Agriculture, Rural Development, Food and Drug Administration, and Related Agencies AG 44 Ȗ Ȗ ADDITIONAL READING ing CatfishShouldNotBeAssigned toUSDA subtle title cized theprogramina2012 reportwiththenot-so- The U.S. GovernmentOfficecriti Accountability which therehasbeenwidebipartisan opposition. tions forthemoreintrusive inspectionprogram,to The evidencedoesnot supportthehealthjustifica to complywithboth FDA andUSDA regulations. that processseafood,includingcatfish,wouldhave would imposecostly duplicationbecausefacilities This program,whichhasnot yet beenimplemented, regulate catfishthatissoldforhumanconsumption. created aspecialexception requiringtheUSDA to domestic andimportedseafood,the2008farmbill While theFood regulates andDrugAdministration Repeal theUSDA’s CatfishInspection Program Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Assigned to USDA U.S. Government Accountability Office, No. 2916,May 30, 2014. Daren Bakst, “Addressing Waste, Abuse, andExtremism inUSDA Programs,” HeritageFoundation epublic esiden $2.6 t e BudgetR t an S ’ Seafood Safety: Responsibility for Inspect Responsibilityfor Safety: Seafood s Budget(FY20 P R tudy C t R OPO esolution esolution 1 , GAO–12–411, May 2012. ommitt S Blueprint for Balance: Blueprint for A L 19) ee Seafood Safety: Responsibility for Inspecting Catfish ShouldNot Be ADDRESSED ADDRESSED I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL T . NOT NOT 2 A UDE UDE T U - S D D - - The Heritage Foundation | Foundation Heritage The suffer, asthisprogramwouldreducecompetition. or meatpackers. Americanconsumerswouldalso than thecatfishindustry, suchasmilkproducers retaliation wouldlikely beagainst industries other program wouldbeanunjustified tradebarrier. The retaliate withandwintradedisputes, sincethe take years. Catfish-exportingcountrieswouldlikely the USDA program.Thisapproval processcould to establish anewregulatorysystem equivalentto that want toexportcatfishthe U.S. wouldneed have serioustradeimplications. Foreign countries The USDA catfishinspectionprogramwouldalso PRES Repeals program. Eliminates programandmovesinspectionbacktoFDA. IDE N T HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E Backgrounder RSC
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RSC E Backgrounder T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE T N IDE Significantly reduces program. Eliminates program. PRES necessary, can seek private solutions to conserva can seek private solutions necessary, tion challenges. to subsidize be forced should not taxpayers Federal on should be paying advice for which landowners interven In addition, this government their own. that out the private solutions tion could be crowding landowners. to private should be available The Heritage Foundation | Y D D S - L - - L U A I T UDE UDE T A NOT NOT R T A NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I P ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 3 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $754 esiden epublic Daren Bakst, “Addressing Waste, Abuse, and Extremism in USDA Programs,” Heritage Foundation Heritage Foundation Programs,” in USDA and Extremism Abuse, Waste, “Addressing Bakst, Daren 2014. 30, 2916, May No. R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ ADDITIONAL READING Ȗ are the best stewards of a given property and, if of a given stewards are the best private lands, complying with laws, enhancing laws, complying with private lands, the aesthet improving and recreational activities, land. Private landowners ic character of private vice runs this costly program that offers landowners landowners program that offers vice runs this costly manage on natural resource technical assistance includes help in maintaining ment. This assistance Eliminate the USDA’s Conservation Technical Assistance Program Assistance Technical Conservation the USDA’s Eliminate Resources Conservation Ser Natural The USDA’s AG
Ȗ ADDITIONAL READING should succeedontheirown merits, just asany areas doesnotthefactthattheycanand change means. Thefactthatthesebusinessesareinrural investing, andseekingassistance throughprivate businesses arefullycapableofrunningthemselves, al warming, includingsubsidizingbiofuels. Rural a significantfocusonrenewable energyandglob assistance programsforruralbusinesses. Italsohas offinancial The RBCSmaintainsawiderange Eliminate theUSDA’s Rural BusinessCooperative Service 46 Ȗ SAVINGS INMILLIONS Sena R House Budge Pr No. 2916,May 30, 2014. Daren Bakst, “Addressing Waste, Abuse, andExtremism inUSDA Programs,” HeritageFoundation epublic esiden $497 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 4 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL T NOT NOT A UDE UDE T U - S D D The Heritage Foundation | Foundation Heritage The it hascreatedforbusinessesinruralcommunities. ment shouldidentifyandremove theobstacles that taxpayer dollarstobusinesses, thefederalgovern investments orenergysources. Instead ofhanding picking winnersandloserswhenitcomestoprivate The government shouldnot beinthebusinessof to worthy investments. other businessmust. Privatecapitalwillfindits way PRES Eliminates agency. Eliminates agency. IDE N T HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T Backgrounder E RSC
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RSC Mandate Mandate Special Report E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE
Eliminates ARC and PLC. PRESIDENT payments for some commodities were likely from were likely for some commodities payments the outset. a safety These programs go providing far beyond is net of a safety the pretext Instead, farmers. for net producers from agricultural many used to prevent Pol businesses do. as other in the market competing freely farmers to compete icymakers to allow need of and reap the financial reward in the marketplace managed than their better being more efficient and are. competitors The Heritage Foundation | D - S U T UDE A NOT NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: , September 21, 2016. , September S ommitt 5 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $5.4 esiden epublic Daren Bakst, ed., “Farms and Free Enterprise: A Blueprint for Agricultural Policy,” The Heritage Foundation Heritage Foundation The Policy,” Agricultural for A Blueprint Enterprise: and Free “Farms ed., Bakst, Daren Series Leadership for Heritage Foundation Risk in Agriculture,” “Addressing and Brian Wright, Josh Sewell, Bakst, Daren 8, 2016. September 189, No. R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ below a fixed reference price established by statute. by price established reference a fixed below prices The PLC program has such high reference enacted, farm bill was at the time the 2014 that even tual revenues fall below 86 percent of the expected 86 percent of the expected fall below tual revenues provides The PLC program for their crops. revenues fall to farmers when commodity prices payments participate either in the ARCparticipate either or in the PLC program farmers from program. The ARC program protects when their ac payments providing losses, shallow The ARC two major new and PLC programs are that Congress added in the commodity programs farmers can basis, On a crop-by-crop farm bill. 2014 Repeal the USDA’s Agricultural Risk Coverage Risk Agricultural the USDA’s Repeal Programs Coverage and Price Loss AG
Ȗ Ȗ ADDITIONAL READING in FY2000to$75.8 billioninFY2016. million in2016. Costs have risenfrom$19.8 billion dramatically fromabout17.2 millionin2000to44.2 The numberoffoodstamp recipientshasrisen government’s 89means-tested welfareprograms. The foodstamp ofthe programisthesecond-largest Adult Food StampRecipients Include Work Requirement forAble-Bodied 48 Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr No. 4520, February 24, 2016. Robert Rector andRachelSheffield,“Setting Priorities for Welfare Reform,” Heritage Foundation Caseload by 80Percent,” HeritageFoundation Robert Rector, RachelSheffield,and Kevin Dayaratna, “Maine Food Stamp Work Requirement CutsNon-Parent epublic esiden $9.7 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 6 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED P P I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL A A T R R NOT A T T Backgrounder UDE UDE UDE T I I A A U L L L L S D D D Y Y The Heritage Foundation | Foundation Heritage The toward work. principle ofself-sufficiency bydirectingindividuals those whoneedthemmost, butalsopromote the help toensurethatfoodstamps aredirectedto receiving assistance. Work requirementsnot only prepare forwork,orlookworkinexchange for receive foodstamps shouldberequiredtowork, who aremost inneed.Able-bodied adultswho Food stamp assistance shouldbedirectedtothose PRES requirements thatextendtoable-bodied parents. Advocates WelfareReformandUpward MobilityActwork dependents fromworkrequirements. Eliminates waiversthatexemptable-bodiedadultswithout dependents fromworkrequirements. Limits useofwaiversthatexemptable-bodiedadultswithout No. 3091,February 8,2016. IDE N T
HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A Issue Brief T E
RSC AG 49 RSC Backgrounder Backgrounder E T A N E ION S T ANA L P No. 4045, September 12, 2013. September 4045, No. heritage.org/BlueprintForBalance X E HOUSE Issue Brief Issue T N IDE Ends categorical eligibility across all programs. Food stamp recipients would have to meet SNAP income and asset tests. Closes eligibility loopholes, limits categorical eligibility to recipients of SSI or TANF cash benefits, and modifies income calculations to target benefits to neediest households. PRES assistance, states can extend food stamp benefits to food stamp can extend states assistance, would incomes than otherwise those with higher be permissible. categorical broad-based eligibility allows Moreover, An individual entirely. tests asset to waive states a TANF income can receive low with a temporarily categoricallyservice and then become eligible for if he has a large even amount of savings. food stamps should end broad-based categorical Policymakers are focused on eligibility to ensure that food stamps helping those who are truly in need. The Heritage Foundation | D D S - U - - T UDE UDE A NOT NOT T NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 7 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $1.3 esiden epublic Rachel Sheffield, “How to Reform Food Stamps,” Heritage Foundation Foundation Heritage Stamps,” Food Reform to Rachel Sheffield, “How Katherine Bradley and Robert Rector, “Reforming the Food Stamp Program,” Heritage Foundation Heritage Foundation Program,” Stamp the Food “Reforming Rector, Robert and Bradley Katherine 2012. July 25, 2708, No. R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ ADDITIONAL READING services are available to households with incomes to households with incomes services are available cash TANF higher than those that are eligible for viduals or families can simply receive some type of can simply receive viduals or families cate “service” and automatically become TANF Because TANF gorically for food stamps. eligible Under “broad-based categorical eligibility,” states states Under “broad-based categorical eligibility,” asset and bypass loosen income limits can now Indi of food stamps. recipients for potential tests viduals who receive cash welfare assistance from assistance cash welfare viduals who receive for Needy Assistance Temporary programs such as automatically. to enroll in food stamps Families End Broad-Based Categorical Eligibility for Food Stamps for Food Eligibility End Broad-Based Categorical Categorical indi traditionally allows eligibility AG
Ȗ Ȗ ADDITIONAL READING as small$1tofoodstamp recipients. states have distributed LIHEAPchecksforamounts deduction andthusforgreaterfoodstamp benefits, In ordertomake householdseligibleforthehigher utilitydeduction. Program areeligibleforalarger from theLow-Income Heat andEnergyAssistance tain deductions).Households thatreceive benefits based onits“countable”income(incomeminuscer The amountoffoodstamps ahouseholdreceives is artificially boost ahousehold’s food stamp benefit. andeat,”Using aloopholeknown as“heat states can Eliminate the“Heat andEat”LoopholeinFood Stamps 50 Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr No. 4101, December 4, 2013. Daren Bakst andRachelSheffield,“Eight Things to Watch forinthe FarmBill,” Heritage Foundation Rachel Sheffield,“How to Reform Food Stamps,” Heritage Foundation epublic esiden $1.5 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 8 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL T NOT NOT A UDE UDE T U S D D - The Heritage Foundation | Foundation Heritage The ers shouldclosethisloopholeentirely. ued touseitby paying over $20peryear. Policymak higher foodstamp benefits, some states have contin utilitydeductionandsubsequently ble forthelarger than $20annuallyinLIHEAPpayments tobeeligi by requiringthatahouseholdmust receive more Although the2014 farmbilltightenedthisloophole PRES Eliminates LIHEAP. Eliminates LIHEAP. IDE N T Issue Brief HOUSE E X heritage.org/BlueprintForBalance No. 4045, September 12,2013. P L ANA T S ION E N A T E Issue Brief RSC
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RSC Mandate Mandate The program 11 Special Report E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE 12 Eliminates program. PRESIDENT This program may benefit a small number of sugar benefit a This program may but it does so at the expense and harvesters, growers An Inter consumers. and industries of sugar-using national Trade Administration that report found “[f]or job saved and harvesting each sugar growing nearly three confec prices, sugar through high U.S. jobs are lost.” tionery manufacturing on consumers: Recent studies is also a hidden tax consumers as much as $3.7 found that it costs have billion a year. The Heritage Foundation | D D D D - S U CTE CTE CTE T UDE E E E A T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ REJ REJ I ee 19) L A Blueprint for Balance: , September 21, 2016. , September S ommitt esolution esolution OPO 9 t R tudy C R 10 P s Budget (FY20 ’ an S t $0 e Budget R t (NO SAVINGS) esiden epublic Daren Bakst, ed., “Farms and Free Enterprise: A Blueprint for Agricultural Policy,” The Heritage Foundation Heritage Foundation The Policy,” Agricultural for A Blueprint Enterprise: and Free “Farms ed., Bakst, Daren Series Leadership for Heritage Foundation Risk in Agriculture,” “Addressing and Brian Wright, Josh Sewell, Bakst, Daren 8, 2016. September 189, No. R House Budge Pr Sena Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ to limit supply, the price of American sugar is con to limit supply, as high as) higher than (and at times twice sistently world prices. marketing allotments that limit how much sugar that limit how allotments marketing as import as well each year, processors can sell intervention a result of government As restrictions. Eliminate the USDA Sugar Program the USDA Eliminate and sugar program uses price supports The USDA AG
Ȗ Ȗ ADDITIONAL READING of allpoliciesearningpremiumsin2014. not requireyieldlosses, accountedfor77percent popular thanyield-basedpoliciesbecausetheydo or both. Revenue-based policies, whicharemore in expectedrevenue duetolow prices, low yields, revenue-based, whichprotects farmersfromdips of farmers, suchasweatherandcropdisease, than expectedduetoevents beyondthecontrol which protects farmersfromyieldsthatarelower two typesoffederalcrop-insurance:yield-based, farmers toreceive indemnities. Therearegenerally but thisprogramdoesnot requireyieldlossesfor net forfarmerswouldrequireasignificantcroploss, Any reasonableconcept ofataxpayer-funded safety Eliminate USDA Revenue-Based Crop Insurance Policies 52 Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr No. 189, September 8,2016. Daren Bakst, JoshSewell, andBrianWright, “Addressing Risk inAgriculture,” HeritageFoundation for Leadership Series Daren Bakst, ed.,“Farms andFree Enterprise: A Blueprint for Agricultural Policy,” The HeritageFoundation epublic esiden $1.9 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 13 ommitt S , September 21,2016. Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED ADDRESSED 14 AFEDERAL BUDGET FOR FISCAL YEAR2019 S Farmers T NOT NOT NOT NOT A T U S The Heritage Foundation | Foundation Heritage The was inthepast. insurance shouldbelimitedtoyieldasit should beeliminated.Taxpayer-subsidized crop crop insuranceisunnecessarily and generous success attheexpenseoftaxpayers. Revenue-based sulated frommarket forcesorguaranteedfinancial producers, like other businesses, shouldnot bein business ofinsuringpriceorrevenue; agricultural The federalgovernment shouldnot beinthe are lower thanexpected. receive indemnitypayments ifcommodityprices can even have greateryieldsthanexpectedandstill PRESIDENT HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E Special Report Mandate R S C - AG - 53 -
RSC E Backgrounder T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE Eliminates program. PRESIDENT It is not government’s role to advance the marketing to advance the marketing role government’s It is not Tax or businesses. of certain industries interests be forced to subsidize the market should not payers should do on their own. ing that private businesses The Heritage Foundation | - D - S U T UDE A NOT NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 15 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $200 esiden epublic Senator Tom Coburn, “Treasure Map: The Market Access Program’s Bounty of Waste, Loot and Spoils Plundered and Spoils Plundered Loot of Waste, Bounty Program’s Access Market The Map: “Treasure Coburn, Tom Senator June 2012. Taxpayers,” from Daren Bakst, “Addressing Waste, Abuse, and Extremism in USDA Programs,” Heritage Foundation Heritage Foundation Programs,” in USDA and Extremism Abuse, Waste, “Addressing Bakst, Daren 2014. 30, 2916, May No. R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ ADDITIONAL READING tastings, organic hair products for cats and dogs, and hair products for cats and dogs, organic tastings, in India. show a reality television other private entities to help them market and pro private entities to help them market other taxpay Under MAP, their products overseas. mote wine recently helped to fund international ers have Eliminate the USDA’s Market Access Program Market the USDA’s Eliminate and businesses, associations, MAP subsidizes trade AG 54 and someschoolshave droppedoutoftheschoollunchprogramatleast partlybecauseofthestandards. standards, participationintheschoollunchprogramhasdeclined,foodwaste remainsasignificantproblem, many negative outcomes. ASeptember 2015 GAOreportshows thatsincetheimplementationofthese Healthy, Hunger-Free of2010 have KidsAct beenafailure.Theyareburdenonschoolsandhave ledto Prohibit fundingfornationalschoolmealstandards. farmers may sellandshouldgetthegovernment outofthemarket business. andcartelmanagement Congress shouldstop fundingthesevolume controlsthatlimithow muchoftheirown fruitsandvegetables the amountsthatagriculturalproducersmay sell.Marketing ordersarebadenough,butataminimum, marketing orders to enforceanumberofcartelsthroughindustry agreementsknown asmarketing orders. Fruit andvegetable natureofthegovernment’soutrageous actions, itisfarfromunique.Inparticular, theUSDA usesitspower property requiringjust compensation. Althoughthe“raisincase”received muchattention becauseofthe to thegovernment. TheCourtheldthatforcinggrowers toturnover theirraisinswas atakingofprivate regarding thefederalgovernment’s authoritytofineraisingrowers whodid not hand over partoftheircrop In June 2015, theSupremeCourtofUnitedStatesdecided Withhold fundingforfederalfruit-supplyandvegetable-supply restrictions inmarketing orders. Policy Riders directed toward implementingthisprovision. onlytostudentsensure thatfreemealsaregoing fromlow-income families. Nofurtherfundingshouldbe providing welfaretomiddle-classandwealthy students. Endingthecommunityeligibilityprovision would eligibility provision isessentiallyabackdoor approachtouniversal schoolmeals. Schoolsshouldnot be means-tested welfareprogramlike foodstamps, thenallstudents canreceive freemeals. Thecommunity schools, orschooldistrict areidentifiedaseligibleforfreemealsbecausetheyreceive benefitsfromanother students regardlessoffamilyincome.Underthisprovision, if40percentofstudents inaschool, groupof thatwas implementedbypolicy theHealthy, Hunger-Free of2010. KidsAct Itexpandsfreeschoolmealsto Prohibit fundingforthecommunity eligibility provision. role ofparentsinhelpingtheirchildrenmake dietary decisions. new standards shouldgive states andlocaleducationalauthoritiesmuchgreaterflexibilityrespectthe standards. Some schoolshave even hadtodraw fromtheireducationfundstocover thecosts imposedby these 20 Nofundingshouldbedirectedtoward implementationorenforcementofthesestandards. Any 17 allow thefederalgovernment toauthorizesupplyrestrictions (volume controls),limiting Blueprint for Balance: Blueprint for AFEDERAL BUDGET FOR FISCAL YEAR2019 The Heritage Foundation | Foundation Heritage The TheUSDA’s school-mealstandards forthe Horne v. DepartmentofAgriculture Thecommunityeligibilityprovision isa heritage.org/BlueprintForBalance , 16 acase 18 19
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, 55 CBO’s CBO’s CBO’s April CBO’s , GAO–12–411, , GAO–12–411, CBO’s April 2018 April 2018 CBO’s , December 2017, https:// 2017, , December , Committee on the Budget, U.S. U.S. on the Budget, , Committee No. 3091, February 8, 2016, http:// 8, 2016, 3091, February No. heritage.org/BlueprintForBalance 2019 President’s Budget: Food Safety and Safety Food Budget: President’s 2019 Backgrounder Backgrounder Report for Members and Committees of Congress of Members and Committees for Report The Heritage Foundation | Sequester Replacement Reconciliation Act of 2012 of Act Reconciliation Replacement Sequester , p. 24, https://www.usda.gov/sites/default/files/documents/usda-fy19-budget- 24, , p. A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Seafood Safety: Responsibility for Inspecting Catfish Should Not Be Assigned to USDA Be Assigned Should Not Catfish Inspecting for Responsibility Safety: Seafood . Options to Reduce the Budgetary Cost of the Federal Crop Insurance Program Insurance Crop the Federal of Cost the Budgetary Reduce Options to , April 9, 2018, https://www.cbo.gov/sites/default/files/recurringdata/51317-2018-04-usda.pdf (accessed (accessed https://www.cbo.gov/sites/default/files/recurringdata/51317-2018-04-usda.pdf 2018, , April 9, No. 13-WP 538, May 2013, https://www.card.iastate.edu/products/publications/pdf/13wp538.pdf (accessed (accessed https://www.card.iastate.edu/products/publications/pdf/13wp538.pdf 2013, May 538, 13-WP No. . All $200 million in savings represents mandatory spending. mandatory represents . All $200 million in savings FY 2019 Budget Summary Budget FY 2019 Blueprint for Balance: , https://www.obpa.usda.gov/22fsis2019notes.pdf (accessed May 9, 2018). 9, May (accessed , https://www.obpa.usda.gov/22fsis2019notes.pdf Working Paper Working harvest price. Although this proposal would not entirely eliminate revenue-based crop insurance policies, it would limit their costs. The CBO CBO The limit their costs. policies, it would insurance crop revenue-based eliminate not entirely would Although this proposal price. harvest spending. mandatory represents billion in savings hr31020.pdf (accessed March 20, 2018). All $1.305 billion in savings represents mandatory spending. mandatory represents billion in savings All $1.305 2018). 20, March (accessed hr31020.pdf billion in savings represents mandatory spending. mandatory represents billion in savings Development Development Prices,” undated, p. 2, https://www.trade.gov/mas/ian/build/groups/public/@tg_ian/documents/webcontent/tg_ian_002705.pdf (accessed (accessed https://www.trade.gov/mas/ian/build/groups/public/@tg_ian/documents/webcontent/tg_ian_002705.pdf 2, p. undated, Prices,” House of Representatives, 112th Cong., 2nd Sess., May 9, 2012, p. 27, https://www.gpo.gov/fdsys/pkg/CRPT-112hrpt470/pdf/CRPT-112hrpt470. 27, p. 2012, 9, May 2nd Sess., 112th Cong., House of Representatives, May 9, 2018). Estimated savings of $5.354 billion in FY 2019 include $2.727 billion for the PLC (p. 6); $2.604 billion for the ARC-CO (county) (county) ARC-CO the 6); $2.604 billion for (p. the PLC for billion include $2.727 billion in FY 2019 of $5.354 savings Estimated 2018). 9, May May 2012, http://www.gao.gov/products/GAO-12-411 (accessed April 17, 2019). April 17, (accessed http://www.gao.gov/products/GAO-12-411 2012, May of Agriculture, Department the first full year of the proposal’s implementation. See Congressional Budget Office, “Cost Estimate for H.R. 3102, the Nutrition Reform 3102, the Nutrition for H.R. Estimate “Cost Office, Budget Congressional See implementation. year of the proposal’s full the first tracker/Catfish_Inspection/action1 (accessed May 9, 2018), and U.S. Department of Agriculture, Agriculture, of U.S. Department and 9, 2018), May (accessed tracker/Catfish_Inspection/action1 for a more limited proposal to restrict the way producers’ costs are estimated for revenue-based policies by requiring that costs be based costs that requiring policies by revenue-based for estimated are costs producers’ the way restrict to proposal limited a more for first full year of implementation. See Report No. 112-470, 112-470, Report No. See year of implementation. full first pdf (accessed May 9, 2018). All $1.470 billion in savings represents mandatory spending. mandatory represents billion in savings All $1.470 2018). 9, May pdf (accessed million in discretionary spending and $394 million in mandatory spending. million in mandatory spending and $394 million in discretionary reported by the GAO) pursuant to a transfer of the program’s administration. Under a final rule (9 CFR §§ 530–561, issued December 2, 2015, 2015, 2, December issued 530–561, §§ Under a final rule (9 CFR administration. of the program’s transfer a to pursuant the GAO) by reported www.cbo.gov/system/files/115th-congress-2017-2018/reports/53375-federalcropinsuranceprogram.pdf (accessed March 20, 2018). All $1.92 $1.92 All 2018). 20, March (accessed www.cbo.gov/system/files/115th-congress-2017-2018/reports/53375-federalcropinsuranceprogram.pdf and Work Opportunity Act of 2013,” September 16, 2013, https://www.cbo.gov/sites/default/files/113th-congress-2013-2014/costestimate/ 16, 2013, September of 2013,” Act Opportunity and Work Stamp Work Requirement Cuts Non-Parent Caseload by 80 Percent,” Heritage Foundation Heritage Foundation 80 Percent,” Caseload by Cuts Non-Parent Requirement Work Stamp All $9.7 www.heritage.org/research/reports/2016/02/maine-food-stamp-work-requirement-cuts-non-parent-caseload-by-80-percent. Subsequently, the FSIS revised its estimated annual cost of the program downwards from $14 million to $2.6 million annually. See U.S. U.S. See $2.6 million annually. to million $14 from downwards of the program annual cost its estimated the FSIS revised Subsequently, C. Beghin and Amani Elobeid, “The Impact of the U.S. Sugar Program Redux,” Iowa State University, Center for Agricultural and Rural and Rural Agricultural for Center University, State Iowa Redux,” Sugar Program of the U.S. Impact C. Beghin and Amani Elobeid, “The Government Accountability Office, “Agriculture: Catfish Inspection,” last updated October 18, 2017, https://www.gao.gov/duplication/action_ 2017, October 18, last updated Catfish Inspection,” “Agriculture: Office, Accountability Government Baseline for Farm Programs Baseline Farm for summary.pdf (accessed May 9, 2018). Heritage experts assume that the FY 2018 spending level remains constant in FY 2019. constant remains level spending the FY 2018 that assume Heritage experts 2018). 9, May (accessed summary.pdf on the projected price of crops at the time the policy is issued instead of providing for the greater of the projected price and the actual and the actual price of the projected the greater for of providing instead is issued the time the policy at of crops price on the projected billion per of $1.92 an average period, for the 2018–2027 billion over $19.2 save policies would this change in revenue-based that estimates estimated FY 2014 savings for “Changes to SNAP Eligibility Requirements: Standard Utility Allowance” because FY 2014 represents the represents because FY 2014 Allowance” Utility Standard Requirements: Eligibility SNAP to “Changes for savings FY 2014 estimated enacted this reform. Specifically, we use the CBO’s FY 2015 estimate for “Section 105. Updating program eligibility” because 2015 represents represents because 2015 eligibility” program Updating 105. for “Section estimate FY 2015 we use the CBO’s Specifically, this reform. enacted effective March 1, 2016, and with a full compliance date of September 1, 2017), catfish inspection was transferred from the FDA to the FSIS. to the FDA from the transferred was inspection catfish 1, 2017), of September date compliance with a full and 1, 2016, March effective Inspection Service Inspection year. Congressional Budget Office, Office, Budget Congressional year. 2019, it projects that the sugar program will have a total cost of $76 million over the 2019–2028 period. Congressional Budget Office, Office, Budget period. Congressional the 2019–2028 million over of $76 cost a total will have the sugar program that it projects 2019, (accessed http://fairsugarpolicy.org/wordpress/wp-content/uploads/2018/03/AgralyticaEconomicEffectsPaperJune2013.pdf 2013, (p. 6); and $23 million for the ARC-IC (individual coverage) (p. 9). All $5.868 billion in savings represents mandatory spending. mandatory represents billion in savings 9). All $5.868 (p. (individual coverage) the ARC-IC 6); and $23 million for (p. U.S. Government Accountability Office, Office, Accountability Government U.S. Savings of $0 million in FY 2019 are based on the CBO’s estimated FY 2019 cost of the program. Although the CBO estimates zero cost in FY cost zero estimates Although the CBO of the program. cost FY 2019 estimated based on the CBO’s are of $0 million in FY 2019 Savings Savings of $2.6 million for FY 2019 are based on estimates from the U.S. Department of Agriculture’s Food Safety and Inspection Service (as (as Service and Inspection Safety Food of Agriculture’s Department U.S. the from based on estimates are FY 2019 for of $2.6 million Savings Savings of $200 million for FY 2019 are based on estimates for federal farm program costs in Congressional Budget Office, Office, Budget in Congressional costs program farm federal for based on estimates are FY 2019 of $200 million for Savings Dennis A. Shields, “Federal Crop Insurance: Background,” Congressional Research Service Service Research Congressional Background,” Insurance: Crop Dennis A. Shields, “Federal Agralytica, “Economic Effects of the Sugar Program Since the 2008 Farm Bill & Policy Implications for the 2013 Farm Bill.” See also John See also Farm Bill.” for the 2013 Implications Policy Farm Bill & the 2008 Since of the Sugar Program Effects “Economic Agralytica, Agralytica, “Economic Effects of the Sugar Program Since the 2008 Farm Bill & Policy Implications for the 2013 Farm Bill,” June 3, Farm Bill,” for the 2013 Implications Policy Farm Bill & the 2008 Since Sugar Program of the Effects “Economic Agralytica, Savings of at least $1.92 billion for FY 2019 are based on a CBO analysis of federal crop insurance costs that provides estimated savings savings estimated provides that costs insurance crop of federal analysis based on a CBO are FY 2019 billion for $1.92 least of at Savings U.S. Department of Commerce, International Trade Administration, “Employment Changes in U.S. Food Manufacturing: The Impact of Sugar Impact The Manufacturing: Food Changes in U.S. “Employment Administration, Trade International of Commerce, Department U.S. Savings of $1.305 billion for FY 2019 are based on the CBO’s analysis of the impact of previously proposed legislation that would have have would that legislation proposed of previously of the impact analysis the CBO’s based on are FY 2019 billion for of $1.305 Savings Savings of $497 million for FY 2019 are based on the CBO’s most recent April 2018 baseline spending projections. Savings include $103 include $103 Savings projections. baseline spending April 2018 recent most based on the CBO’s are FY 2019 million for of $497 Savings Savings of $9.7 billion for FY 2019 are based on analysis contained in Robert Rector, Rachel Sheffield, and Kevin Dayaratna, “Maine Food “Maine Dayaratna, Kevin Rachel Sheffield, and Rector, in Robert contained based on analysis are FY 2019 for billion of $9.7 Savings Savings of $1.470 billion for FY 2019 are based on estimated savings from a proposal that would enact this change. Specifically, we use the we use the Specifically, this change. enact would that a proposal from savings based on estimated are FY 2019 billion for of $1.470 Savings Savings of $5.354 billion for FY 2019 are based on projections for the ARC and PLC as reported in Congressional Budget Office, Office, Budget in Congressional as reported and PLC the ARC for based on projections are FY 2019 billion for of $5.354 Savings Savings of $754 million for FY 2019 are based on the most recent estimated spending level of $754 million for FY 2018 as found in U.S. in U.S. as found FY 2018 million for of $754 spending level estimated recent based on the most are FY 2019 million for of $754 Savings 2018 Baseline for Farm Programs Baseline Farm 2018 for August 13, 2015, https://fas.org/sgp/crs/misc/R40532.pdf (accessed April 17, 2018). April 17, (accessed https://fas.org/sgp/crs/misc/R40532.pdf 13, 2015, August April 17, 2018). April 17, 2018). April 17, August 4, 2016). 4, August April 2018 Baseline for Farm Programs Baseline Farm April 2018 for
8. 5. 6. 9. ENDNOTES 14. 15. 13. 12. 11. 10. 1. 2. 3. 7. 4. AG 56 20. .16 .17 .18 .19
“Marketing Orders for Fruits, Vegetables, &Specialty Crops,” http://www.ams.usda.gov/rules-regulations/moa/fv (accessed April17, 2018). There alsoare milkmarketing orders, butthey are different from fruitand vegetable marketing orders. See U.S. Department of Agriculture, Agricultural Marketing Service, “Federal MilkMarketing Orders,” U.S. Department ofAgriculture, http://www.ams.usda.gov/rules-regulations/ Changes inNutritionStandards Horne v. Department of Agriculture U.S. Government Accountability Office, Daren Bakst, “The Federal Government ShouldStop ofCertain LimitingtheSale Fruits andVegetables,” HeritageFoundation These marketing orders cover fruits,vegetables, andspecialty crops. SeeU.S. Department ofAgriculture, Agricultural Marketing Service, Erik Wasson, “Michelle’s MealsTurn OfftheKids,” of-certain-fruits-and-vegetables. moa/dairy (accessed April17, 2018). the-kids (accessed April17, 2018). No. 4466,September 29, 2015, http://www.heritage.org/research/reports/2015/09/the-federal-government-should-stop-limiting-the-sale- Blueprint for Balance: Blueprint for , GAO–15–656, September 2015, http://gao.gov/products/GAO-15-656 (accessed April17, 2019). , 135 S.Ct. 2419 (2015), https://www.leagle.com/decision/insco20150622a72 (accessed April17, 2018). School Nutrition:USDA HadEfforts Underway to Help Address OngoingChallengesImplementing The Hill AFEDERAL BUDGET FOR FISCAL YEAR2019 , May 21,2014, http://thehill.com/policy/finance/206734-michelles-meals-turn-off- The Heritage Foundation | Foundation Heritage The heritage.org/BlueprintForBalance Issue Brief Commerce, Justice, Science, and Related Agencies CJS 58 Ȗ Ȗ ADDITIONAL READING cal control,andconstitutional authorityofstate and ities thatfallsquarelywithintheexpertise,histori the federalgovernment thepowers andresponsibil partments inthismanner, iteffectively reassignsto the routine,day-to-day operationsoflocalpolicede numerous andindefinite.” WhenCongressfunds which aretoremainintheStategovernments are the federalgovernment arefewanddefined.Those powers delegatedby theproposedConstitution to In and failedtoreducecrime. ca’s streets by 2000. Itfailedtoadd100,000 officers state andlocallaw enforcementofficersonAmeri Created in1994,COPSpromisedtoput100,000 new ofCommunity OrientedPolicing Services Office Eliminate theDepartmentofJustice’s Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Federalist Analysis Report David B. Muhlhausen,“Impact Evaluation ofCOPS Grants inLarge Cities,” HeritageFoundation Committee ontheJudiciary, U.S. Senate, May 12,2009. David B. Muhlhausen,“Byrne JAG andCOPS Grant Funding Will NotStimulate theEconomy,” testimony before the epublic esiden $276 t e BudgetR t an S ’ s Budget(FY20 P No. 45, James Madisonwrote: “The R tudy C t R OPO esolution No. 06-03, May 26, 2006. esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL T NOT A UDE UDE UDE T U S - D D D - - - The Heritage Foundation | Foundation Heritage The poor performanceandshouldbeeliminated.COPS The COPSprogramhasademonstrated recordof on flawed andunproven socialscience. requirements suchas“inherentbias”trainingbased andinstituteto “reform”law enforcementagencies investigative assessments” thatincludedattempts gram was alsodiverted to“expensive wide-ranging theCOPS pro during theObamaAdministration, ments. toAttorney According GeneralJeff Sessions, wholly, ifnot exclusively, tostate andlocalgovern ordinary crimeatthelocallevel belongsalmost local governments. Theresponsibilitytocombat the responsibilityofstate andlocalgovernments. grants alsounnecessarily fundfunctionsthatare PRES Eliminates funding. Eliminates funding. $96 millionreallocation.
