President Biden will unveil his full 2022 fiscal year budget proposal on May 27, Office of Management and Budget (OMB) spokesman Rob Friedlander said Thursday.
Unlike the $1.5 trillion “skinny” budget Biden released in early April focused solely on funding for next year covered in 12 annual appropriations bills, the full budget is expected to cover broader spending categories and a longer time frame.
The full budget proposal includes projections for major mandatory spending programs such as Social Security, Medicare and Medicaid, and incorporates policies the president wants to enact.
It typically covers a 10-year window, and often lays out fiscal targets such as balancing the budget or putting it on a sustainable path. That will be a significant challenge following the pandemic, which hit the economy hard and led to a multitrillion-dollar fiscal response, bringing the national debt to more than $28 trillion.
The proposals in the president’s budget guide Congress, which ultimately controls the country’s purse strings, but large portions of the plans are frequently rejected.
For Biden, it will be an opportunity to present a unified view on how his major proposals, including the $1.5 trillion annual spending plan for 2022, the $1.9 trillion COVID-19 relief bill that was signed into law in March, and the proposed $2.3 trillion infrastructure plan and the $1.8 trillion families plan, fit together in the country’s long-term planning.
The 2022 proposal alone would supercharge domestic spending by 16 percent, with a major focus on health and education, while boosting defense spending by a nominal 1.7 percent. That plan would have ramifications for future spending as well, setting a new baseline by which future Congresses would have to make cuts or additions.
But many of the long-term drivers of the country’s financial problems come from the mandatory side of the budget, where trust funds are running low.
The Social Security trust fund is set to run out in a decade, but the fund focused on disability has half that time left. The Highway Trust Fund will be depleted next year and Medicare’s Hospital Insurance Trust Fund will run out in 2024.
In terms of financing, Biden has proposed paying for his infrastructure and families plans with tax increases on corporations and high earners, though he has not said whether or how to pay for additional spending in the regular discretionary areas covered in the “skinny” budget.
Unlike the $1.5 trillion “skinny” budget Biden released in early April focused solely on funding for next year covered in 12 annual appropriations bills, the full budget is expected to cover broader spending categories and a longer time frame.
The full budget proposal includes projections for major mandatory spending programs such as Social Security, Medicare and Medicaid, and incorporates policies the president wants to enact.
It typically covers a 10-year window, and often lays out fiscal targets such as balancing the budget or putting it on a sustainable path. That will be a significant challenge following the pandemic, which hit the economy hard and led to a multitrillion-dollar fiscal response, bringing the national debt to more than $28 trillion.
The proposals in the president’s budget guide Congress, which ultimately controls the country’s purse strings, but large portions of the plans are frequently rejected.
For Biden, it will be an opportunity to present a unified view on how his major proposals, including the $1.5 trillion annual spending plan for 2022, the $1.9 trillion COVID-19 relief bill that was signed into law in March, and the proposed $2.3 trillion infrastructure plan and the $1.8 trillion families plan, fit together in the country’s long-term planning.
The 2022 proposal alone would supercharge domestic spending by 16 percent, with a major focus on health and education, while boosting defense spending by a nominal 1.7 percent. That plan would have ramifications for future spending as well, setting a new baseline by which future Congresses would have to make cuts or additions.
But many of the long-term drivers of the country’s financial problems come from the mandatory side of the budget, where trust funds are running low.
The Social Security trust fund is set to run out in a decade, but the fund focused on disability has half that time left. The Highway Trust Fund will be depleted next year and Medicare’s Hospital Insurance Trust Fund will run out in 2024.
In terms of financing, Biden has proposed paying for his infrastructure and families plans with tax increases on corporations and high earners, though he has not said whether or how to pay for additional spending in the regular discretionary areas covered in the “skinny” budget.
The COVID-19 bill was fully financed by borrowing.
Biden has been conducting a series of meetings with congressional leaders and centrist lawmakers from both sides of the aisle on his infrastructure plan.
The GOP is proposing cutting down the $2.3 trillion proposal to focus on more traditional infrastructure. Senate Minority Leader Mitch McConnell (R-Ky.) said Republicans could support an $800 billion bill, but opposed raising the corporate tax rate that was lowered in the 2017 GOP tax bill.
Biden has been conducting a series of meetings with congressional leaders and centrist lawmakers from both sides of the aisle on his infrastructure plan.
The GOP is proposing cutting down the $2.3 trillion proposal to focus on more traditional infrastructure. Senate Minority Leader Mitch McConnell (R-Ky.) said Republicans could support an $800 billion bill, but opposed raising the corporate tax rate that was lowered in the 2017 GOP tax bill.
Updated at 3:41 p.m.
Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed..
