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FY 2010 Defense and Foreign Affairs Spending Allocations July 1, 2009

Posted by Rebecca Williams in Analysis.
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money_money_moneyThe next step in the budget process is well under way, and defense and international affairs budgets will face the consequences of discretionary spending caps set forth by the FY 2010 Budget Resolution Conference Report and the appropriations committees’ 302(b) sub-allocations. These spending limits are important because they set procedural caps and functional recommendations that produce political ceilings that are difficult to surpass. Congress will have to deal with this next week when it returns.

The FY 2010 Budget Resolution Conference Report provided $1.08 trillion in total discretionary budget authority and $1.27 trillion in discretionary outlays. These totals exclude emergency and supplemental war funding. The significant difference between the discretionary budget authority and outlays reflect increased expenditures in infrastructure provided for in the economic recovery package and continued war costs.

The impact of the spending limits on the Defense budget (Function 050) is not as significant as it is for the International Affairs budget (Function 150). The Congressional Budget Resolution Conference Report exceeded the President’s request for Function 050 by $5.9 billion providing a top line of $562 billion in discretionary spending and $606 billion in outlays for FY 2010. In contrast, the conference report provided $51.0 billion in budget authority for Function 150, $2.8 billion less than the President’s request, and $47.5 billion in outlays. The gap between the President’s request and the Budget Resolution reflects political decisions, such as the change in IMF scoring and “forward funding” in the FY 2009 emergency supplemental appropriations bill, that influenced the overall spending limit.

As Congress prepares to mark-up and report out FY 2010 appropriation legislation, these discretionary caps, especially in Function 150, are unlikely to change.

FY 2010 Discretionary Spending Limits

($ in billions)

Budget Function

FY 2010 Request

Budget Resolution Conference Report

Defense Total (050)

$556.1

$562.0

International Affairs (150)

$53.8

$51.0

Photo: http://www.flickr.com/photos/dborman2/3258378233/
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