IDE N T HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N Center for Data A T E 2 RSC - - CJS - - - 59 RSC E T A N E ION S T
ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Eliminates $210 million from OJP-administered State Criminal Alien Assistance Program. Eliminates funding. Eliminates funding. PRES if not exclusively, to state and local governments. to state exclusively, if not that delinquents commit are almost entirely and entirely are almost that delinquents commit nature and are therefore regulat inherently local in and enforcement, law state law, criminal state ed by occur juveniles fact that thefts by The courts. state these thefts require mean that does not in all states the federal government. action by government, not the federal State and local officials, and local crim are responsible for funding the state routine, subsidizes the The OJP system. inal justice and local criminal functions of state day-to-day to combat ordi The responsibility programs. justice wholly, belongs almost nary crime at the local level The Heritage Foundation | - Y - D D D - S L - L - U A I T UDE UDE UDE T A NOT R T A NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I P ADDRESSED No. 3361, September 12, 2011. September 3361, No. WebMemo ee No. 1486, October 5, 2001. 5, 1486, October No. 19) L A Blueprint for Balance: S ommitt 3 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R t $2.0 esiden epublic David B. Muhlhausen, “Get Out of Jail Free: Taxpayer-Funded Grants Place Criminals on the Street Without Posting Posting Without the Street Criminals on Place Grants Taxpayer-Funded Out of Jail Free: Muhlhausen, “Get B. David Foundation Heritage Bail,” Heritage Efforts,” its Anti-Terrorism for Can Find $2.6 Billion Department the Justice Muhlhausen, “Where B. David Foundation R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ ADDITIONAL READING eral government. For example, juvenile delinquency example, juvenile For eral government. but the crimes is a problem common to all states, ment should limit itself to handling tasks that state tasks that state ment should limit itself to handling them perform by cannot and local governments commits to the fed and that the Constitution selves grams, and juvenile justice programs. justice and juvenile grams, the federal govern In addressing criminal activity, grants are given to state and local governments for and local governments to state grants are given including local purposes, criminal justice many court pro corrections, state salaries, police officer The majority of the programs under the OJP um programs under the OJP The majority of the or functions within the brella deal with problems OJP and local governments. jurisdiction of state Eliminate Grants Within the Department of Justice’s Justice’s of the Department Within Grants Eliminate Office Programs of Justice CJS 60 Ȗ Ȗ ADDITIONAL READING available resources. government actuallyreducestheoverall level of resources backtothestates throughthefederal over, theadministrative cost offunnelingstate are resources andadistraction fromconcernsthat governments couldprovide isamisuseoffederal of domestic violenceprogramsthatstate andlocal tofundtheroutineoperationsing federalagencies are properlyfundedandimplementedlocally. Us The servicesfundedby VAWA programsandgrants Eliminate Violence Against Women Programs Act andGrants Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Flawed,” HeritageFoundation David B. MuhlhausenandChristina Villegas, “Violence Against Women Act: Reauthorization Fundamentally Signal, March 1,2013. Paul J. LarkinJr., “SendintheLawyers: The HousePasses theSenate’s Violence Against Women Act,” The Daily theprovince ofthefederalgovernment. More epublic esiden $492 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 4 ommitt S Blueprint for Balance: Blueprint for A L 19) ee Backgrounder ADDRESSED ADDRESSED ADDRESSED I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL T No. 2673, March 29, 2012. NOT NOT NOT A UDE T U S D - - The Heritage Foundation | Foundation Heritage The of programsfundednationallyby theVAWA. the evaluationswerenot representative ofthetypes uations willproducedefinitive results.” limitations, raisingconcernsastowhether theeval programs “demonstrated avariety ofmethodological Office concludedthatpreviousevaluationsof VAWA (now GovernmentAccounting Accountability) tal evaluationsoftheireffectiveness. TheGeneral experimen representative, scientificallyrigorous under theVAWA have notnationally undergone rence ofdomestic violence.However, grantprograms to mitigate,reduce,orprevent theeffectsandoccur VAWA programs, created in1994,exist principally PRESIDENT Eliminates funding. HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E 5 In addition, Inaddition, R S C - - - CJS - 61 - RSC E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Reduces funding by $367 million. Eliminates funding. Eliminates funding. PRES Although LSC high-quality grants do help to provide Americans, to some low-income civil legal assistance Budget Office has repeatedly rec the Congressional of the LSCommended defunding to decreaseas a way programs receiving that many the deficit, observing LSC and from state resources grants already receive State and entities. and private local governments donations from supplemented by local governments, equipped to address are better outside sources, other who rely onthe needs of those in their communities Giving local entities sole responsi these free services. funds tobility for indigent legal defense would allow efficient manner and remove be targeted in the most this burden from the federal deficit. , August 6, 2009. , August The Heritage Foundation | - D D D S - U T UDE UDE UDE A NOT T NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I ADDRESSED Budget Options: Volume 2 Options: Volume Budget ee 19) L A Blueprint for Balance: S ommitt 6 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $410 esiden epublic Congressional Budget Office, Office, Budget Congressional Want Doesn’t Corporation Services the Legal “What Center, and Policy Legal Boehm, Chairman, National Ken and Related Science Justice, on Commerce, the Subcommittee to submitted testimony Know,” to Congress 22, 2012. March of Representatives, House U.S. on Appropriations, Committee Agencies, R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ involving abortion, partisan redistricting, and and redistricting, abortion, partisan involving welfare reform. may be used and prohibits the use of funds for such use of funds for such be used and prohibits the may demon advocacy, activity, purposes as political and cases class-action lawsuits, strikes, strations, and its territories in award increments of one to of one to increments in award and its territories legislation The annual appropriations three years. of activities for which the funds specifies the types 1974 to provide civil legal assistance to indigent assistance civil legal cli to provide 1974 funds federal grant distributing It does this by ents. the United States to service areas throughout Eliminate the Legal Services the Legal Eliminate Corporation The LSC Act the Legal Services by created of was CJS
Ȗ Ȗ ADDITIONAL READING hiring topubliceducation.At atimewhenthereis sive socialideologyinareasrangingfrompublic filed abusive lawsuitsintendedtoenforceprogres division hasunderminedelectionintegrityand being tornby “polarizationandmistrust.” chain” and having a“dysfunctionalmanagement tor GeneraldescribedtheCivilRightsDivisionas A 2013 reportby theJustice DepartmentInspec FundingReduce fortheDepartmentofJustice’s Civil RightsDivision 62 Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Broadside, 2014). John Fund andHansvon Spakovsky, 2011).Publishing, J. Christian Adams, epublic esiden $49 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 7 ommitt Injustice: Agenda Exposing theRacial of theObamaJustice Department S Blueprint for Balance: Blueprint for A L 19) ee Obama’s Enforcer: EricHolder’sJustice Department ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S 8 The T NOT NOT NOT NOT A T U - S - The Heritage Foundation | Foundation Heritage The ty toprotect thepublicfromdiscrimination. without sacrificing thedivision’s andabili efficiency laws requires, anditsbudget canbecutsignificantly enforcement ofourcivilrightsandvoting rights battles. Ithasfarmoreemployees thanvigorous in the1960swhenitwas fightingcrucialcivilrights thatitwas the divisionisatitslargest—farlarger less discriminationthanever beforeinoursociety, PRESIDENT HOUSE E X heritage.org/BlueprintForBalance P L ANA (New York: HarperCollins/ T (Washington: Regnery S ION E N A T E R S C - CJS 63 - - C S R
E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE PRESIDENT environmental groups that take environmental environmental that take groups environmental Congress and put it in out of the hands of lawmaking and feder private interests, the hands of agencies, would its budget Significantly reducing al judges. encourage concentrate on its the ENR Division to laws defending the environmental core functions of in a reasonable and common of the United States sense manner. The Heritage Foundation | - S - - U T A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED It has also 10 No. 110, February 25, 2014. 25, February 110, No. ee 19) , March 11, 2015. , March L A Blueprint for Balance: S ommitt 9 esolution esolution OPO t R tudy C R Commentary Memorandum Legal P s Budget (FY20 ’ an S t e Budget R t $36 esiden epublic Paul J. Larkin, Jr., “Justice Department Giving Away the Public’s Money to Third-Party Interests,” Heritage Interests,” Third-Party to Money the Public’s Giving Away Department “Justice Larkin, Jr., J. Paul Foundation Heritage Phenomenon,” Sue and Settle The Sham Litigation: Through “Regulation M. Grossman, Andrew Foundation R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ ADDITIONAL READING “so thin as to border on the frivolous.” “so thin as to border with extremist lawsuits settle” colluded in “sue and mental issues far outside the legal mainstream. One One outside the legal mainstream. mental issues far accused ENR Division law federal court of appeals arguments in court that were yers of making legal The Justice Department’s ENR Division has suf ENR Department’s The Justice the courts of defeats in string fered an embarrassing on environ radical positions because it has taken Reduce Funding for the Department of Justice’s Environmental Environmental of Justice’s for the Department Reduce Funding Resources Division and Natural CJS
Ȗ Ȗ ADDITIONAL READING ralliesand the CRShelpedtoorganizeandmanage Wilson caseinFerguson, Missouri,forexample, the ZimmermancaseinSanford,Florida,and has the peacemaker incommunityconflicts, theCRS Rather thanfulfillingitsmandateoftryingtobe The CRSbudget shouldbeentirelyeliminated. Eliminate theDepartmentofJustice’s Community RelationsService 64 Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Broadside, 2014). John Fund andHansvon Spakovsky, Hans von Spakovsky, “Corruption, Incompetence Scandalat DOJ’s Ferguson UnitWidens,” epublic raised esiden t $16 e BudgetR tensionsinlocalcommunities. Inboth t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 11 ommitt S Blueprint for Balance: Blueprint for A L 19) ee Obama’s Enforcer: EricHolder’sJustice Department ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT NOT A T U S The Heritage Foundation | Foundation Heritage The the UnitedStates. send aletter ofcomplainttotheAttorney Generalof thathasledthemto ing, andgrossmismanagement a cultureofincompetence, politicaldecision-mak Wilson. Otheremployees insidetheCRShave cited protests againstZimmermanandDarren George PRESIDENT HOUSE E X heritage.org/BlueprintForBalance P L ANA (New York: HarperCollins/ PJ Media T S ION E N A T E , April18,2016. R S C - CJS 65 C S R E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE Increases funding by 2.4 percent. PRESIDENT decades of “high profile failures.” Representative Representative decades of “high profile failures.” a bill to eliminate the Sensenbrenner introduced because it is a “largely agency duplicative” ATF that that believes Sensenbrenner “lacks a clear mission.” should be transferred to the FBI enforcement work Agency. and the Drug Enforcement The Heritage Foundation | D S U - CTE T E A NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 12 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $259 esiden epublic News release, “Rep. Sensenbrenner Introduces the ATF Elimination Act,” Office of Congressman Jim Congressman of Office Act,” Elimination the ATF Introduces Sensenbrenner “Rep. release, News January 12, 2017. Sensenbrenner, 6, 2015. March Breitbart, Act,’” Elimination ‘ATF Proposes Lawmaker “GOP Hawkins, AWR R House Budge Pr Sena Ȗ Ȗ SAVINGS IN MILLIONS SAVINGS IN Ȗ ADDITIONAL READING Ȗ be the most scandal-ridden agencybe the most in the feder Accordingal government. Jim to Representative been “branded” it has Sensenbrenner (R–WI), with The ATF’s budget should be reduced to eliminate should be reduced budget The ATF’s be used for reckless operations resources that could may The ATF and Furious. Fast similar to Operation Reduce Funding for the Department of Justice’s Bureau of Alcohol, of Bureau of Justice’s for the Department Reduce Funding Explosives and Firearms Tobacco, CJS
and medium-sizebusinesses. of betteringthe goal thebusinesspracticesofsmall tants, manufacturers, andbusinessadviserswith Hollings Partnership provides subsidiestoconsul (NIST) oftheU.S. DepartmentofCommerce.The the NationalInstitute ofStandardsandTechnology ation directedatmanufacturers. by Itismanaged consultingoper is afederallyfundedmanagement The Hollings ManufacturingExtension Partnership Extension Partnership Eliminate theDepartmentofCommerce’s Hollings Manufacturing 66 SAVINGS INMILLIONS Sena R House Budge Pr epublic esiden $140 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 13 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL T NOT A UDE UDE UDE T U S - D D D - The Heritage Foundation | Foundation Heritage The corporate welfare,anditshouldbeended. among businesses. Thisisnothing moreorlessthan torts market outcomesandpickswinnerslosers development ofbusiness. Federal involvement dis The government shouldnot beplaying aroleinthe PRES Eliminates program. corporate welfareprograms. Eliminates HollingsPartnershipandotherDepartmentofCommerce Eliminates program. IDE N T HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E RSC - CJS
67 15 - C S R Issue Brief Issue E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS Continues to fund. Eliminates ITA, which it characterizes as a corporate welfare program. Eliminates ITA export promotion activities, which provide market resources to private companies. PRESIDENT One ITA program is the International Buyer Pro program is the International One ITA up a space sets which the ITA gram (IBP), through in assistance can obtain “where foreign buyers and meet business partners, identifying potential close deals.” and companies to negotiate with U.S. Private companies should facilitate their own should facilitate their own Private companies trade or do so through voluntary business meetings dime. on the taxpayer’s not associations, The Heritage Foundation | - - Y D D D S L L U A I CTE T UDE UDE T E A NOT R T A NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ I I P ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 14 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $495 esiden epublic Michael Sargent, Romina Boccia, Emily J. Goff, David B. Muhlhausen, and Hans A. von Spakovsky, “Cutting the “Cutting von Spakovsky, B. Muhlhausen, and Hans A. David Goff, Emily J. Boccia, Romina Michael Sargent, Heritage Foundation Point,” $2.6 Billion: A Starting Spending Bill by and Science Justice, Commerce, 12, 2014. May 4220, No. R House Budge Pr Sena Ȗ SAVINGS IN MILLIONS SAVINGS IN ADDITIONAL READING Ȗ costs for both consumers and businesses. for both costs the ITA’s efforts redundant. The ITA’s protectionist protectionist efforts redundant. The ITA’s the ITA’s countervailing including antidumping and policies, up and drive interfere with free trade duty laws, promote their products overseas. Promoting U.S. ex U.S. Promoting their products overseas. promote the Department of carried out by ports is also a task Department of State, rendering Agriculture and the The ITA serves as a sales department for certain department as a sales serves The ITA of in the U.S., investment businesses and promotes subsidies for businesses that fering taxpayer-funded Eliminate the Department of Commerce’s International International Commerce’s of the Department Eliminate Administration Trade CJS
Ȗ ADDITIONAL READING one particularcompany orsmallsegmentofthe with avery narrow benefit—inmany cases, just taxpayer dollarstotargetlocalpoliticalpet projects ects, includingtheprivatesector. TheEDA uses form of“grants”and“investments” forlocalproj assistance toeconomicallydistressed areasinthe The EDA provides taxpayer moneyandtechnical Development Administration Eliminate theDepartmentofCommerce’s Economic 68 SAVINGS INMILLIONS Ȗ Sena R House Budge Pr Decisions Could BeImproved U.S. Government Accountability Office, epublic esiden $263 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 16 ommitt S Blueprint for Balance: Blueprint for A L 19) ee , GAO-14-131, February 6,2014. Economic Development Administration: Documentation of Award Selection ADDRESSED I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL T NOT A UDE UDE UDE T U - S D D D The Heritage Foundation | Foundation Heritage The should eliminate. ture’s ruraldevelopment programs, thatCongress ter assistance loansandtheDepartmentofAgricul others) theSmallBusinessAdministration’s disas economic development programs, including(among population. TheEDA isjust oneofabout180federal PRES federal government’sscope. Eliminates EDAasduplicativeandproviding subsidiesoutsidethe Department ofCommerce. Eliminates EDAaspartofaneorttoeliminateoverlapwithinthe unauthorized economicdevelopmentprograms. Eliminates EDAaspartofaneorttoeliminateduplicativeand IDE N T HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E RSC - - CJS 69 - - C S R E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Continues to fund MBDA, but with reforms to change its focus and reduce costs. Consolidates MBDA within the Small Business Administration. PRES The MBDA helps businesses identify and respond to businesses identify and respond to helps The MBDA targeting opportunities and, by federal procurement govern groups for special ethnic certain racial and component of the federal is a key ment assistance, action approach. The affirmative government’s special as provide should not federal government contracts; to businesses to procure federal sistance based on racial such assistance nor should it target considerations. or ethnic The Heritage Foundation | Y Y D D S - L L 18 L L U A A I I T UDE UDE T T A NOT NOT R R T A A NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I P P ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 17 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $39 esiden epublic R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN and contracts worth over $3.9 billion in FY 2011. $3.9 over and contracts worth over 40 locations. Part of the Department of Com of the Part 40 locations. over reported that its business centers merce, the MBDA eligible businesses with 1,108 financings assisted The Minority Business Development Agency Development The Minority Business hands federally funded managementout grants and runs called business centers in consulting operations Eliminate the Department of Commerce’s Minority Business Business Minority Commerce’s of the Department Eliminate Agency Development CJS 70 Ȗ ADDITIONAL READING income, astheofficial U.S. poverty measuredoes, mining whether ahouseholdispoorbasedonits Measure isarelative measure;ratherthandeter The CensusBureau’s annualSupplementalPoverty Poverty Measure Report Eliminate Census Bureau Funding fortheAnnualSupplemental SAVINGS INMILLIONS Ȗ Sena R House Budge Pr Commentary Robert Rector andRachelSheffield, “Obama’s New Poverty Measure ‘Spreads the Wealth,’” Heritage Foundation epublic esiden $5.9 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R , November 9, 2011. OPO esolution esolution 19 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT NOT A T U - S The Heritage Foundation | Foundation Heritage The agenda andshouldbeeliminated. agenda holds. TheSPMundergirdsa“spread-the-wealth” comparing itsincometotheofother house the SPMdetermines ahousehold’s poverty status by PRESIDENT HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C - CJS 71 , GAO-12-873, , GAO-12-873, FY 2019 Budget and Performance and Performance Budget FY 2019 and Performance Budget FY 2019 , September 15, 2017, https://www. 2017, 15, , September , June 27, 2014, http://www. 2014, , June 27, heritage.org/BlueprintForBalance A Review of the Operations of the Voting Section Section the Voting of the Operations of A Review U.S. Census Bureau’s Budget: Fiscal Year 2019, As 2019, Year Fiscal Budget: Bureau’s Census U.S. Trade Show Executive Show Trade U.S. News & World Report & World News U.S. The Heritage Foundation | A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET , p. CEN-19, https://www2.census.gov/about/budget/FY-2019-Congressional-Budget-Submission. CEN-19, , p. Government Contracting: Federal Efforts to Assist Small Minority Owned Businesses Small Minority to Assist Efforts Federal Contracting: Government Justice Impact Evaluations: One Byrne Evaluation Was Rigorous: All Reviewed Violence Against Women Women Against Violence All Reviewed Rigorous: Was Evaluation One Byrne Evaluations: Impact Justice , GAO-02-309, March 2002, p. 10, https://www.gao.gov/assets/240/233527.pdf (accessed April 13, 2018). (accessed https://www.gao.gov/assets/240/233527.pdf 10, p. 2002, March , GAO-02-309, , March 2103, p. 257, https://oig.justice.gov/reports/2013/s1303.pdf (accessed January 13, 2016). (accessed https://oig.justice.gov/reports/2013/s1303.pdf 257, p. 2103, , March Blueprint for Balance: ., 694 F.3d 1377, 1381 (Fed. Cir. 2012). Cir. 1381 (Fed. 1377, F.3d ., 694 . Heritage experts assume that FY 2018 spending remains constant in FY 2019. Savings equal a 33 percent reduction in reduction equal a 33 percent Savings in FY 2019. constant spending remains FY 2018 that assume . Heritage experts , https://www.justice.gov/doj/fy-2019-budget-and-performance-summary (accessed May 9, 2018). Heritage experts assume that that assume Heritage experts 2018). 9, May (accessed , https://www.justice.gov/doj/fy-2019-budget-and-performance-summary Department of Commerce, Economics and Statistics Administration, U.S. Census Bureau, Bureau, Census U.S. Administration, and Statistics Economics of Commerce, Department FY 2019 spending. FY 2019 Department of Justice: Summary of Budget Authority by Appropriation,” in U.S. Department of Justice, of Justice, Department in U.S. Appropriation,” by Authority Summary of Budget of Justice: Department spending. FY 2019 Department of Justice: Summary of Budget Authority by Appropriation,” in U.S. Department of Justice, of Justice, Department in U.S. Appropriation,” by Authority Summary of Budget of Justice: Department spending. in FY 2019 reduction 33 percent equal a Savings in FY 2019. constant spending remains FY 2018 Law Enforcement Assistance and $282.5 million for Juvenile Justice Programs. Justice Juvenile and $282.5 million for Assistance Enforcement Law Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts tradeshowexecutive.com/archive/industry-news/doc-selects-24-shows-2015-international-buyer-program/ (accessed April 13, 2018). (accessed tradeshowexecutive.com/archive/industry-news/doc-selects-24-shows-2015-international-buyer-program/ usnews.com/news/national-news/articles/2017-09-15/justice-department-ends-cops-office-review-of-local-police (accessed April 13, 2018). April 13, (accessed usnews.com/news/national-news/articles/2017-09-15/justice-department-ends-cops-office-review-of-local-police pdf (accessed May 9, 2018). Heritage experts assume that FY 2018 spending remains constant in FY 2019 and estimates that the annual that and estimates in FY 2019 constant spending remains FY 2018 that assume Heritage experts 2018). 9, May pdf (accessed September 2012, http://www.gao.gov/assets/650/648985.pdf (accessed April 10, 2018). April 10, (accessed http://www.gao.gov/assets/650/648985.pdf 2012, September Presented to the Congress, February 2018 February the Congress, to Presented supplemental poverty measure uses 10 percent of the household survey appropriations. of the household survey uses 10 percent measure poverty supplemental of the Civil Rights Division the Civil Rights of Alan Neuhauser, “Justice Department Ends COPS Office Review of Police,” Police,” of Review Office Ends COPS Department “Justice Alan Neuhauser, Estimated savings of $36 million for FY 2019 are based on the FY 2018 continuing resolution level of $110 million as reported in table, “U.S. “U.S. in table, million as reported of $110 level resolution continuing FY 2018 based on the are FY 2019 of $36 million for savings Estimated Estimated savings of $276 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated in the as specified level appropriated 2018 based on the FY are FY 2019 for million of $276 savings Estimated Hil Anderson, “DOC Selects 24 Shows for 2015 International Buyer Program,” Program,” Buyer International 2015 for Shows 24 “DOC Selects Hil Anderson, Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are FY 2019 million for of $39 savings Estimated Estimated savings of $259 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are FY 2019 million for of $259 savings Estimated Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are FY 2019 million for of $495 savings Estimated U.S. Government Accountability Office, Office, Accountability Government U.S. U.S. million as specified in of $59 level FY 2018 annualized based on the estimated are FY 2019 million for of $5.9 savings Estimated Estimated savings of $263 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are 2019 FY million for of $263 savings Estimated Estimated savings of $15.5 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are 2019 FY million for of $15.5 savings Estimated Appropriations Consolidated as specified in the level appropriated 2018 based on the FY are FY 2019 million for of $140 savings Estimated Estimated savings of $48.5 million for FY 2019 are based on the FY 2018 continuing resolution level of $147 million as reported in table, “U.S. “U.S. in table, million as reported of $147 level resolution continuing based on the FY 2018 are FY 2019 for of $48.5 million savings Estimated Estimated savings of $492 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated in the as specified level appropriated based on the FY 2018 are FY 2019 million for of $492 savings Estimated Evans v. U.S v. Evans Estimated savings of $410 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated on the FY 2018 based are FY 2019 for million of $410 savings Estimated U.S. Department of Justice, Office of the Inspector General, Oversight and Review Division, Division, Review and Oversight General, the Inspector of Office of Justice, Department U.S. U.S. General Accounting Office, Office, Accounting General U.S. Estimated savings of $1.96 billion for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated in the as specified level appropriated based on the FY 2018 are FY 2019 for billion of $1.96 savings Estimated Summary Summary Office Grants Were Problematic Were Grants Office Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, estimated in reduction a 20 percent equal Savings in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. Savings include $1.678 billion for State and Local and Local State billion for include $1.678 Savings in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Act, 2018, Public Law 115-141, 115th Cong., https://www.congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf (accessed May 9, 2018). 2018). 9, May (accessed https://www.congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf 115th Cong., 115-141, Public Law 2018, Act,
8. 5. 6. 9. ENDNOTES 19. 17. 18. 15. 16. 14. 12. 13. 10. 11. 1. 2. 3. 7. 4.
Defense DEFENSE ADDITIONAL READING The CongressionallyDirectedMedical Research Programs (CDMRP)isoneoftheoldest andlargest Cut Non-Defense Spendingfrom DepartmentBudget theDefense 74 non-defense researchshouldbeeliminated. to theDOD, inFY2017 alone,Congressappropriat an appropriationof$11billion.Whilesomethis cancer; epilepsy; andautism. ed $245 milliontosupportresearchonsuchnonde examples ofnon-defensefundinginsidetheDOD post-traumatic stress ororthotics thatarerelevant fense medicalissuesasbreast, ovarian, andprostate tomedicalresearchforissueslike funding goes budget. Itwas started by CongressinFY1992 with Ȗ Ȗ Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Thomas SpoehrandRachelZissimos, eds.,“Preventing aDefense Crisis:The 2018 National Defense Authorization Act Act Senator Tom A.Coburn, epublic esiden $413 Must t e BudgetR t an S Beginto Restore U.S. MilitaryStrength,” HeritageFoundation ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L Department of Everything 19) ee 2 Thisfundingfor ADDRESSED ADDRESSED ADDRESSED P I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT NOT A T UDE T I A U L ,” November 2012. L S D Y - - The Heritage Foundation | Foundation Heritage The “civil militaryprograms.” TheseincludeaDODedu Another set ofnon-defenseprogramsthatshouldbe Guard Youth has Program.Thiscategory Challenge would save $183millioninFY2019. in FY2017. grown from$122millioninFY2007to$160 cation programcalledSTARBASE andtheNational cut fromthedefensebudget arewhattheDODcalls PRESIDENT Addresses CDMRP’sroleinthedefense budget. Backgrounder 3 Eliminatingcivilmilitaryprograms HOUSE E X heritage.org/BlueprintForBalance P L ANA No. 3205, March 29, 2017. T S ION E N A T E R S C - DEFENSE - 75 - - C S R 6 E T A N E ION S T ANA L , March 2011. , March P heritage.org/BlueprintForBalance
X E HOUSE PRESIDENT form these systems. This is especially important at This form these systems. self-sustaining, relying on revenue from their sales sales from their relying on revenue self-sustaining, zation Act, Congress included a reporting require general-retail stores (exchanges). All three are All three (exchanges). general-retail stores aim to reduce the operational costs of commissaries of commissaries operational costs aim to reduce the Congress should revisit $2 billion. by and exchanges Accountability Office a time when the Government the benefits created by these systems. by these the benefits created this question and continue to consider ways to re and continue to consider ways this question has found that the DOD does not properly measure has found that the DOD does not rather than on direct appropriations. rather than on direct analysis and a cost-benefit ment that would provide In debates over the 2018 National Defense Authori National Defense 2018 the In debates over The Heritage Foundation | - - S - U No. 2507, January 10, 2011. January 10, 2507, No. T A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED Backgrounder Reducing the Deficit: Spending and Revenue Options Revenue the Deficit: Spending and Reducing ee 19) L A Blueprint for Balance: S ommitt 5 4 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $278 esiden epublic Mackenzie Eaglen and Julia Pollack, “How to Save Money, Reform Processes, and Increase Efficiency in the Defense in the Defense Efficiency and Increase Processes, Reform Money, Save to “How Eaglen and Julia Pollack, Mackenzie Heritage Foundation Department,” Congressional Budget Office, Office, Budget Congressional R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ particularly those who are stationed overseas or in overseas particularly those who are stationed servicemembers and their families. The commissar their families. servicemembers and zations that provide access to goods for and services zations that provide dependents. Maintaining access to affordable gro dependents. ceries and goods is important for servicemembers, almost $1.4 billion. $1.4 almost remote locations. The military has three separate The military has locations. remote retail network to serve military personnel and their to serve network retail ies provide groceries at cost plus 5 percent, which groceries at cost ies provide In only through an annual subsidy. is sustainable and Reduce Commissary Subsidies and Reduce Commissary Combine Military Exchanges and Commissaries MilitaryCombine Exchanges Commissaries and FY 2018, Congress subsidized the commissaries at at the commissaries Congress subsidized FY 2018, The DOD currently has an extensive and separate The DOD currently has an extensive The DOD operates two parallel but similar organi The DOD operates ADDITIONAL READING DEFENSE ADDITIONAL READING 76 Elementary andSecondarySchoolssystem intoa Close Domestic Dependent Elementary and Secondary Schools DomesticClose andSecondary DependentElementary Congress shouldcreaterealchoiceformilitary vicemembers considertheirchildren’s schoolinga deciding factorincontinuingtheirmilitarycareers. of military-connected childrenattend traditional system ofeducationsavings accountsformilitary public schools. Additionally, over one-thirdofser percent ofmilitary-connected children; families. ThecurrentDDESSsystem serves only4 families andtransitiontheDomestic Dependent Ȗ Ȗ Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr document, undated. National Commission onFiscalResponsibility andReform, “$200BillioninIllustrative Savings: 2015 Savings,” draft Education Savings Accounts,” HeritageFoundation Lindsey M.Burke andAnneRyland,“A GIBillfor Children ofMilitaryFamilies: Transforming Impact Aidinto epublic esiden $150 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 7 ommitt S Blueprint for Balance: Blueprint for A L 19) ee 8 ADDRESSED ADDRESSED ADDRESSED ADDRESSED 80percent AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT NOT A T U S Backgrounder - 9
The Heritage Foundation | Foundation Heritage The There isnoneedforthemilitarytooperateschools The currentsystem focusesontheneedsofami itary dependentstolocalschoolsystems, aprocess in theUnitedStates. ThePentagon shouldpromptly its population. nuscule minoritytothedetriment ofthemajority that the Trump Administration hasinitiated. that theTrumpAdministration take actiontoclosetheseschoolsandtransfermil PRESIDENT No. 3180, June2,2017. HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S 10 C - - DEFENSE
- 13 77 - C S R E T A Report of the of Report N E ION S T ANA L P heritage.org/BlueprintForBalance X , January 2015, p. 262. p. , January 2015, E HOUSE 14 Raises similar concerns but does not shape any proposals. PRESIDENT federal employees, which would save $1.4 billion in $1.4 would save which federal employees, proposed moving servicemembers and their de servicemembers and their proposed moving civilian by currently used pendents to the system a recommendation to allow military dependents military dependents to allow a recommendation the first year and significantly more in future years. year and significantly more in the first Modernization and Retirement tary Compensation health to choose from a selection of commercial the future. reducing costs. A 2011 Heritage Foundation report Foundation Heritage A 2011 reducing costs. that this The MCRMC estimated insurance plans. would save $3.90 billion in the first year and more in billion in the first $3.90 would save Commission issued its final report and included Commission issued In January 2015, the congressionally chartered Mili the congressionally chartered 2015, In January No. 2621, November 17, 2011. 17, November 2621, No. The Heritage Foundation | Y D S L - L U 12 A I T UDE T A NOT NOT NOT R T A NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I P Backgrounder ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 11 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $3.9 esiden epublic Baker Spring, “Saving the American Dream: Improving Health Care and Retirement for Military Service Members Members Military Service for and Retirement Health Care Improving the American Dream: Spring, “Saving Baker and Their Families,” Heritage Foundation Heritage Foundation Families,” and Their Military Compensation and Retirement Modernization Commission: Final Report Final Commission: Modernization and Retirement Compensation Military Appendix D: Cost Data,” in Military Compensation and Retirement Modernization Commission, Commission, Modernization and Retirement in Military Compensation Data,” Appendix D: Cost R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ system and introduce a private-sector health insur and introduce system system would dramatically increase access and would dramatically system give servicemembers and their families more choices servicemembers and their families give options for military family members while also options and serve as a competition catalyst for the current for catalyst as a competition and serve ance option for military family members. This would This would family members. for military ance option Service members and their families has decreased, and their families has decreased, and Service members and fiscal sustainability of the program has declined.” fiscal sustainability Retirement Modernization Commission assessed that Commission assessed Modernization Retirement Congress should reform the DOD’s current TRICARE current TRICARE the DOD’s Congress should reform TRICARE system. The Military Compensation and Compensation The Military system. TRICARE Implementing a private-sector health insurance Implementing a private-sector health ADDITIONAL READING Reform Military Health Care MilitaryReform Health “[t]he quality of TRICARE benefits as experienced by experienced benefits as “[t]he quality of TRICARE DEFENSE Increase Use ofPerformance-Based Logistics ADDITIONAL READING 78 Congress shouldincentivizeandenablethebroader which the contractor is responsible for a larger which thecontractorisresponsibleforalarger maintenance andsustainment. Itisestimated that use ofPerformance-Based Logistics throughoutthe the delivery ofaplatform,contractisassociated the product.Thus, instead ofbeingassociatedwith couldsavethese arrangements between $9billion and $32billionayear. acquisition process. TheDepartmentofDefense should increasetheuseofPBLinweapon-systems portion of the support throughout the life cycle of portion ofthesupportthroughoutlifecycle Ȗ Ȗ SAVINGS INBILLIONS Ȗ Ȗ Sena R House Budge Pr Backgrounder Department,” HeritageFoundation Mackenzie EaglenandJuliaPollack, “How to Save Money, Reform Processes, andIncrease Efficiency intheDefense Baker Spring,“Performance-Based Logistics: MakingtheMilitaryMore Efficient,” Heritage Foundation epublic esiden $9.0 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO No. 2411, May 6,2010. esolution esolution 15 ommitt S 16 Blueprint for Balance: Blueprint for A PBL is an arrangement in PBLisanarrangement L 19) ee Backgrounder ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT NOT A T No. 2507, January10, 2011. U S The Heritage Foundation | Foundation Heritage The This serves toalignthecontractors’interests with PBL isnot appropriateforallsystems andshould with theproperfunctioningofsaid platform. the DOD’s interest inmaintainingthereadiness a priorityforproduct-supportsolutions, anditis estimated thatitsaves between 5percentand20 of platforms. percent ofcontractcosts. be appliedjudiciously. Itisboth and DODpolicy PRESIDENT HOUSE E X heritage.org/BlueprintForBalance P L ANA 18 T S ION E N A T E R 17 S
C DEFENSE 79 - 21
- C S R Stars and Stars Backgrounder E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE PRESIDENT proposals ever made it to the legislation. made ever proposals every year. Both the Senate and the House drafted House the Senate and the Both year. every and future infrastructure ent review of its current authority every year, and Congress has rejected it and Congress has rejected year, authority every the DOD to conduct a rigorous and transpar allow come with an appropriate. While this process will tional Defense Authorization Act,tional Defense Authorization of the but none up-front cost, the DOD estimates that it could save that it could save the DOD estimates up-front cost, needs, including closing bases and facilities as including needs, versions of BRAC when discussing the 2018 Na the 2018 of BRAC when discussing versions $2 billion annually once it is fully implemented. As it works to expand the military, Congress should Congress should the military, As it works to expand The Heritage Foundation | S U - T A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt esolution esolution OPO 19 t R tudy C R P s Budget (FY20 ’ an S t , June 19, 2017. , June 19, $0 As the military grows, it is unlikely to need it is unlikely As the military grows, e Budget R t 20 esiden (NO SAVINGS) epublic Frederico Bartels, “Guidelines for a Better—and Necessary—Round of BRAC,” Heritage Foundation Heritage Foundation of BRAC,” Necessary—Round a Better—and for “Guidelines Bartels, Frederico 2017. 19, October 3257, No, and Closures,” of Base Realignments Round Back New to Congress Experts Urge Diana Cahn, “Policy Stripes R House Budge Pr Sena Ȗ Ȗ Ȗ Ȗ because of congressional restrictions, the DOD restrictions, because of congressional from 6 percent in the Navy to 29 percent in the to the Navy from 6 percent in during the 2005 Base Realignment and Closure during the 2005 Base Realignment approximately 19 percent excess capacity, ranging ranging capacity, 19 percent excess approximately ture needs. the same types of facilities it now has. Currently, Currently, has. types of facilities it now the same round. Since 2012, the DOD has asked for BRAC the DOD has asked round. Since 2012, right-size its infrastructure. The last time the DOD The last right-size its infrastructure. may not even thoroughly analyze its infrastruc thoroughly analyze even not may was able to shape its infrastructure footprint was was footprint able to shape its infrastructure was Congress routinely blocks the DOD’s efforts to Congress routinely blocks the DOD’s Army. According to recent DOD estimates, the military has the military has According DOD estimates, to recent ADDITIONAL READING Reduce Infrastructure Excess DEFENSE Reform theBasicAllowance forHousing ADDITIONAL READING These changes wouldreducecostsThese changes andarecom 80 Basic Allowance forHousing forboth enlisted person For FY2018, theDODrequested over $20.1 billionin lowance by requiringmarriedmilitarycouplestoshare what theypay forhousingcanberetained as“ex tra compensation.” to documenttheirhousingexpendituresreceive the allowance. Servicemembersarenot entitledto, nor a singleallowance andrequiringallservicemembers nel andofficers. pletely appropriate.Congressshouldphasein should theyhave any expectation,that moneyabove for the BAH andrestore ittoitsproperroleasanal for theBAH Ȗ Ȗ SAVINGS INMILLIONS Ȗ Ȗ Sena R House Budge Pr Thomas SpoehrandRachelZissimos, “Preventing aDefense Crisis:The 2018 National Defense Authorization Act Must March 29, 2017. Leo ShaneIII,“Group Wants Lawmakers to CapMilitaryHousingStipends to CurbCosts,” epublic esiden $418 t Beginto Restore U.S. MilitaryStrength,” HeritageFoundation e BudgetR t an S ’ s Budget(FY20 P R tudy C t R 23 OPO Congressneedstoreformtherules esolution esolution 22 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT NOT A - T - U - S - The Heritage Foundation | Foundation Heritage The A U.S. Army reportestimated Auditthat Agency Defense Authorization Act wouldhaveDefense Authorization reformed Act with theHouse. in BAH thantheiractualhousingcosts.in BAH married servicemembersreceive $200millionmore is designedsolelytohelpservicememberspay for more accuratehousingallowances, sincetheBAH the BAH, butitdidnot movethe BAH, forward inconference an estimated $418millioninFY2019. accommodations. ASenateproposal intheNational should phaseinmoreaccuratehousingallowances beginning withtheFY2019 NDAA. Thiswouldsave PRESIDENT Backgrounder HOUSE E X heritage.org/BlueprintForBalance P No. 3205, March 29, 2017. L ANA Military Times, T S ION E N A T E 24 Congress R S C DEFENSE
81 27 C S R , E T A N E ION S T
