service line replacement, a $163 million boost
$170 million for PFAS prevention, remediation, and research
Add more than 2,400 employees to increase staffing capacity
Health & Human Services
The President requests over $144 billion in funding for the Department of Health & Human Services, a 11.5% increase over last year's funding. A few highlights include:
$22.5 billion for existing early care and education programs, a $2.1 billion boost
$13.1 billion for Head Start, a $1.1 billion increase
$7.3 billion for Office of Refugee Resettlement, plus emergency contingency fund
$2.5 billion for ARPA-H, a $1 billion increase
$1 billion for Cancer Moonshot initiatives across several agencies
79% increase to Title X Family Planning program, for total of $512 million
$10.5 billion in discretionary funds for public health capacity at CDC and states
Interior
The President requests just under $19 billion in funding for the Department of the Interior, a 9.3% increase over last year's funding. A few highlights include:
$5.7 billion for climate adaptation, mitigation, and resilience
$4.7 billion for tribal programs, including $717 million for public safety needs
$3.8 billion for the National Park Service, including $32 million for equity initiative
$314 million to reduce catastrophic wildfire risks
Increase environmental permitting capacity to expedite delivery of infrastructure
Boost federal firefighter pay to minimum of $15 per hour
Labor
The President requests just over $15 billion in funding for the Department of Labor, a 10.9% increase over last year's funding. A few highlights include:
$3.7 billion to modernize the Unemployment Insurance program to tackle fraud
$2.3 billion for worker protection agencies to protect workers' wages, combat child labor, and improve workplace health and safety, a $430 million increase
$335 million for registered apprenticeship opportunities in clean energy, logistics
Seeks increased penalties at DOL, EEOC, and NLRB for employers that violate labor organizing, child labor, and equal opportunity rules
Calls for Paid Sick Leave for all workers
Transportation
The President requests just under $28 billion in funding for the Department of Agriculture, a 6.7% increase over last year's funding. A few highlights include:
$76.1 billion for highway and transit formula programs, including $60.1 billion for highways
$1.5 billion for the Consolidated Rail Infrastructure and Safety Improvements grant program, as well as $850 million to fund projects that improve rail safety$16.5 billion in discretionary budget authority for the FAA, and more than $500 million increase for the National Airspace System for a total of $3.5 billion
Proposes policy priorities for FAA reauthorization, including consumer protection