ANA L P heritage.org/BlueprintForBalance X E HOUSE PRESIDENT personnel can be employed in the same positions. in the same employed personnel can be savings would be generated would be of two factors: because savings civilians replacing three military personnel. Even Even civilians replacing three military personnel. and fewer civilians than the number of military and fewer civilians billion $3.1 a replacement ratio of 1:1 would save the amount would reach a ratio of 1:1.5, At annually. that the DOD achieves. In similar earlier initiatives, initiatives, In similar earlier that the DOD achieves. with two a ratio of 1:1.5, able to average the DOD was usually spends on a job. According to the CBO, the According to the CBO, a job. usually spends on On average, civilians are 30 percent less expensive, are 30 percent less expensive, On average, civilians $5.7 billion. $5.7 The savings vary depending on the replacement rate depending on the replacement rate vary The savings The Heritage Foundation | - S U T A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED 26 Replacing Military Personnel in Support Positions With Civilian Employees With in Support Positions Personnel Military Replacing ee 19) L A Blueprint for Balance: S ommitt 25 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $880 esiden epublic December 2015. December Congressional Budget Office, Office, Budget Congressional R House Budge Pr Sena Ȗ SAVINGS IN MILLIONS SAVINGS IN Ȗ functions in commercial positions. Some of these positions. functions in commercial positions can be transformed into civilian positions positions can be transformed positions to enable them personnel to commercial sional Budget Office has analyzed the possibility of sional Budget Office active-duty military personnel to perform support military personnel active-duty than civilians because the required training and than civilians because the required to rotate away from combat positions. The Congres from combat positions. away to rotate of these positions. transforming 80,000 rotations are shorter than the time that a civilian rotations without losing the possibility of allocating military without losing the Military personnel are inherently more expensive expensive Military personnel are inherently more The DOD currently employs approximately 340,000 340,000 approximately employs The DOD currently ADDITIONAL READING Replace Military Personnel in Commercial Positions Positions in Commercial Replace Military Personnel with Civilian Employees with Civilian DEFENSE Policy Riders Public Law 112-81directthatDODfinancial statements must be“validatedasreadyforauditnolaterthan Department isobligatedtoproduceorprocure25percentoftheenergyconsumedinDODfacilitiesfrom 82 which couldprovide morecost-effective servicesforthe U.S.government. Thismoratoriumextends to financial auditchoosetodoso. impediments discovered inthecourseofpreparingplan. immediate exportoffollow-on parts, components, servicing,ortechnical plans. Canadaisalreadytreated required theSecretary ofDefensetodevelop aplanto“reducethebarriersseamlessintegration” military toprivatecompetition couldresultinsavings ofbetween 30percentand60percent. renewable energyratherthanonmilitarycapability, shouldendimmediately. renewable sourcesby 2025. Thismandate,whichisforcingthePentagon toexpendever moreresourceson technologies toitsclosest allies, andAustralia. theUnitedKingdom Theseshouldincludeallowing all trillion worthofitstangibleassets, includingdecades-oldequipmentlike M113armoredpersonnelcarriers to actualreducedwaste arerare,andmany orinefficiency companiesthatcanlegallyescapeundergoing September 30, 2017.” and limitedtimeperiodthesystem-level licensingofsuchexports, which wouldallow theautomaticand audit construct asappliedtothedepartmentisrequirementreportpreciselyvalueofall$2.4 audits” orzero-basedbudgeting techniques. Inaddition,many oftheauditrequirementsimposedon accomplish thepurposeofanauditatalower cost. Section1003ofPublicLaw 111-84 andSection1003of and cost improvement.” Develop cost-effective auditingoftheDepartmentDefense. Lift themoratoriumonprivate–publiccompetitions. End renewable energymandatesintheDepartmentof Defense. exemption isupdatedtoshow thependingcompletion ofexport-controlreformandtoremove any other defense-related exportstobelicensedtheseclose alliesabsentaU.S. decisiontorefusewithinaspecified of theNTIB. diversity by underminingtheincentives forproducersofrenewable energytodevelop competitively priced engage theissue. engage criticism leveled against suchcompetition isthattheprocesshas not beenupdatedandhasyieldedproblems of the2010 NDAA, competitions remainprohibitedunderSection325 cannot offeritsservicestotheinstallation. DOD-specific separately underU.S. law, andtheSecretary ofDefense’s planshouldreflectthisfactandensurethatits sector, not intheDOD. since 2012, Congresshasprohibitedcompetition between publicandprivateorganizationstodetermine public–public competitions, whichleadstosituationsinthemunicipalitywhereabaseislocated products. Fuel isasmuchanasset asitisapointofvulnerabilityforthemilitary. To protect taxpayers purchased inthe1970sandbuildingsconstructed hundredsofyearsago. private corporationsmake little sensewhenappliedtotheDOD. Anexampleoftheillogicfinancial Support theseamlessintegrationofNational Technology andIndustrial Base. for both government andtheprivatesector. from themilitary. from undueDODenergyexpense,Congressshouldremove technology-specific andfuel-specificmandates 37 Congressshouldsupportreformsthatwillmake iteasierfortheU.S. toexportdefense 28 30 Inparticular, underSection2911(e)ofTitle10theUnited StatesCode,theDefense yet even criticswilladmitthat“competition isthegreatest singledriver ofperformance 34 Blueprint for Balance: Blueprint for TheDODhasstated thatitisnow officially“underaudit.” Auditresultsthatlead 31 TheRANDCorporationhasestimated thatopeningsupportservicesforthe 35 Therearebetter methods toreducewaste orinefficiency, suchas “waste AFEDERAL BUDGET FOR FISCAL YEAR2019 33 ThisismorereasonforCongresstorevisitCircularA-76 and The Heritage Foundation | Foundation Heritage The Underpressurefromfederalemployee unions Congressshouldexamineways to Suchmandatesimpedemarketplace 36 Thismakes senseintheprivate heritage.org/BlueprintForBalance 29 The2017 NDAA 32 Thecommon DEFENSE , , 83 , February 2018, 2018, , February No. 2411, May 6, 2010, 6, 2010, May 2411, No. Backgrounder , February 2018, pp. 16–17, http:// 16–17, pp. 2018, , February , November 14, 2017, https://www. 2017, 14, , November heritage.org/BlueprintForBalance , May 2017, http://comptroller.defense.gov/ 2017, , May , February 27, 2017, http://thehill.com/blogs/ 2017, 27, , February , September 30, 2017, http://cdmrp.army.mil/pubs/ 2017, 30, , September Military Times Military The Hill The , Conference Report, 115th Cong., 1st Sess., November 9, 2017, p. 731, 731, p. 2017, 9, November Sess., 1st 115th Cong., Report, , Conference Report of the Military Compensation and Retirement Modernization Modernization and Retirement Compensation the Military of Report The Heritage Foundation | A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Report of the Military Compensation and Retirement Modernization Commission: Final Report Commission: Modernization and Retirement Compensation the Military of Report Defense Commissaries: DOD Needs to Improve Business Processes to Ensure Patron Benefits and Benefits Patron Ensure to Processes Business Improve DOD Needs to Commissaries: Defense No. 3180, June 2, 2017, http://www.heritage.org/education/report/gi-bill-children-military-families- June 2, 2017, 3180, No. No. 2621, November 17, 2011, http://www.heritage.org/research/reports/2011/11/saving-the-american- 2011, 17, November 2621, No. , GAO–17–80, March 23, 2017, https://www.gao.gov/products/GAO-17-80 (accessed April 18, 2018). (accessed https://www.gao.gov/products/GAO-17-80 23, 2017, March , GAO–17–80, Fiscal Year 2018 President’s Budget: Civil Military Programs (CMP) Programs Civil Military Budget: President’s 2018 Year Fiscal , p. 262. , p. Blueprint for Balance: Fiscal Year (FY) 2019 President’s Budget, Operation and Maintenance, Defense-Wide: DoD Dependents Education DoD Dependents Defense-Wide: and Maintenance, Operation Budget, President’s 2019 (FY) Year Fiscal Defense Commissary Agency (DeCA) Fiscal Year (FY) 2019 President’s Budget President’s (FY) 2019 Year Fiscal (DeCA) Agency Commissary Defense Backgrounder Backgrounder National Defense Authorization Act for Fiscal Year 2018 Year Fiscal for Act Authorization Defense National Fiscal Year (FY) 2019 President’s Budget, Operation and Maintenance, Defense-Wide: Civil Military Programs Civil Military Defense-Wide: and Maintenance, Operation Budget, President’s (FY) 2019 Year Fiscal Congressionally Directed Medical Research Programs: 2017 Annual Report Annual 2017 Programs: Research Medical Directed Congressionally http://www.heritage.org/defense/report/performance-based-logistics-making-the-military-more-efficient. http://docs.house.gov/billsthisweek/20171113/HRPT-115-HR2810.pdf (accessed April 18, 2018). (accessed http://docs.house.gov/billsthisweek/20171113/HRPT-115-HR2810.pdf http://cdmrp.army.mil/about/fundinghistory (accessed May 10, 2018). 10, May (accessed http://cdmrp.army.mil/about/fundinghistory based on FY 2017 spending levels for research on autism, breast cancer, epilepsy, ovarian cancer, and prostate cancer as reported as reported cancer and prostate cancer, ovarian epilepsy, cancer, autism, breast on research for spending levels 2017 based on FY in U.S. Department of Defense, U.S. Army Medical Research and Materiel Command, Congressionally Directed Medical Research Medical Research Directed Congressionally Command, and Materiel Medical Research Army U.S. of Defense, Department in U.S. levels of $150.5 million for the National Youth Guard Challenge Program and $17.4 million for STARBASE as reported in U.S. Department Department in U.S. as reported STARBASE million for and $17.4 Challenge Program Guard Youth the National million for of $150.5 levels Lucyshyn, Lisa H. Harrington, and Amelia Cotton Corl, “The Current State of Performance Based Logistics and Public–Private Partnerships Partnerships and Public–Private Based Logistics of Performance State Current “The Corl, and Amelia Cotton Lisa H. Harrington, Lucyshyn, The 2018). 10, May (accessed http://cpppe.umd.edu/file/861/download?token=ipx2r1Sr 2010, October Enterprise, and Private Policy Heritage Foundation Heritage Foundation February 2018, p. DoDDE-370, http://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2019/budget_justification/pdfs/01_ DoDDE-370, p. 2018, February Heritage Foundation Department of Defense, of Defense, Department Portals/45/Documents/defbudget/FY2018/budget_justification/pdfs/01_Operation_and_Maintenance/O_M_VOL_1_PART_1/CMP_OP-5. billion in the $1.389 reduction a 20 percent represents million in savings $278 The 2018). 10, May (accessed DeCA_PB19_J-Book.pdf Maintenance/O_M_VOL_1_PART_1/CMP_OP-5.pdf (accessed May 9, 2018). 9, May (accessed Maintenance/O_M_VOL_1_PART_1/CMP_OP-5.pdf Programs, Programs, transforming-impact-aid-education-savings. figure growing to $32 billion per year over the 10-year period. the 10-year over year billion per to $32 growing figure for Depot-Level Maintenance: Operating Models, Outcomes, and Issues,” University of Maryland, School of Public Policy, Center for Public for Center of Maryland, School of Public Policy, University and Issues,” Models, Outcomes, Operating Maintenance: Depot-Level for militarytimes.com/newsletters/pay-benefits/2017/11/13/pentagon-may-stop-running-state-side-schools-for-military-children/ (accessed (accessed militarytimes.com/newsletters/pay-benefits/2017/11/13/pentagon-may-stop-running-state-side-schools-for-military-children/ reduction in DDESS spending amounting to a 25 percent cut in FY 2019. cut a 25 percent to spending amounting in DDESS reduction requested subsidy. requested pdf (accessed May 10, 2018). 10, May pdf (accessed p. CMP-22, http://comptroller.defense.gov/Portals/45/Documents/defbudget/FY2019/budget_justification/pdfs/01_Operation_and_ CMP-22, p. and Retirement Modernization Commission, Commission, Modernization and Retirement annreports/2017annrep/2017annreport.pdf (accessed May 9, 2018). Savings in civil military programs are based on FY 2018 requested requested FY 2018 based on are programs in civil military Savings 2018). 9, May (accessed annreports/2017annrep/2017annreport.pdf Operation_and_Maintenance/O_M_VOL_1_PART_1/DoDDE_OP-5.pdf (accessed May 10, 2018). This estimate assumes a phased-in assumes estimate This 2018). 10, May (accessed Operation_and_Maintenance/O_M_VOL_1_PART_1/DoDDE_OP-5.pdf Commissary Agency, Agency, Commissary estimates of cost savings range from a notably conservative, or low, level of $9 billion per year to $32 billion per year. Heritage experts Heritage experts billion per year. $32 to billion per year of $9 level or low, a notably conservative, from range savings of cost estimates with that in FY 2019, billion per year $9 at of these savings, range the lowest initially realize the DOD would that assume conservatively congress-blog/education/321321-the-stealth-factor-in-military-readiness (accessed April 17, 2018). April 17, (accessed congress-blog/education/321321-the-stealth-factor-in-military-readiness fully implemented. year once than $6 billion per year and more billion in the first $3.90 save would this proposal that estimated comptroller.defense.gov/Portals/45/Documents/defbudget/fy2019/budget_justification/pdfs/06_Defense_Working_Capital_Fund/ of Defense, of Defense, dream-improving-health-care-and-retirement-for-military-service-members. 2012, pp. 26–30, http://dau.dodlive.mil/files/2012/03/Boyce_Banghart.pdf (accessed May 10, 2018), and Jacques S. Gansler, William S. Gansler, and Jacques 2018), 10, May (accessed http://dau.dodlive.mil/files/2012/03/Boyce_Banghart.pdf 26–30, pp. 2012, U.S. Department of Defense, Congressionally Directed Medical Research Programs, “About Us: Funding History,” last updated June 6, 2017, 2017, June 6, updated last History,” Funding Us: “About Programs, Medical Research Directed Congressionally of Defense, Department U.S. Jim Cowen and Marcus S. Lingenfelter, “The Stealth Factor in Military Readiness,” in Military Readiness,” Factor Stealth “The S. Lingenfelter, Marcus and Jim Cowen Savings of $413 million for FY 2019 include $245 million for CDMRP and $168 million for civil military programs. CDMRP savings are are CDMRP savings civil military programs. million for and $168 CDMRP million for include $245 FY 2019 for million of $413 Savings Military Compensation and Retirement Modernization Commission, Commission, Modernization and Retirement Military Compensation and Allan Banghart, John Boyce reports: two from savings of estimated end of a range the low represent FY 2019 billion for of $9 Savings Karen Jowers, “Pentagon May Stop Running Stateside Schools for Military Children,” Military Children,” for Schools Running Stateside Stop May “Pentagon Jowers, Karen Baker Spring, “Performance-Based Logistics: Making the Military More Efficient,” Heritage Foundation Foundation Heritage Efficient,” Making the Military More Logistics: Spring, “Performance-Based Baker Ibid., p. 81. Ibid., p. Families,” and Their Members Military Service for and Retirement Health Care Improving the American Dream: Spring, “Saving Baker Estimated savings of $3.90 billion for FY 2019 are based on implementation of Recommendation 6 as outlined in Military Compensation 6 as outlined in Military Compensation of Recommendation based on implementation are FY 2019 billion for of $3.90 savings Estimated Savings of $150 million in FY 2019 are based on the FY 2018 requested spending level of $602 million for DDESS as found in U.S. in U.S. as found DDESS million for of $602 spending level requested on the FY 2018 based are million in FY 2019 of $150 Savings Savings of $278 million for FY 2019 are based on the FY 2018 subsidy level of $1.389 billion as found in U.S. Department of Defense, Defense Defense of Defense, Department in U.S. as found billion of $1.389 subsidy level based on the FY 2018 are FY 2019 for million of $278 Savings U.S. Government Accountability Office, Office, Accountability Government U.S. Lindsey M. Burke and Anne Ryland, “A GI Bill for Children of Military Families: Transforming Impact Aid into Education Savings Accounts,” Accounts,” Savings Education Aid into Impact Transforming of Military Families: Children GI Bill for and Anne Ryland, “A M. Burke Lindsey Report 115-404, 115-404, Report U.S. Department of Defense, of Defense, Department U.S. Commission: Final Report Commission: April 17, 2018). April 17, Achieve Operational Efficiencies Operational Achieve January 2015, pp. 79–119, https://www.ngaus.org/sites/default/files/MCRMC%202015_0.pdf (accessed May 10, 2018). The commission commission The 2018). 10, May (accessed https://www.ngaus.org/sites/default/files/MCRMC%202015_0.pdf 79–119, pp. January 2015, “Performance Based Logistics and Project Proof Point: A Study of PBL Effectiveness,” Defense AT&L: Product Support Issue, March–April March–April Support Issue, Product AT&L: Defense of PBL Effectiveness,” A Study Point: Proof Project and Based Logistics “Performance
8. 5. 6. 9. ENDNOTES 16. 15. 13. 14. 12. 11. 10. 1. 2. 3. 7. 4. DEFENSE 37. 36. 35. 34. 33. 32. 31. 30. 22. 21. 20. 29. 28. 27. 26. 25. 24. 23. 84 .17 .18 .19
Thomas Spoehr, “The Unaffordable Pentagon Audit,” Valerie AnnBailey Grasso, “Circular A-76 andtheMoratorium onDODCompetitions: Background andIssues for Congress,” Congressional Stan Soloway, “It’s Time to BuryA-76—It Worked Once, ButItsDay IsPast,” Cheryl Pellerin, “DODMakes Audit Progress, ButChallengesRemain,” AmericanForces Press Service, May 15, 2014, http://archive.defense. Susan M.Gates andAlbertA.Robbert, National Defense Authorization Act for FiscalYear 2010, Law Public 111-84, 111thCong., October 28,2009, https://www.gpo.gov/fdsys/pkg/ National Defense Authorization Act for FiscalYear 2017, Law Public 114-328, 114thCong., December 23,2016, https://www.gpo.gov/fdsys/ Arthur J. RadinandMiriamE.Katowitz, “Have Audits Become Too Inefficient andExpensive?” We donotassume any savings for FY2019. However, theDepartment ofDefense estimates that once fullyimplemented, aBRAC would U.S. Department ofDefense, Assistant Secretary ofDefense, Logistics &Materiel Readiness, Daniel Gouré, “Performance-Based Logistics Contracts Continue to Prove Their Value,” Lexington Institute, January17, 2014, http://www. Rachel Zissimos andKatie Tubb, “The New Administration’s Policy ShouldReflect that BiofuelsCannotMeet MilitaryNeeds,” Heritage See ibid. U.S. Department ofDefense, Jack Spencer, “Capability, NotPolitics, ShouldDrive DODEnergy Research,” HeritageFoundation Estimated savings of $880millionfor FY2019 are basedonafive-year phase-inoftheproposal, leading to themidpoint oftheCBO’s U.S. Department ofDefense, Office oftheUnderSecretary ofDefense (Comptroller), Estimated savings of$418 millionfor FY2019 are basedonanassumed 2percent reduction inBAH costs. While theexact level ofsavings James Mattis, Secretary ofDefense, “Written Statement for theRecord,” testimony before theCommittee onArmedServices, U.S. House Ibid., p. 3. Report No. 114-255, (accessed April18,2018). 22A, http://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2019/fy2019_m1.pdf (accessed May 10, 2018). gov/news/newsarticle.aspx?id=122263 (accessed April17, 2018). gov/publication/51012 (accessed April15, 2018). defense.gov/Portals/45/Documents/defbudget/fy2017/FY2017_Budget_Request_Overview_Book.pdf (accessed May 10, 2018). cpajournal.com/2016/02/01/audits-become-inefficient-expensive/ (accessed April 17, 2018). com/excellence/promising-practices/2017/01/its-time-bury-76it-worked-once-its-day-past/134305/ (accessed April17, 2018). estimated annualized savings ofbetween $3.1 billionand$5.7 billion.We assume savings of$880millioninthefirst year, increasing by of Representatives, June12,2017, http://docs.house.gov/meetings/AS/AS00/20170612/106090/HHRG-115-AS00-Bio-MattisJ-20170612.pdf save $2billionannually. SeeU.S. Department ofDefense, Office oftheUnderSecretary ofDefense (Comptroller), ChiefFinancialOfficer, Military Personnel Programs (M-1) Defense Budget Overview: United States Department of Defense Fiscal Year 2017 Budget Request Performance-Based Arrangements Guidebook-March-2016.pdf (accessed April18,2018). Corporation, National Defense Research Institute, 2000, https://www.rand.org/content/dam/rand/pubs/monograph_reports/2007/MR1117. Congressional Budget Office, Sess., May 18,2016, p. 164, https://www.congress.gov/114/crpt/srpt255/CRPT-114srpt255.pdf (accessed onApril20, 2018). Secretary ofDefense (Comptroller), a phased-inapproach would reduce BAH costs by 2percent inFY2019, risingto 8percent inFY2022. InFY2018, theDODspent $20.889 wpengine.netdna-ssl.com/wp-content/uploads/2017/10/101717_DoD_BRAC_Analysis.pdf (accessed April18,2018). pkg/PLAW-114publ328/pdf/PLAW-114publ328.pdf (accessed April18,2018). pdf (accessed April18,2018). m1.pdf (accessed April18,2018). $880 millioneachyear until year five, when total annualized savings reach themidpoint—$4.4 billion—oftheCBO’s estimated savings. unaffordable-pentagon-audit-23784 (accessed April17, 2018). Research Service PLAW-111publ84/pdf/PLAW-111publ84.pdf (accessed April18,2018). Foundation lexingtoninstitute.org/performance-based-logistics-contracts-continue-to-prove-their-value/ (accessed April18,2018). is uncertain, andwhilemore accurate allowances could changebehaviors andaffect actual housing costs, Heritage experts estimate that http://www.heritage.org/research/reports/2011/06/capability-not-politics-should-drive-dod-energy-research. biofuels-cannot-meet-military-needs. billion onBAH. The $418 millioninFY2019 savings equals2percent ofthiscost. SeeU.S. Department ofDefense, Office oftheUnder Issue Brief Report for Congress National Defense Authorization Act for Fiscal Year 2017 No. 4643, January 4, 2017, http://www.heritage.org/defense/report/the-new-administrations-policy-should-reflect- Blueprint for Balance: Blueprint for Department of Defense Infrastructure Capacity Replacing Military Personnel inSupportPositions With CivilianEmployees , May 2017, p. 22A,http://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2018/fy2018_ , 2016, p. 12,http://acqnotes.com/wp-content/uploads/2017/07/Performance-Based-Logistics- Department of Defense Budget, Fiscal Year 2019: Military Personnel Programs (M-1) , January16,2013, https://fas.org/sgp/crs/misc/R40854.pdf (accessed April17, 2018). Personnel Savings inCompetitively Sourced DoDActivities: Are They Real? Will They Last? AFEDERAL BUDGET FOR FISCAL YEAR2019 The
National Interest The Heritage Foundation | Foundation Heritage The , December 25, 2017, http://nationalinterest.org/feature/the- , Committee onArmedServices, U.S. Senate, 114thCong., 2nd Government Executive , October 2017, p. 3,https://1yxsm73j7aop3quc9y5ifaw3- Department of Defense Budget, Fiscal Year 2018: PBL Guidebook The CPA Journal heritage.org/BlueprintForBalance WebMemo , February 2016, pp. 2-4, http://comptroller. , January4, 2017, http://www.govexec. , December 2015, https://www.cbo. : A Guideto Developing No. 3299, June22,2011, , February 2016, https://www. , February 2018, p. RAND
Energy and Water Development E&W Ȗ ADDITIONAL READING nal dollars): programs totheirFY2014 budgetlevels (innomi of $17millioninFY2019, andreturn thefollowing Institution Partnership Program,withasavings is not. CongressshouldcanceltheMinorityServing an increasefornon-weapons programsandsupport for nuclearweaponsprogramsisentirelynecessary, spending inthecomingyears. Whilethisincrease forces drove toincrease theObamaAdministration activities. Therecentnegative reviewofU.S. nuclear $16 billionand$17tofunddefense-related Department. Eachyear, theDOEreceives between and weaponsthatareoperatedby theDefense The DOEisresponsibleforthenuclearreactors Spending onWeapons Programs Focus DOENational Nuclear Administration Security 86 Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Backgrounder Michaela DodgeandBaker andSwitch Spring,“Bait onNuclearModernization Must Stop,” HeritageFoundation epublic esiden $493 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO No. 2755, January4, 2013. esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT A E T CTE U - S D The Heritage Foundation | Foundation Heritage The Ȗ Ȗ Ȗ Ȗ Ȗ PRESIDENT Maintains orincreasesspendingforallprograms. Ȗ Ȗ Ȗ Ȗ Ȗ Defense Environmental (saves Clean-Up $379 (saves $2million);and Nuclear SafeguardsandSecurityPrograms Verification”) (saves $1million); (nowMaterials Transparency under“Nuclear Warhead DismantlementandFissile (saves $25million); Information Technology andCyber Security Secure TransportationAsset (saves $46million); million). 2 HOUSE E X heritage.org/BlueprintForBalance P L ANA
T S ION E N A T E R S C E&W - 87 - Fund 4 RSC E T A N E ION S
T ANA L P heritage.org/BlueprintForBalance X E HOUSE T N IDE Reduces spending to $478 million. PRES research facilities (also called user facilities). research facilities program has become physics ing for the nuclear Program fiscal conditions. unaffordable in tight to the inflation-indexed returned funding should be (actual of $495 million in FY 2019 FY 2008 amount million), a $121 mil $424 was FY 2008 spending of level its projected FY 2018 lion reduction from $616 million. The Heritage Foundation | - No. 3128, June 13, 2016. 3128, June 13, No. D D S - U T UDE UDE A NOT NOT T NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I ADDRESSED ADDRESSED Backgrounder Backgrounder ee No. 2668, March 23, 2012. March 2668, No. 19) L A Blueprint for Balance: S ommitt 3 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R t $122 esiden epublic Nicolas D. Loris, “Department of Energy Budget Cuts: Time to End the Hidden Green Stimulus,” Heritage Stimulus,” Green End the Hidden to Cuts: Time Budget of Energy “Department Loris, D. Nicolas Foundation the for Priorities and Reforms Policy: “Science Tubb, Mudd, and Katie Bridget Jack Spencer, Carafano, James Jay Foundation Heritage President,” 45th R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ ADDITIONAL READING cent of the nuclear science research funding, which cent of the nuclear and federally sponsored at universities is employed nuclear matter. The DOE and the National Science The DOE nuclear matter. nuclear U.S. conduct nearly all basic Foundation 90 per over and the DOE provides research, physics Under the Office of Science, the Office of Nuclear Under the Office re and experimental theoretical supports Physics of and interactions within search in the composition Return Funding for the DOE Office for the Funding Return Physics of Nuclear Levels to FY 2008 E&W 88 Ȗ Ȗ ADDITIONAL READING some ofthemost importantaspectsofbasicEnergy tion forscientificbreakthroughs andarguablyare environments. Thesemodels canlay thefounda ematics, computerscience,andintegratednetwork advance theDOE’s missionthroughappliedmath computer modeling,simulations, andtesting to This programundertheOfficeofSciencesconducts to FY2008Levels Return DOEAdvanced Scientific Computing Research Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr 45th President,” HeritageFoundation James Jay Carafano, JackSpencer, Bridget Mudd,andKatie Tubb, “Science Policy: PrioritiesandReforms for the Foundation Nicolas D. Loris, “Department ofEnergy Budget Cuts:Time to EndtheHiddenGreen Stimulus,” Heritage epublic esiden $231 t e BudgetR t an S ’ s Budget(FY20 P R Backgrounder tudy C t R OPO esolution esolution 5 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 2669, March 23,2012. ee Backgrounder ADDRESSED ADDRESSED ADDRESSED REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT A E T CTE U - S - D No. 3128,June13,2016. The Heritage Foundation | Foundation Heritage The 2008 spendingwas $351million). tion-indexed FY2008levels of$410million(actual straints, fundingshouldbereturned totheinfla budget. Inordertolive withintoday’s fiscalcon been thebeneficiaryofaconsistently expanding Department research,butthisprogramhasalso PRESIDENT Increases spendingto$820million. HOUSE E X heritage.org/BlueprintForBalance P L ANA T
S ION E N A T E R S C - - E&W - - - 89 7 RSC undertake. E T not A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Expects program to wind down operations in FY 2018 and shut down in FY 2019. Appears to eliminate program. Eliminates program. PRES companies planned to use ARPA–E funding either to use ARPA–E companies planned already funded work. to advance or to accelerate commercial become that have projects Government the global computer chips, successes—the Internet, initially developed (GPS)—were positioning system a com meet to not national security needs, to meet an opportunity saw mercial demand. Entrepreneurs the com in these defense technologies and created The DOE today. mercially viable products available objec government should conduct research to meet that the private sector does tives The Heritage Foundation | - No. 3128, June 13, 2016. 3128, June 13, No. D D D S - U T UDE UDE UDE A NOT T NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I ADDRESSED Backgrounder Backgrounder ee No. 2668, March 23, 2012. March 2668, No. 19) L A Blueprint for Balance: S ommitt 6 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R t $353 esiden epublic Nicolas D. Loris, “Department of Energy Budget Cuts: Time to End the Hidden Green Stimulus,” Heritage Stimulus,” Green End the Hidden to Cuts: Time Budget of Energy “Department Loris, D. Nicolas Foundation the for Priorities and Reforms Policy: “Science Tubb, Mudd, and Katie Bridget Jack Spencer, Carafano, James Jay Foundation Heritage President,” 45th R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ ARPA–E award, the GAO found that 18 had previ award, ARPA–E for a sim private-sector investment ously received that 12 of those 18 The GAO found ilar technology. projects that are neither high-risk nor something high-risk nor something projects that are neither support. Of the 44 cannot that private industry an that received small and medium-size companies However, ARPA–E does not always seem to follow to follow seem always does not ARPA–E However, clear goals: has The federal government its own grants to companies and ARPA–E several awarded ARPA–E is a federal program designed in 2007 is a federal program ARPA–E projects on which high-reward to fund high-risk, its own. embark on would not the private sector Eliminate the DOE Advanced Research Projects Agency– Projects Research Advanced the DOE Eliminate Energy Program E&W 90 Ȗ Ȗ ADDITIONAL READING and Infrastructure. program, andClimateEnvironmental Facilities Research Centersprogram,theGenomicScience ties andInfrastructure program,theBioenergy Science program,theBiologicalSystems Facili should bemadeintheClimateandEnvironmental Energy Department’s mission.Specifically, cuts duplicate other research,ordonot alignwiththe activities thatarebetter suitedtotheprivatesector, of Scienceoreliminatedentirelybecausetheyare should becutdrastically andmoved totheOffice subsurface biogeochemistry. Many BERprograms ing biology, radiochemistry, climatescience,and for avariety ofenergy-related subjects, includ The OfficeofScienceBERprogramfundsresearch Eliminate theDOEBiological andEnvironmental Research Program Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr 45th President,” HeritageFoundation James Jay Carafano, JackSpencer, Bridget Mudd,andKatie Tubb, “Science Policy: PrioritiesandReforms for the Foundation Nicolas D. Loris, “Department ofEnergy Budget Cuts:Time to EndtheHiddenGreen Stimulus,” Heritage epublic esiden $608 t e BudgetR t an S ’ s Budget(FY20 P R Backgrounder tudy C t R OPO esolution esolution 8 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 2668, March 23,2012. ee Backgrounder ADDRESSED ADDRESSED P P I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL A A T R R NOT NOT A T T UDE UDE T I I - A A - U L L L L S D D Y Y No. 3128,June13,2016. The Heritage Foundation | Foundation Heritage The program to2008levels offundingover thenext two budget. Congressshouldreconstitute the LDRR LDRR programandrequested nofundsinitsfinal graduallydecreasedfundingforthe Administration accurate knowledge ofradiationrisks. TheObama ar weaponscomplexcouldbeimproved withmore responsibilities like cleanupoftheremainingnucle it doesnot adequatelyunderstand, andgovernment inregulatinglow-dosement isengaged levels that Such researchiscriticalbecausethefederalgovern biological effectsoflow levels ofradiationexposure. program, whichwas createdtounderstand theradio funding istheLow-Dose RadiationResearch(LDRR) One BERprogramthatshouldreceive and 100percentinFY2019. years, beginningwith75percent fundinginFY2018 PRES wise useoftaxdollars. Reductions notspecified,butfindsprogramredundantanda Reduces spendingto$284million. IDE N T HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E increased R S C
- - - E&W - 91 - - C S R E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE T N IDE Reduces spending to $1.408 billion. PRES funds, to access that research and commercialize it. to access funds, Federal scientific R&D funding must meet a specific meet scientific R&D funding must Federal re or contribute to basic objective government work already private sector is not search where the become com projects that have ing. Government chips, computer Internet, mercial successes—the GPS—were national meet initially to developed demand. a commercial to meet not security needs, an opportunity in these defense Entrepreneurs saw created the commercially viable technologies and The DOE should conduct today. products available that the objectives government research to meet policies Further, undertake. private sector does not bureaucratic should be put in place that remove using private private sector, the and invite obstacles The Heritage Foundation | - Y No. 3128, June 13, 2016. 3128, June 13, No. D - S L - L U - A I T UDE T A NOT NOT NOT R T A NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I P ADDRESSED ADDRESSED ADDRESSED Backgrounder Backgrounder ee No. 2668, March 23, 2012. March 2668, No. 19) L A Blueprint for Balance: S ommitt The problem is that many BES many The problem is that 9 10 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R t $331 esiden epublic Nicolas D. Loris, “Department of Energy Budget Cuts: Time to End the Hidden Green Stimulus,” Heritage Stimulus,” Green End the Hidden to Cuts: Time Budget of Energy “Department Loris, D. Nicolas Foundation the for Priorities and Reforms Policy: “Science Tubb, Mudd, and Katie Bridget Jack Spencer, Carafano, James Jay Foundation Heritage President,” 45th R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ ADDITIONAL READING eliminate some subprograms and return others to others eliminate some subprograms and return 2008 levels. near-FY companies are capable of fulfilling these roles, these roles, companies are capable of fulfilling fund laboratories or by through their own whether research. The proposed cuts would ing university subprograms stray from fundamental research into from fundamental research into subprograms stray should elimi The government commercialization. because private nate such aspects of these programs dations for new energy technologies and to sup dations for new energy and environment, in energy, port the DOE mission national security.” research to understand, predict, and ultimately predict, and ultimately research to understand, atomic, and energy at the electronic, control matter the foun to provide in order and molecular levels Reduce Funding for the DOE Basic Energy for the DOE Sciences Program Reduce Funding “fundamental investigates The BES program E&W 92 Ȗ Ȗ ADDITIONAL READING tribute tobasicresearchinareaswheretheprivate to meetgovernment aspecific objective ortocon ized tocutwaste andreininfederalspendingeither Federal scientificR&Dfundingshouldberational than basicresearch. energy sourcesandtechnologydevelopments rather ergy Innovation Hubsfocusonpromoting specific tute. Regardlessofthemeritssuchendeavors, En and SimulationHub, andCriticalMaterialsInsti Hub,and EnergyStorage NuclearEnergyModeling technologies: theFuels fromSunlightHub, Batteries disciplinary teams)toovercome obstacles inenergy The DOEhasfourEnergyInnovation Hubs(multi InnovationEliminate DOEEnergy Hubs Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr 45th President,” HeritageFoundation James Jay Carafano, JackSpencer, Bridget Mudd,andKatie Tubb, “Science Policy: PrioritiesandReforms for the Foundation Nicolas D. Loris, “Department ofEnergy Budget Cuts:Time to EndtheHiddenGreen Stimulus,” Heritage epublic esiden $39 t e BudgetR t an S ’ s Budget(FY20 P R Backgrounder tudy C t R OPO esolution esolution 11 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 2668, March 23,2012. ee Backgrounder ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT NOT A T U - - S - No. 3128,June13,2016. - - The Heritage Foundation | Foundation Heritage The funds, toaccessthatresearch andcommercializeit. obstacles andinvite theprivatesector, usingprivate should beimplementedthatremove bureaucratic private sectordoesnot undertake, andpolicies research tomeet government objectives thatthe products available today. TheDOEshouldconduct technologies andcreatedthecommerciallyviable Entrepreneurs saw anopportunityinthesedefense security needs, not tomeet acommercialdemand. developed initiallytomeet national GPS—were mercial successes—theInternet, computerchips, get. the federalgovernment’s fourth-largestR&Dbud sector isnot alreadyworking.In2013, theDOEhad PRESIDENT 12 Government projectsthathave becomecom HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C - - E&W - 93 - - - RSC E T A N E ION Backgrounder Backgrounder S T ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Reduces spending to $61.3 million. Appears to reduce spending. Eliminates program. PRES protection) could very well fall under the Depart well could very protection) purview. Security’s ment of Homeland While upgrading the nation’s electricity grid has electricity nation’s While upgrading the accomplished at the private, merit, it should be role is The OE’s and regional levels. local, state, Regulatory Energy Federal redundant with the Commission (FERC); Electric the North American (NERC);Reliability Corporation inde regional operators (ISOs); and the private pendent system advanced renewable of subsidizing Instead sector. the energy resources or smart-grid technology, should reduce the unnecessary federal government Na upgrades. regulatory burden on grid siting and in cybersecutional security concerns (for example, grid public–private role for rity or for a cooperative The Heritage Foundation | Y Y D D D S - L L L L - U A A I I T - UDE UDE UDE T T A NOT R R T A A NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I P P ADDRESSED Under the Obama Under the Obama 14 ee No. 2668, March 23, 2012. March 2668, No. 19) L A Blueprint for Balance: S ommitt 13 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R t $248 esiden epublic Nicolas D. Loris, “Department of Energy Budget Cuts: Time to End the Hidden Green Stimulus,” Heritage Stimulus,” Green End the Hidden to Cuts: Time Budget of Energy “Department Loris, D. Nicolas Foundation Heritage Foundation or Underrated?” Grid: Outdated Electricity “America’s Lesser, Jonathan 2014. 29, October 2959, No. R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ private sector in addressing threats like cyber like private sector in addressing threats security and permits cross-border transmission line construction. rity research and development. It also serves as a It also serves rity research and development. information, connection point for communication, and the the federal government and data between The OE focuses on advanced grid technology R&D, advanced grid technology R&D, The OE focuses on for states and assistance transmission permitting and cybersecu security, infrastructure and tribes, and flexible electricity system.” and flexible electricity used to Administration, much of the funding was energy. and renewable electric vehicles promote The Office of Electricity Deliverability and Ener Deliverability The Office of Electricity activities to modernize the gy Reliability pursues “ensure a resilient, reliable, grid to power nation’s Drastically Cut or Eliminate the DOE Office Eliminate Cut or Drastically Electricity of and Energy Reliability Deliverability E&W
Ȗ Ȗ ADDITIONAL READING opportunity forclean-energyinvestments already doing soisintheireconomicinterest. Themarket sector canundertake ifcompaniesbelieve that All ofthisspendingisforactivitiesthattheprivate eliminate theEERE. it isoutrightcommercialization.Congressshould technologies isnot aninvestment inbasicresearch; energy efficiency, andrenewables. Promoting these engine efficiency, vehicle weightreduction,home projects as“drop-in”biofuels, improvements in fundingwenttosuch the ObamaAdministration, sition toaglobalcleanenergyeconomy.” create andsustain Americanleadershipinthetran The EEREfundsresearchanddevelopment “to and Renewable Energy Efficiency ofEnergy Eliminate theDOEOffice 94 Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr 45th President,” HeritageFoundation James Jay Carafano, JackSpencer, Bridget Mudd,andKatie Tubb, “Science Policy: PrioritiesandReforms for the Foundation Nicolas D. Loris, “Department ofEnergy Budget Cuts:Time to EndtheHiddenGreen Stimulus,” Heritage epublic esiden $2.3 t e BudgetR t an S ’ s Budget(FY20 P Backgrounder R tudy C t R OPO esolution esolution 15 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 2668, March 23,2012. ee Backgrounder ADDRESSED 16 P P I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL Under A A T R R NOT A T T UDE UDE UDE T I I A A U L L L L S D D D No. 3128,June13,2016. Y Y - The Heritage Foundation | Foundation Heritage The private sector, usingprivatefunds, toaccessthat that remove bureaucraticobstacles andinvite the undertake, andpoliciesshouldbeimplemented ment objectives thattheprivatesectordoesnot The DOEshouldconductresearchtomeet govern any government effortstosubsidizeit. for energytechnologyandservicesindependentof There isarobust, consistent, andgrowing demand kets. Theglobalmarket forenergytotals $6trillion. tation-fuels markets aremultitrillion-dollarmar oline in2014. Both theelectricityandtranspor exists. Americansspentroughly$456billionongas research andcommercializeit. PRES Eliminates program. Appears toreducespending. Reduces spendingto$575.6million. IDE N T HOUS
E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E RSC - - - - E&W - - 95 - RSC E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Reduces spending to $302 million. Reduces spending. Eliminates program. PRES this critical process and almost without exception without exception this critical process and almost fails in some way. sell storage facilities used for the SPR. Eliminating sell storage facilities energy projects and selling off spending for fossil resources elimi of stockpiled reserves government Energy. Fossil an Office of nates the need for tech to force government-developed attempting By dimin the government nologies into the market, out entrepreneur and crowds ishes the role of the This practice of picking private-sector investment. the winners and losers denies energy technologies which in the marketplace, opportunity to compete market-viable to develop way is the only proven to drive attempts When the government products. circumvents technological commercialization, it The Heritage Foundation | Y Y - D D D S L L L L - U A A I I T UDE UDE UDE T T emis A NOT 2 R R T A A NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I P P ADDRESSED ee No. 2668, March 23, 2012. March 2668, No. 19) L A Blueprint for Balance: S ommitt 17 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R t $984 esiden epublic Nicolas D. Loris, “Department of Energy Budget Cuts: Time to End the Hidden Green Stimulus,” Heritage Stimulus,” Green End the Hidden to Cuts: Time Budget of Energy “Department Loris, D. Nicolas Foundation R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ ADDITIONAL READING Ȗ and ignores the private sector’s ability to unload ability and ignores the private sector’s time, Over in such an event. abundant inventories the SPR and Congress should sell all of the oil in ment-controlled stockpile of oil, the Strategic ment-controlled stockpile more The SPR has been used Reserve. Petroleum supply shocks for politics than for responding to oil energy markets. Other funding has gone to managing the govern of the private sector. The FE also authorizes imports The FE of the private sector. is an outdated and which gas, and exports of natural restricts function that unnecessarily unnecessary funding for fossil-energy research and development research and development funding for fossil-energy that will reduce CO focused on technologies that should be the province sions and are activities Eliminate the DOE Office the DOE Eliminate Energy Fossil of of the Administration,Under the Obama most E&W
Ȗ Ȗ ADDITIONAL READING $103.8 million,withtheremaining spending Fuel-cycle R&Dshouldalsobedecreasedby Scientific User Facility. cutting tensofmillionsdollarsfromtheNational the unnecessary Modeling andSimulationHub Cuts intheNEET budgetshouldincludeeliminating with investigating thecrosscutting oftechnologies. Energy EnablingTechnologies programischarged of Science.For example,thePresident’s Nuclear falls underbasicR&Dshouldbemoved totheOffice conducted by theprivatesector. Work thatclearly to spendtaxes onnuclearprojectsthatshouldbe an appropriatefunctionofthefederalgovernment with conventional fuelsandrenewables, itisnot safety, security, andregulatoryissues. Like spending clear power intheU.S. andaddresstechnical,cost, The OfficeofNuclearEnergyaimstoadvancenu ofNuclear Energy Eliminate theDOEOffice 96 Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Foundation Katie Tubb andJackSpencer, “Real Consent for NuclearWaste Management Starts with aFree Market,” Heritage Foundation Nicolas D. Loris, “Department ofEnergy Budget Cuts:Time to EndtheHiddenGreen Stimulus,” Heritage epublic esiden $364 t e BudgetR t an S ’ s Budget(FY20 P Backgrounder Backgrounder R tudy C t R OPO esolution esolution 18 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 2668, March 23,2012. No. 3107, March 22,2016. ee ADDRESSED ADDRESSED ADDRESSED P I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT NOT A T UDE T I A U L - L S D Y The Heritage Foundation | Foundation Heritage The FY 2018 tostart uptheprogramandreevaluate DOE andtheNuclearRegulatoryCommissionfor Congress shouldprovide $50millioneachtothe about whattodonext. of theinformationavailable tomake wisedecisions of Yucca Mountain, completing thereviewmakes all at Yucca Mountain. Regardlessoftheultimatefate repository the permitapplicationforadeepgeologic OCRWM, theoffice wasresponsibleformanaging eliminatedthe Before theObamaAdministration ment andsupportthereviewofYucca Mountain. quired OfficeofCivilianRadioactive Waste Manage reprogrammed toreconstitute thestatutorily re without directionfromCongress. be usedfortheDOE’s consent-basedsitinginitiative concrete fundingneedsinFY2019. Nofundsshould PRES spending by$116million. Reduces FuelCycleR&Dspendingto$60millionbutincreasesNEET IDE N T HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C - - E&W - - 97 - - - C S R
E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE PRESIDENT that research and commercialize it. Congress should eliminate all SBIR and STTR fund Congress should eliminate that projects Government ing in the DOE budget. Internet, become commercial successes—the have GPS—werecomputer chips, initially to developed a com to meet not national security needs, meet an opportu saw mercial demand. Entrepreneurs technologies and created the nity in these defense The today. products available commercially viable research to Department of Energy should conduct that the private sector objectives government meet imple and policies should be undertake, does not and in bureaucratic obstacles mented that remove to access using private funds, vite the private sector, The Heritage Foundation |
20 No. 3128, June 13, 2016. 3128, June 13, No. S U T A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED Backgrounder ee No. 2668, March 23, 2012. March 2668, No. 19) L A Blueprint for Balance: S ommitt 19 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R t $153 esiden epublic Nicolas D. Loris, “Department of Energy Budget Cuts: Time to End the Hidden Green Stimulus,” Heritage Stimulus,” Green End the Hidden to Cuts: Time Budget of Energy “Department Loris, D. Nicolas Foundation the for Priorities and Reforms Policy: “Science Tubb, Mudd, and Katie Bridget Jack Spencer, Carafano, James Jay Foundation Heritage President,” 45th R House Budge Pr Sena Ȗ Ȗ SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ ADDITIONAL READING private sector reaps the benefits of any successes. any private sector reaps the benefits of promote economic development. It ensures that the economic development. promote as has been the case with for the failures, public pays while the energy investments, failed government more emphasis on commercialization, “[a]ccepting commercialization, “[a]ccepting more emphasis on Using of agencygreater risk in support missions.” to way higher risk is no dollars to offset taxpayer derived from Federal R&D, thereby increasing increasing thereby R&D, from Federal derived and economic growth.” productivity, competition, goal that their is to place programs stress today Both The DOE Office of Science includes SBIR and STTR The DOE Office original intent to “increase programs with the of innovations private sector commercialization Eliminate Funding for Small Business Innovation Research Research Innovation Business for Small Funding Eliminate Transfer Technology and Small Business E&W
Ȗ Ȗ ADDITIONAL READING This wouldsave $27.573 billioninFY2018. sion thestoragespaceorsellittoprivatecompanies. pletely depleted. TheDOEshould thendecommis total U.S. crudeproductionuntilthereserve iscom not exceeding 10percentofthepreviousmonth’s the SPRoilby periodicallyauctioningan amount To avoid disrupting oilmarkets, theDOEshouldsell sell ordecommissionthesupportinginfrastructure. authorize theDOEtoliquidatethesereserves and trolled government stockpiles can.Congressshould efficiently tosupplyshocksthanfederallycon are abundant,andopenmarkets willrespondmore in suchanevent. Privateinventories andreserves vate sector’s abilitytounloadabundantinventories sponding tooilsupplyshocks, anditignoresthepri The SPRhasbeenusedmoreforpoliticsthanre Home Heating Supply andGasoline Reserves Liquidate theStrategic Petroleum Reserve andtheNortheastern 98 Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr Backgrounder Nicolas D. Loris, “Why Congress thePlugonStrategic ShouldPull Petroleum Reserve,” HeritageFoundation Foundation Nicolas D. Loris, “Department ofEnergy Budget Cuts:Time to EndtheHiddenGreen Stimulus,” Heritage epublic esiden t $31 e BudgetR t an S ’ s Budget(FY20 P Backgrounder R tudy C t R OPO No. 3046,August 20, 2015. esolution esolution 21 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 2668, March 23,2012. ee ADDRESSED ADDRESSED P P I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL A A T R R NOT NOT A T T UDE UDE - T I I A A U L L L L S D D - Y Y - - - The Heritage Foundation | Foundation Heritage The stockpiles can.Thissaves $216millioninFY2018. much moreefficientlythan government-controlled os by buildingupinventories andunloadingthem companies respondtopricesandmarket scenari oil, tobeusedatthePresident’s discretion. Private and businessesintheNortheast thatareheatedby line toprotect against supplydisruptions forhomes lons ofdieseland1milliongallonsrefinedgaso and areheldby theDOE.Theycontain1milliongal lished by theEnergyPolicy andConservationAct oline SupplyReserve. Thesereserves wereestab Northeast Home Heating OilReserve andtheGas The DOEshouldalsoliquidateorprivatizethe PRES Authorizes saleof58millionbarrelsfromSPR. from SPR. Reduces spendingto$175.1millionandsells$637ofcrudeoil IDE N T HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E R S C - - - - - E&W 99 - - RSC E T Backgrounder Backgrounder A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE Transfers TVA to the private sector. PRESIDENT and growing liabilities for all U.S. taxpayers. Amer taxpayers. liabilities for all U.S. and growing some of the region’s pay the TVA icans serviced by Despite three major electricity prices. highest has the TVA efforts in recent history, debt-reduction and ratepay taxpayer-backed reduced its not still debt. er-backed efficiency to the to restore way effective The most auction that in a competitive is to sell its assets TVA contracts and continues service for honors existing proceeds should be used Any customers. existing the national debt. down solely to pay The Heritage Foundation | - D S - - - - U T UDE A NOT NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 22 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $30 esiden epublic Ken G. Glozer, “Time for the Sun to Set on the Tennessee Valley Authority,” Heritage Foundation Heritage Foundation Authority,” Valley on the Tennessee Set the Sun to for “Time G. Glozer, Ken 6, 2014. May 2904, No. R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ ADDITIONAL READING Ȗ oversight from either the government or the private from either the government oversight environmental decisions, sector has led to costly electricity rates, high expenses, damage, excessive means of providing rural areas with electricity that rural areas with electricity means of providing special privilegesenables tremendous that inter The lack of effective competition. fere with market nessee, Alabama, Mississippi, and Kentucky. This This Mississippi, and Kentucky. nessee, Alabama, contin goal The TVA’s has long been accomplished. is an outmoded corporation uance as a government tion infrastructure, flood control, power generation, flood control, power tion infrastructure, in a re economic development and reforestation, especially in Ten nine states, gion encompassing Auction Off the Tennessee Valley Authority Valley Tennessee the Off Auction naviga to provide was original purpose The TVA’s E&W
Ȗ Ȗ ADDITIONAL READING and LasVegas. PMAs now supplysuchareasasLosAngeles, Vail, provide subsidizedpower topoorcommunities, the off federalirrigationanddamconstruction andto subsidized by taxpayers. Originally intendedtopay not pay taxes, andtheyenjoy low-interest loans the SouthandWest atsubsidizedprices. Theydo dams, reservoirs, andlocks. Theysellelectricityin part oftheNewDealtomaintainpower generation, ing power. ThePMAswereorganizedinthe1930sas should not beinthebusinessofmanagingandsell a privateandlocalfunction.Thefederalgovernment Electricity productionanddistribution isprimarily Auction Offthe Four Remaining Power Marketing Administrations 100 Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr No. 2904. May 6,2014. Ken G.Glozer, “Time for theSunto Set ontheTennessee Valley Authority,” HeritageFoundation Foundation Nicolas D. Loris, “Department ofEnergy Budget Cuts:Time to EndtheHiddenGreen Stimulus,” Heritage epublic esiden $35 t e BudgetR t an S ’ s Budget(FY20 P Backgrounder R tudy C t R OPO esolution esolution 23 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 2668, March 23,2012. ee ADDRESSED ADDRESSED P I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL A T R NOT NOT A T UDE UDE T I A U L L S D D - Y The Heritage Foundation | Foundation Heritage The sold undercompetitive bidding. tomers. TheremainingPMAsshouldsimilarlybe wasAdministration successfullysoldofftoitscus proposed privatizingthePMAs. TheAlaskaPower cans. Both theReaganandClintonAdministrations sidize theelectricitybillsofaselectgroupAmeri activity, andtaxpayers shouldnot beforcedtosub should not beacentralized,government-managed Generating anddistributing commercialelectricity PRES Sells allfourPMAs. Administration. Details planstosellallPMAsexcepttheSoutheasternPower IDE N T HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A Backgrounder T E RSC - - - E&W 101 heritage.org/BlueprintForBalance Congress should make clear that Congress should make Currently, companies must obtain approval from approval obtain companies must Currently, The Heritage Foundation | Congress should open access to America’s national national Congress should open access to America’s Any sustainable, long-term solution for nuclear waste solution for nuclear waste long-term sustainable, Any A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Passed in 1906, the Foreign Dredge Act all ships engaged requires that the Foreign in 1906, Passed 24 Blueprint for Balance: transportation for nongovernment consumers, including the extension of existing programs. A market- programs. of existing including the extension consumers, transportation for nongovernment reliable, affordable energy while eliminating by delivering based energy sector would benefit consumers for special interests. favoritism government Prohibit new loan guarantees and any new energy subsidies. new loan guarantees and any Prohibit new or infrastructure, dollars will be used directly for energy production, storage, efficiency, no taxpayer viable option. Congress should appropriate funds to the Department of Energy and Nuclear Regulatory Congress should appropriate funds to the Department viable option. their review of the permit application and transition to a more market- Commission to complete based approach. Complete licensing for Yucca Mountain. licensing for Yucca Complete spent more than $15 have and electricity ratepayers management requires geologic storage. Taxpayers disqualified it as a site, and no technical or scientific evidence has yet Mountain billion on the Yucca work with industry while protecting taxpayer money and the labs’ ability to conduct the basic research that money and the labs’ ability to conduct the basic taxpayer while protecting work with industry needs. the federal government labs and create a system that allows the private sector, using private funds, to tap into DOE research and using private funds, the private sector, that allows labs and create a system organically. basic research to reach the market labs should allow Federal explore commercial opportunities. national laboratories help America’s managementstructure to a more effective Congress should establish states to permit LNG facilities. states national laboratories. Open access to America’s not in the public interest. The decision to export natural gas should be a business decision, not a political a political decision, not The decision to export natural gas should be a business in the public interest. not like and natural gas should be treated countries, trades regularly with a number of non-FTA one. The U.S. process and empower DOE from the permitting the good. globally traded other Congress should remove any the Federal Energy Regulatory Commission and the Department of Energy before exporting natural gas. A natural gas. Regulatory Commission and the Department of Energy before exporting Energy the Federal In the if the recipient country has a free trade agreement with the U.S. facility is automatically authorized of natural gas exports is the volume if it believes a permit DOE can arbitrarily deny the absence of an FTA, that meet their needs without regard to country of origin. their needs without regard to that meet exports. natural gas impediments to liquefied Remove or control costs. The average U.S. dredging project received just two bids, and three companies accounted and three companies two bids, just project received dredging The average U.S. or control costs. act would increase this protectionist period. Repealing 2016 to the 2014 share, over for 56 percent of market to select companies sponsors while allowing for American dredging projects and reduce costs competition deadweight tonnage) and produce just 0.2 percent of U.S. gross domestic product. Only two hopper dredges product. Only two hopper gross domestic of U.S. percent 0.2 deadweight tonnage) and produce just has The restriction years despite large 10 improvements. demand for maritime been built in the past have to increase capacity incentive created an oligopoly with little connected dredging companies of politically in dredging U.S. waters must be built in the United States. The act has succeeded in ensuring that U.S. ports ports that U.S. in ensuring The act has succeeded United States. be built in the must waters U.S. in dredging has failed to international dredging firms but cost-effective and most access to the largest have do not (by shipbuilding market hold less than 1 percent of the global shipbuilders U.S. industry. domestic stimulate Policy Riders Policy Dredge Act. Foreign Repeal the E&W 4. 7. 3. 102 2. 1. 14. 13. 12. 11. 10. ENDNOTES 9. 6. 5. .8
The estimated savings of$331millionfor FY2019 equalsthedifference between theinflation-adjusted FY 2019 recommended level of April 19, 2018). Act, 2018. Heritageexperts assume that FY2018 spendingremains constant inFY2019. Act, 2018, Law Public 115-141, 115thCong., https://www.congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf (accessed May 13,2018). Science: Advanced Research Projects Agency–Energy Estimated savings of $608millionfor FY2019 are basedontheFY2018 spendinglevel of$608millionasfound inU.S. Department of Estimated savings of$231millionfor FY2019 are based ontheFY2018 spendinglevel of$643 millionasfound inU.S. Department of Estimated savings of$122 millionfor FY2019 are based ontheFY2018 spendinglevel of$618 millionasfound inU.S. Department ofEnergy, Estimated savings of $353 millionfor FY2019 are basedontheFY2018 appropriated level asspecifiedinthe Consolidated Appropriations U.S. Department ofEnergy, Office ofChiefFinancialOfficer, U.S. Government Accountability Office, Estimated savings of$248 millionfor FY2019 are based ontheFY2018 appropriated level asspecifiedinthe Consolidated Appropriations Estimated savings of$39 millionfor FY2019 are basedontheFY2017 spending levels asfound inU.S. Department ofEnergy, Office of U.S. Department ofEnergy, Office ofElectricity Delivery andEnergy Reliability, “Mission,” http://energy.gov/oe/mission (accessed James Jay Carafano, JackSpencer, Bridget Mudd,andKatie Tubb, “Science Policy: PrioritiesandReforms for the45th President,” Heritage U.S. Department ofEnergy, Office ofScience,“Basic Energy Sciences (BES),” last modifiedJanuary 29, 2018, http://science.energy.gov/bes/ Estimated savings of$493 millionfor FY2019 are basedontherequested FY2018 spendinglevels for eachprogram asspecifiedin U.S. Estimated savings of $331millionfor FY2019 are basedontherecommended $287.6 millioninFY2013 spendingcuts for Energy Basic Totals may notadddueto rounding. on Applicants’ PriorFunding (accessed April19, 2018). Innovative Tech. Loan Guarantee Program, Tribal Energy Loan Guarantee Program, Energy Information Administration experts assume that FY2017 spendingremains constant through FY2019. Estimated savings include$15 millionfor theFuels from Sunlight on thepersonal consumption expenditures (PCE)index. Savings equalthedifference between projected spendingof$643 millionand spending remains constant inFY2019. spending remains constant inFY2019. The FY2008level of$351 millionwould be$411 millionininflation-adjusted 2019 dollars based Energy, NuclearEnergy, Advanced Research Projects Agency–Energy, Advanced Tech. Vehicles Manufacturing Loan Program, Title 17– Backgrounder Energy Nuclear Security Administration: Federal SalariesandExpenses, Weapons Activities, Defense NuclearNonproliferation, Naval Reactors Office ofChiefFinancialOfficer, Chief FinancialOfficer, Sciences asfound inNicolas D. Loris, “Department ofEnergy Budget Cuts:Time to EndtheHiddenGreen Stimulus,” HeritageFoundation and assuming 2.0 percent inflation in2019). www.energy.gov/sites/prod/files/2018/03/f49/DOE-FY2019-Budget-in-Brief_0.pdf (accessed May 13,2018). The FY2008level of$424 not listed intheFY2019 budget request); andnothingfor theCriticalMaterials Institute (becausethebudget request doesnotfundthisin p. 49, https://www.energy.gov/sites/prod/files/2018/03/f49/DOE-FY2019-Budget-Volume-4_0.pdf (accessed May 13,2018). Heritage recommended spendingof$411 million. million would be$496 millionininflation-adjusted 2019 dollars basedonthepersonal consumption expenditures (PCE)index through 2018 million for cancelling theMinority ServingInstitution Partnership Program, $73 millionfor reductions intheSecure Transportation Asset, $1.528 billionandtheestimated 2019 level of$1.859 billion.Heritageexperts assume that theFY2018 enacted level holdssteady inFY 2019. $1.859 billionasfound inU.S. Department ofEnergy, $30.3 millionfor reductions inInformation Technology andCyber Security, $0.6 millionfor NuclearVerification, 1.7 million for International Foundation FY 2019). Hub; $24.3 millionfor theBatteries andEnergy Storage Hub; nothingfor theNuclearEnergy Modeling andSimulation Hub(becauseitis Energy, Office ofChiefFinancialOfficer, Energy, DOE%20IG%20ARPA-E%20Audit.pdf (accessed April19, 2018). Department ofEnergy, Office ofInspector General, Office of AuditsandInspections, Heritage experts assume that FY2018 spendingremains constant inFY2019. Energy, FY2017BudgetVolume%204.pdf (accessed April19, 2018). Nuclear Safeguards, and$368 millionfor reductions inDefense Environmental Clean-Up. March 2018, https://www.energy.gov/sites/prod/files/2018/03/f49/FY-2019-Volume-1.pdf (accessed May 13,2018).Savings include $18.8 Department ofEnergy, Office ofChiefFinancialOfficer, https://www.energy.gov/sites/prod/files/2018/03/f49/FY-2019-Volume-3-Part-2.pdf (accessed May 13,2018), and U.S. Department of billion ininflation-adjusted FY2019 dollars basedonthepersonal consumption expenditures (PCE)index. The FY2018 spendinglevel was , OAS-RA-11-11, August 2011, http://science.house.gov/sites/republicans.science.house.gov/files/documents/hearings/2011%2008%20 Department of Energy FY2019 Congressional Budget Request: Budget inBrief Department of Energy FY2019 Congressional Budget Request: Budget inBrief Backgrounder No. 2668, March 23,2012. These cuts would have brought FY2013 spendingto alevel of$1.402 billion,which would be$1.528 Department of Energy FY2019 Congressional Budget Request, Volume Part 3, 2:Energy Efficiency and Renewable Blueprint for Balance: Blueprint for No. 3128,June13,2016, http://thf-reports.s3.amazonaws.com/2016/BG3128.pdf. , GAO-12-112, January2012, http://www.gao.gov/assets/590/587667.pdf (accessed April19, 2018). SeealsoU.S. Department of Energy FY2019 Congressional Budget Request: Budget inBrief Department of Energy: Advanced Research Projects Agency–Energy Could Benefitfrom Information Department of Energy FY2019 Congressional Budget Request, Volume Science 4, AFEDERAL BUDGET FOR FISCAL YEAR2019 Department of Energy FY2019 Congressional Budget Request: Budget inBrief , February 2016, p. 239, https://www.energy.gov/sites/prod/files/2016/02/f29/ Department of Energy FY2019 Congressional Budget Request, Volume National 1, Department of Energy FY2017 Congressional Budget Request, The Heritage Foundation | Foundation Heritage The Audit Report: The Advanced Research Projects Agency– , p. 49. Heritageexperts assume that FY2018 , p. 49. Heritageexperts assume that FY2018 heritage.org/BlueprintForBalance , March 2018, p. 49, https:// , March 2018, p. 334, , March 2018, Volume 4 , p. 49. , , E&W 103 heritage.org/BlueprintForBalance Department of Energy FY 2019 Congressional Budget Budget Congressional FY 2019 Energy of Department The Heritage Foundation | No. 2904, May 6, 2014, http://www.heritage.org/research/reports/2014/05/ 6, 2014, May 2904, No. A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Backgrounder Backgrounder , p. 394, https://www.energy.gov/sites/prod/files/2018/03/f49/DOE-FY2019-Budget-Volume-4_0.pdf (accessed (accessed https://www.energy.gov/sites/prod/files/2018/03/f49/DOE-FY2019-Budget-Volume-4_0.pdf 394, , p. Blueprint for Balance: No. 3232, July 27, 2017, https://www.heritage.org/sites/default/files/2017-07/BG3232.pdf. 2017, July 27, 3232, No. holds steady in FY 2019. holds steady including $33.968 billion in one-time savings and $244 million in discretionary savings. in discretionary million and $244 billion in one-time savings including $33.968 February 7, 2017). In inflation-adjusted terms, the CBO’s FY 1997 estimates translate into a range of $33.983 billion to $45.804 billion in to $45.804 billion range of $33.983 a into translate estimates FY 1997 terms, the CBO’s In inflation-adjusted 2017). 7, February FY 2019) for the TVA as well as $3 million in mandatory contributions to the TVA fund in FY 2019 as included in the most recent April 2018 April 2018 recent as included in the most fund in FY 2019 the TVA to contributions as $3 million in mandatory as well the TVA for FY 2019) FY 2018 from selling the Northeastern Home Heating and Gasoline Supply Reserves equals $180 million. Both reserves hold 1 million barrels hold 1 million barrels million. Both reserves equals $180 and Gasoline Home Heating Supply Reserves selling the Northeastern from FY 2018 FY 2019, this would mean selling off 477 million of barrels (186 MMB sweet and 291 MMB sour) based on the most recently available data on data available recently and 291 MMB sour) based on the most sweet (186 MMB 477 million of barrels mean selling off this would FY 2019, May 13, 2018). Heritage experts assume that the FY 2017 enacted level (no FY 2018 estimates were provided) holds steady through FY 2019. through holds steady provided) were estimates (no FY 2018 level enacted the FY 2017 that assume Heritage experts 13, 2018). May Reserves, and $252 million from the Strategic Petroleum Reserves. Heritage experts assume that FY 2018 spending remains constant in constant spending remains FY 2018 that assume experts Heritage Reserves. Petroleum the Strategic million from $252 and Reserves, FY 2019. Energy,” http://energy.gov/eere/about-office-energy-efficiency-and-renewable-energy (accessed April 19, 2018). 19, April (accessed http://energy.gov/eere/about-office-energy-efficiency-and-renewable-energy Energy,” time-for-the-sun-to-set-on-the-tennessee-valley-authority. the SPR will sell off $630 million worth of oil in FY 2019 according to its most recent April 2018 baseline spending projections. Thus, the one- baseline spending projections. 2018 April recent to its most according worth of oil in FY 2019 million the SPR will sell off $630 in One-time savings savings. million in discretionary $237 well as as billion in FY 2018 selling off the SPR equals $30.160 from time savings per savings million in discretionary also includes $7 Reserves sold. Selling the Northeast are the reserves until hold constant these prices billion in FY 2018, $27.789 saves Reserves the SPR and Northeast selling off Combined, baseline spending projections. April 2018 the CBO’s the SPR’s inventory (April 20, 2018), including 259.3 MMB of West Texas Intermediary sweet crude oil and 405.4 MMB of sour crude oil, for a MMB of sour crude oil, for oil and 405.4 crude sweet Intermediary Texas MMB of West including 259.3 2018), 20, (April inventory the SPR’s assume sour (Dubai). Heritage experts for and $62.28 sweet for $68.11 oil was for price the market 2018, As of April 27, MMB. of 664.7 total total sales of results in This FY 2019. through constant remain prices begins and that the sell-off until level that at remains inventory that $115 million in discretionary savings for FY 2019, and another $707 million in mandatory savings from the funds contributed to these PMAs to the funds contributed from savings million in mandatory and another $707 FY 2019, for savings million in discretionary $115 $30.790 billion (roughly 72 percent of the current inventory). Heritage experts subtract $630 million from this amount as the CBO projects projects as the CBO this amount million from $630 subtract Heritage experts inventory). the current of percent 72 billion (roughly $30.790 recommended level of $645 million and the estimated 2019 level of $1.009 billion. Heritage experts assume that the FY 2018 enacted level level enacted FY 2018 the that assume billion. Heritage experts of $1.009 level 2019 million and the estimated of $645 level recommended Sell Electricity?” November 1997, p. 15, https://www.cbo.gov/sites/default/files/105th-congress-1997-1998/reports/electric.pdf (accessed (accessed https://www.cbo.gov/sites/default/files/105th-congress-1997-1998/reports/electric.pdf 15, p. 1997, November Sell Electricity?” total to projected which are costs, and maintenance operation the annual from savings would generate off these PMAs addition, auctioning billion in FY 2019. equal $34.805 savings total Thus, baseline spending projections. April 2018 recent in its most the CBO by as estimated as found in Loris, “Department of Energy Budget Cuts: Time to End the Hidden Green Stimulus.” These cuts would have brought FY 2013 FY 2013 brought have would cuts These Stimulus.” Green End the Hidden to Cuts: Time Budget of Energy “Department in Loris, as found CBO baseline spending projections. It is hard to know the TVA’s market value, but comparable assets in the Southeast suggest that the that suggest in the Southeast assets but comparable value, market the TVA’s know to It is hard projections. baseline spending CBO Control Table by Appropriation,” p. 1, https://www.energy.gov/sites/prod/files/2018/04/f50/FY2019ControlTablebyAppropriation.pdf 1, https://www.energy.gov/sites/prod/files/2018/04/f50/FY2019ControlTablebyAppropriation.pdf p. Appropriation,” by Table Control Backgrounder Request, Volume 4, Science Volume Request, spending to a level of $592 million, which would be $645 million in inflation-adjusted FY 2019 dollars based on the personal consumption based on the personal dollars 2019 FY million in inflation-adjusted be $645 million, which would of $592 a level spending to estimated FY 2019 dollars. Heritage experts assume the low end of this estimate at $33.983 billion in one-time savings for FY 2019. In In FY 2019. for billion in one-time savings $33.983 at of this estimate end the low assume Heritage experts dollars. FY 2019 estimated expenditures (PCE) index. The FY 2018 spending level was $1.009 billion as found in U.S. Department of Energy, “FY 2019 Summary “FY 2019 of Energy, Department U.S. in billion as found $1.009 was spending level FY 2018 The (PCE) index. expenditures valued them between $23 billion and $31 billion in FY 1997. See Congressional Budget Office, “A CBO Study: Should the Federal Government Government Federal Should the Study: CBO “A Office, Budget See Congressional $23 billion and $31 billion in FY 1997. them between valued (42 gallons per barrel), and the current price per gallon is $2.16 for home heating oil and $2.12 for gasoline. Heritage experts assume that that assume Heritage experts gasoline. for oil and $2.12 home heating for per gallon is $2.16 price and the current gallons per barrel), (42 (accessed May 13, 2018). The estimated savings of $364 million for FY 2019 equals the difference between the inflation-adjusted FY 2019 FY the inflation-adjusted between equals the difference FY 2019 of $364 million for savings estimated The 13, 2018). May (accessed Nicolas D. Loris, “Removing Restrictions on Liquid Natural Gas Exports: A Gift to the U.S. and Global Economies,” Heritage Foundation Heritage Foundation and Global Economies,” the U.S. Gas Exports: A Gift to on Liquid Natural Restrictions “Removing Loris, D. Nicolas Estimated savings of $30.003 billion for FY 2019 are based on the lower end of an estimated value of $30 billion (one-time savings in savings of $30 billion (one-time value of an estimated end based on the lower are FY 2019 billion for of $30.003 savings Estimated study that CBO a previous of estimated inflation-adjusted based on the lower-end, are 2019 FY billion for of $34.805 savings Estimated U.S. Department of Energy, Office of Science, Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR), Transfer Technology (SBIR) and Small Business Research Innovation Small Business of Science, Office of Energy, Department U.S. Estimated one-time savings of $30.584 billion for FY 2019 are based on selling 10 percent of the previous month’s inventory each month. In each month. inventory month’s of the previous based on selling 10 percent are FY 2019 billion for of $30.584 one-time savings Estimated Estimated savings of $364 million for FY 2019 are based on the recommended $178 million in FY 2013 spending cuts for nuclear energy nuclear energy for spending cuts million in FY 2013 $178 based on the recommended are FY 2019 for of $364 million savings Estimated Estimated savings of $2.322 billion for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated in the as specified level appropriated based on the FY 2018 are FY 2019 billion for of $2.322 savings Estimated Appropriations Consolidated the as specified in level appropriated on the FY 2018 based are FY 2019 million for of $984 savings Estimated Estimated savings of $153 million for FY 2019 are based on U.S. Department of Energy, of Energy, Department based on U.S. are FY 2019 million for of $153 savings Estimated U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, “About the Office of Energy Efficiency and Renewable and Efficiency Energy Office of “About the Energy, Renewable and Efficiency of Energy Office of Energy, Department U.S. Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant remains spending FY 2018 that assume experts Heritage 2018. Act, and Oil Shale Petroleum the Naval million from $4.9 and Development, Research Energy Fossil million from include $727 Savings 2018. Act, TVA’s value is between $30 billion and $40 billion. For an assessment of the TVA’s value, see Ken G. Glozer, “Time for the Sun to Set on the Set the Sun to for “Time G. Glozer, see Ken value, of the TVA’s an assessment $30 billion and $40 billion. For is between value TVA’s Heritage Foundation Authority,” Valley Tennessee “About,” http://science.energy.gov/sbir/about/ (accessed April 19, 2018). 19, April (accessed http://science.energy.gov/sbir/about/ “About,”
19. 18. 17. 15. 16. 24. 23. 22. 20. 21.
Financial Services and General Government FS Eliminate theSmallBusinessAdministration’s Disaster Loans Program ADDITIONAL READING After federallydeclareddisasters, theDLPoffers 106 natural disasters. regardless ofwhether thebeneficiariespreviously ral catastrophes. disaster SBA loansareawarded nonprofit organizations, homeowners, andrent taxpayer-funded directloanstoassist businesses, took steps toreducetheirexposure losses from a “moralhazard”by discouragingindividualsand destroyed property. Unfortunately, thegenerous propertyandreplacing ers inrepairingdamaged federal disaster reliefoffered by theDLPcreates businesses frompurchasinginsurancefornatu Ȗ Ȗ Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr Justin Bogie, “Trump’s Budget DealwithDemocrats Will OnlyWorsen OurFiscalSituation,” The DailySignal, September 7, 2017. David B. Muhlhausen,“Business Disaster Reform Act of2013: Review ofImpact andEffectiveness,” Testimony before theCommittee onSmallBusiness andEntrepreneurship, U.S. Senate, March 14, 2013. epublic esiden $1.9 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT A E T CTE - U - S D The Heritage Foundation | Foundation Heritage The While SBA disasterWhile SBA loansareintendedtohelp moving fromatown locatedinamajorfloodzone, in disaster-prone locations. For example,instead of requirement isthatborrowers areforcedtorebuild to a poorly managed government subsidythat falls to apoorlymanaged applicants arerequiredtorebuildinexactlythe applicants return theirpropertytoitspre-disaster outside theproperscopeoffederalgovernment. offer along-termsolution.Theprogramamounts condition, theunintendedconsequenceofthis same high-riskarea.Inmany cases, theloansfailto PRESIDENT Continues tofund. HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C FS 107 - - - - C S R E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE No. 192, June 12, 2017. 192, No. $1.72 billion, a $50 million increase, 6 percent higher than FY 2018 and 3 percent higher than FY 2017. PRESIDENT banks, investment companies, and similar market and similar market companies, investment banks, participants. The SEC, the Government Account the Government The SEC, participants. dard practice to ensure review of various delega dard practice to ensure review of various gation of authority to staff should be narrowed and should be narrowed gation of authority to staff and 13 offices should be merged into other offices. offices. other be mergedand 13 offices should into study whether both should or ability Office (GAO), tions’ practical effects and efficacy. to the chairman should be reduced from 23 to 10, be reduced from 23 to 10, to the chairman should dele whether should also study or both the GAO, regional office consolidation is warranted. The SEC, SEC, warranted. The regional office consolidation is large, complex, and well-financed investment banks, banks, large, investment complex, and well-financed whether sunsetting of delegations should be stan of delegations sunsetting whether Enforcement Division to handle cases involving to handle cases involving Enforcement Division The number of SEC managersThe number of SEC reporting directly A Complex Case Unit should be created within the A Complex Case Unit Special Report The Heritage Foundation | D S - U - CTE T E A NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 2 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $47 esiden epublic Agencies,” ed. David B. Muhlhausen, Heritage Foundation Muhlhausen, Heritage Foundation B. ed. David Agencies,” “Securities and Exchange Commission,” in “Blueprint for Reorganization: An Analysis of Federal Departments and Departments of Federal An Analysis Reorganization: for in “Blueprint Commission,” and Exchange “Securities R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ but over the past 10 years, the SEC’s budget has budget SEC’s the years, 10 the past but over fact, the SEC has become sclerotic and moribund, fact, the SEC has become sclerotic frozen at its real FY 2017 level ($1.67 billion). The level at its real FY 2017 frozen government as a whole. The SEC budget should be as a whole. The SEC government at $1.65 billion. to be reformed and streamlined. tain fair, orderly, and efficient markets; and facili markets; and efficient orderly, tain fair, These are important goals, tate capital formation. many offices, and too many layers of review. It needs layers of review. and too many offices, many resources has improved the SEC’s effectiveness. In effectiveness. the SEC’s resources has improved increased by 80 percent—two times faster than 80 percent—two times faster increased by law on March 23, 2018, funded the SEC for FY 2018 funded the SEC for FY 2018 2018, on March 23, law with too many layers of middle management, layers too with too many Consolidated Appropriations Act, 2018, signed into Act,Consolidated Appropriations 2018, There is no reason to believe that this flood of There is no reason to believe The SEC’s mission is to protect investors; main investors; mission is to protect The SEC’s ADDITIONAL READING Reform the SecuritiesReform Exchange and Commission FS Eliminate theDepartmentofTreasury’s The CDFIFund isadministered by theU.S. Depart Community Development Financial Institutions Fund 108 Community Development Entities(CDEs),and firms toprovide credit,capital,andvariousfinancial jective istoimprove theabilityofprivatefinancial ment oftheTreasuryandprovides grantstoCDFIs, other privatefinancialinstitutions. Its stated ob .services tounderserved communities SAVINGS INMILLIONS Sena R House Budge Pr epublic esiden $250 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 3 ommitt S Blueprint for Balance: Blueprint for A L 19) ee 4 ADDRESSED ADDRESSED I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL T NOT NOT A UDE UDE T U - S D D - The Heritage Foundation | Foundation Heritage The From 2010 to2015, atotal ofmorethan$15billion in taxpayer dollarswas disbursedthroughthese hinder competition anddistort privatemarkets, ultimately leadingtohigherconsumerpricesand programs. TheCDFIFund shouldbeshutdown further justification forincreasedfederalspending. because itamountstocorporatewelfare.Itsgrants PRES Eliminates. existing commitmentsandotherCDFIFundprograms. Eliminates, providingonly$14millionin2019foroversightof IDE N T
HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E RSC FS - - 109 - RSC Issue Issue No. 4231, 4231, No. E T A N E Issue Brief Issue ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE Continues to fund. Eliminates. PRESIDENT backed by the full faith and credit of the United the full faith and credit of the United by backed for domestic companies. There is no shortage There is of pri companies. for domestic on December 4, 2015. Ex–Im was capitalized with Ex–Im was on December 4, 2015. the alloca distort The subsidies also competitors. States, which means that taxpayers are on the which means that taxpayers States, to maintain strong levels of exports. levels to maintain strong tion of credit and labor. For example, export financ example, For tion of credit and labor. hook for any losses that the bank fails to cover that the bank fails to cover losses hook for any impact on American firms of subsidizing overseas overseas firms of subsidizing impact on American in excavation ing of coal mining in Colombia, copper vate financing, and Ex–Im subsidies are not needed are not vate financing, and Ex–Im subsidies with reserves. $1 billion in taxpayer dollars, and its financing is and its financing dollars, $1 billion in taxpayer Ex–Im’s direct costs do not reflect the detrimental reflect the detrimental not do direct costs Ex–Im’s and airplanes for India has led to job losses Mexico, The Heritage Foundation | - D D S U CTE T UDE E A NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ I ADDRESSED ADDRESSED 6 ee 19) L A Blueprint for Balance: S ommitt 5 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R No. 4208, April 29, 2014. April 29, 4208, No. t $80 esiden epublic Diane Katz, “The Export–Import Bank: A Government Outfit Mired in Mismanagement,” Heritage Foundation Foundation Heritage in Mismanagement,” Outfit Mired Bank: A Government Export–Import “The Diane Katz, Diane Katz, “Export–Import Bank: Cronyism Threatens American Jobs,” Heritage Foundation Heritage Foundation American Jobs,” Threatens Bank: Cronyism “Export–Import Diane Katz, Brief June 2, 2014. R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ prevails in the private sector reveals an estimated an estimated prevails in the private sector reveals puts unsubsidized American firms at a competitive American firms at a competitive puts unsubsidized primarily benefits very large primarily benefits and corporations costs. This assumption fails to account for default fails to account This assumption costs. disadvantage and taxpayers at risk. Those risks are at taxpayers disadvantage and as a rider to a bloated multibillion-dollar transpor as a rider to a bloated multibillion-dollar tation measure passed by the House and Senate the House tation measure passed by that incoming fee collections will fully offset Ex–Im collections will fully offset that incoming fee the purchase of American exports. The program exports. the purchase of American risks. A better, fair-value accounting method that accounting method fair-value A better, risks. ignored in reported budget figures, which assume budget figures, ignored in reported financing to foreign firms and governments for governments firms andfinancing to foreign Congressional Budget Office. Congressional Budget 10-year cost of $2 billion for Ex–Im according to the of $2 billion for Ex–Im cost 10-year The bank’s charter was reauthorized through 2019 reauthorized through 2019 charter was The bank’s The Export–Import Bank provides subsidized subsidized Bank provides The Export–Import ADDITIONAL READING Eliminate the Export–Import Bank the Export–Import Eliminate FS Multi-State PlanProgram Multi-State ofPersonnelEliminate Funding Management’s fortheOffice ADDITIONAL READING The programhasbeenamonumentalfailure.In 2014, in theOPMcontractedwithonlyonelarge 110 Congress createdtheMSPprogramunderAf health insuranceexchanges inevery state. ute requiredtheOfficeof PersonnelManagement to compete withallother privatehealthplansinthe to contractwithatleast twoinsurancecompanies of 750,000 forthatyear. AsofApril2014, however, surer ratherthantwoandprojectedanenrollment fordable Care Act (ACA),fordable CareAct enactedin2010. Thestat Ȗ Ȗ Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr The Honorable LindaSpringer, The Honorable DonaldJ. Devine, The Honorable DanG.Blair, andRobert E. Center Foundation Moffit. “The Office of PersonnelManagement: A Power Player inAmerica’s HealthInsurance Markets?” Heritage Robert E.MoffitandNeilR.Meredith, “Multistate HealthPlans: Agents for Competition or Consolidation?” Mercatus epublic esiden $10 t e BudgetR Working Paper t an S ’ s Budget(FY20 P R Lecture tudy C t R OPO esolution esolution 7 ommitt No. 1145, February 19, 2010 (delivered January20, 2010). S Blueprint for Balance: Blueprint for A ,
January 2015. L 19) ee ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S 8 T NOT NOT NOT NOT A T U - - S - The Heritage Foundation | Foundation Heritage The MSP exchange option. By 2017, theplansweresupposedtobeavailable in financially unstable andmost have sincecollapsed. Overall, theMSP’s faultydesignthreatenstoin roster ofinsurers, even though theseplanswere kets still further. the OPMaddedso-calledco-opplanstoits crease consolidationinthehealthinsurancemar every state, butin2018, only Arkansas willofferan only 280,000 wereenrolledin30states. PRESIDENT HOUSE E 11 X heritage.org/BlueprintForBalance P L 10 ANA T S ION E N A T E
9 In2015, R S C - - FS 111 - , RSC would 13 14 E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS , The Heritage Foundation, 2017. Heritage Foundation, , The T N IDE Calls for restructuring the CFPB and, beginning in FY 2020, subjecting now-mandatory funding to the annual appropriations process. Assumes adoption of provisions of the Financial CHOICE Act. Assumes adoption of provisions of the Financial CHOICE Act. PRES similar FSOC utili market authority for financial and implement a regulatory off-ramp. and implement a to-fail firms and would also repeal Dodd–Frank’s would also repeal Dodd–Frank’s to-fail firms and Financial the Consumer ties (FMUs), restructure remove the FSOC’s ability to identify these too-big- ability the FSOC’s remove OLA. Other CHOICE ActOLA. Other CHOICE repeal would provisions Provisions in the Financial CHOICE ActProvisions Rule, Bureau (CFPB), repeal the Volcker Protection The Heritage Foundation | Y - D D D S - L L U A I T UDE UDE UDE T A NOT R T A NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I P ADDRESSED ee 19) L The Case Against Dodd–Frank: How the “Consumer Protection” Law Endangers Americans Law Protection” the “Consumer How Dodd–Frank: Against Case The Financial Regulation Unleashed: Smarter Prosperity A Blueprint for Balance: S ommitt 12 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $1.4 esiden epublic Norbert J. Michel, ed., Norbert J. Michel, ed., Norbert J. The Heritage Foundation, 2016. Heritage Foundation, The R House Budge Pr Sena Ȗ Ȗ SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ policies in law, particularly by allowing the Finan allowing particularly by policies in law, orderly liquidation authority (OLA) to resolve fail authority (OLA) to resolve orderly liquidation cial Stability Oversight Council (FSOC) Council cial Stability Oversight to publicly a taxpayer-supported resolution process called a taxpayer-supported ing firms. identify firms it views as too big to fail and by using identify firms it views as too big to fail and Frank Act did not end “too big to fail.” In fact, Dodd– In fact, Act big to fail.” end “too did not Frank helps to enshrine too-big-to-fail actually Frank Despite the claims of its authors, the 2010 Dodd– the 2010 of its authors, Despite the claims ADDITIONAL READING Replace Costly Provisions of Dodd–Frank Provisions Replace Costly FS Policy Riders Act, whichpermitsphysician-assistedAct, suicide,aswelltheReproductive Health NondiscriminationAct (RHNDA) (HRAA),whichcouldpotentially interferewithreligious andHumanRightsAmendmentAct The OSPprovides scholarshipsthatenablechildrenfromlow-income D.C. familiestoattend aprivateschool thatprotectedThe HRAArepealedapolicy religiousschoolsinD.C. frombeingcoercedby thegovernment Federal shouldshiftaportionoftheadditionalfederalfundingprovided policymakers to traditionalpublic D.C.’s the weakandvulnerable,corrupts endangers thepracticeofmedicine DeathwithDignityAct District ofColumbiafromusingany federalorlocalfundingtoimplementenforcetheDeathwithDignity 112 liberty andexercise ofconscienceintheDistrict. Thegovernment’s roleshouldbetoprevent suicides, not to into “promoting, encouraging, or condoning any homosexual act, lifestyle, orientation, or belief” ifitviolates into “promoting, encouraging,orcondoningany homosexualact, lifestyle, orientation,orbelief” require pro-lifeorganizationstohireindividualswhoadvocate forabortion. individual’s “reproductive healthdecisionmaking,” includingthe“terminationofapregnancy.” Itcould through the “three-sector” approach:$20million infundingfortheOSP,through the“three-sector” $20millioninsupplemental their beliefsabouthumansexuality. Repealofthisprotection couldforceChristian schoolstoviolatetheir attend pointshigherthantheratefora aprivateschoolofchoicegraduatedhighschool:rate21percentage and thedoctor–patient relationship, commitments, compromisesthefamily andintergenerational and Expand theD.C. Opportunity Program. Scholarship Protect freedomofconscienceandlifeintheDistrict ofColumbia. control groupofpeerswhowereawarded butdidnot useascholarship. of choice.SincetheDistrict ofColumbiafallsunderthejurisdictionCongress, itisappropriate forthe of theparents’choice.WhenOSPwas createdin2003, Congressfundedthenewschoolchoiceoption expanding accesstotheOSPthroughexisting fundingauthorizedby theD.C. SchoolChoiceIncentive Act. discriminating in“compensation, terms, ofemployment” conditionsorprivileges onthebasisofan schools inthethree-sectorapproachtofundadditionalscholarshipsforstudents toattend aprivateschool federal government tofundtheOSP. toonestudy, According 91percentof students whousedavoucher to funding forD.C.’s publiccharterschools, andanadditional$20millionfortheD.C. publicschoolsystem. facilitate them. .beliefs abouthumansexualityandrecognizeLGBTstudent groupsorhost “gay pride”days oncampus. betrays humandignityandequalitybeforethelaw Blueprint for Balance: Blueprint for AFEDERAL BUDGET FOR FISCAL YEAR2019 15 TheRHNDA specificallyprohibitsemployers from The Heritage Foundation | Foundation Heritage The Policymakers canadvanceschoolchoiceby 17 Congressshouldprohibitthe heritage.org/BlueprintForBalance 16 FS , 113 Issue Issue , Working Paper Working Forbes , May 22, 2015, https:// 22, 2015, , May Evaluation of the DC Opportunity the DC Opportunity of Evaluation No. 1145, February 19, 2010 (delivered (delivered 2010 19, February 1145, No. heritage.org/BlueprintForBalance Lecture Cost Estimate: H.R. 10, Financial CHOICE Act Financial CHOICE Act H.R. 10, Estimate: Cost No. 3004, March 24, 2015, https://www.heritage.org/ 2015, 24, March 3004, No. Backgrounder The Heritage Foundation | A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET , U.S. Department of Education, Institute of Education Sciences, National Center for Education Evaluation Evaluation Education for Center National Sciences, of Education Institute of Education, Department , U.S. Fair-Value Estimates of the Cost of Selected Federal Credit Programs for 2015 to 2024 to 2015 for Programs Credit Federal Selected of the Cost of Estimates Fair-Value Blueprint for Balance: No. 3152, August 31, 2016, https://www.heritage.org/markets-and-finance/report/money-and-banking-provisions-the- 31, 2016, August 3152, No. , May 18, 2017, https://www.cbo.gov/system/files/115th-congress-2017-2018/costestimate/hr10.pdf (accessed May 12, 2018). The 12, 2018). May (accessed https://www.cbo.gov/system/files/115th-congress-2017-2018/costestimate/hr10.pdf 18, 2017, , May No. 4364, March 9, 2015, http://www.heritage.org/research/reports/2015/03/congress-should-protect-religious-freedom-in-the- 2015, 9, March 4364, No. health-care-reform/report/always-care-never-kill-how-physician-assisted-suicide-endangers-the-weak. before the Committee on Financial Services, U.S. House of Representatives, June 25, 2014, p. 6, https://www.cbo.gov/sites/default/ p. 2014, 25, June House of Representatives, U.S. on Financial Services, the Committee before $100 million. of excess deals in finance to it has been unable years, two the past quorum for board including salaries and expenses. 2018). April 14, (accessed insurance-markets its inflation-adjusted FY 2015 spending level, which would be $1.605 billion for FY 2019. $1.605 billion would be which level, spending FY 2015 its inflation-adjusted Family, and Violates Human Dignity and Equality,” Heritage Foundation Heritage Foundation and Equality,” Human Dignity and Violates Family, Management: A Power Player in America’s Health Insurance Markets?” Heritage Foundation Heritage Foundation Markets?” Insurance Health in America’s Player A Power Management: Program,” Committee on Homeland Security and Governmental Affairs, U.S. Senate, December 12, 2017, https://www.hsgac.senate.gov/ 12, 2017, December U.S. Senate, Affairs, and Governmental on Homeland Security Committee Program,” Programs of the Export–Import Bank of the United States Under FCRA and the Fair-Value Approach, 2015 to 2024,” in Douglas W. in Douglas W. 2024,” to 2015 Approach, and the Fair-Value Under FCRA States Bank United of the Export–Import of the Programs testimony Bank,” of the Export–Import Programs Credit of the Cost of the “Estimates Office, Budget Congressional Director, Elmendorf, May 12, 2018). Heritage experts assume that FY 2018 spending remains constant in FY 2019. This proposal would reduce the SEC budget to to budget SEC the reduce would proposal This in FY 2019. constant spending remains 2018 FY that assume Heritage experts 12, 2018). May financial-choice-act-major-step-the, and Norbert Michel, “Budget Reconciliation: A Viable Path for CHOICE Act Reforms,” Reforms,” Act for CHOICE Path Viable A Reconciliation: and Norbert Michel, “Budget financial-choice-act-major-step-the, files/113th-congress-2013-2014/reports/45468-exportimportbanktestimony.pdf (accessed May 12, 2018), which estimates that under fair- under that which estimates 12, 2018), May (accessed files/113th-congress-2013-2014/reports/45468-exportimportbanktestimony.pdf reforms/#5e406c09496f (accessed April 14, 2018). April 14, (accessed reforms/#5e406c09496f reduced revenues. reduced media/majority-media/johnson-meadows-introduce-bill-to-eliminate-failed-obamacare-program (accessed May 12, 2018). As part of their As part 12, 2018). May (accessed media/majority-media/johnson-meadows-introduce-bill-to-eliminate-failed-obamacare-program million per year. We estimate half of this level of savings for FY 2019 because the bank has not been operating at full capacity; lacking a full capacity; at because the bank has not been operating FY 2019 for of savings half of this level estimate We million per year. and Regional Assistance, NCEE 2010-4018, June 2010, https://ies.ed.gov/ncee/pubs/20104018/pdf/20104018.pdf (accessed April 14, 2018). April 14, (accessed https://ies.ed.gov/ncee/pubs/20104018/pdf/20104018.pdf June 2010, NCEE 2010-4018, Assistance, and Regional September 4, 2017, https://www.forbes.com/sites/norbertmichel/2017/09/04/budget-reconciliation-a-viable-path-for-choice-act- 2017, 4, September applied those figures to FY 2019. Total savings of $1.39 billion include $1.67 billion in reduced budget authority, offset by $280 million in offset authority, budget reduced billion in $1.67 billion include $1.39 of Total savings to FY 2019. applied those figures www.cbo.gov/sites/default/files/113th-congress-2013-2014/reports/45383-fairvalue.pdf (accessed April 16, 2018). (accessed www.cbo.gov/sites/default/files/113th-congress-2013-2014/reports/45383-fairvalue.pdf costs, MSP administrative eliminating from comes estimate This of the MSP program. elimination million from of $10 an initial annual savings CBO report assumes implementation in late 2017, so we used its 2018 estimated fiscal impacts as the first year of implementation and year of implementation as the first fiscal impacts estimated used its 2018 so we 2017, in late implementation assumes report CBO Brief Backgrounder oversight responsibilities and using program data supplied by the U.S. Office of Personnel Management (OPM), committee staff estimated estimated staff committee (OPM), Management Personnel of Office the U.S. supplied by data and using program responsibilities oversight district-of-columbia. value accounting, eliminating the Export–Import Bank would have resulted in savings of $1.6 billion over the 2015–2024 period, or $160 period, or $160 the 2015–2024 billion over of $1.6 in savings resulted have Bank would the Export–Import eliminating accounting, value of 2017 of Estimated savings of $47 million for FY 2019 are based on the FY 2018 appropriated level of $1.652 billion as specified in the Consolidated Consolidated in the billion as specified of $1.652 level appropriated FY 2018 based on the are FY 2019 million for of $47 savings Estimated Robert E. Moffit and Neil R. Meredith, “Multistate Health Plans: Agents for Competition or Consolidation?” Mercatus Center Center Mercatus Consolidation?” or Competition for Agents Health Plans: “Multistate Neil R. Meredith, E. Moffit and Robert Estimated savings of $1.875 billion for FY 2019 are based on the CBO’s most recent April 2018 baseline spending projections. April 2018 recent most on the CBO’s based are FY 2019 billion for of $1.875 savings Estimated Patrick Wolf, Babette Gutmann, Michael Puma, Brian Kisida, Lou Rizzo, Nada Eissa, and Matthew Carr, Carr, and Matthew Nada Eissa, Rizzo, Gutmann, Michael Puma, Brian Kisida, Lou Babette Wolf, Patrick Ryan T. Anderson, “Always Care, Never Kill: How Physician-Assisted Suicide Endangers the Weak, Corrupts Medicine, Compromises the Compromises Medicine, Corrupts the Weak, Suicide Endangers Physician-Assisted Kill: How Never Care, “Always Anderson, T. Ryan News release, “Johnson, Meadows Introduce Bill to Eliminate Failed Obamacare Program.” Obamacare Failed Eliminate Bill to Introduce Meadows “Johnson, release, News Office, Budget based on Congressional are 2019 FY billion for of $1.39 savings Estimated Heritage Foundation Direction,” in the Right A Major Step in the Financial CHOICE Act: and Banking Provisions Michel, “Money Norbert J. Ryan T. Anderson and Sarah Torre, “Congress Should Protect Religious Freedom in the District of Columbia,” Heritage Foundation Heritage Foundation of Columbia,” in the District Freedom Religious Should Protect “Congress Torre, and Sarah Anderson T. Ryan See Moffit and Meredith, “Multistate Health Plans: Agents for Competition or Consolidation?” pp. 15–17. Consolidation?” or Competition for Agents Health Plans: “Multistate See Moffit and Meredith, 2018). April 14, (accessed https://www.congress.gov/bill/115th-congress/house-bill/10 115th Cong., of 2017, Financial CHOICE Act See H.R. 10, Estimated savings of $10 million for FY 2019 are based on news release, “Johnson, Meadows Introduce Bill to Eliminate Failed Obamacare Obamacare Failed Eliminate Bill to Introduce Meadows “Johnson, release, based on news are FY 2019 million for of $10 savings Estimated U.S. Department of the Treasury, Community Development Financial Institutions Fund, “New Markets Tax Credit: CDE Certification CDE Certification Credit: Tax Markets “New Fund, Financial Institutions Development Community of the Treasury, Department U.S. Congressional Budget Office, Office, Budget Congressional The Honorable Linda Springer, The Honorable Donald J. Devine, The Honorable Dan G. Blair, and Robert E. Moffit. “The Office of Personnel of “The Office E. Moffit. and Robert Dan G. Blair, Honorable The Devine, Donald J. Honorable The Linda Springer, Honorable The Estimated savings of $80 million for FY 2019 are based on Table 2, “Estimated Annual Loan Volume and Budgetary Costs of the Credit Credit of the Costs and Budgetary Volume Loan Annual 2, “Estimated based on Table are FY 2019 for of $80 million savings Estimated Estimated savings of $250 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated in the as specified level appropriated based on the FY 2018 are FY 2019 for of $250 million savings Estimated Scholarship Program: Final Report Program: Scholarship Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, (accessed https://www.novoco.com/sites/default/files/atoms/files/cde_certification_application_0509.pdf 2009, May revised Application,” April 12, 2018). Appropriations Act, 2018, Public Law 115-141, 115th Cong., https://www.congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf (accessed (accessed https://www.congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf 115th Cong., 115-141, Public Law 2018, Act, Appropriations January 20, 2010), http://www.heritage.org/research/lecture/the-office-of-personnel-management-a-power-player-in-americas-health- 2010), January 20, 2018). April 14, (accessed https://pdfs.semanticscholar.org/cddc/248c94214b0681a4cc6b4a275b7e03d7c421.pdf 4, p. January 2015,
8. 5. 6. 9. ENDNOTES 17. 15. 16. 13. 14. 12. 10. 11. 1. 2. 3. 7. 4.
Homeland Security HS Eliminate FEMA’s Fire Grants ADDITIONAL READING Assistance toFirefightersGrants(AFGs) subsidize The Heritage Foundation’s CenterforDataAnalysis Fire and Emergency Response(SAFER)grants Fire andEmergency Prevention andSafety (FP&S) grantsfundprojects 116 ing grantaward datatotheNationalFireInci increase staffing levels. to improve firefighter safety andprotect thepublic the routineactivitiesoflocalfiredepartments and emergency management organizations. management Fire and emergency dent ReportingSystem, adatabaseoffire-related evaluated theprogram’s effectiveness by match departments’ recruitmentactivitiesinorderto fund careerfirefighters’ salariesand volunteerfire from fireandrelatedhazards. Adequate Staffingfor Ȗ Ȗ Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Report No. 3788, November 29, 2012. David B. Muhlhausen,“Fire Grants: DoNotReauthorize anIneffective Program,” Heritage Foundation David B. Muhlhausen,“DoDHSFire Grants Reduce Fire Casualties?” HeritageFoundation epublic esiden $700 t e BudgetR No. 09-05, September 23,2009. t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED P P I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL A A T R R NOT NOT A T T - UDE UDE T I I A A - U L L L L S D D Y Y The Heritage Foundation | Foundation Heritage The firefighter deaths, firefighterinjuries, civiliandeaths, fire departmentsthatreceived grantstodepart fire departments, theevaluationassessedimpact fire departments. ments thatdidnot receive grants, aswelltheim ries, civiliandeaths, andcivilianinjuries, comparing that didnot receive grantswerejust assuccessful that AFG, FP&S, andSAFERgrantsfailedtoreduce at preventing firecasualtiesasweregrant-funded and civilianinjuries. Comparisonfiredepartments departments received federalassistance. Itshowed of firegrantsonfirefighterdeaths, firefighterinju reportedbyemergencies firedepartments. Using pact ofthegrantsbeforeandaftergrant-fundedfire panel datafrom1999to2006formorethan10,000 PRESIDENT primarily thefunctionofstateandlocal governments.” FEMA operatesseveralgrantprograms thatfund“activitiesare Needs toconsiderreformsrelatedAFG,FP&S,andSAFERgrants. HOUS E X heritage.org/BlueprintForBalance P E L ANA Center for Data Analysis T S ION E N A T E Issue Brief R S C
- - - HS - 117 - C S R E T A N E ION S T No. 4342, 4342, No. ANA L P heritage.org/BlueprintForBalance Issue Brief Issue X E HOUSE PRESIDENT from between 75 percent and 100 percent to 25 from between per capita in damages million minimum with a $5 share for large catastro percent, with a greater cost the cost-share that top $5 billion, disasters For phes. should increase gradually as the cost provision sibility for disasters to state and local governments and local governments to state sibility for disasters with in FY 2018, $500 million at least spending by cost-sharing should be capped at 75 percent once a cost-sharing $20 billion. tops disaster of the disaster increases. This gradual increase in increases. of the disaster Second, the FEMA cost share should be reduced share should be cost Second, the FEMA threshold, and a $50 million maximum threshold. threshold, and a $50 more savings in future years. First, Congress should First, future years. in more savings increase the Stafford Act threshold to require $3 would enable Washington to reduce disaster relief to reduce disaster would enable Washington Reforming the Stafford Reforming the Stafford respon more Act to return The Heritage Foundation | S - U T A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 2 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $500 esiden epublic David Inserra, “FEMA Reform Needed: Congress Must Act,” Heritage Foundation Heritage Foundation Act,” Must Congress Needed: “FEMA Reform Inserra, David 2015. 4, February R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ for a regional or localized disaster to qualify as a for a regional or localized disaster federal disaster. provisions that are to blame: One shifts most of most that are to blame: One shifts provisions dent Barack Obama, approximately 120 disasters 120 disasters approximately dent Barack Obama, government, and the other makes it relatively easy easy it relatively makes and the other government, governments were responsible for responding to were responsible governments the costs of a federalized disaster to the federal federalized disaster of a the costs nearly all disasters. Under President Ronald Reagan, Under President nearly all disasters. were declared each year. The Stafford The Stafford Act has two year. were declared each year. After passage of the amended Stafford of the amended After passage Act in year. FEMA averaged 28 federal disaster declarations a federal disaster FEMA averaged 28 1988, the number rose dramatically: Under Presi the number rose dramatically: Under 1988, Throughout most of U.S. history, state and local state history, of U.S. Throughout most ADDITIONAL READING Reduce Funding for FEMA’s Disaster Relief Fund Relief Disaster for FEMA’s Reduce Funding HS Refocus Science andTechnologyRefocus Science onMeeting DHSNeeds ADDITIONAL READING The U.S. privatesectorisconstantly striving to 118 and Using Developments Private-Sector innovation. S&T, however, may not always know of technologies orproductsavailable intheprivate ty andtechnologyinnovations todisaster response and Development Partnerships officehasbegun equipment, itistheworld’s most powerful forcefor or statecybersecuri andlocalofficials;fromprivate develop newproductsofinterest toDHSpersonnel specific requirements. Asaresult,S&T’s Research sector thatcouldmeet DHS’s needsor general focusing on“technologyforaging,” whichseeksout Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Heritage Foundation David Inserra, “Congress Must Re-Set Department ofHomelandSecurity Priorities:AmericanLives DependonIt,” epublic esiden t $91 e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 3 ommitt S Special Report Blueprint for Balance: Blueprint for A L 19) ee No. 175, January3,2017. ADDRESSED ADDRESSED ADDRESSED P I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT NOT A T UDE T I A U L L S D Y - The Heritage Foundation | Foundation Heritage The This effortshouldbeexpanded:Itcostsgovern the Congress shouldtrimS&T toabout$750million research anddevelopment. Together withtheex ment lessandwilllikely befaster thanbrand-new use ofprivate-sectorR&Dtomeet missionneeds. technologies neededby DHScomponents. and mandatethatitrefocusitseffortsondelivering adapted tomeet DHSneeds. existing oremergingtechnologiesthatcouldbe pansion oftheSAFETY DHScanmake greater Act, PRESIDENT focusing andnarrowingS&Tprojects. Directorate managementandadministrativeexpensesproposes Recommends reductionsinDHSScienceandTechnology HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N
A T E R S C - - HS 119 - RSC E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Reduces FEMA grants by more than $300 million. Calls for a thorough review of Preparedness (Non-Disaster) Grants and Hazard Mitigation Assistance Grant Programs. Agrees with President’s Budget recommendation to “reduce or eliminate” underperforming, duplicative, or unauthorized FEMA grant programs. PRES be ineffective or unnecessary, such as the Staffing such as the Staffing or unnecessary, be ineffective be canceled. for Adequate Emergency Fire and (SAF Response preparedness and perpetuates waste and abuse. In and waste perpetuates preparedness and system, programs must be evaluated to see which programs must system, and Assistance to Firefighter Grants (AFG), should (AFG), to Firefighter Grants and Assistance moving DHS grants to a more risk-based allocation DHS grants to a more risk-based moving well they are and how needs they are meeting found to them. Grant programs that are meeting Failure to prioritize grants weakens security and security and to prioritize grants weakens Failure grants (FP&S) Safety and ER) and Fire Prevention The Heritage Foundation | - Y D D D - S L L - U A I T UDE UDE UDE T A NOT R T A NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I P ADDRESSED No. 175, January 3, 2017. 175, No. ee 19) L A Blueprint for Balance: Special Report S ommitt 4 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $300 esiden epublic David Inserra, “Congress Must Re-Set Department of Homeland Security Priorities: American Lives Depend on It,” Depend on It,” Priorities: American Lives of Homeland Security Department Re-Set Must “Congress Inserra, David Heritage Foundation R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ be of value in some cases, the current structure does current structure the cases, be of value in some fashion. Congress should expand consolidation to fashion. Congress districts, but as limited homeland security funding but as limited homeland districts, cover more grant programs. Grants that meet the the Grants that meet programs. more grant cover greatest need in high-risk areas should be priori greatest grants into a new National Preparedness Grant Pro grants into a new a more risk-based grants in gram that would allot another entitlement to send back to congressional another to alleviate the greatest risks. to alleviate the greatest tized. These grant dollars should be viewed not as viewed not tized. These grant dollars should be tion recommended consolidating many of these consolidating many tion recommended they are trying to reduce. The Obama Administrathey are trying to not adequately prioritize grants based on the risks prioritize grants based on adequately not Streamline FEMA Grant Programs Grant FEMA Streamline While federal grants to state and local partners may may and local partners to state While federal grants ADDITIONAL READING HS Privatize Transportation Administration Security Screening Functions ADDITIONAL READING The TSAwouldturnscreeningoperationsover to The U.S. shouldlooktotheCanadianandEurope TSA both theregulatorandregulatedorganization The TSAmodeliscostly andunwisely makes the More specifically, theTSAcouldprivatize 120 ing security. manpower tolower TSAcosts whilemaintain ident DonaldTrumppromisingtoshrinkfederal responsible forscreeningoperations. WithPres to government programs, theTSAisripeforreform. Screening Partnership Program (SPP)toallairports. airports thatwouldchoosesecuritycontractors an privatemodelsofproviding aviation screening screening functionby expandingthecurrent bureaucracies andbringprivate-sectorknowhow Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr David Inserra, “Time to Privatize theTSA,” HeritageFoundation epublic esiden $465 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 5 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT NOT A - T U - - S The Heritage Foundation | Foundation Heritage The 10 regions. TheTSAwouldcontinuetoset security who meet TSAregulationsandwouldoversee and regulations andtest airportsforcompliance,and ing operationstoanewgovernment corporation the newcorporationwouldestablish any operating to aset ofairportsinaregion,likely witharound tors. Contractorswouldbidtoprovide theirservices that contractsscreeningservicetoprivatecontrac test airportsforcompliance.Alternatively, itcould Some ofthisfundingshouldbeusedtoreduceair adopt aCanadian-style system, turningover screen existing aviation screeningbudget. could expecttosave atleast 10percentfromthe port securityfeesontravelers, butthegovernment procedures orcustomer servicestandards. PRESIDENT Backgrounder HOUSE No. 3120, July19, 2017. E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C - - - HS - - - 121 - C S R E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Calls for reduction of flood mapping services and for reforms to put NFIP “on a more sustainable financial footing.” Calls for consideration of unspecified NFIP reforms. PRES bonus for meeting marketing goals. According goals. to marketing bonus for meeting cies. Insurers receive a commission of 15 percent of a commission of Insurers receive cies. insurers for various policy services and allow costs the At bonus. direct FEMA to eliminate the growth gate, exceed twice the amount of the replacement gate, exceed and casualty insurers to sell and service NFIP poli and casualty insurers actual be required to determine ate. FEMA should losses that, in the aggre property with lifetime any the Government Accountability thegovern Office, the Government Congress should Moreover, to bid for the business. net written premiums and can also receive a growth a growth also receive premiums and can written net determine to necessary ment lacks the information value of the structure. very least, the NFIP should be barred from insuring least, very whether its compensation payments are appropri are payments its compensation whether The government contracts with private property contracts The government The Heritage Foundation | - - - - Y Y D D S L L - L L U A A I I T UDE UDE T T A NOT NOT R R T A A NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I P P ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 6 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $700 esiden epublic R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN cy has repeatedly proven its inability to managecy risk proven has repeatedly do not reflect actual risk; and because property own reflect actual risk; and because property do not of flood risk, they are bear the full cost ers do not es, and the program is debt-ridden and dysfunction and the program is debt-ridden es, are obsolete, the premiums charged under the NFIP are obsolete, al. Because a large of the flood-risk maps proportion to states. the devastation of natural disasters is made even is made even of natural disasters the devastation responsibility for risk mapping should be shifted responsibility for risk mapping should mapping. Therefore, the Flood Hazard Mapping mapping. Therefore, the Flood Hazard more likely to locate in flood-prone areas and less to locate more likely mary flood insurance for homeowners and business for homeowners mary flood insurance likely to undertake preventive measures. As a result, measures. preventive to undertake likely worse. The Federal Emergency Management Agen worse. The Federal Program should be eliminated ($178 million), and Program should be eliminated ($178 The federal government holds a monopoly on pri holds The federal government Reform Payments from the National Flood Insurance Program Flood Insurance the National from Payments Reform HS Policy Riders Justice.” Judiciously expand andrenametheVisa Waiver Program. House andoneintheSenate,withsomeadditionaloversight bycommittees theintelligence andahomeland Homeland Securitytoraisethe3percentrefusal rateto10percentifacountryhaslow visa-overstay 122 Congress ortheDepartmentofHomeland SecurityshouldrenametheVWP. Onerecommendationisto issues, theU.S. shoulddesigntheprogramtoensurethatprivatesponsorsdonot shouldertheburdenof shouldbeallowedrefugees by taking5,000 spots refugee fromnext year’s U.S. Program Admissions Refugee new lives thanthoseresettled by thegovernment alone.Congressshouldamendexisting law to refugee mutually beneficialnatureoftheprogramanditsimportanceto U.S. security. rename theprogram“Partnership forSecureTravel (PST),” atitlethatrecognizesboth thereciprocal, rate. Inaddition,because“visaisoftenincorrectlyassociatedwithlaxvetting waiver” offoreigntravelers, these programs, andincludea mechanismtoexpandtheprograms. For example,ifprivateresettlement is an oversight structure thatresemblestheonegoverning other criticaldepartments, suchasDefenseand Establish privaterefugee-resettlement pilot programs. onerous medicalcosts. quota. thathassignificant health Inaddition,becauseitisdifficultforprivatesponsorstosupportarefugee capped at5,000 but10,000 thenanadditional5,000 privatebenefactorswant tosponsorarefugee, private establish privateresettlement pilot programs, set thatareallowed thenumberofrefugees toparticipatein security appropriationssubcommittee inboth chambers. private resettlement program have better assimilationoutcomesandreportgreatersatisfaction withtheir .Streamline congressionaloversight ofDHS 8 Thismeansplacingoversight ofDHSunderoneprimaryhomelandsecuritycommittee inthe Blueprint for Balance: Blueprint for 9 AFEDERAL BUDGET FOR FISCAL YEAR2019 AstheAspenInstitute putitin2013, “DHSshouldhave The Heritage Foundation | Foundation Heritage The Refugees resettled Refugees toCanadathroughits Congressshouldallow theSecretary of heritage.org/BlueprintForBalance 7 HS
,
123 Backgrounder heritage.org/BlueprintForBalance Report for Members and Committees of Congress of Members and Committees for Report The Heritage Foundation | A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Task Force Report on Streamlining and Consolidating Congressional Oversight of the U.S. the U.S. of Oversight Congressional and Consolidating on Streamlining Report Force Task , September 2013, p. 4, https://assets.aspeninstitute.org/content/uploads/files/content/docs/pubs/ 4, p. 2013, , September Blueprint for Balance: No. 4812, January 26, 2018, https://www.heritage.org/homeland-security/report/advancing-american-security- 2018, 4812, January 26, No. No. 3212, July 5, 2017, https://www.heritage.org/immigration/report/the-us-refugee-admissions-program-roadmap-reform. 2017, July 5, 3212, No. Issue Brief Issue based system to prioritize grants based on national preparedness needs. Compared to the current system that grants significant amounts amounts significant grants that system current the to needs. Compared preparedness based on national grants prioritize to based system listed grant programs). grant listed Budget Office, to Honorable Jeb Hensarling, Chairman, Committee on Financial Services, U.S. House of Representatives, “Re: Preliminary “Re: Representatives, U.S. House of on Financial Services, Committee Jeb Hensarling, Chairman, to Honorable Office, Budget https://www.cbo.gov/system/files/115th- 2017, April 19, Program,” Flood Insurance of the National Analysis CBO’s from Results Foundation No. 3120, July 19, 2017, https://www.heritage.org/homeland-security/report/time-privatize-the-tsa. Estimated savings are based on likely based on likely are savings Estimated https://www.heritage.org/homeland-security/report/time-privatize-the-tsa. 2017, July 19, 3120, No. Firefighters Program: Distribution of Fire Grant Funding,” Congressional Research Service Service Research Congressional Funding,” Grant of Fire Distribution Program: Firefighters $350 each received programs and SAFER AFG The April 28, 2018). (accessed https://fas.org/sgp/crs/homesec/RL32341.pdf 2018, 27, March In later years, savings would equal the full cost of the NFIP. equal the full cost would savings years, In later to unnecessary and ineffective programs, this proposal could save about $300 million per year (on top of savings from eliminating already already eliminating from of savings top (on year million per about $300 save could proposal this programs, and ineffective unnecessary to their budget authority as authorized and found in the Consolidated Appropriations Act, 2018, Public Law 115–141, 115th Cong., https://www. 115th Cong., 115–141, Public Law 2018, Act, Appropriations in the Consolidated and found as authorized authority their budget million in appropriations for FY 2018. Heritage experts assume that the FY 2018 levels remain constant in FY 2019. constant remain levels the FY 2018 that assume Heritage experts FY 2018. for million in appropriations Sunnylands%20report%2009-11-13.pdf (accessed April 16, 2018). (accessed Sunnylands%20report%2009-11-13.pdf appropriated level of $841 million and Heritage’s recommended appropriation of $750 million. of $750 appropriation recommended million and Heritage’s of $841 level appropriated Department of Homeland Security of Department Backgrounder spending reductions from implementing a private screener system similar to the Canadian model. similar to system screener a private implementing from spending reductions economic-and-foreign-policy-interests-through (accessed April 16, 2018). (accessed economic-and-foreign-policy-interests-through congress-2017-2018/reports/52638-nfipletter.pdf (accessed May 12, 2018). This letter report estimates that the NFIP costs $1.4 billion per $1.4 costs the NFIP that report estimates This letter 2018). 12, May (accessed congress-2017-2018/reports/52638-nfipletter.pdf congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf (accessed May 12, 2018). May (accessed congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf year. We estimate that a shift to a fully privatized flood insurance market would result in savings equal to half of the NFIP’s costs in FY 2019. in FY 2019. costs to half of the NFIP’s equal result in savings would market flood insurance a fully privatized a shift to that estimate We year. Estimated savings of $500 million for FY 2019 are a Heritage estimate of potential savings based on current disaster relief programs and programs relief disaster based on current savings of potential a Heritage estimate are FY 2019 for million of $500 savings Estimated Olivia Enos, David Inserra, and Joshua Meservey, “The U.S. Refugee Admissions Program: A Roadmap for Reform,” Heritage Foundation Heritage Foundation Reform,” for A Roadmap Program: Admissions Refugee U.S. “The and Joshua Meservey, Inserra, Olivia Enos, David Estimated savings of $700 million for FY 2019 are based on the FY 2018 appropriated level as reported in Lennard G. Kruger, “Assistance to to “Assistance G. Kruger, in Lennard as reported level appropriated based on the FY 2018 are FY 2019 million for of $700 savings Estimated David Inserra, “Advancing American Security, Foreign, and Economic Policy Interests Through the Visa Waiver Program,” Heritage Program,” Waiver the Visa Through Interests Policy and Economic Foreign, American Security, “Advancing Inserra, David Estimated savings of $300 million for FY 2019 are based on estimated spending reductions that would result from implementation of a risk- of a implementation from result would that reductions spending based on estimated are FY 2019 for of $300 million savings Estimated Estimated savings of $700 million for FY 2019 are based on Heritage estimates using data in letter from Keith Hall, Director, Congressional Congressional Hall, Director, Keith from in letter using data estimates based on Heritage are FY 2019 million for of $700 savings Estimated Aspen Institute, Justice and Society Program, Program, and Society Justice Aspen Institute, Estimated savings of $465 million for FY 2019 are based on David Inserra, “Time to Privatize the TSA,” Heritage Foundation Heritage Foundation the TSA,” Privatize to “Time Inserra, David based on are FY 2019 million for of $465 savings Estimated Estimated savings of $91 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated in the as specified level appropriated based on the FY 2018 are FY 2019 for million of $91 savings Estimated Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. Savings equal the difference between the FY 2018 the FY 2018 between equal the difference Savings in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, 8. 5. 6. 9. ENDNOTES 1. 2. 3. 7. 4.
Interior, Environment, and Related Agencies INT/ENV Eliminate Funding fortheEPA’s Sustainable andHealthy ADDITIONAL READING The Sustainable andHealthy Communitiesresearch Communities Research Program 126 to controllocalprojects. TheEPA’s researchagenda and itisinappropriateforthefederalgovernment storm water runoff,andtrade-offsincommunity program doesnot addressenvironmental priorities, focuses onissueslike managingmunicipalwaste, Ȗ Ȗ Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr The HeritageFoundation, Mandate for Leadership Series,2016, pp. 94–98. December 14, 2015. Diane Katz, “An Environmental Policy Primerfor theNext President,” HeritageFoundation epublic esiden $64 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) Blueprint for Reform: AComprehensive Policy Agenda for aNew Administration in2017 ee ADDRESSED ADDRESSED ADDRESSED P I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT NOT A T UDE T I A U L L S D Y The Heritage Foundation | Foundation Heritage The local conditions. ties thatareappropriatelystate andlocalpriorities. States, localities, andindividualpropertyowners are better equippedtocustomize policiestomeet planning forgreenspace,schools, andpublicfacili PRES Reduces spendingto$64.3million. IDE N T HOUSE E X heritage.org/BlueprintForBalance P L ANA Backgrounder T S ION E N A T E No. 3079, R S C , - INT/ENV 127 , C S R No. 3079, 3079, No. E T A N E ION S T Backgrounder Backgrounder ANA L P heritage.org/BlueprintForBalance X E HOUSE T N IDE Eliminates spending. PRES customize policies to meet local conditions. A less A less local conditions. policies to meet customize would also mean more direct centralized regime accountability: Taxpayers could more easily identify accountability: Taxpayers those regulatory decisions and the people making the officials responsible for environmental policies, policies, environmental for the officials responsible would have to live with the consequences. to live would have The Heritage Foundation | D S U T UDE A NOT NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I ADDRESSED ADDRESSED ADDRESSED ee Blueprint for Reform: A Comprehensive Policy Agenda for a New Administration in 2017 Administration a New for Agenda Policy A Comprehensive Reform: for Blueprint 19) L A Blueprint for Balance: S ommitt 2 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R $17 t esiden epublic Diane Katz, “An Environmental Policy Primer for the Next President,” Heritage Foundation Heritage Foundation President,” the Next Primer for Policy Environmental “An Diane Katz, 2015. 14, December 94–98. pp. 2016, Series, Leadership for Mandate The Heritage Foundation, Heritage Foundation, The R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ dissimilar locations across the 50 states. States and States and across the 50 states. dissimilar locations departments and not the EPA. Federal bureaucrats Federal the EPA. not departments and to impose controls on hundreds, if not thousands, of thousands, if not on hundreds, to impose controls hardly possess sufficient information and expertise hardly possess sufficient individual property owners are better equipped to equipped are better owners individual property which should be addressed by state public health state by which should be addressed The most pressing indoor air issues relate to asthma, relate to asthma, pressing indoor air issues The most ADDITIONAL READING Eliminate the EPA’s Indoor Air Programs Indoor the EPA’s Eliminate INT/ENV Eliminate SixRedundantEPA Programs ADDITIONAL READING Eliminating theSurfaceWater Protection Eliminating thePollution Prevention programsaves Eliminating theIntegratedEnvironmental Strategies Eliminating theNationalEstuary/Coastal Water $13 million.Thisprogramdoesnot contributeto ways programsaves $27million.Restoration and 128 remediation ofexisting pollutionproblems, andit not aproperfunctionofthefederalgovernment. ity,” “smartgrowth,” andsimilarsocialengineeringis bymanaged states andprivatepropertyowners, not the privatesector. the federalgovernment. engages inactivitiesthatarebetterengages carried outby program saves $200million.States, not the program saves $11.5million.Promoting “sustainabil protection ofestuaries andcoastal areasarebest Ȗ Ȗ Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr The HeritageFoundation, Mandate for Leadership Series,2016, pp. 94–98. December 14, 2015. Diane Katz, “An Environmental Policy Primerfor theNext President,” HeritageFoundation epublic esiden $350 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 3 ommitt S Blueprint for Balance: Blueprint for A L 19) Blueprint for Reform: AComprehensive Policy Agenda for aNew Administration in2017 ee ADDRESSED ADDRESSED ADDRESSED P I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT NOT A T UDE T I A U L - L S D Y - The Heritage Foundation | Foundation Heritage The These programsdonot contributetoactualcleanup Eliminating theWaste MinimizationandRecy Eliminating theFederal Vehicle andFuels Stan Government-mandated emissionsstandards are Conservation andRecoverysaves Act $9million. water like lakes, rivers, andstreams thatfallwithin with atthestate andlocallevels. ing recycling andothering recycling activitiesthatarebest dealt unnecessary inlightofconsumerdemandforfuel their boundaries. cling programsundertheEPA-developed Resource essarily increasesfoodandenergypricesinorderto efficiency, andtheRenewable FuelStandardunnec dards andCertificationprogram saves $93million. of hazardouswaste; instead, theyfocusonpromot federal government, should manage bodies of federal government, shouldmanage benefit asmallset ofspecialinterests. PRES Minimal ormoderatereductionstoremainingprograms. Prevention, andWasteMinimizationRecyclingprograms. Eliminates NationalEstuary/CoastalWaterways,Pollution IDE N T HOUSE E X heritage.org/BlueprintForBalance P L ANA Backgrounder T S ION E N A T E No. 3079, R S C - - , - - INT/ENV 129 - C S R No. 3079, 3079, No. E T A N E ION S T Backgrounder Backgrounder ANA L P heritage.org/BlueprintForBalance X E HOUSE T N IDE Reduces spending by $30 million. PRES funding for the Civil Enforcement program by 30 Enforcement program by funding for the Civil to garnish wagesfrom using resources a without cases to the Treasury Depart from referring such percent. The EPA should also be prohibited both be prohibited both should also percent. The EPA court order to collect fines or other penalties and other penalties fines or court order to collect ment for wage order. garnishment without a court Congress should reduce the $171 million in FY 2017 the $171 million in FY 2017 Congress should reduce The Heritage Foundation | Y D S L L U A I T UDE T A NOT NOT NOT R T A NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I P ADDRESSED ADDRESSED ADDRESSED ee 19) L No. 4275, September 29, 2014. 29, September 4275, No. A Blueprint for Balance: S ommitt 4 esolution esolution OPO t R tudy C Issue Brief Issue R P s Budget (FY20 ’ an S t e Budget R t $52 esiden epublic Robert Gordon and Andrew Kloster, “Wage Garnishment Without a Court Order: Not a Good Idea,” Heritage Heritage Not a Good Idea,” Order: a Court Garnishment Without “Wage Kloster, and Andrew Gordon Robert Foundation Heritage Foundation President,” the Next Primer for Policy Environmental “An Diane Katz, 2015. 14, December R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ be more careful about inviting legal challenges to inviting be more careful about settles administrative and civil judicial cases against civil judicial cases against and administrative settles but the EPA laws, environmental serious violators of engages in unnecessary and excessive legal actions. legal actions. and excessive engages in unnecessary an element of discipline that forces the agencyan element of discipline to regulatory and enforcement activities. regulatory and enforcement Therefore, a reduction in funding should impose Therefore, a reduction The EPA Civil Enforcement program litigates and Civil Enforcement program The EPA ADDITIONAL READING Reduce Funding for the EPA’s Civil Enforcement Program Enforcement Civil for the EPA’s Reduce Funding INT/ENV Reduce FundingReduce fortheEPA’s External Civil Rights Compliance Office (Title VI) ADDITIONAL READING VI) programprovides theEPA direction withpolicy The External CivilRightsComplianceOffice(Title 130 and guidanceoncivilrightsequalemployment opportunity. However, italsoundertakes avariety Ȗ Ȗ Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr The HeritageFoundation, December 14, 2015. Diane Katz, “An Environmental Policy Primerfor theNext President,” Heritage Foundation epublic esiden $4.9 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 5 ommitt S Blueprint for Balance: Blueprint for A L 19) Environmental Conservation: Eight Principlesof theAmerican Conservation Ethic ee ADDRESSED ADDRESSED ADDRESSED P I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT NOT A T UDE T I A U L L S D Y The Heritage Foundation | Foundation Heritage The Congress shouldreducethe$10millioninFY2018 of other “outreach”andnonessentialfunctions. funding forthisprogramby 50percent. PRES Reduces spendingto$8.5million. IDE N T HOUSE E X heritage.org/BlueprintForBalance P L ANA Backgrounder T S ION E N A T E No. 3079, , 2012. R S C INT/ENV 131 C S R No. 3079, 3079, No. E T A N E ION S T Backgrounder Backgrounder ANA L P heritage.org/BlueprintForBalance X E HOUSE T N IDE Reduces spending to $42.3 million. PRES funding for the EPA’s legal advice on environmental legal advice on environmental funding for the EPA’s programs by 50 percent. programs by should reduce the $48 million in estimated FY 2018 FY 2018 $48 million in estimated should reduce the regulatory and enforcement activities. Congress activities. regulatory and enforcement The Heritage Foundation | Y D S L L U A I T UDE T A NOT NOT NOT R T A NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I P ADDRESSED ADDRESSED ADDRESSED ee 19) L No. 4275, September 29, 2014. 29, September 4275, No. A Blueprint for Balance: S ommitt 6 esolution esolution OPO t R tudy C Issue Brief Issue R P s Budget (FY20 ’ an S t e Budget R t $25 esiden epublic December 14, 2015. 14, December Robert Gordon and Andrew Kloster, “Wage Garnishment Without a Court Order: Not a Good Idea,” Heritage Heritage Not a Good Idea,” Order: a Court Garnishment Without “Wage Kloster, and Andrew Gordon Robert Foundation Heritage Foundation President,” the Next Primer for Policy Environmental “An Diane Katz, R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ programs of legal representation, legal counseling, programs of legal activities should impose discipline on the agency’s discipline on the agency’s activities should impose and legal support for all of the EPA’s environmental environmental for all of the EPA’s and legal support is excessive. Therefore, a reduction in funding for Therefore, a reduction is excessive. A significant amount of the EPA’s regulatory activity regulatory of the EPA’s A significant amount ADDITIONAL READING Reduce the EPA’s Legal Advice on Environmental Programs on Environmental Advice Legal Reduce the EPA’s INT/ENV Eliminate theEPA’s Stratospheric OzoneMultilateral Fund ADDITIONAL READING The EPA’s StratosphericOzoneMultilateralFund 132 was createdby partiestothe1987Montreal Pro tocol tosupportefforts by developing countriesto substances. Thecurrentevidenceshows thatozone phase outtheuseofstratospheric ozone-depleting Ȗ Ȗ Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr The HeritageFoundation, December 14, 2015. Diane Katz, “An Environmental Policy Primerfor theNext President,” Heritage Foundation epublic esiden $8.7 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 7 ommitt S Blueprint for Balance: Blueprint for A L 19) Environmental Conservation: Eight Principlesof theAmerican Conservation Ethic ee ADDRESSED ADDRESSED ADDRESSED I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL T NOT NOT NOT A UDE T U - S D The Heritage Foundation | Foundation Heritage The disproportionate shareofthefunding. or specieswas ever shown tobeseriouslyharmed depletion threat;noecosystem was anexaggerated by ozone depletion. Asitis, theU.S. haslongpaida PRES Eliminates spending. IDE N T HOUSE E X heritage.org/BlueprintForBalance P L ANA Backgrounder T S ION E N A T E No. 3079, , 2012. R S C INT/ENV 133 , C S R No. 3079, 3079, No. E T A N E ION S T Backgrounder Backgrounder While some of these While some of these 9 ANA L P heritage.org/BlueprintForBalance X E HOUSE T N IDE Reduces spending to $85.6 million. PRES by private companies. private by projects might be worthwhile, they are far beyond worthwhile, projects might be about the nature of climate change.about the nature of Since 1992, the EPA has granted more than $68.7 has granted more than $68.7 the EPA Since 1992, or be funded at the local level Such projects should the appropriate scope of the federal government. of the federal government. the appropriate scope million to these programs. warming that ignores the broader scientific debate that ignores the broader warming The Heritage Foundation | Y D - S L L U A I T UDE T A NOT NOT NOT R T A NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I P ADDRESSED ADDRESSED ADDRESSED ee Blueprint for Reform: A Comprehensive Policy Agenda for a New Administration in 2017 Administration a New for Agenda Policy A Comprehensive Reform: for Blueprint 19) L A Blueprint for Balance: S ommitt 8 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $126 esiden epublic Diane Katz, “An Environmental Policy Primer for the Next President,” Heritage Foundation Heritage Foundation President,” the Next Primer for Policy Environmental “An Diane Katz, 2015. 14, December 94–98. pp. 2016, Series, Leadership for Mandate The Heritage Foundation, Heritage Foundation, The R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ for public education. Grants go to nonprofit groups, Grants gofor public education. to nonprofit groups, popular topics being biodiversity, water issues, and issues, water biodiversity, popular topics being schools, and government agencies with the most agencies and government with the most schools, duced controversial classroom material on global duced controversial children’s health, and environmental education health, and environmental children’s general “environmental literacy.” EE has also pro literacy.” general “environmental that educate and increase awareness of stewardship, of stewardship, awareness that educate and increase The EPA has allocated taxpayer money to projects money to has allocated taxpayer The EPA (EE) through grants, curricula, and other materials curricula, and other (EE) through grants, ADDITIONAL READING Eliminate the EPA’s Information Exchange/Outreach Programs Exchange/Outreach Information the EPA’s Eliminate INT/ENV Eliminate theLandandWater Conservation Fund ADDITIONAL READING The federalgovernment owns some640million The LWCF, established by Congressin1965, allows $20.5 billioninFY2019. 134 nearly halfofthewestern UnitedStates. TheLWCF aone-timesavingsremaining balance,generating of than half($17.5 billion)hasbeenspent,leaving a turn itintopublicparksandother publicrecreation the federalgovernment touseroyalties fromoff acres ofland:nearly30percentthecountryand areas. Ofthe$38.0 billioncreditedtothefund,less credit of$20.5 billion. shore energydevelopment tobuyprivatelandand Ȗ SAVINGS INBILLIONS Ȗ Sena R House Budge Pr Foundation Katie Tubb andNicolas D. Loris, “Five Reasons to Sunset theLandandWater Conservation Fund,” Heritage epublic esiden t $21 e BudgetR t an S ’ s Budget(FY20 P R Backgrounder tudy C t R OPO esolution esolution 10 ommitt S 11 Blueprint for Balance: Blueprint for A Congressshouldrescindthe L 19) ee No. 3165, November 16,2016. ADDRESSED ADDRESSED I REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL T NOT NOT A E UDE T CTE U - S D D The Heritage Foundation | Foundation Heritage The Washington moredecision-makingpower, Congress major federal land-management agencies.major federalland-management Con is theprimaryvehicle forlandpurchasesby thefour has led to land mismanagement, losthas ledtolandmismanagement, recreation and createopportunitiesforeconomicdevelopment. and resourceproductionopportunities, andpoor gress alsousesthefundforamatchingstate grant environmental Instead management. ofgiving should empower states andlocalcommunitiesto protect theirenvironments, maximizelandvalue, program, althoughtheLWCF now chieflyfunds federal objectives. Thismassive federalownership PRESIDENT Allows LWCFtoexpireonschedule atendofFY2018. Requests $28million. HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E RSC - INT/ENV 135 - RSC , 2012. E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE 14 T N IDE Reduces spending to $10 million. PRES ects that should be undertaken by private investors private investors by undertaken ects that should be and local groups. or state a new engine and generators for a 1950s locomotive generatorsa new engine and a 1950s locomotive for engines for farmers in the San and new equipment in Pennsylvania, school buses in San Diego County, in San Diego school buses County, in Pennsylvania, Federal taxpayers should not have to pay for proj to pay have should not taxpayers Federal Joaquin Valley. Joaquin The Heritage Foundation | Y D D S L L U - A I T UDE UDE T A NOT NOT R T A NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I P ADDRESSED ADDRESSED ee Diesel Emissions Re Diesel Emissions Environmental Conservation: Eight Principles of the American Conservation Ethic Conservation American the Principles of Eight Conservation: Environmental 19) 13 L A Blueprint for Balance: S ommitt 12 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $60 esiden epublic Nicolas Loris, “EPA Is Desperately in Need of Budget Cuts. Here’s a Few Places to Start,” The Daily Signal, The Start,” to Places a Few Cuts. Here’s of Budget in Need Is Desperately “EPA Loris, Nicolas The Heritage Foundation, Heritage Foundation, The July 10, 2014. July 10, R House Budge Pr Sena Ȗ Ȗ SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ or retrofitted tractors and cherry pickers in Utah, cherry pickers tractors and or retrofitted stop, truck spaces at a Delaware electrified parking equipment, engine and vehicle replacements, and replacements, and vehicle equipment, engine for new duction Act been used to pay have grants of taxpayer dollars over the years to develop more the years to develop dollars over of taxpayer alternative fuel options.” alternative as “emissions and idle control devices, aerodynamic idle control devices, as “emissions and than 60,000 pieces of clean diesel technology, such such clean diesel technology, pieces of than 60,000 The government has spent hundreds of millions has The government ADDITIONAL READING Eliminate the EPA’s National Clean Diesel Clean Campaign National the EPA’s Eliminate INT/ENV Eliminate EPA Environmental Justice Programs ADDITIONAL READING The EPA’s “environmental justice” programswere Further, environmental justice programshave EPA beyondthispurposetoprevent toooftengoes 136 job-creating businessesfromdeveloping inlow-in munities fromenvironmental harm.However, the example, theEnvironmental Justice SmallGrants expanded tosubsidizestate andlocalprojectsthat opportunity thatthesecommunitiesneed. come communities, thusblockingtheeconomic originally designedtoprotect low-income com federal taxpayers shouldnot beforcedtofund.For Ȗ Ȗ SAVINGS INMILLIONS Ȗ Ȗ Sena R House Budge Pr James Rust, “‘Environmental Justice’ Injustice (EPA Elitism,Exploitation),” Institute for Energy Research, Master The HeritageFoundation, Resource, August 13,2014. Mandate for Leadership Series,2016, pp. 94–98. epublic esiden $7.2 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 15 ommitt S Blueprint for Balance: Blueprint for A L 19) Blueprint for Reform: AComprehensive Policy Agenda for aNew Administration in2017 ee ADDRESSED ADDRESSED ADDRESSED P I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT NOT A T UDE T I A - U L L S D - Y The Heritage Foundation | Foundation Heritage The “knowledge ofhealthy/green“knowledge nailsalon concepts and Program hasfundedneighborhoodlitter cleanups; Congress shouldeliminatetheseprograms, which merit taxpayer resources. negative effectsofurbansprawl andautomobile have beenco-opted byanddonot politicalagendas dependence; andapilot programtoreachCali education onurbangardening,composting, andthe practices.” fornia’s nailsalon communityinordertoincrease PRES Reduces spendingto$2million. IDE N T 16 HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S - C , INT/ENV 137 - RSC E 20 T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Appears to eliminate NEH. PRES billion in charitable contributions in 2016, an in contributions in 2016, billion in charitable for arts, culture, and the humanities experienced an culture, and the humanities for arts, organizations and activities. Americans gave $390.1 $390.1 Americans gave activities. organizations and giving as Charitable from 2014. crease of 4 percent of the federal government. government should not use its coercive power of power use its coercive should not government a whole increased 4.5 percent from 2015, and giving 4.5 percent from 2015, a whole increased taxation to compel taxpayers to support cultural taxpayers taxation to compel increase of 6.7 percent from 2015. percent from increase of 6.7 The NEH is neither a necessary nor a proper activity The NEH is neither a necessary The Heritage Foundation | - D D D - S - U T UDE UDE UDE A NOT In T 18 NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 17 esolution These funds dwarf private giving. These funds dwarf esolution 19 OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $153 esiden epublic R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN dent Lyndon Johnson through the National Foun dent Lyndon Johnson and the Humanities Act,dation on the Arts received able to donate at their own discretion to human discretion able to donate at their own additional $2.5 billion in matching funds” during its additional $2.5 billion a $149.8 million appropriation for FY 2017. million appropriation for a $149.8 ities organizations and programs as they wish; ities organizations and programs as 50-year history. 50-year Private individuals and organizations should be Private individuals and organizations 2016, it reported that it had awarded “more than that it had awarded it reported 2016, 63,000 grants totaling $5.3 billion, and leveraged billion, an $5.3 grants totaling 63,000 The NEH, created on September 29, 1965, by Presi by 1965, 29, on September The NEH, created Eliminate the National Endowment for the Humanities Endowment the National Eliminate INT/ENV Eliminate theNational Endowment fortheArts The NEAreceived a$149.8 millionappropriation The NEAwas createdonSeptember 29, 1965, by In 2016, itreportedhaving awarded morethan$5 Foundation ontheArtsandHumanitiesAct. President LyndonJohnson throughtheNational 138 vided by theNEA.Americansmade$390.1 in FY2017. necessary norprudent. history. arts andhumanitiesvastly exceed theamountpro charitable contributionsin2015. billion forartsparticipationduringits50-year SAVINGS INMILLIONS Sena R House Budge Pr epublic esiden $153 t e BudgetR 22 Taxpayer assistance fortheartsisneither t an S ’ 23 s Budget(FY20 P However, privatecontributionstothe R tudy C t R OPO esolution esolution 21 ommitt S Blueprint for Balance: Blueprint for A L 19) ee 24 Arts, culture,and ADDRESSED I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL billion T NOT A UDE UDE UDE T U in S D D D - The Heritage Foundation | Foundation Heritage The “[a]ctors, artists, andacademicsarenomoredeserv In thewordsofCitizensAgainst Government Waste, Further, federallyfundedartsprogramsare suscep fields; the federal governmentfields; thefederal shouldrefrainfrom ing ofsubsidiesthantheircounterpartsinother receiving 6.7 percentmorethanthepreviousyear. to promote theircauses. tible toculturalcronyism whereby specialinterests the humanitiesexperiencedasubstantial increase, promoting receive government asocialagenda favor funding allofthem.” PRES Appears toeliminateNEH. IDE N T HOUS E X heritage.org/BlueprintForBalance P E 26 L ANA 25 T S ION E N A T E RSC - - INT/ENV 139
C S not R E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE
T The Wilson Center can operate without The Wilson Center can operate without N 29 IDE PRES federal funds, and the federal government should and the federal government federal funds, organizations that do this with private funding. organizations that close.” available on its website, for how it would continue on its website, for how available will an appropriation bill, the Wilson Center to be funded without appropriations: “If there is a to be funded without need assistance. admission, does not its own that, by it is not the proper role for government to pay for pay to the proper role for government it is not when there is a wide rangeindependent research of dollars supporting an institution spend taxpayer not lapse in Federal funding as a result of failure to pass funding as a result of lapse in Federal Additionally, the Wilson Center has a plan, readily the Wilson Center has a plan, readily Additionally, The Heritage Foundation | D S - U T UDE About About A NOT NOT NOT 28 T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 27 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R $12 t esiden epublic R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN provided through private donations. Funding for Funding through private donations. provided publishes research about global policy publishes research and hosts one-third of the center’s budget comes through budget one-third of the center’s events to facilitate “open dialogue” about “action to facilitate “open dialogue” events official memorial to President Woodrow Wilson Woodrow to President official memorial annual appropriations, with the remaining funds annual appropriations, able ideas.” and as a nonpartisan policy forum and independent and as a nonpartisan the Wilson center should be eliminated because the Wilson center should be eliminated the Woodrow Wilson Memorial Act Wilson Memorial of 1968. the Woodrow million appropriation from Congress to carry out million appropriation from Congress research institution. The Wilson Center regularly The Wilson Center research institution. In FY 2017, the Wilson Center received a $10.5 a $10.5 the Wilson Center received In FY 2017, The Wilson Center was created by the Woodrow the Woodrow by created was The Wilson Center Wilson Memorial Act of 1968 and serves both as the Act both Wilson Memorial of 1968 and serves Eliminate Funding for the Woodrow Wilson Wilson Woodrow for the Funding Eliminate International Center for Scholars Center International INT/ENV Eliminate Funding fortheJohn F. Kennedy John F. Kennedy. The Kennedy Centerwas conceptualized in1958as In 2017, Congressappropriated$22.3millionforthe Even afterreceivingfundsfromthefederalgovern Lawmakers appropriatedanadditional$14.1 million Center forthePerforming Arts 140 ment, however, subscriptions forKennedy Center has served asboth theNationalCenterforPer a nationalculturalcenter. Sinceopeningin1971,it operation andmaintenanceoftheKennedy Center. performances cost $120to$500. for capitalrepairandrestoration of the artscenter. forming ArtsandthefederalmemorialtoPresident SAVINGS INMILLIONS Sena R House Budge Pr epublic esiden t $41 e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution 31 esolution 30 ommitt S Blueprint for Balance: Blueprint for A L 19) ee 33 ADDRESSED ADDRESSED P I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL A T R NOT NOT A T UDE UDE T I A U L L S D D - Y - 32
The Heritage Foundation | Foundation Heritage The The Kennedy Centershouldbefundedby thesepri Private donationstothearts, culture,andhuman with taxdollarspaidby Americanswhomay never vate donationsandrobust ticket sales ratherthan ment tobesubsidizingaperformingartscenterin ities increasedby 6.7 percentfrom2015 to2016. Spending taxpayer dollarstofundperformingartsis outside thescopeoffederalgovernment obligations. one ofthewealthiest areasofthecountry. experience themusicandtheaterforwhichtheyare paying. Itisnot appropriateforthefederalgovern PRES Reduces spendingto$24.5million. IDE N T
HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E RSC 34 -
- - INT/ENV 141 policy, policy, the 40 , The Obama 37 environmental environmental Though the Trump 45 46 heritage.org/BlueprintForBalance The ozone standard has grown has grown standard The ozone 43 policy as it sets Mingo Logan Coal Co. v. EPA v. Co. Mingo Logan Coal economic The EPA has decided that it can retroactively retroactively has decided that it can The EPA 38 Under Section 404 of the Clean Water Act, property of the Clean Water Under Section 404 41 In a 2013 case, In a 2013 The Heritage Foundation | 39 includes over 100 specific appropriations and legislative 100 specific appropriations and legislative includes over By requiring fuel blenders to use biofuels regardless of the By Written in collaboration with six other organizations, The organizations, other in collaboration with six Written . A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET There is even concern that the EPA could determine where farming is could determine EPA concern that the There is even The Environmental Protection Agency finalized a new ozone standard standard Agencyozone Protection finalized a new The Environmental 35 Environmental Policy Guide Policy Environmental Blueprint for Balance: When a third of the nation’s population lives in areas that have not met the current met not in areas that have population lives When a third of the nation’s 42 44 Environmental Policy Guide Policy Environmental The EPA’s efforts to address water quality in the Chesapeake Bay are particularly problematic. particularly problematic. are Bay in the Chesapeake water quality to address efforts The EPA’s This type of regulatory scheme could very well be used on a national level as well. as level well be used on a national scheme could very This type of regulatory 36 pollution. from being a question of whether or not to have clean, healthy air, the new standard goes the new standard well beyond what air, healthy clean, to have or not of whether from being a question paid by American families benefit a select group of special interests that produce renewable fuels. Tinkering Tinkering fuels. that produce renewable American families benefit a select group of special interests paid by should prohibit all federal agencies from regulating greenhouse gas emissions. Congress should order the Congress should should prohibit all federal agencies greenhouse gas emissions. from regulating standard, adopting an even more stringent standard is at best, premature. is at best, more stringent standard an even adopting standard, set by EPA in 2008.” EPA by set energy, these restrictions on the use of abundant, affordable energy sources will only inflict economic pain on the use of abundant, affordable energy sources will only inflict these restrictions energy, They will produce no discernible climate benefit while causing hundreds on households and businesses. product to be lost. of jobs and trillions of dollars of gross domestic of thousands existing power plants. Since conventional carbon-based fuels provide more than 80 percent of America’s more than 80 percent of America’s carbon-based fuels provide Since conventional plants. power existing cost, the RFS has made most Americans worse off through higher food and fuel expenses. The higher costs The higher costs Americans worse off through higher food and fuel expenses. the RFS has made most cost, enjoying nearly unfettered power to set ozone standards and, indirectly, economic activity and land use. and, indirectly, standards ozone to set power unfettered nearly enjoying of 70 parts per billion (ppb) in October 2015. This drastic action was premature. States are just now starting starting now premature. States are just action was This drastic 2015. of 70 parts per billion (ppb) in October exercised four years after the Corps issued the permit. exercised owners sometimes have to secure dredge-and-fill permits. have sometimes owners greenhouse gas emissions from vehicles, heavy-duty trucks, airplanes, hydraulic fracturing, and new and hydraulic airplanes, trucks, heavy-duty greenhouse gas emissions from vehicles, Prohibit the regulation of greenhouse gases and withdraw the endangermentProhibit the regulation of greenhouse gases and withdraw finding. Repeal the Renewable Fuel Standard (RFS). Fuel Repeal the Renewable Rein in the EPA’s ozone standard. ozone Rein in the EPA’s Prohibit retroactive vetoes of Section 404 permits. vetoes Prohibit retroactive Prohibit federal efforts to regulate, either directly or indirectly, nonpoint sources of water sources of nonpoint directly or indirectly, to regulate, either federal efforts Prohibit around the edges will not fix this unworkable policy. Moreover, the federal government should not mandate should not the federal government Moreover, policy. around the edges fix this unworkable will not and toxicology. allowed. tangible benefits. The EPA is increasingly setting American is increasingly setting The EPA tangible benefits. to meet the current 75 ppb standard. According the current 75 ppb standard. Service, “109 million people to the Congressional Research to meet holder is in full compliance with permit conditions. holder is in full compliance recommendations for reforming environmental policy. Topics include the Clean Air Act, Clean Water Act, include the Clean Air Act, Clean Water Topics policy. recommendations for reforming environmental more controversial as it becomes increasingly expensive to meet tighter standards with smaller margins of with smaller margins tighter standards to meet as it becomes increasingly expensive more controversial revoke a Section 404 permit that the Army Corps of Engineers has issued, regardless of whether the permit regardless of whether Corps of Engineers has issued, a Section 404 permit that the Army revoke is a specific and identifiable source). is a specific and identifiable which type of fuel drivers use in the first place. Congress should repeal the RFS. use in the first which type of fuel drivers Congress intended in the Clean Air Act.Congress intended in the Clean Air Heritage Foundation’s Foundation’s Heritage Act,EndangeredSpecies Act, Policy reform, regulatory process and accountability National Environmental D.C. Circuit Court of Appeals held that the EPA could retroactively veto such permits; the EPA’s veto was was veto such permits; the EPA’s veto could retroactively of Appeals held that the EPA Circuit Court D.C. This has restricted opportunity, and compliance costs are passed on to Americans, especially the poor. Far Far especially the poor. are passed on to Americans, and compliance costs opportunity, This has restricted The agency other nonpoint sources of pollution agricultural runoff and seeking to regulate is effectively Advance the (one-third of the U.S. population) lived in areas classified as ‘nonattainment’ for the 75 ppb ozone NAAQS for the 75 ppb in areas classified as ‘nonattainment’ population) lived (one-third of the U.S. (pollution coming from multiple sources over a wide area, as opposed to pollution from a point source that a wide area, as opposed to pollution from multiple sources over (pollution coming Administration has taken positive steps to reverse the previous Administration’s climate agenda, Congress the previous Administration’s to reverse steps Administration positive has taken Administration change proposed and implemented a series of climate regulations in an effort to reduce Policy Riders Policy INT/ENV Act altogether orby requiringcongressionalandstateAct approval forany designation. 142 The federalgovernment’s landholdingsaregreaterthantheareasofFrance, Spain,Germany, Poland, Italy, Department oftheInterior’s maintenancebacklog. Federal LandsTransaction Facilitation stipulating fromlandsales thatfundsgenerated willaddressthe Act, Federal cannot theselandsandthe naturalresourcesonthem.Congress agencies adequatelymanage Environmental findingon greenhousegasemissions, towithdraw itsendangerment Protection Agency Congress recognizedin1950:ThePresidentshouldnot have theabilitytodeclarenationalmonuments lifetime andinflict relying solelyorprimarily onparticulatematter co-benefits. reducing thoseemissionsshouldexceed thecosts. However, foryears, theEPA hasfoundanimproper recognizing thatgreenhousegasemissionsareaffectingtheclimatebutnocredibleevidencesuggests high arbitrarypriceonatonofcarbondioxide emitted intotheatmosphere,EPA caninflatethebenefits unilaterally andarbitrarilytake economicandenvironmental decisionsaway fromthestates andlocal their statutory limitations. CongressshouldrecognizewhatWyoming recognizedin1943andwhatthe81st the “smallest oftheobjectstobeprotected,” areacompatiblewithproper careandmanagement Presidents the U.S. landmass, includingAlaskaandHawaii. Onlyafractionofthisland iscomposedofnationalparks. Austria,the UnitedKingdom, Switzerland, theNetherlands, andBelgiumcombined—almost athird of the socialcost ofcarbonforany purpose,especiallyregulatoryrulemaking. the valueofsocialcostthatonetoncarbondioxide ofcarbon,definedastheeconomicdamage (CO that theEarthisheadingtoward catastrophic warming. and fewtonobenefits, theEPA points to the“co-benefits”ofreducingparticulatematter asjustification Prohibit theEPA fromabusingcost-benefit analysis tojustify costly airregulations (co-benefits Repeal orreformtheAntiquitiesAct. Prohibit thenet acquisitionoflandandshiftfederalholdings tostates andtheprivatesector. Prohibit theuseofsocialcost ofcarboninany cost-benefit analysis orenvironmental impact end-run aroundthiscommon-senserequirement.Even whentherule’s stated objective hasmassive costs organizations. CongressshouldeliminatethePresident’s authoritytodoso, eitherby repealing theAntiquities century, thePresidenthashadpower todesignatelandasanationalmonumentunilaterally, withoutinput development, thesedecisionsshouldbemadeatthelocallevel, not fromWashington. For morethana opportunities fromcommunities. Whether theissueislogging,recreation,conservation,orenergy of regulationorinflatethecosts ofanewproject,claimingthattheprojectwillemit dramatically lowers theestimated socialcost ofcarbonfigure.Artificiallyincreasingthe estimates boosts the emitted today willcauseover thenext 300years. However, thesemodelsarbitrarilyderive avalueforthe sections oftheCAA. such asparticulatematter areaddressed throughtheirown specific statutory schemeandshould not should disposeofexcess lands, BureauofLandManagement shrink thefederalestate, andreauthorizethe should prohibitlandacquisitionsthatresultinanet gaininthesizeoffederalestate. Congressalso social cost ofcarbon.Subjectingthemodelstoreasonableinputsforclimatesensitivityanddiscountrates projected benefits of climate-related regulations in agency cost-benefit analyses.projected benefitsofclimate-relatedregulationsinagency Byplacingasignificantly for therule.Thisco-benefitsabusehasbecomeso bad thattheEPA hasissuedmajor ruleswithouteven from both partieshaveFor ignored thatlanguage. fartoolong,monumentdesignationshave exceeded from Congressoraffected states. Althoughthelaw states thatthePresidentmust limitthedesignationto abuse). be addressedthroughother means, bothering toquantifywhether therearebenefitsassociated withtheirregulatoryobjectives, instead .statement WhentheEPA issuesaruletoreduceemissionsofcertainairpollutant,thedirectbenefits
The EPA isusingthreestatistical models, known asintegratedassessmentmodels, toestimate Y damage ontheenvironment. damage Blueprint for Balance: Blueprint for 52 suchasthroughunrelated airregulationsdeveloped under other Nationalmonumentdesignationshave stripped economic AFEDERAL BUDGET FOR FISCAL YEAR2019 48 49 Congress should prohibit all federal agencies fromusing Congressshouldprohibitallfederalagencies The Heritage Foundation | Foundation Heritage The 47 51 Under the Clean Air Act, criteria pollutants UndertheCleanAirAct, heritage.org/BlueprintForBalance 50 X tonsofCO 2 over its 2 )
INT/ENV 143 , United United The Interior Budget Budget Interior The Report Report heritage.org/BlueprintForBalance
The Heritage Foundation | , p. 523. Heritage experts assume that spending for FY 2018 remains constant constant remains FY 2018 spending for that assume Heritage experts 523. , p. , p. 2, https://www.neh.gov/files/neh_2015_annual_report_final.pdf (accessed (accessed 2, https://www.neh.gov/files/neh_2015_annual_report_final.pdf , p. , p. 2, https://www.arts.gov/sites/default/files/2015%20Annual%20Report.pdf 2, https://www.arts.gov/sites/default/files/2015%20Annual%20Report.pdf , p. United States Environmental Protection Agency Fiscal Year 2019 Justification of Justification 2019 Year Fiscal Agency Protection Environmental States United A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET , September 1, 2016, https://www.everycrsreport.com/files/20160906_RL33531_ 1, 2016, , September Annual Report 2015 Annual Report 2015 Annual Report 2015 Blueprint for Balance: , February 2018, pp. D1–D2, https://edit.doi.gov/sites/doi.gov/files/uploads/2019_highlights_book.pdf (accessed (accessed D1–D2, https://edit.doi.gov/sites/doi.gov/files/uploads/2019_highlights_book.pdf pp. 2018, , February , pp. 805–808,. Heritage experts assume that spending for FY 2018 remains constant in FY 2019. constant remains FY 2018 spending for that assume 805–808,. Heritage experts , pp. United States Environmental Protection Agency Fiscal Year 2019 Justification of Appropriation Estimates for the Committee on Committee for the Estimates of Appropriation Justification 2019 Year Fiscal Agency Protection Environmental States United bill/244 (accessed March 10, 2018). 10, March (accessed bill/244 https://www.epa.gov/education/environmental-education-ee-grants (accessed March 9, 2018). 9, March (accessed https://www.epa.gov/education/environmental-education-ee-grants in FY 2019. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts March 10, 2018). 10, March March 10, 2018). 10, March Heritage experts 13, 2018). May (accessed https://www.congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf 115th Cong., 115-141, Public Law March 9, 2018). 9, March LWCF for FY 2019 as reported in “Appendix D: Land and Water Conservation Fund,” in U.S. Department of the Interior, of the Interior, Department in U.S. Fund,” Conservation D: Land and Water in “Appendix as reported FY 2019 for LWCF savings. million in discretionary and $397 billion in one-time savings includes $20.5 proposal This 2018). 14, May Heritage experts assume that spending for FY 2018 remains constant in FY 2019. constant remains FY 2018 for spending that assume Heritage experts in FY 2019. constant remains FY 2018 for spending that assume Heritage experts February 2018, p. 39, https://www.epa.gov/sites/production/files/2018-02/documents/fy-2019-congressional-justification-all-tabs.pdf https://www.epa.gov/sites/production/files/2018-02/documents/fy-2019-congressional-justification-all-tabs.pdf 39, p. 2018, February that spending for FY 2018 remains constant in FY 2019. constant remains FY 2018 spending for that in FY 2019. constant remains FY 2018 spending for that in Brief: Fiscal Year 2019 Year in Brief: Fiscal p. 258. Heritage experts assume that spending for FY 2018 remains constant in FY 2019. constant remains FY 2018 for spending that assume 258. Heritage experts p. program, $93 million for the Federal Vehicle and Fuels Standards and Certification program, $26.5 million for the National Estuary/Coastal Estuary/Coastal for the National million $26.5 program, and Certification Standards and Fuels Vehicle the Federal million for $93 program, assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume as found in U.S. Environmental Protection Agency, Agency, Protection Environmental in U.S. as found ac1555f37bb1a30bee404e6a00ad1b22af2e9f8e.pdf (accessed May 14, 2018), as well as $397 million in discretionary contributions to the to contributions million in discretionary as $397 as well 2018), 14, May (accessed ac1555f37bb1a30bee404e6a00ad1b22af2e9f8e.pdf assume that spending for FY 2018 remains constant in FY 2019. Total savings include $198.9 million for the Surface Water Protection Protection Water the Surface million for $198.9 include savings Total in FY 2019. constant remains FY 2018 spending for that assume programs. and Recycling Minimization Waste the million for and $9.1 for Members and Committees of Congress of Members and Committees for Waterways program, $12.2 million for the Pollution Prevention program, $10.6 million for the Integrated Environmental Strategies program; program; Strategies Environmental the Integrated million for $10.6 program, Prevention the Pollution million for $12.2 program, Waterways Grants: FY2013 Summaries by Region,” September 11, 2013, https://digital.library.unt.edu/ark:/67531/metadc949089/m1/1/ (accessed (accessed https://digital.library.unt.edu/ark:/67531/metadc949089/m1/1/ 11, 2013, September Region,” Summaries by FY2013 Grants: spending for FY 2018 remains constant in FY 2019. constant remains FY 2018 spending for org/giving-usa-2017-total-charitable-donations-rise-to-new-high-of-390-05-billion/ (accessed March 10, 2018). 10, March (accessed org/giving-usa-2017-total-charitable-donations-rise-to-new-high-of-390-05-billion/ clean-diesel-national-grants (accessed March 9, 2018). 9, March (accessed clean-diesel-national-grants Vincent, “Land and Water Conservation Fund: Appropriations for ‘Other Purposes,’” Congressional Research Service Service Research Congressional Purposes,’” ‘Other for Appropriations Fund: Conservation “Land and Water Vincent, (accessed March 10, 2018). 10, March (accessed (accessed May 14, 2018). Heritage experts assume that spending for FY 2018 remains constant in FY 2019. constant remains FY 2018 spending for that assume Heritage experts 2018). 14, May (accessed Savings of $16.7 million for FY 2019 are based on the FY 2018 appropriations reported in ibid., pp. 803–805. Heritage experts assume that that assume experts Heritage 803–805. in ibid., pp. reported appropriations based on the FY 2018 are FY 2019 for million of $16.7 Savings National Endowment for the Arts, the Arts, for Endowment National Press release, “Giving USA 2017: Total Charitable Donations Rise to New High of $390.05 Billion,” Giving USA, June 12, 2017, https://givingusa. 2017, 12, June USA, Giving Billion,” $390.05 of High New to Rise Donations Charitable Total 2017: USA “Giving release, Press Savings of $153 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Act, 2018. 2018. Act, Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are FY 2019 million for of $153 Savings U.S. Environmental Protection Agency, “Education: Environmental Education (EE) Grants,” Education Environmental “Education: Agency, Protection Environmental U.S. Savings of $64.3 million for FY 2019 are based on the FY 2018 appropriations reported in U.S. Environmental Protection Agency, Agency, Protection Environmental in U.S. reported appropriations FY 2018 based on the are FY 2019 million for of $64.3 Savings Consolidated Appropriations Act, 2017, Public Law 115-31, 115th Cong., May 5, 2017, https://www.congress.gov/bill/115th-congress/house- 2017, 5, May 115th Cong., 115-31, Public Law 2017, Act, Appropriations Consolidated Savings of $153 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Act, 2018, 2018, Act, Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are FY 2019 million for of $153 Savings Savings of $7.2 million for FY 2019 are based on the FY 2018 annualized spending level as found in U.S. Environmental Protection Protection Environmental in U.S. as found spending level annualized FY 2018 based on the are FY 2019 million for of $7.2 Savings Savings of $60 million for FY 2019 are based on the FY 2018 annualized spending level for the Diesel Emissions Reduction Grant Program Program Grant Reduction the Diesel Emissions for spending level annualized based on the FY 2018 are FY 2019 of $60 million for Savings https://www.epa.gov/cleandiesel/ 2012–2015, Awarded,” Grants Diesel: Clean Diesel National “Clean Agency, Protection Environmental U.S. Savings of $20.897 billion for FY 2019 equals the last reported remaining LWCF balance of $20.5 billion as found in Carol Hardy Hardy in Carol as found billion of $20.5 balance LWCF remaining reported last equals the FY 2019 for billion of $20.897 Savings National Endowment for the Humanities, the Humanities, for Endowment National U.S. Environmental Protection Agency, Office of Enforcement and Compliance Assurance (EOCA), “Environmental Justice Small Justice “Environmental (EOCA), Assurance Compliance and Enforcement of Office Agency, Protection Environmental U.S. NC Clean Energy, Technology Center, “Incentives & Funding,” https://nccleantech.ncsu.edu/clean-transportation/for-fleets/ (accessed (accessed https://nccleantech.ncsu.edu/clean-transportation/for-fleets/ & Funding,” “Incentives Center, Technology NC Clean Energy, Vincent, “Land and Water Conservation Fund: Appropriations for ‘Other Purposes.’” ‘Other for Appropriations Fund: Conservation “Land and Water Vincent, Savings of $8.7 million for FY 2019 are based on the FY 2018 annualized spending level as found in ibid., p. 144. Heritage experts assume assume Heritage experts 144. in ibid., p. as found spending level annualized 2018 based on the FY are FY 2019 million for of $8.7 Savings Savings of $52 million for FY 2019 are based on 30 percent of the FY 2018 annualized spending level of $174 million as found in ibid., p. 179. 179. in ibid., p. million as found of $174 spending level annualized FY 2018 of the based on 30 percent are FY 2019 million for of $52 Savings Savings of $24.9 million for FY 2019 are based on 50 percent of the FY 2018 annualized spending level of $49.7 million as found in ibid., million as found of $49.7 spending level annualized of the FY 2018 based on 50 percent are FY 2019 million for of $24.9 Savings Savings of $4.9 million for FY 2019 are based on 50 percent of the FY 2018 annualized spending level of $9.7 million as found in ibid., p. 251. 251. in ibid., p. million as found of $9.7 spending level annualized of the FY 2018 based on 50 percent are FY 2019 million for of $4.9 Savings assume Heritage experts 145. in ibid., p. as found spending level annualized based on the FY 2018 are FY 2019 million for of $126 Savings Savings of $350 million for FY 2019 are based on the FY 2018 appropriations reported in ibid., pp. 146, 147, 803, and 807. Heritage experts Heritage experts and 807. 803, 147, 146, in ibid., pp. reported appropriations based on the FY 2018 are FY 2019 million for of $350 Savings States Environmental Protection Agency Fiscal Year 2019 Justification of Appropriation Estimates for the Committee on Appropriations Committee the for Estimates of Appropriation Justification 2019 Year Fiscal Agency Protection Environmental States Agency, Agency, Appropriations Appropriation Estimates for the Committee on Appropriations the Committee for Estimates Appropriation
8. 5. 6. 9. ENDNOTES 19. 17. 18. 16. 15. 13. 14. 12. 11. 10. 1. 22. 20. 21. 2. 3. 7. 4. INT/ENV 47. 46. 45. 44. 43. 42. 41. 40. 32. 31. 30. 39. 38. 37. 36. 35. 34. 33. 29. 28. 27. 26. 25. 24. 23. 144 Ibid.
“Water Resources oftheUnited States: Water Glossary,” Basics last modifiedJune17, 2013, https://water.usgs.gov/water-basics_glossary.html August 21,2013, http://fas.org/sgp/crs/misc/RL31411.pdf (accessed March 10, 2018). See, for example, H.Sterling Burnett, “Farm Bureau Fights Federal LandGrab inChesapeake Bay Region,” HeartlandInstitute, John F. Kennedy Center for thePerforming Arts,“Kennedy Center Planfor Federal Government Shutdown,” revised September 26, 2013, “Discharge ofdredged material” refers to material excavated ordredged from waters oftheU.S., and“discharge offillmaterial” refers Press release, “Giving USA 2017: Total CharitableDonations Riseto New Highof$390.05 Billion.” Robert Gordon andDianeKatz, eds., Michael J. Gaynor, “How to see Consolidated Appropriations Act, 2017. Savings of$40.5 millionfor FY2019 are basedontheFY2018 appropriated level asspecifiedinthe Consolidated Appropriations Act, 2018. To learnmore aboutthisfederal overreach, seeDaren Bakst, “Eliminating andReducing Regulatory Obstacles inAgriculture,” Heritage U.S. Environmental Protection Agency, “Polluted Runoff:Nonpoint Source Pollution: What IsNonpoint Source?” last updated May 2,2017, Mingo Logan Coal Co. v. EPA Nicolas D. Loris, “Four BigProblems withtheObama Administration’s Climate ChangeRegulations,” Heritage Foundation Daren Bakst, “Statement Regarding Proposed Ozone Standards,” testimony before theEnvironmental Protection Agency, January29, 2015, James E.McCarthy andRichard K.Lattanzio, “EPA’s 2015 Ozone AirQuality Standards,” Congressional Research Service David Kreutzer, Nicolas D. Loris, Katie Tubb, andKevin Dayaratna, “The State ofClimate Science: NoJustification for Extreme Policies,” Nicolas Loris, “Examining theRenewable Fuel Standard,” testimony before theSubcommittee ontheInterior andSubcommittee on Gordon andKatz, eds., Woodrow Wilson International Center for Scholars, “Planfor Federal Funding Hiatus,” revised August 2015, p. 3,https://www.wilsoncenter. Consolidated Appropriations Act, 2017. Citizens Against Government Waste, Elizabeth Harrington, “The National Endowment for theArtsFunds Political Propaganda,” Consolidated Appropriations Act, 2017. Savings of$12 millionfor FY2019 are basedontheFY2018 appropriated level asspecifiedinthe Consolidated Appropriations Act, 2018. Press release, “Giving USA 2017: Total CharitableDonations Riseto New Highof$390.05 Billion.” (accessed March 10, Baise, 2018), andGary “Counties Attack EPA’s TMDLRegulations,” (accessed March 10, 2018). (accessed March 10, 2018). and Committees of Congress edu/cfr/text/33/323.2 (accessed March 10, 2018). The regulations provide more specificdefinitionsof dredged material, fill material, org/sites/default/files/wilson_center_plan_for_possible_lapse_in_federal_appropriation_revised_august_2015.pdf (accessed Responsibilities: APlanningGuidefor Construction andDevelopment Copeland, “Controversies over Redefining ‘FillMaterial’ UndertheClean Water Act,” Congressional Research Service and discharge ofdredged orfillmaterial. The precise definitionsof termssuchas “fill material” area matter of controversy. SeeClaudia assistance/sectors/constructmyer/ (accessed March 10, 2018). SeealsotheEPA regulations at 33U.S. Code §323.2, http://www.law.cornell. and $16.775 millionincapitalrepair andrestoration. regulatory-obstacles-agriculture. to “material placed inwaters suchthat drylandreplaces water—or aportionthereof—or thewater’s bottom elevation changes.” U.S. tickets-kennedy-center-how-to-see-hamilton-in-dc/ (accessed March 10, 2018). thefederalist.com/2016/02/23/the-national-endowment-of-the-arts-funds-political-propaganda/ (accessed March 10, 2018). jeffersonpolicyjournal.com/counties-attack-epas-tmdl-regulations/ (accessed March 10, 2018). justification-extreme-policies. Heritage Foundation No. 4454, August 14, 2015, http://thf_media.s3.amazonaws.com/2015/pdf/IB4454.pdf. March 16,2016, https://www.heritage.org/testimony/examining-the-renewable-fuel-standard. Healthcare, Benefits,and Administrative Rules, Committee onOversight andGovernment Reform, U.S. Houseof Representatives, DBEEA1719A916CDC85257B56005246C4/$file/12-5150-1432105.pdf (accessed March 9, 2018). Foundation, 2015, p. 8,http://www.heritage.org/research/reports/2015/03/environmental-policy-guide. Environmental Protection Agency, Office of Enforcement and Compliance Assurance, Office of Compliance, Foundation February 11,2016, https://www.heartland.org/news-opinion/news/farm-bureau-fights-federal-land-grab-in-chesapeake-bay-region Heritage experts assume that FY2018 spending remains constant inFY2019. Savings include$23.74 millioninoperations andmaintenance March 10, 2018). Emphasisinoriginal. Heritage experts assume that FY2018 spending remains constant inFY2019. http://www.scribd.com/doc/255666438/Bakst-Testimony-Ozone-Standards (accessed January29, 2018). http://www.epa.gov/polluted-runoff-nonpoint-source-pollution/what-nonpoint-source (accessed March 10, 2018); U.S. GeologicalSurvey, http://www.kennedy-center.org/legal/130927_fed_govt_shutdown.pdf (accessed March 10, 2018). Backgrounder Backgrounder Environmental Policy Guide: 167 Recommendations for Environmental Policy Reform Blueprint for Balance: Blueprint for No. 3135, June28,2016, https://www.heritage.org/government-regulation/report/eliminating-and-reducing- , 714 F.3d, 714 608(D.C. Cir. 2013), https://www.cadc.uscourts.gov/internet/opinions.nsf/ , August 15, 2017, https://fas.org/sgp/crs/misc/R43092.pdf (accessed March 9, 2018). Hamilton No. 3119, April16,2016, https://www.heritage.org/environment/report/the-state-climate-science-no- Environmental Policy Guide:167 Recommendations for Environmental Policy Reform Prime Cuts Summary inDC,” The Washingtonian AFEDERAL BUDGET FOR FISCAL YEAR2019 , April2015, p. 34, http://cagw.org/sites/default/files/PrimeCuts2015.pdf The Heritage Foundation | Foundation Heritage The , July7, 2016, https://www.washingtonian.com/2016/07/07/hamilton- , April2005, http://www.epa.gov/compliance/resources/publications/ Jefferson Policy Journal The Federalist heritage.org/BlueprintForBalance , February 23,2016, http:// . Managing Your Environmental , March 2,2016, http://www. Report for Congress Report for Members , The Heritage Issue Brief
, INT/ENV 145 , Brief , NERA , NERA , August 28, 2017, https://www. 28, 2017, , August heritage.org/BlueprintForBalance Commentary , Vol. 16, Issue 2 (July 2015), pp. 31–33, https://fedsoc.org/commentary/ 31–33, pp. 2015), 2 (July 16, Issue , Vol. Murray Energy v. United Sates Environmental Protection Agency Protection Environmental Sates United v. Energy Murray The Heritage Foundation | Engage A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Blueprint for Balance: Cato Institute in Support of Petitioners, November 25, 2016, https://www.scribd.com/document/332581815/Murray- 2016, 25, November in Support of Petitioners, Institute Cato An Evaluation of the PM2.5 Health Benefits Estimates in Regulatory Impact Analyses for Recent Air Regulations Air Recent for Analyses Impact Regulatory in the PM2.5Estimates of Health Benefits An Evaluation Amicus Curiae heritage.org/environment/commentary/why-trumps-upcoming-decision-federal-lands-matters. Energy-Corp-v-EPA (accessed May 14, 2018). Other CAA statutory sections arguably preclude consideration of criteria pollutants. of criteria consideration preclude arguably sections statutory Other CAA 2018). 14, May (accessed Energy-Corp-v-EPA Economic Consulting, December 2011, http://www.nera.com/content/dam/nera/publications/archive2/PUB_RIA_Critique_Final_ 2011, December Consulting, Economic GlobalWarming.org, Trick Exposed,” PR PM2.5 Co-Benefits “EPA’s See also Marlo Lewis, 2018). 14, May (accessed Report_1211.pdf Environment and Oversight, Committee on Science and Technology, U.S. House of Representatives, February 24, 2017, http://docs.house. 2017, 24, February of Representatives, House U.S. and Technology, on Science Committee and Oversight, Environment Investigations, Committee on Natural Resources, U.S. House of Representatives, December 7, 2017, http://docs.house.gov/meetings/II/ 2017, 7, December Representatives, House of U.S. Resources, on Natural Committee Investigations, II15/20171207/106700/HHRG-115-II15-Wstate-LorisN-20171207.pdf. publications/epa-s-use-of-co-benefits (accessed May 14, 2018), and 2018), 14, May (accessed publications/epa-s-use-of-co-benefits of gov/meetings/SY/SY18/20170228/105632/HHRG-115-SY18-Wstate-DayaratnaK-20170228.pdf. Kevin D. Dayaratna, “Methods and Parameters Used to Establish the Social Cost of Carbon,” testimony before the Subcommittee on Subcommittee the before testimony Carbon,” of the Social Cost Establish Used to Parameters and “Methods Dayaratna, D. Kevin and Oversight on the Subcommittee before testimony Century,” the 21st for the Interior of the Department “Transforming Loris, Nicolas See, for example, C. Boyden Gray, “EPA’s Use of Co-Benefits,” Use of Co-Benefits,” “EPA’s Gray, C. Boyden example, for See, Katie Tubb, “Why Trump’s Upcoming Decision on Federal Lands Matters,” Heritage Foundation Heritage Foundation Lands Matters,” Decision on Federal Upcoming Trump’s “Why Tubb, Katie Anne E. Smith, June 15, 2016, http://www.globalwarming.org/2016/06/15/epas-pm2-5-co-benefits-pr-trick-exposed-2/ (accessed May 14, 2018). 14, May (accessed http://www.globalwarming.org/2016/06/15/epas-pm2-5-co-benefits-pr-trick-exposed-2/ 2016, June 15,
52. 51. 50. 48. 49.
Labor, Health and Human Services, Education, and Related Agencies LABOR/HHS 148 Ȗ Ȗ ADDITIONAL READING Ȗ Ȗ Ȗ of $25,000 perJob Corpsparticipant: study foundthatforafederaltaxpayer investment pants comparedtosimilarnon-participants. The ment, assessedtheJob Corps’impactonpartici The NationalJob CorpsStudy, arandomizedexperi Eliminate theJob Corps Ȗ Ȗ Ȗ Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr May 5, 2009. David B. Muhlhausen,“Job Corps: AnUnfailing Record ofFailure,” HeritageFoundation March 19, 2014. David B. Muhlhausen,“DoFederal SocialPrograms Work?” HeritageFoundation of thecontrolgroup;and only $22higherthantheaverage weeklyearnings the averageweeklyearningsofparticipantswere Four yearsafterparticipatingintheevaluation, no morelikely toattend orcomplete college; Compared tonon-participants, participantswere percent versus 5.3 percent); were lesslikely toearnahighschooldiploma(7.5 Compared tonon-participants, participants epublic esiden $1.7 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED P P I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL A A T R R NOT NOT A T T UDE UDE T I I A A U - L L L L S D D Y Y - The Heritage Foundation | Foundation Heritage The the program. benefits ofthe Job Corpsdonot outweighthecost of on theNationalJob CorpsStudyfoundthatthe skills ofparticipants. Acost-benefit analysisbased thatitactuallydoeslittlesuggests toboost thejob stantially. Apaltry$0.22 increaseinhourly wages pants, itshouldhave sub raisedtheirhourlywages If theJob Corpsimproved theskillsofitspartici Ȗ PRES as problematic. Advocates eliminationofineective programsandcitesJobCorps centers. Cuts $237.5millionbyshuttingdownpoorlyperformingJobCorps Ȗ employed controlgroupmembers. only $0.22 comparedto moreinhourlywages Employed Job Corpsparticipantsearned IDE N T 2 HOUSE E X Backgrounder heritage.org/BlueprintForBalance P L ANA WebMemo T S ION E N No. 2884, A T E No. 2423, R S C - - LABOR/HHS - 149 C S R E T A No. 2884, 2884, No. N E ION S T ANA L P heritage.org/BlueprintForBalance Backgrounder X E HOUSE T N IDE
Reduces funding and uses program to supplant several other jobs programs. Funding remains the same. Advocates elimination of ineective programs and cites WIA as problematic. PRES enroll in training and receive one-on-one assistance one-on-one assistance and receive enroll in training in full participation services, employment and other on earnings. WIA had no effect that the believe did not participants Full-WIA A jobs. to them resulted in finding services provided participants percent of full-WIA solid majority of 57 to them were that the services provided believed Perhaps more im unrelated to finding employment. participants were largely unable portant, full-WIA in occupations related to their to find employment participants training. Only 32 percent of full-WIA training. found occupations in the area of their The Heritage Foundation | - Y Y D D D S L L - L L U A A I I CTE T UDE UDE T T E A NOT R R T A A NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ I I P P ADDRESSED (Washington: Mathematica Policy Research, May 2016). May Research, Policy Mathematica (Washington: ee 19) L A Blueprint for Balance: Providing Public Workforce Services to Job Seekers: 15-Month Impact Findings on the WIA Impact 15-Month Job Seekers: to Services Public Workforce Providing S ommitt 3 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $3.2 esiden epublic David B. Muhlhausen, “Do Federal Social Programs Work?” Heritage Foundation Foundation Heritage Work?” Social Programs Muhlhausen, “Do Federal B. David 2014. 19, March Annalisa Mastri, Linda Rosenberg, Burkander, Paul Schochet, Peter Dana Rotz, Fortson, Kenneth Sheena McConnell, D’Amico, and Ronald Programs Worker and Dislocated Adult R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ ADDITIONAL READING were indistinguishable on average from the earn were indistinguishable to more likely Despite being ings of the core group. full-WIA group failed to have earnings that were sta earnings failed to have group full-WIA In different from those of the core group. tistically group the earnings of the full-WIA the fifth quarter, information and online tools for participants to plot tools for participants to plot information and online the five During find employment. their careers and period, members of the quarters of the follow-up services—intensive services (skills assessments, assessments, services (skills services—intensive plus job assistance) and job-search workshops, offered mostly which services, training—to core As documented in a 2016 Mathematica Policy Mathematica Policy a 2016 As documented in of the important test the most Research study, of “full WIA” is the comparison effectiveness WIA’s Eliminate Workforce Innovation and Innovation Workforce Eliminate Programs ActOpportunity Job-Training LABOR/HHS 150 Ȗ ADDITIONAL READING tion thatTAA improves theemployment outcomes Overall, thereislittle empiricalsupportfortheno approximately $25,000 inlost income. Participating inTAA costs theaverageparticipant subsidies onlypartiallyoffset thesefinanciallosses. never recover thislost income,andtheirfederal had theynot beeninjobtraining.Most participants or workinginanewjobthattheycouldhave found training thatcouldhave beenspentlookingforwork training. Asaresult,theyspendconsiderabletimein recipientstoparticipateinjob program encourages companies find overseas productionlesscostly. The fits toAmericanworkers wholosetheirjobswhen TAA provides overly government bene generous Let Trade Adjustment Assistance Expire Ȗ SAVINGS INMILLIONS Sena R House Budge Pr No. 4396, April28,2015. Gimmicks andExpandinganIneffective and Wasteful ‘Job-Training’ Program,” Heritage Foundation David B. Muhlhausen,JamesSherk,andJohnGray, “Trade Adjustment Assistance Enhancement Act: Budget epublic esiden $738 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 4 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED P I I REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL A T R NOT A E T UDE UDE T CTE I A U L - L S D D D - Y The Heritage Foundation | Foundation Heritage The the factthatforeigncompetition hadlittle todo award TAA benefitstoSolyndraand Hostess despite ficulties.Administration Thisallowed to theObama coincidental orunrelatedtothefirm’s financialdif ports andlossofsales. Thesecorrelationsareoften show acorrelationbetween increasingforeignim Department ofLaborrequiresonlythatacompany rience layoffs becauseofforeigncompetition. The ly connectedunionsandfirmsthatdidnot expe costs. Inaddition,TAAgo topolitical benefitsoften whether theprogramproducesmorebenefitsthan TAA failsthecommonsensetest ofdetermining likely toearn of displacedworkers. Infact,participantsaremore with thebankruptcies ofthesecompanies. PRES harms intendedbeneficiaries. Notes thatTAAisbasedonaflawed notionoftradebenefitsand of Labor. Consolidates othertradeadjustmentprogramsintotheDepartment $117 millionabove2017continuingresolution). Funds at$790million($12below2016enactedbudgetbut IDE N T less HOUSE E afterparticipatingintheprogram. X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E Issue Brief RSC
- - - - LABOR/HHS 151 - C S R E T A N E ION S T ANA The number of people trained The number of people 6 L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Funding level unchanged. Eliminates program. Eliminates OSHA training grants, of which Susan Harwood grants are a part. PRES provide valid estimates of program effectiveness. valid estimates provide the number of people trained to assess performance trained to assess performance the number of people of the grant program. whether no information for determining provides workplac new to make trainees learned anything es safer. does not the number of people trained Measuring it measures an Instead, “impact.” measure program comparing is assessed by output. Program impact with estimates outcomes for program participants been had they of what the outcomes would have participated in the program. Without a valid not based on comparison, performance monitoring trained cannot “outputs” such as number of people The Heritage Foundation | D D D S - - U CTE T UDE UDE E A NOT T NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ I I ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 5 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R $11 t esiden epublic R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN effective. A case in point is the FY 2015 Department A case in point is the FY 2015 effective. solely on of Labor performance report that relies nonprofit organizations to provide safety training safety nonprofit organizations to provide there is for decades, Despite existing to workers. grants are no credible evidence that these training Since 1978, the Occupational Safety and Health and Health the Occupational Safety Since 1978, to Harwood grants Administration has provided ineffective. Based on these scientifically rigorous Based on these scientifically ineffective. of random the “goldevaluations using standard” find failure. consistently studies assignment, these evaluation of federal job-training programs pub evaluation of federal Depart indicates that strongly lished since 1990 programs are generallyment of Labor job-training Eliminate Susan Harwood Training Grants Training Harwood Susan Eliminate experimental multisite every The evidence from LABOR/HHS years. Consequently, theNLRBcaseloadhasfallen ing hasdroppedconsiderablyover thepast 25 Private-sector unionmembershipandorganiz adjudicates caseswithadministrative law judges. elections, investigates unfairlaborpractices, and conducts unioncertificationanddecertification airline industries regulatedby other law. TheNLRB tive bargaining,except forunionsintherailway and regulates private-sectorunionelectionsandcollec theNLRB Under theNationalLaborRelationsAct, in LinewithCaseloads Bring National LaborRelationsBoard Funding 152 SAVINGS INMILLIONS Sena R House Budge Pr epublic esiden $123 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 7 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED P P P I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL A A A T R R R NOT A T T T UDE UDE UDE T I I I - A A A U L L L L L L S D D D Y Y Y - The Heritage Foundation | Foundation Heritage The save taxpayers $123millioninFY2019. with thepreviousfundinglevels foritscaseloadand percent inFY2019 wouldbringitsspendinginline sixth since1990. ReducingtheNLRB’s budget by 45 inflation-adjusted budget hasincreased by one- FY 1990. Despitethislower workload,theNLRB’s inFY2014unfair laborpracticecharges thanin cent fewerelectionpetitions and40percentfewer considerably aswell.TheNLRBreceived 65per PRES Department ofJustice. Eliminates NLRBandshiftslabor-law enforcementtothe Cuts fundingby$25million. Cuts fundingby$16million. IDE N T HOUS
E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E R S C - LABOR/HHS 153 - C S R E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE T N IDE Notes ineectiveness of ILAB grants and says EEOC obviates need for OFCC. Eliminates ILAB grants and cuts bureau sta. Cuts OFCCP budget by $17 million and Women’s Bureau funding by $8.6 million. PRES its core purpose of monitoring treaty compliance. its core purpose of monitoring treaty when few women worked outside the home. Today, the home. Today, outside worked when few women The chal up half of the workforce. women make the challenges are lenges employees facing female Bureau has Women’s as a whole. The facing workers become obsolete. Labor Affairs Bureau monitors The International with labor obligations under foreign compliance and grants to unions It also makes trade treaties. the welfare of foreign aid organizations to promote effectiveness are of doubtful These grants workers. dollars in times taxpayer and are a poor use of U.S. ILAB Congress should eliminate of tight budgets. the bureau to funding for grant-making and restore The Heritage Foundation | Y Y D D S L L - L L - - U A A I I T UDE UDE T T A NOT NOT R R T A A NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I P P ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 8 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $157 esiden epublic R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN The Women’s Bureau examines challenges facing The Women’s created in 1920 women in the workforce. It was employers, and the EEOC polices these policies. A and the EEOC polices these policies. employers, separate agency for federal contractors is redun should be abolished. dant. The OFCCP Opportunity Act the Equal Employ of 1972 gave enforcement Commission strong ment Opportunity Discrimination is currently illegal for all powers. enforcement provisions. The Office of Federal The Office of enforcement provisions. enforces Programs now Contract Compliance the Equal Employment However, these provisions. utive Order No. 11246, which prohibited federal 11246, Order No. utive engaging in racial discrimination. contractors from strong Act the time, the Civil Rights have did not At Eliminate Redundant Department of Labor Agencies of Labor Department Redundant Eliminate signed Exec Lyndon Johnson President In 1965, LABOR/HHS Ȗ Ȗ ADDITIONAL READING increases: annualcost-of-living-adjustments and part fromreceivingtwoessentiallyautomaticpay Federal employees’ higherpay comesinlarge similar workers intheprivatesector. employees receive than 22percenthigherwages Foundation expertshave estimated thatfederal mediocrity andfailstoreward excellence. Heritage results inaninflatedpay system thatencourages lies onaproscribedformulainstead ofperformance, The federalgovernment’s pay structure, whichre Federal Personnel Reform:Market-Based andPerformance-Based Pay 154 Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr White Paper Kay Coles James,“A Fresh Start for Federal Pay: The Casefor Modernization,” U.S. Office of Personnel Management Foundation Rachel Greszler andJamesSherk,“Why ItIsTime to Reform Compensation for Federal Employees,” Heritage epublic esiden $374 t e BudgetR t an S ’ s Budget(FY20 P Backgrounder R , April2002. tudy C t R OPO esolution esolution 9 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 3139, July27, 2016. ee 10 ADDRESSED ADDRESSED P I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL A T R NOT NOT A T UDE UDE T I A U L - L S D D Y The Heritage Foundation | Foundation Heritage The lead toa5percentreductioninfederalpay levels. ented employees. should Combined,thesechanges mance-based budgets tohelpattract andretain tal Part ofthesavings toward should go higherperfor mance-based measuresinstead oftenurealone. to 20percentandtiestep increasestotrueperfor tween steps 1and10oftheGSscalefrom30percent Congress shouldreducethepay differentialbe by 99.9 percentoffederalemployees receive raises. so-called performance-basedstep increaseswhere PRES federal employees’salaryorcompensation. by 0.5percentagepointandmentions usingHolmanruletoreduce Reduces federalemployees’annual across-the-boardpayincreases compensation fund. to 27years.“Performance-based”payincreasesreplacedby Time neededtomovefromstep110increased18years IDE N T HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C - - - - - LABOR/HHS - 155 - , - C S R E T A N E ION S T
ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Gradually increases employee FERS contribution to 50 percent of total contribution. Eliminates FERS COLA and reduces CSRS COLA by 0.5 percent. Reduces G fund interest rate. Requires employees to contribute larger share toward retirement costs and says new federal employees should transition to defined-contribution retirement system. Increases employees’ share of FERS contributions by bringing all federal employee contributions to 3.1 percent and replaces high-3 pension formula with high-5 average. PRES make the government more competitive because because more competitive the government make would be tied compensation less of federal workers’ benefits. up in future retirement Congress should bring federal benefits in line with Congress should bring and those shifting all new hires by the private sector years of service to an exclu with fewer than five plan with higher retirement thrift savings sively with between Employees contributions. employer the option have and 20 years of service should five system, TSP retirement to an exclusively to switch Employees Federal their already-accrued to freeze higher TSP benefits and receive System Retirement or to maintain their current retire contributions, such as high ment benefits with FERS plan reforms save would both This contributions. er employee 10 years and the next $219 billion over taxpayers The Heritage Foundation | - Y Y Y D D D S L L L - - - L L L U A A A I I I T UDE UDE UDE T T T A NOT R R R T A A A NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I P P P ADDRESSED Comparing the Compensation of Federal and Private-Sector Employees, 2011 to 2015 to 2011 Employees, and Private-Sector Federal of the Compensation Comparing ee No. 3139, July 27, 2016. July 27, 3139, No. 19) L A Blueprint for Balance: S ommitt 11 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R t $46 esiden epublic Congressional Budget Office, Office, Budget Congressional April 2017. Rachel Greszler and James Sherk, “Why It Is Time to Reform Compensation for Federal Employees,” Heritage Employees,” Federal for Compensation Reform to It Is Time and James Sherk, “Why Rachel Greszler Foundation R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ contribution is between 3 percent and 5 percent. contribution is between pension and up to 5.0 percent in a 401(k). Among pension and up to 5.0 retirement who receive private-sector employees the average contributions from their employers, ment benefits. Federal employees receive up to 18.2 up to 18.2 receive Federal employees ment benefits. benefits: between in retirement percent of their pay percent in a defined-benefit 11.1 percent and 13.2 compensation premium, which Heritage Founda premium, which Heritage compensation 30 percent and 40 is between tion experts estimate retire is excessive compensation, percent of total The overall compensation received by federal em by received compensation The overall of their pri is significantly higher than that ployees biggest source of this The vate-sector counterparts. Federal Personnel Reform: Bring Retirement Benefits Bring Retirement Reform: Personnel Federal Sector the Private in Line with LABOR/HHS 156 Ȗ ADDITIONAL READING sive. Thespecialretirement supplementcanresult federal retirees receive isunnecessary andexces FERS, TSP, andregularSocialSecuritybenefitsthat Social Security. at atimewhentheyarenot yet eligibletoreceive roughly theequivalentofSocialSecuritybenefits supplement” thatismeanttoprovide themwith 57and62)receive a“specialretirementtween ages years andwhoretire (be atrelatively youngages Federal employees whohave worked foratleast 20 the SpecialRetirement Supplement Federal Personnel Reform:Eliminate SAVINGS INMILLIONS Ȗ Sena R House Budge Pr Congressional Budget Office, epublic esiden $100 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R 13 OPO Thisextra benefitinadditiontothe esolution esolution 12 ommitt S Blueprint for Balance: Blueprint for A L 19) ee Options for Reducing theDeficit: 2017 to 2026 ADDRESSED I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL T NOT A UDE UDE UDE T U - - S D D D The Heritage Foundation | Foundation Heritage The over 10years. estimated $100millioninFY2019 and$4.7billion the specialretirement supplementwouldsave an instead, thefundscomefromtaxpayers. Eliminating federal government oritsemployees contribute; This benefitisnot something towhicheitherthe for moreyearsthantheyspentworking. in federalemployees receivingretirement benefits PRES Eliminates supplement. Eliminates supplement. Eliminates supplement.
IDE N T , December 2016. HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E RSC LABOR/HHS 157 - C - S R E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE
T N IDE Transitions to PTO system with fewer leave days than current vacation-plus-sick combination; adds short-term disability insurance to protect federal workers facing serious medical situations. PRES Congress should bring the amount of paid leave the amount of paid leave Congress should bring in line with pri to federal employees it provides by vacation leave reducing by vate-sector paid leave three by and sick leave three and six days between 20 between receive so that federal employees days Congress Alternatively, leave. of paid and 30 days sys Time Off to a Paid should consider shifting of PTO. 16 and 27 days between tem that provides differentiate between which do not PTO policies, become increasingly have sick and vacation days, preferred by common in the private sector and are employees. many The Heritage Foundation | D S - U T UDE A NOT NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I ADDRESSED ADDRESSED ADDRESSED ee No. 3139, July 27, 2016. July 27, 3139, No. 19) L A Blueprint for Balance: S ommitt 14 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R t $5.7 esiden epublic Rachel Greszler and James Sherk, “Why It Is Time to Reform Compensation for Federal Employees,” Heritage Employees,” Federal for Compensation Reform to It Is Time and James Sherk, “Why Rachel Greszler Foundation R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ ADDITIONAL READING Ȗ a larger company receives 13 days of vacation and 13 days receives a larger company of 21 days total for a combined eight paid sick days holidays). (excluding of paid leave experience receives 20 vacation days and 13 paid and days 20 vacation experience receives including 10 paid (not of 33 days for a total sick days at employee The average private-sector holidays). Federal employees receive significantly more days more days significantly receive employees Federal employ than similar private-sector of paid leave of years with five A federal employee ees receive. Federal Personnel Reform: Bring Paid Leave Leave Bring Paid Reform: Personnel Federal Sector the Private in Line with LABOR/HHS
Ȗ Ȗ ADDITIONAL READING benefits inretirement. provide thesame level ofhighlysubsidizedhealth period. Private-sectorcompaniesalmost never in accruedtaxpayer savings over the2019–2028 generate $34.04benefit fornewhireswould billion Foundation expertsestimated thateliminatingthis coverage equaled6.4 percentofpay. Office foundthattheaccrualcost of retiree health total premium.In2002,theCongressionalBudget retirement whilepaying onlyasmallportionofthe Federal Employees Health BenefitsProgramafter ofparticipatinginthe undervalued advantage parts receive, includingtheoftenoverlooked and compensation thantheirprivate-sectorcounter Federal employees receive significantlyhighertotal Retirement for Benefits New Hires Federal Personnel Reform:EliminateFEHB 158 Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr June 2002. Congressional Budget Office, “The President’s Proposal to Accrue Retirement Costs for Federal Employees,” Foundation Rachel Greszler andJamesSherk,“Why ItIsTime to Reform Compensation for Federal Employees,” Heritage epublic esiden $594 t e BudgetR t an S ’ s Budget(FY20 P Backgrounder R tudy C t R OPO esolution esolution 15 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 3139, July27, 2016. ee 16 Heritage ADDRESSED ADDRESSED ADDRESSED P I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT NOT A T UDE T I A U - L L S D Y The Heritage Foundation | Foundation Heritage The impact onthefederalgovernment’s abilitytoattract significantfuturecostgenerate savings withlittle FEHB retirement benefitsfornewhires. Thiswould not receive thebenefits. Congress shouldeliminate of employment leadinguptoretirement, theydo oriftheyhaveage, lessthanfive consecutive years employment beforetheyreachretirement eligibility five yearsbeforetheyretire. Ifworkers leave federal ers whoareemployed by thegovernment inthefinal instead ofrewarding tenure,benefitsreward work ly arenot received untildecadeslater. Additionally, newly hiredfederalemployees becausetheytypical Future healthcarebenefitsareoflittle valueto talented workers. PRESIDENT benefits growthtoinflation. Bases FEHBretirementbenefitsonlengthofserviceandlimits
HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E R S C - - LABOR/HHS 159 RSC E T A N E ION S T ANA L , March 2011. , March P heritage.org/BlueprintForBalance X E HOUSE T N IDE Modifies government contribution rate to FEHB plans based on plans’ performance. Shifts to flat-rate subsidy for FEHB benefits. PRES advantageous 75 percent of the to them—because goes and only 25 federal government to the savings them. percent accrues to the current maximum Congress should convert a flat-rate contribution so that to contribution level all of plans can keep who choose lower-cost workers among competition This would increase the savings. time would reduce the average FEHB plans and over of FEHB coverage. to taxpayers cost The Heritage Foundation | D D S - U T UDE UDE A NOT NOT T NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I ADDRESSED ADDRESSED Reducing the Deficit: Spending and Revenue Options Revenue the Deficit: Spending and Reducing ee No. 3139, July 27, 2016. July 27, 3139, No. 19) L A Blueprint for Balance: S ommitt esolution esolution OPO 17 t R tudy C R Backgrounder P s Budget (FY20 ’ an S t $0 e Budget R t esiden (NO SAVINGS) epublic Congressional Budget Office, Office, Budget Congressional Rachel Greszler and James Sherk, “Why It Is Time to Reform Compensation for Federal Employees,” Heritage Employees,” Federal for Compensation Reform to It Is Time and James Sherk, “Why Rachel Greszler Foundation R House Budge Pr Sena Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ expensive health care plans—even if those plans are health care plans—even expensive FEHB, but employees must pay at least 25 percent, least at pay must but employees FEHB, they choose. This of the plan regardless of the cost to choose less incentives reduces federal employees’ lower-cost plans. Currently, the government con the government Currently, plans. lower-cost of the weighted average tributes up to 72 percent insurance plans in the premiums of all health The premium structure for the Federal Employees Employees for the Federal The premium structure FEHB costs up total drives system Benefits Health from choosing federal workers discouraging by Federal Personnel Reform: Eliminate the 25 Percent FEHB the 25 Percent Eliminate Reform: Personnel Federal Requirement Premium LABOR/HHS Ȗ Ȗ ADDITIONAL READING to bailoutthePBGC. Congress couldpasslegislationrequiringtaxpayers ers willexperiencesignificantpensionlosses, and run outofmoneyby 2025. Ifthathappens, pension but itsmultiemployer programisitselfontrackto provides insuranceagainst privatepensionlosses, lion morethantheyhave set asidetopay. ThePBGC massively underfunded and have promised $500 bil run) pensionplansthatoperateacrosstheU.S. are of theroughly1,300multiemployer (private,union- billion and$101 billionbecauseasignificantportion tiemployer programfacesashortfallofbetween $65 The Pension BenefitGuaranteeCorporation’s mul from Private Pension Bailouts Safeguard Private Pension Insurance andProtect Taxpayers 160 Ȗ Ȗ Sena R House Budge Pr PBGC’s Multiemployer Program,” HeritageFoundation Rachel Greszler, Pensions “Bankrupt andInsolvent Pension Insurance: The CaseofMultiemployer Pensions andthe More thanCashBailouts,” HeritageFoundation Rachel Greszler, “Why Government Loans to Private UnionPensions Would BeBailouts—and Could Cost Taxpayers epublic (NO SAVINGS) esiden t e BudgetR $0 t an S ’ s Budget(FY20 P R tudy C t R 18 OPO esolution esolution ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED P I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL A T R NOT A T Backgrounder UDE UDE UDE T I A U L L S D D D Y - - - Backgrounder The Heritage Foundation | Foundation Heritage The belong tomultiemployer pensionplansandprotect against pensionlossesforworkers andretirees who wouldhelptoguard Thesechanges management. against inviable promisesandirresponsibleplan losses withinplansandtosafeguard pensioners consider implementingrulestominimizepension pension plans. Additionally, should policymakers plans tothesame rulesthatgovern other private pension plansandinstead subjectmultiemployer also enditspreferentialtreatmentofmultiemployer newly incurredpensionliabilities. Congressshould miums andaddavariable-ratepremiumapplyingto Congress shouldincreasemultiemployer PBGCpre PBGC ormultiemployer pensionplans. taxpayers fromtheriskofataxpayer bailoutofthe PRES governments, includingunfundedpension liabilities. federal governmentfrombailingout state,local,orterritorial Increases PBGCpremiumstoalignbetter withrisksandprohibits risk-based premiums,by$15.7billionover10years. Increases PBGCmultiemployerprogrampremiums,including of pensionplans.” Creates “deficit-neutralreservefundtopreventthetaxpayerbailout No. 3283, February 5, 2018. IDE N No. 3029, July30, 2015. T HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E
RSC - LABOR/HHS - - 161 20 RSC E T
A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE , December 2016. , December Adopts chained CPI throughout government. PRESIDENT The chained CPI would correct for the small sample correct for the small sample The chained CPI would are known bias problems that bias and substitution to affect the CPI. for fed the chained CPI Adopting benefits from would protect eral benefit calculations accuracy in cost-of-living inflation while improving pro This money. taxpayers’ and saving adjustments growing with savings billion in 2019, $2.6 saves posal billion in FY 2027. to $39.1 time rapidly over The Heritage Foundation | D S U T UDE A NOT NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I ADDRESSED ADDRESSED ADDRESSED Options for Reducing the Deficit: 2017 to 2026 to 2017 the Deficit: Reducing Options for ee No. 2799, May 21, 2014. May 2799, No. 19) L A Blueprint for Balance: S ommitt 19 esolution esolution OPO t R tudy C R Backgrounder Backgrounder P s Budget (FY20 ’ an S t e Budget R t $2.6 esiden epublic Congressional Budget Office, Office, Budget Congressional Romina Boccia and Rachel Greszler, “Social Security Benefits and the Impact of the Chained CPI,” Heritage Chained CPI,” of the Benefits and the Impact “Social Security and Rachel Greszler, Boccia Romina Foundation R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ accurately reflect changes in the cost of living. accurately reflect changes in the cost inflation. The current CPI is outdated and inaccurate,inflation. The current of living. the rise in the cost and it often overstates would moreUnder a new measure, benefit increases programs are also adjusted for inflation. Currently, Currently, for inflation. adjusted programs are also federal programs other several Social Security and for consumer price index to adjust to the are indexed Federal benefits like Social Security grow with the Social Security grow benefits like Federal of benefits from the value living to protect of cost benefit of federal other parameters inflation. Several Adopt a More Accurate Inflation Index for for Social Security Accurate Index Inflation a More Adopt and Other Mandatory Programs LABOR/HHS 162 Ȗ ADDITIONAL READING and discriminationagainst marriedcouples. not available toother similarlow-income recipients, multi-tier means-tested welfarebenefitsthatare EITC andACTC recipientsreceivingexcessive tonon-parents,intended forparentsgoing some problems withtheEITCandACTC includebenefits promote workbutareplaguedwithfraud.Other to low-income households. Theyaredesignedto The EITCandACTC provide refundabletaxcredits Credit andAdditional ChildTax Credit FraudReduce Penalties andMarriage Tax intheEarnedIncome Ȗ SAVINGS INBILLIONS Sena R House Budge Pr November 16,2016. to EndWaste, Fraud, andAbuseStrengthen Marriage,” HeritageFoundation Robert Rector andJamieBryan Hall,“Reforming theEarned Income Tax Credit andAdditional ChildTax Credit epublic esiden $20 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 21 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED P I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL A T R NOT A T UDE UDE UDE T I A U L L S D D D Y The Heritage Foundation | Foundation Heritage The government means-tested welfaresystem. penaltiesthatexistmarriage acrosstherest ofthe be expandedformarriedcouplestohelpdecrease penalties.ing marriage Inaddition,theEITCcould to receive EITCandACTC benefitsaswell,andend families whoreceive subsidizedhousingassistance gal custody ofachildtoclaimbenefits, not allowing fundable taxcredits, allowing onlyparentswithle IRS toverify incometaxreturns beforeissuingre These problemscanbeaddressedby requiringthe PRES immigrants. penalties, andprohibitspaymentof EITCbenefitstoillegal Supports betterIRSverificationofincome, eliminatesEITCmarriage proposal fromPresident’sBudget. uses resultingsavingstoeliminatemarriagepenalties.IncludesSSN Requires verificationofincomebeforeEITCbenefitsarepaidand child taxcredit. Requires valid-for-workSocialSecuritynumbertoclaimEITCor IDE N T HOUS E X Backgrounder heritage.org/BlueprintForBalance P E L ANA T S ION E N No. 3162, A T E RSC - - - LABOR/HHS 163 C S R E T Issue Brief Issue A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE T
N IDE Eliminates Home Investment Partnership Program and reduces federal funding for rental assistance programs. Supports giving state and local governments more control of housing programs. Block grants all HUD discretionary housing assistance programs. Eliminates HOME program and reduces funding for Public Housing Capital and Operating Funds. PRES the needs of their unique populations. The fiscal unique populations. the needs of their housing programs for their responsibility of paying run these programs to them the incentive will give and effectively. much more efficiently housing programs funding for means-tested Federal out at a rate of 10 percent per year, should be phased at the end of a decade. Each reaching zero funding and to how to determine should be allowed state it replaces federal housing programs what extent by programs designed and funded with alternative and local authorities. state The Heritage Foundation | - Y Y D D D S L L L L U A A I I CTE T UDE UDE T T E A NOT R R T A A NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ I I P P ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 22 esolution esolution OPO t R tudy C R P No. 4619, October 28, 2016. October 4619, No. s Budget (FY20 ’ an S t e Budget R t $2.4 esiden epublic Robert Rector and Rachel Sheffield, “Setting Priorities for Welfare Reform,” Heritage Foundation Foundation Heritage Reform,” Welfare for Priorities and Rachel Sheffield, “Setting Rector Robert 2016. 24, February 4520, No. Foundation Heritage Reform,” Welfare Restart Act Can Mobility Upward and Reform “Welfare Rachel Sheffield, Brief Issue R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ states, which are better equipped to assess and meet to assess and meet equipped which are better states, with nothing, the federal government should begin the federal government with nothing, to transfer responsibility for the administration housing programs to the of low-income and costs Instead of merely perpetuating federally funded of merely perpetuating Instead benefits for substantial provide programs that often in similar circumstances others some while leaving than $40 billion. Housing needs, availability, and availability, needs, than $40 billion. Housing states and localities, vary significantly across costs assistance. available of needed and as does the level The federal government currently pays over 90 per over pays currently The federal government poor and of subsidized housing for cent of the cost more was the cost FY 2017, In persons. low-income Return Control and Fiscal Responsibility Responsibility Fiscal and Control Return to the States Housing for Low-Income LABOR/HHS 164 Ȗ ADDITIONAL READING intended populationby endingSSIforchildren. dren. SSIshouldbereformedtoserve itsoriginally Today, about15percentofSSIrecipientsarechil disabled andwhocomefromlow-income homes. to householdswithchildrenwhoarefunctionally come elderly, butSSIalsoprovides cashassistance themselves becauseofadisability andtothelow-in assistance toadultswhoareunablesupport The originalintentofSSIwas toprovide cash for Disabled Children Benefits Income Eliminate SupplementalSecurity SAVINGS INBILLIONS Ȗ Sena R House Budge Pr Backgrounder Robert Rector andRomina Boccia, “How theABLEAct Would ExpandtheWelfare State,” HeritageFoundation epublic esiden t $11 e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO No. 2972, November 10, 2014. esolution esolution 23 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED REJ REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT A E E T CTE CTE U - S D D - The Heritage Foundation | Foundation Heritage The should beprovided by SSI. not covered by another program,suchasMedicaid, expenses arisingfromachild’s disability thatare other means-tested welfareprograms. Any medical cash benefitswouldcontinuetobeeligibleforthese Parents receivingSSI ofchildrenwhoarenolonger fare programssuchasMedicaid andfoodstamps. for benefitsfromvarious other means-tested wel Assistance forNeedyFamilies program,aswell eligible forcashassistance fromtheTemporary Low-income parentswithadisabled childare PRESIDENT households, withchildrenstilleligibleforSSIbenefits. Creates aslidingscaleforbenefitsreceivedbychildreninthesame benefits. in multi-recipientSSIfamilies,withchildrenstilleligiblefor Creates aslidingscaleforbenefitsreceivedbyadditionalrecipients HOUSE E X heritage.org/BlueprintForBalance P L
ANA T S ION E N A T E R S C - LABOR/HHS 165 C S R
E T Issue Brief Issue A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS Supports “reforms to strengthen TANF work requirements so States will engage more recipients in activities leading to self-suciency.” PRESIDENT Moreover, among the half of TANF recipients that of TANF among the half Moreover, simply are most fulfill the work requirements, State welfare bureaucracies working part time. promote to generally if anything little have done the credit. TANF’s take but still this employment so that should be strengthened work requirement caseload TANF non-employed 75 percent of a state’s work activities for 20 hours to 30 is participating in hours per week. The Heritage Foundation | D S - U T UDE A NOT NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt esolution esolution OPO 24 t R tudy C R P No. 4619, October 28, 2016. October 4619, No. s Budget (FY20 ’ an S t $0 e Budget R t esiden (NO SAVINGS) epublic Robert Rector and Rachel Sheffield, “Setting Priorities for Welfare Reform,” Heritage Foundation Foundation Heritage Reform,” Welfare for Priorities and Rachel Sheffield, “Setting Rector Robert 2016. 24, February 4520, No. Foundation Heritage Reform,” Welfare Restart Act Can Mobility Upward and Reform “Welfare Rachel Sheffield, Brief Issue R House Budge Pr Sena Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ the requirement. are required to participate in work activities, which activities, are required to participate in work 50 percent of the caseload means that the other fulfilling is still idle and the state can be completely to move recipients into work activity. The main recipients into work activity. to move rate is that the work-participation reason, however, adults Only 50 percent of able-bodied is too low. Part of the reason for this is that states are taking that states of the reason for this is Part them to fulfill advantage of loopholes that allow without actually having the work requirement Today, the majority of work-eligible TANF recipi TANF of work-eligible the majority Today, 54.7 percent across the states) ents (an average of nor preparing for work. are idle, neither working Strengthen Work Requirements in the Temporary Assistance Assistance Temporary in the Requirements Work Strengthen Program Families for Needy LABOR/HHS
Ȗ Ȗ ADDITIONAL READING ing, health,orparentingpracticesofparticipants. on thecognitive skills, social-emotional well-be dren. ItfoundthatHead Starthadlittle tonoimpact evaluation ofmorethan5,000 participatingchil isters Head Start,releasedascientificallyrigorous ment ofHealth andHumanServices, whichadmin low-income families. InDecember2012, theDepart improving kindergartenreadinessforchildrenfrom Start hasfailedtolive uptoitsstated missionof government functionundertheConstitution, Head In additiontoitsquestionable status asafederal and LocalAlternatives Sunset Head StarttoMake Way forBetter State 166 SAVINGS INMILLIONS Ȗ Ȗ Sena R House Budge Pr Program,” HeritageFoundation David B. Muhlhausen,“The HeadStart CARES Demonstration: AnotherFailed Federal EarlyChildhoodEducation Foundation Lindsey M.Burke andDavid B. Muhlhausen,“HeadStart Impact Evaluation Report FinallyReleased,” Heritage epublic esiden $986 t e BudgetR t an S ’ s Budget(FY20 P Issue Brief R tudy C t R OPO esolution esolution 25 ommitt S Blueprint for Balance: Blueprint for A No. 3823,January10, 2013. L 19) ee Backgrounder ADDRESSED ADDRESSED P I REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT A E No. 3040, August 6,2015. T UDE T CTE I A U - - L L S D D Y - - The Heritage Foundation | Foundation Heritage The Head Startwouldbecompletely phasedoutby 2028. Start fundingby 10percentinFY2019. Ultimately, families. Congressshouldbeginby reducingHead state fundingtosubsidizeday careforlow-income determine whether theyneedtoprovide additional gram over aperiodof10yearstogive states timeto Congress shouldsunset thefederalHead Startpro distant, ineffective federalpreschoolprograms. Low-income familiesshouldnot have todependon PRESIDENT to preschoolprovidersofchoice. grant HeadStartfundingtothestates andletdollarsfollowchildren Supports proposalbyRepresentative JimBanks(R–IN)toblock Increases HeadStartfundingby$85millionover2018levels. HOUSE E
X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C - LABOR/HHS 167 - C S R E T A N E ION S T
ANA L P heritage.org/BlueprintForBalance X E HOUSE T N IDE Reduces K–12 education spending by 5 percent. Eliminates Title II teacher grants and 21st Century Community Learning Centers. Streamlines or eliminates 39 discretionary education programs. PRES Since the 1970s, inflation-adjusted per pupil fed inflation-adjusted Since the 1970s, has more than doubled. eral education spending Succeeds Act Student alone authorizes The Every grant programs, and formula of competitive dozens Federal and ineffective. of them redundant many K–12 failed to improve have education programs levied a tremendous and have education nationally and burden on states bureaucratic compliance and local ensure that state To local school districts. the meeting school leaders’ focus is oriented toward and parents rather than satisfying needs of students program count and associated federal bureaucrats, federal spending should be curtailed. The Heritage Foundation | - Y D S L L U A I T UDE T A NOT NOT NOT R T A NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I P ADDRESSED ADDRESSED ADDRESSED No. 2565, June 2, 2011. 2565, No. ee No. 2858, November 14, 2013. 14, 2858, November No. 19) L A Blueprint for Balance: Backgrounder S ommitt 26 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R t $8.7 esiden epublic Lindsey M. Burke, “Reducing the Federal Footprint on Education and Empowering State and Local Leaders,” Leaders,” and Local State and Empowering on Education Footprint the Federal “Reducing M. Burke, Lindsey Heritage Foundation Lindsey M. Burke, “How the A-PLUS Act Can Rein in the Government’s Education Power Grab,” Heritage Grab,” Power Education in the Government’s Can Rein Act the A-PLUS “How M. Burke, Lindsey Foundation R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ K–12 education, should be reduced by 10 percent. reduced by education, should be K–12 fall under the competitive/project grant category. grant category. fall under the competitive/project the Department ofRemaining programs managed by Education, such as large formula grant programs for federal spending should be reduced to reflect remain federal spending should be reduced Title I of theing formula programs authorized under programs that do not ESEA and the handful of other authorized under the Elementary and Secondaryauthorized under Education Act should be eliminated, as they are and and inappropriate at the federal level, ineffective should limit and better target education spending should limit and better of federal education labyrinth the streamlining by programs grant competitive Federal programs. If the federal government is goingIf the federal government to continue to and the quintessentially state spend tax dollars on federal policymakerslocal function of education, Eliminate Competitive and Project Grant Programs Programs Grant and Project Competitive Eliminate Grants and Reduce Spending on Formula LABOR/HHS Ȗ ADDITIONAL READING the system. itors wouldbringneededreformandflexibilityto and allowing states torecognizetheirown accred federal financingfromtheaccreditationprocess that hasapplicationinthemarketplace. Decoupling ensure thatstudents aregetting aqualityeducation federal student aiddollarsalsodoesvery little to cess inwhichaccreditorsserve asgatekeepers of innovation inhighereducation.Thecurrentpro accreditation processrestricts theflourishingof The federalgovernment’s involvement inthe FederalDecouple StudentAidfrom Accreditation 168
INCREASE INBILLIONS Ȗ Sena R House Budge Pr Foundation Jamie Bryan HallandMaryClare Reim, “Time to Reform HigherEducation FinancingandAccreditation,” Heritage epublic esiden –$1.2 t e BudgetR t an S ’ s Budget(FY20 P Issue Brief R tudy C t R OPO esolution esolution 27 ommitt S Blueprint for Balance: Blueprint for A No. 4668,March 28,2017. L 19) ee ADDRESSED ADDRESSED ADDRESSED I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL T NOT NOT NOT A UDE T U - - S D The Heritage Foundation | Foundation Heritage The Lee (R–UT). sentative RonDeSantis(R–FL)andSenatorMike introducedby Repre Reform andOpportunityAct, This proposal was includedintheHigherEducation could provide thisneededflexibilityfor students. degree program.Areformedaccreditationprocess limited toenrollinginacostly andofteninefficient courses thatserve theirneedsratherthanbeing with theirfederalstudent aidtopursueindividual Additionally, students shouldbegrantedflexibility PRESIDENT proposal. Decouples federalfinancingfromaccreditation throughHERO HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E RSC - LABOR/HHS - - 169 - C S R E T A N , May 23, 2017. , May E ION S T ANA L P heritage.org/BlueprintForBalance Commentary X E HOUSE PRESIDENT The PLUS Loan program, however, should be elim Loan program, however, The PLUS access to currently have students inated. Graduate program, and the federal the Stafford Loan govern altogether parent borrowing ment should eliminate elimi Ultimately, as this encourages family debt. Loan program will put downward nating the PLUS prices and create space for pressure on tuition market. loan enter the student private lenders to The Heritage Foundation | S - U T A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 28 esolution esolution OPO t R tudy C R P No. 4767, September 22, 2017. September 4767, No. s Budget (FY20 ’ an S t e Budget R t $2.3 esiden epublic Issue Brief Issue Mary Clare Amselem: “The Case for Private Student Loans,” Heritage Foundation Heritage Foundation Loans,” Student Private Case for Amselem: “The Mary Clare Heritage Foundation Reauthorization,” Act a Higher Education for Policies Essential Amselem, “Seven Mary Clare R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ student aid. student costs and reduce dependence on federal student student and reduce dependence on federal costs higher education, policyaid programs to finance lending caps on federal should place strict makers driver of tuition inflation. Evidence suggests that Evidence suggests of tuition inflation. driver aid access to federal student virtually unrestricted college To bring down leads to tuition inflation. undergraduate students and graduate students to and graduate students undergraduate students up to the full from the federal government borrow is an egregious at a university, attendance of cost Eliminate the PLUS Loan Program Loan the PLUS Eliminate parents of Loan program, which allows The PLUS LABOR/HHS
Ȗ Ȗ ADDITIONAL READING tooffercompetitive colleges prices to encourage caps onfederalstudent loans. would Thispolicy debt, shouldplacestrict policymakers borrowing and insulatetaxpayers fromhighlevels ofstudent on thehookfordefaults. To drive downcosts college crowding outprivatelendersandleaving taxpayers ernment originates90percentofallstudent loans, higher education.Additionally, thefederalgov a significantcontributortotheskyrocketing cost of Unrestricted accesstofederalstudent aidhasbeen StrictLendingCapsonAllFederalPlace AidPrograms 170 Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr Mary Clare Amselem,“The Casefor Private Student Loans,” HeritageFoundation Mary Clare Amselem,“SoaringStudent DebtCosts UsAll,” HeritageFoundation epublic esiden $5.5 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 29 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED P P P I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL A A A T R R R NOT A T T T UDE UDE UDE T I I I - A A A U L L L L L L S D D D Y Y Y The Heritage Foundation | Foundation Heritage The students andtaxpayers alike. thatwouldprotectsound highereducationpolicy $40,000 forgraduatestudents. Thesecapsrepresent cap of$30,000 forundergraduatestudents and proposesalending and SenatorMike Lee(R–UT) introduced by Representative RonDeSantis(R–FL) The HigherEducationReformandOpportunityAct and offermoreoptionsemerge to students. students andallow theprivatelendingmarket to PRES subsidy. Eliminates mandatoryPellGrantadd-on andin-schoolinterest interest subsidy.Endspublicserviceloanforgiveness. Suggests useoffair-valueaccountingandeliminatesin-school loans. Eliminates publicserviceloanforgivenessandsubsidizedstudent student loancosts. Suggests useoffair-valueaccountingtogetatruersense IDE N T HOUS E X Commentary Commentary heritage.org/BlueprintForBalance P E L ANA T S ION E , August 18,2017. , May 23,2017. N A T E R S C LABOR/HHS - 171 C - S R E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Eliminates public service loan forgiveness. Ends public service loan forgiveness. Eliminates in-school interest subsidy. PRES Not only does loan forgiveness transfer large does loan forgiveness only Not the backs of tax onto debt amounts of student on borrowing but it encourages excessive payers, confident that after a certain the part of students, loans will be eliminated. The number of years their PROSPER Act, Edu which reauthorizes the Higher the elimination of loan proposes cation Act of 1965, fiscal responsibility to higher restore To forgiveness. from outstanding taxpayers education and insulate policymakers should eliminate loan debt, student loan forgiveness. The Heritage Foundation | - Y Y Y - D D D S L L L L L L U A A A I I I T UDE UDE UDE T T T A NOT R R R T A A A NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I P P P ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 30 esolution esolution OPO , October 10, 2017. 10, , October t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $425 esiden epublic Mary Clare Amselem, “Time for a Time-Out on Wasteful Federal Student Loan Programs,” Heritage Foundation Heritage Foundation Programs,” Loan Student Federal on Wasteful a Time-Out for Amselem, “Time Mary Clare Commentary R House Budge Pr Sena Ȗ SAVINGS IN MILLIONS SAVINGS IN ADDITIONAL READING Ȗ cost American taxpayers, the majority of whom do the majority of whom American taxpayers, cost of $108 billion total a degrees, hold bachelor’s not 10 years. the next over loans of public service employees are forgiven after after are forgiven employees loans of public service The Congressional years under current law. 10 just will estimates that loan forgiveness Office Budget al loan forgiveness policies and borrower defaults. defaults. borrower policies and al loan forgiveness their out federal loans can have Students who take and the of payments, after 20 years loans forgiven student loan debt. Unfortunately, when students when students Unfortunately, loan debt. student Ameri loans, student their off afford to pay cannot bill because of feder end up with that can taxpayers Eliminate All Time-Based and Occupation-Based Forgiveness Loan All Time-Based Eliminate in trillion under $1.4 struggling Americans are now LABOR/HHS
Ȗ ADDITIONAL READING portunities fornon-traditionalstudents, whomay 2015. Inparticular, theseregulationscouldlimitop for-profit institutions wentintoeffecton July1, gainful employment regulationsprimarilyaffecting employment and duringtheObamaAdministration, aggressively promulgatedrulesconcerninggainful occupation.” TheU.S. DepartmentofEducation students for“gainfulemployment inarecognized gible forfederalstudentmust aid,colleges prepare stipulates thattobeeli The HigherEducationAct For-Profit HigherEducationInstitutions “GainfulRescind Employment” Regulations on 172 Ȗ Sena R House Budge Pr Costs,” HeritageFoundation Lindsey M.Burke, “Reauthorizing theHigherEducation Act—Toward Policies that Increase Access andLower epublic (NO SAVINGS) esiden t e BudgetR $0 t an S ’ s Budget(FY20 P R tudy C t R 31 OPO esolution esolution ommitt S Blueprint for Balance: Blueprint for A L 19) ee Backgrounder ADDRESSED ADDRESSED ADDRESSED ADDRESSED No. 2941, August 19, 2014. AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT NOT A T U S - - The Heritage Foundation | Foundation Heritage The July 1,2015. gainful employment regulationsthattookeffecton served by traditionaluniversities by repealingthe serve students whohave beenhistorically under for-profit tocontinue and vocational colleges shouldenableprivate The TrumpAdministration ity andaffordability. choose afor-profit institution becauseofitsflexibil PRESIDENT HOUSE E
X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C - - LABOR/HHS 173 C S R E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS Suggests use of fair-value accounting to get a truer sense of student loan costs. Suggests use of fair-value accounting to get a truer sense of student loan costs. PRESIDENT Absent fair-value accounting, it is impossible to fair-value Absent loan programs to which student the extent know Congress a subsidy to borrowers. are providing Department of Education to use should require the the calculated by accounting estimates fair-value loan rates Office and adjust Congressional Budget basis. accordingly on a yearly The Heritage Foundation | - D D S - U T UDE UDE A NOT NOT T NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt esolution esolution OPO 32 t R tudy C R P s Budget (FY20 ’ an S t $0 e Budget R t esiden (NO SAVINGS) epublic Financial Institutions and Consumer Protection, Committee on Banking, Housing, and Urban Affairs, U.S. Senate, U.S. Senate, on Banking,and Urban Affairs, Housing, Committee Protection, and Consumer Financial Institutions 2014. June 4, Lindsey M. Burke, “Federal Student Loans Cost Taxpayers Money,” The Daily Signal, June 24, 2013. June 24, Daily Signal, The Money,” Taxpayers Cost Loans Student “Federal M. Burke, Lindsey on the Subcommittee before testimony Experience,” Borrower’s Servicing: The Loan “Student M. Burke, Lindsey R House Budge Pr Sena Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ the loans can break even. Without fair-value accounting, it is difficult to know it is difficult to know accounting, Without fair-value non-subsi federal loan programs are using whether should use so that which they rates, dizing interest accounting estimates take market risk into account risk into account market take accounting estimates of fed reflect the true costs and more accurately loans. subsidies for student eral higher education of the costs of federal higher education subsidies, of federal higher education subsidies, of the costs policymakers of should direct the Department accounting. Fair-value fair-value Education to use Require the Use of Fair-Value Accounting of Fair-Value the Use Require a clear understanding to have In order for taxpayers LABOR/HHS
Ȗ Ȗ ADDITIONAL READING Both organizationscouldseektomake upthelost broadcasting sourceintheprivatesectoroperates. al PublicRadiowouldoperateasany other or news such asthePublicBroadcasting ServiceandNation Without federalfundingfromtheCPB, services al appropriationsinFY2019. increased. TheCPBrequested $445millioninfeder andbroadcastinges foraccessingnews have greatly Since then,technologyhasgrown, andmediasourc households facedvery limitedbroadcasting options. The CPBwas createdin1967atatimewhenU.S. Privatize theCorporation forPublic Broadcasting 174 SAVINGS INMILLIONS Ȗ Ȗ Sena R House Budge Pr Report, Years EndedJune30, 2014 and2013,” October 30, 2014. BroadcastingPublic Service andSubsidiaries,“Consolidated FinancialStatements andIndependent Auditor’s Emily Goff, “Why BigBird’s Federal SubsidiesNeed to Go,” The DailySignal,October 14, 2012. epublic esiden $445 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 33 ommitt S Blueprint for Balance: Blueprint for A L 19) ee 34 ADDRESSED P I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL A T R NOT A T UDE UDE UDE T I A U L L S D D D Y - - - The Heritage Foundation | Foundation Heritage The taxpayer funding. tive ways viewershipwithoutreceiving togenerate new sponsors, createnewshows, andfindalterna should benoexception. NPRandPBSshouldfind reacting tomarket fluctuations. Publicbroadcasters receiving federalfundingby beingcreative and to nonprofits manage stay inbusinesswithout from federal,state, andlocalgovernments. that itreceives only5percentofitsoverall funding sponsors, foundations, andmembers. NPR states funding by increasingrevenues fromcorporate PRES Eliminates CPB. agencies. Recommends private-sectorfundingforCPBandothercultural transition fromfederalfunding. Eliminates CPBandprovides$15millionin2019tofacilitate IDE N T HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E 35 Many RSC - LABOR/HHS - - 175 RSC No. 1642, 1642, No. E T A N E ION S T Backgrounder ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Eliminates CNCS and provides $123 million in 2019 for orderly shutdown. Eliminates CNCS. Eliminates CNCS. PRES Charitable giving is an individual choice, and Amer Charitable giving want they to choose whether icans should be free which money to charities, their time and to give much they and how to support, charities they want this choice away The CNCS takes to give. want to subsidize forces taxpayers from individuals and the government. chosen by particular charities the the CNCS should be eliminated. If for Funding included in the CNCS provide charities hand-picked of worthy valuable services that Americans deem the will have those charities their time and money, through opportunity to maintain their operations chari that other way private donations in the same their funds. table organizations receive The Heritage Foundation | , D D D S U T UDE UDE UDE A NOT T NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I 37 ADDRESSED No. 2837, August 29, 2013. 29, August 2837, No. World Giving Index World ee 19) L A Blueprint for Balance: Backgrounder S ommitt 36 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $768 esiden epublic Matthew Spalding, “Principles and Reforms for Citizen Service,” Heritage Foundation Foundation Heritage Service,” Citizen for Spalding, “Principles and Reforms Matthew April 1, 2003. Programs,” Bad Government Eliminating Billion by $42 Can Save Congress Budget? “Tight Knudsen, Patrick Heritage Foundation R House Budge Pr Sena Ȗ Ȗ SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ ADDITIONAL READING 63 percent of Americans donated money to charity, to charity, 63 percent of Americans donated money and 44 percent spent time volunteering. intervene in this sector. Americans already give to Americans already give in this sector. intervene according their time. In 2016, charity and volunteer to the Charities Aid Foundation public-private partnerships. Civil society is critical is critical Civil society public-private partnerships. but it is and prosperous United States, to a strong to the proper role of the federal government not the Volunteer Generation Fund—as well as other well as other Fund—as Generation the Volunteer These programs programs. public-service-oriented and in-kind donations, federal dollars, are funded by public service and support civil society institutions. institutions. support civil society public service and programs—AmeriCorps, It operates four main and Fund, the Social Innovation Senior Corps, Eliminate the Corporation for National and Community Service and Community for National the Corporation Eliminate agencyThe CNCS is a federal aims to promote that LABOR/HHS
Ȗ Ȗ ADDITIONAL READING Century LibrarianProgram,whichfundslibrarian isters smallergrantssuchastheLauraBush21st the District ofColumbia. la todispersefederalfundingacrossallstates and to Statesprogram,whichusesapopulationformu Agencies. ministered throughStateLibraryAdministrative agency. Most fundingsupportsstate grantsad 2018, Congressappropriated$240 millionforthe isters federalfundstolibrariesandmuseums. In thatadmin The IMLSisanindependentagency Eliminate Funding fortheInstitute Services andLibrary ofMuseum 176 SAVINGS INMILLIONS Ȗ Ȗ Sena R House Budge Pr Heritage Foundation Patrick Knudsen, “Tight Budget? Congress CanSave $42 Billionby Eliminating Government Bad Programs,” May 15, 2008. Sven Larsen, “Federal Funds andState FiscalIndependence,” HeritageFoundation epublic esiden $240 t e BudgetR 39 t an S ’ ThelargestgrantsarefromtheGrants s Budget(FY20 P R tudy C t R OPO esolution esolution 38 ommitt S Backgrounder Blueprint for Balance: Blueprint for A L 40 19) The agency alsoadmin Theagency ee No. 2837, August 29, 2013. ADDRESSED P I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL A T R NOT A T UDE UDE UDE - T I A U - L L S - - D D D Y The Heritage Foundation | Foundation Heritage The to states andlocalities. volve fundingdecisionsfortheseinstitutions back and locallevels. Thefederalgovernment shouldde institutions arealreadybeingfundedatthestate to give grantstolibrariesandmuseumswhenthese It isnot theproperroleoffederalgovernment various museums. also supportsspecialandtriballibraries, aswell support STEMresearchforlibraryuse.TheIMLS workforce development, andSTEMeX grants, which PRES Eliminates IMLS. museums andlibraries. State andlocalgovernmentsprivatesectorshouldfund programs. Eliminates IMLSandprovides$23millionin2019tocloseexisting IDE N T HOUS E X heritage.org/BlueprintForBalance P E Backgrounder L ANA T S ION E N A T No. 2136, E RSC - LABOR/HHS 177
C 43 all S R E T A N E ION school policies. The school policies. S T 45 ANA
L P heritage.org/BlueprintForBalance X E HOUSE and sexual assault 44 Funding remains at relatively the same levels. PRESIDENT harassment or assault and making it exceedingly and making it exceedingly harassment or assault accused to defend themselves. difficult for the to steps The Trump Administration has taken actions that Administration’s correct the previous rescinding the gender by of law undermined the rule identity that should be significantly cut so OCR budget serve policies that will best schools can make members of their communities. The Heritage Foundation | - - D - S U CTE T E A NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S No. 211, July 25, 2017. 211, July 25, No. ommitt 41 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $57 esiden Furthermore, the department has violated the the department has violated the Furthermore, epublic Hans von Spakovsky, “Campus Sexual Assault: Understanding the Problem and How to Fix It,” Heritage Foundation Heritage Foundation Fix It,” to and How Problem the Understanding Assault: Sexual “Campus Spakovsky, Hans von Memorandum Legal Ryan T. Anderson, “Obama Unilaterally Rewrites Law, Imposes Transgender Policy on Nation’s Schools,” The Daily The Schools,” on Nation’s Policy Imposes Transgender Law, Rewrites Unilaterally “Obama Anderson, T. Ryan 13, 2016. Signal, May 42 R House Budge Pr Sena Ȗ Ȗ SAVINGS IN MILLIONS SAVINGS IN Ȗ ADDITIONAL READING Ȗ low burden of proof for adjudicating claims of sexual low on self-declared gender identity rather than biolo gy. requiring an unfairly principles of due process by preting “sex” to mean “gender identity,” essentially “sex”preting to mean “gender identity,” to intimate facil to require access rewriting the law based students and sports programs for dorms, ities, The OCR is tasked with ensuring equal access to with ensuring The OCR is tasked In recent civil rights laws. education and enforcing inter by its power the department has abused years, Reduce Funding for the Department of Education’s of Education’s for the Department Reduce Funding Office Rights for Civil LABOR/HHS
no lessthan90percent.However, forthetraditional adults, thefederalgovernment reimbursesstates at which consists mostly ofchildless, able-bodied 2016 and2025. Insurance Programcosts by $847billionbetween pansion increasesMedicaid andChildren’s Health Congressional Budget Officeprojectsthattheex than 138percentofthefederalpoverty level. The Medicaid eligibilitytoallindividualsearningless The ACA provides theoption forstates toexpand Federal Funding forMedicaid Expansion Repeal theAffordableAct’s Care Enhanced 178 SAVINGS INBILLIONS Sena R House Budge Pr epublic esiden $116 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R 47 OPO For theexpansionpopulation, esolution esolution 46 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL T NOT A UDE UDE UDE T U - S D D D The Heritage Foundation | Foundation Heritage The their most vulnerablepopulations. for states todivert limitedtaxpayer resourcesfrom treatment amongpopulationsandendtheincentive Medicaid expansionwouldendtheinequitable Repealing theACA’s enhancedfederalfundingfor ing from50percentto75percent. ment reimbursesstates atmuchlower levels, rang elderly, children,andparents, thefederalgovern Medicaid population,whichconsists ofthedisabled, PRES funding reforms. Assumes changeinenhancedmatch rateaspartoflargerMedicaid part oflargerMedicaidfundingreforms. Includes reformsthatassumechangeinenhancedmatchrateas enhanced matchrateaspartoflargerMedicaidfundingreforms. Endorses repeal-and-replacemodelthatassumeschangein IDE N T
HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T 48 E RSC - - LABOR/HHS 179 - - RSC E T A
N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Endorses repeal-and-replace model that reforms federal financing of Medicaid and puts federal Medicaid on a budget. Reforms federal financing of Medicaid and puts federal Medicaid on a budget. Reforms financing of Medicaid and puts federal Medicaid on a budget. PRES Congress should separate Medicaid enrollees into enrollees Medicaid Congress should separate categories—children and able-bodied four distinct ben Medicare low-income the disabled, adults, beneficiaries—and and long-term care eficiaries, finance each category within an independently This change would spending cap. aggregate federal predictable fiscal spending on a more put Medicaid different policy ar and financing path and allow needs of each group rangements the diverse to meet more effectively. The Heritage Foundation | D D D - S - U T UDE UDE UDE A NOT T NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I ADDRESSED Average enroll Average 51 50 ee 19) L A Blueprint for Balance: S ommitt 49 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R $16 t esiden epublic R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN ment has also surged, increasing from 46.3 million ment has also surged, increasing from 46.3 and is pro to 64 million in 2014, enrollees in 2005 million in 2024. jected to hit 77.5 in 2005 to $496.3 billion in 2014 and is projected to and is projected to 2014 billion in in 2005 to $496.3 decade, reaching next the further over increase even in 2024. billion annually $920.5 The Medicaid program is on an unsustainable path program is on an unsustainable The Medicaid Total as well as cost. with respect to enrollment from $316 billion spending rose annual Medicaid Disaggregate Medicaid Spending by Population Category Population by Spending Medicaid Disaggregate on a Budget Medicaid Federal and Put LABOR/HHS
receive absenttheprovider tax.Today, states are reimbursement beyondthelevel thestate would the effectofthis istoincreasefederal state policy match ratesarebasedontotal payment amounts, portion ofthatincreasedpayment. Becausefederal ment rateforproviders butthen“taxingback”a consist ofincreasingtheirMedicaid reimburse Some states employ provider taxschemesthat End Provider Taxes inMedicaid 180 SAVINGS INBILLIONS Sena R House Budge Pr epublic esiden $6.3 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 52 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL T NOT NOT NOT A UDE T - U S D The Heritage Foundation | Foundation Heritage The transparency tothefinancingof transparency Medicaid. ofandbringgreater wouldstopicy “state gaming” altogether orfurtherreducethethreshold.Thispol Congress shouldeithereliminatethisthreshold tax revenues. limited tousingnomorethan6percentofprovider PRESIDENT Ends budgetinggimmickslikeprovider taxes. HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E RSC - LABOR/HHS - 181 C S R E T A N Congress should E ION 54 S T ANA L P heritage.org/BlueprintForBalance X E HOUSE No. 4659, February 24, 2017. 24, February 4659, No. Issue Brief Issue PRESIDENT excise tax on high-cost plans, tax on high-cost excise could be sheltered on a pre-tax cap the amount that This change benefits would bring health care basis. such as retire benefits, employee in line with other discourage and overinsurance. ment savings, The Heritage Foundation |
- S U T A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt esolution esolution OPO 53 t R tudy C R P s Budget (FY20 ’ an S t $0 e Budget R t esiden (NO SAVINGS) epublic Edmund Haislmaier, Robert E. Moffit, and Alyene Senger, “Fairness in the Federal Tax Treatment of Health Treatment Tax Federal in the “Fairness Senger, E. Moffit, and Alyene Robert Haislmaier, Edmund Heritage Foundation Reform, Linchpin of Real The Insurance: R House Budge Pr Sena Ȗ ADDITIONAL READING Ȗ receive coverage through their employer by exclud by through their employer coverage receive taxable benefit from workers’ ing the value of this 40 percent applying the ACA’s income. Rather than Unlike other forms of employee compensation, the the compensation, forms of employee other Unlike health of employer-based current tax treatment those who an unlimited tax benefit to care provides Convert the Cadillac Tax to a Cap to a the Cadillac Tax Convert Benefits on Employer-Sponsored Health LABOR/HHS
Ȗ Ȗ ADDITIONAL READING Parts AandBintoasingleplanstreamline coverage). CongressshouldcombineMedicare plans),andPart D(prescriptionAdvantage drug services), Part C(comprehensive privateMedicare Partgrams: Part B(physician A(hospitalization), The Medicare programisdividedintofourpro Unify Medicare Physician andHospital Programs 182 Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr Foundation Robert E.MoffitandAlyene Senger, “Medicare’s Outdated Structure—and the Urgent Need for Reform,” Heritage Special Report Robert E.Moffit,“Medicare’s Next 50 Years: Preserving the Program for Future Retirees,” Heritage Foundation epublic esiden $5.9 t e BudgetR t an S ’ s Budget(FY20 P Backgrounder R tudy C t R OPO No. 185, July29, 2016. esolution esolution 55 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 2777, March 22,2013. ee ADDRESSED ADDRESSED I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL T NOT NOT A UDE UDE T - U S D D The Heritage Foundation | Foundation Heritage The catastrophic costs. physician servicesandproviding trueinsurancefor outdated structure by integratinghospitaland wouldeliminateMedicare’slimit. Thesechanges deductible, uniformcost-sharing, andacatastrophic Medicare’s cost-sharing withonepremium, PRESIDENT Endorses recommendation. Endorses recommendation. HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E RSC LABOR/HHS 183 - C S R Congress 57 E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE Endorses specific and gradual Part B and Part D premium increases but does not include proposed temporary Part A premium or cost-sharing for home health care. PRESIDENT program’s projected insolvency in 2029. program’s A premium in years Part should add a temporary annual supplemental The with projected deficits. flexible, rising or falling to cover premium would be and the amount could be based the projected deficit, income. on a beneficiary’s requirement for is no cost-sharing there Currently, Con use home health services. beneficiaries who of to the cost copayment gress should add a modest proper use each home health episode to incentivize of the benefit. The Heritage Foundation | Y D S L L U A I T UDE T A NOT NOT NOT R T A NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I P ADDRESSED ADDRESSED ADDRESSED No. 3908, April 11, 2013. 3908, No. ee 19) L A Blueprint for Balance: Issue Brief Issue S ommitt 56 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $26 esiden epublic Robert E. Moffit and Rea S. Hederman Jr., “Medicare Savings: 5 Steps to a Down Payment on Structural Reform,” Reform,” Structural on Payment Down to a Steps 5 Savings: Jr., “Medicare Rea S. Hederman E. Moffit and Robert Heritage Foundation R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ ADDITIONAL READING Ȗ Annual hospital insurance costs will exceed total total will exceed Annual hospital insurance costs 2023 and will continue to do so until the income by shifting costs to taxpayers by gradually raising the gradually by to taxpayers shifting costs obligation from 25 percent to beneficiary premium 35 percent. taxpayers to fund the remaining 75 percent. The to fund the remaining taxpayers drug D (prescription Part is true in Medicare same this trend of down Congress should slow coverage). contribute 50 percent toward the premium for the premium toward contribute 50 percent time, services). Over B (physician Part Medicare to 25 percent, leaving this amount has decreased Update Medicare Premiums Medicare Update to beneficiaries were required Medicare In 1966, LABOR/HHS
-Ȗ ADDITIONAL READING cess of$110,000) tostart paying higherpremiums. $55,000 (coupleswithanannualincomeinex require seniorswithanannualincomeinexcess of Congress shouldreset theseincomethresholdsand for just 6percentofthetotal Medicare population. Medicare premiumcosts. Theserecipientsaccount from35percentto80oftotalthat range of $170,000) pay higherPart BandPart Dpremiums $85,000 (coupleswithanannualincomeinexcess Today, seniorswithanannualincomeinexcess of Related Subsidies Expand theCurrent Threshold forMedicare Income 184 Ȗ SAVINGS INBILLIONS Sena R House Budge Pr Heritage Foundation Robert E.Moffitand ReaS.Hederman Jr., “Medicare Savings: 5 Steps toa Down Payment on Structural Reform,” epublic esiden $28 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 58 ommitt S Issue Brief Blueprint for Balance: Blueprint for A L 19) ee No. 3908, April11,2013. ADDRESSED ADDRESSED P P I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL A A T R R NOT NOT A T T UDE UDE - T I I A A U L L L L S D D Y Y The Heritage Foundation | Foundation Heritage The who needthemmost. based onincomeandwouldfocussubsidiesthose ed taxpayer resourcesaredistributed moreevenly way entirely. wouldensurethatlimit Thischange among them(about3percent)wouldpay theirown of thetotal Medicare population,andthewealthiest pay higherpremiumstoapproximately 10percent increase thenumberofMedicare recipientswho thisinitialincomethresholdwould Adopting PRESIDENT trigger higherpremiumpaymentsfor wealthyrecipients. Endorses generalpolicybutissilent onspecificincomethresholdsto trigger premiumincreasesforwealthyrecipients. Endorses generalpolicybutproposeshigherincomethresholdto HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E R S C - LABOR/HHS 185 - RSC E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS
Endorses recommendation. Endorses recommendation. PRESIDENT years by 2015 and is projected to reach 80.7 years in years in is projected to reach 80.7 and 2015 years by increase the age Congress should gradually 2030. to reflect both benefits of eligibility for Medicare life expectancy and to align more accurately today’s eligibility more closely with changes al Medicare age for the normal retirement ready enacted to raise Social Security. The Heritage Foundation | D D S U T UDE UDE A NOT NOT T NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I ADDRESSED ADDRESSED No. 3908, April 11, 2013. 3908, No. ee 19) L A Blueprint for Balance: Issue Brief Issue S ommitt 59 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $23 esiden epublic Robert E. Moffit and Rea S. Hederman Jr., “Medicare Savings: 5 Steps to a Down Payment on Structural Reform,” Reform,” Structural on Payment Down to a Steps 5 Savings: Jr., “Medicare Rea S. Hederman E. Moffit and Robert Heritage Foundation R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ ADDITIONAL READING Ȗ 70.2 years. Average life expectancy reached 79.4 life expectancy Average reached 79.4 years. 70.2 was enacted in 1965, the law set eligibility in line set the law enacted in 1965, was In age of eligibility: 65 years. with Social Security’s life expectancy was the average American’s 1965, The average life expectancy increased greatly has age of created, but the program’s was since Medicare Medicare When the same. eligibility has remained Harmonize Medicare’s Age of Eligibility Medicare’s Harmonize Age of Eligibility with Social Security’s LABOR/HHS 186 Ȗ ADDITIONAL READING and privateplanbidshave routinelycomeinbelow ments arelinked tothetraditionalParts AandB, for Medicare. Today, payments forthesearrange third ofallseniorshave chosenthisarrangement as analternative totraditionalMedicare. Over a Medicare coverage throughprivatehealthplans offersseniorscomprehensive Medicare Advantage with aCompetitive, Market-Based System Modify Medicare Advantage Payment System SAVINGS INBILLIONS Ȗ Sena R House Budge Pr Based Reforms,”Based Heritage Foundation Alyene SengerandRobert E.Moffit,“Medicare Advantage Underthe ACA: Replace Payment CutswithMarket- epublic esiden $2.3 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 60 ommitt S Blueprint for Balance: Blueprint for A L 19) ee Backgrounder ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT NOT A T U - S No. 3020, May 28,2015. The Heritage Foundation | Foundation Heritage The plans toprovide traditionalMedicare benefits. bids submitted by regionalcompeting privatehealth it withanewbenchmarkpayment thatisbasedon from spendingintraditionalMedicare andreplace (Partthe Medicare C)payment Advantage system traditional Medicare rates. Congressshoulddetach PRESIDENT
HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C LABOR/HHS - - 187 - RSC 63 E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance X E HOUS The proposal offers many advantages: offers many The proposal 62
No. 2878, February 3, 2014. February 2878, No. Endorses reform based on defined-contribution financing. Endorses reform based on defined-contribution financing. PRESIDENT of the standard benefits of Parts A, B, and D, plus B, and Parts A, benefits of of the standard coverage. catastrophic Bud the Congressional proposal, In examining this the that private plans could deliver get Office found price than tradi at a lower of benefits level same the wide range can and estimated tional Medicare of savings. pricing, and expanded personal choice, clarity in transparency in performance. Intense competition would enhance account among plans and providers ability to patients and control costs. The Heritage Foundation | - D D S U - T UDE UDE A NOT NOT Backgrounder Backgrounder T NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I ADDRESSED ADDRESSED ee No. 2626, November 28, 2011. November 2626, No. 19) L A Blueprint for Balance: S ommitt 61 esolution esolution OPO t R tudy C R Backgrounder P s Budget (FY20 ’ an S t e Budget R $61 t esiden epublic Robert E. Moffit, “The Second State of Medicare Reform: Moving to a Premium-Support Program,” Heritage Program,” Premium-Support to a Moving Reform: of Medicare State “The Second E. Moffit, Robert Foundation for Savings Support Means Premium Medicare Confirms: “CBO Jr., Rea S. Hederman, E. Moffit and Robert Heritage Foundation and Seniors,” Taxpayers R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ private plans. Under this proposal, all competing all competing Under this proposal, private plans. would be re traditional Medicare, including plans, quired to offer a health benefits package consisting Part C). This proposal would extend that financing that would extend C). This proposal Part and compel arrangement Medicare to traditional other field with all playing on a level it to compete coverage of prescription drugs (under Medicare drugs (under Medicare of prescription coverage enrollment in com D) or as a result of their Part (under Medicare private health plans prehensive Today, the vast majority of Medicare beneficiaries majority of Medicare the vast Today, in popular and successful are already enrolled programs either for their defined-contribution Transform the Entire Medicare Program Program Medicare Entire the Transform (Premium-Support)into a Defined-Contribution Program LABOR/HHS 188 provider thatmeets thespecific needsoftheirchildren. a parent-controlledESAthat thefamilycouldusetopay for any education-relatedservice,product,or and allfundingforchildren livingonbaseindistricts thatarenot directlyinto heavily impactedshould go to eligiblestudents. AllImpactAiddollarsformilitary-connected childreninheavily impacteddistricts students tothoseschoolsbasedonwhere theirparentsarestationed, ImpactAiddollarsshouldbedirected Aid. Instead offilteringthe$1.3billioninfederal ImpactAidfundingtodistrict schoolsandthenassigning Washington thenprovides taxpayer fundingtodistrict schoolsthroughafederalprogramcalledImpact learning needs, consigningthemtonearby district schoolsthatareclosest totheirparents’dutystation. models. Childrenofmilitaryfamiliescontinuetobeassignedschoolsthatmay ormay not meet their supports theeducationoffederallyconnectedchildren hasfailedtokeep pacewithnew educationdelivery of militarylifehave beenmodernizedover thepast century, the way inwhichthefederalgovernment Transition ImpactAidintoeducationsavings accountsformilitaryfamilies. without entanglementinabortionondemand. affiliates and other abortionproviders wouldbeshiftedtoprogramsthatoffer comprehensive healthcare not reducetheoverall fundingforwomen’s healthcare:Thefundscurrentlyflowing toPlanned Parenthood receiving TitleXfamilyplanninggrants, Medicaid reimbursements, andother grantsandcontractswould Under therecommendation,disqualifyingPlannedParenthood affiliatesand otherabortionproviders from parts ofabortedinfants. tothePPFA Nofederal fundsshouldgo orany ofitsaffiliatesorhealthcenters. acute inlightofseriousanddisturbing presscoverage ofPPFA representatives discussing thesale ofbody Parenthood Federation ofAmericaanditsaffiliates. Theneedtoendsuchfundinghasbecome even more services. Redirect fundingfromPlannedParenthood tohealthcentersthatarenot entangledwithabortion with hisorhervalues. freedom ofevery Americantoprovide, find,orofferhealthcareandinsurance thataligns coverage years ofinvestigation. Complaints toHHSaboutthestate’s mandateweredismissedby theOfficefor CivilRightsafternearlytwo elective abortions, includingplansoffered by religiousorganizations, religiousschools, andeven churches. Healthof Managed Caremandatedthatalmost every healthplaninthestate must includecoverage of these protections andgive victimsabetter InAugust pathtoreliefisurgent. 2014, theCaliforniaDepartment Congress shouldalsoallow victim-of-conscienceviolationstobevindicatedincourt. and healthinsuranceplansbecausetheydonot perform,pay for, refer, orprovide coverage forabortions. andfederallyfundedprograms thatdiscriminateagainstagencies healthcareproviders, organizations, abortion, whether intheU.S. orabroad.In addition, Congressshouldcodifyprohibitionsongovernment riders thatprevent federalfundingfrombeingentangledwiththeprovision, coverage,of oradvocacy Protect freedomofconscienceinhealthcare. TANF caseloadisparticipatinginworkactivitiesfor20hoursto30perweek. the credit.Congressshouldstrengthen TANF’s workrequirementsothat75percentofastate’s non-employed State welfarebureaucracieshavedonelittle generally ifanything topromote thisemployment butstill take Moreover, amongthehalfofTANF recipientsthatfulfilltheworkrequirements, most areworkingparttime. that theother 50percentofthecaseloadcanbecompletely idleandthestate isstill fulfillingtherequirement. rate istoolow. Only50percentofable-bodiedadultsarerequiredtoparticipateinworkactivities, whichmeans actually having tomove recipientsintoworkactivity. Themainreason,however, isthatthework-participation for thisisthatstatesofloopholesallow aretakingadvantage themtofulfilltheworkrequirementwithout average of54.7percentacrossthestates) areidle,neitherworkingnorpreparingforwork. Strengthen theTANF program’s work requirements. Policy Riders Taxpayer dollarsshouldnot beusedtofundelective abortionproviders suchasthePlanned 67 Blueprint for Balance: Blueprint for Policymakers shouldnot wait formoreassaults onconsciencebeforeprotecting the AFEDERAL BUDGET FOR FISCAL YEAR2019 Congressshouldmaintainallexisting pro-lifepolicy The Heritage Foundation | Foundation Heritage The 68 Themajorityofwork-eligible TANF recipients(an heritage.org/BlueprintForBalance 65 Althoughmany aspects 66 Theneedtocodify 64 Part ofthereason LABOR/HHS 189 Center for Data Data for Center , p. 13; and $41.3 million million 13; and $41.3 , p. heritage.org/BlueprintForBalance
, FY 2019 Department of Labor Budget in Brief Budget Labor of Department FY 2019 The Heritage Foundation | National Job Corps Study: Findings Using Administrative Earnings Records Data, Data, Records Earnings Using Administrative Findings Study: Corps Job National provides a good proxy because it requests a lower spending level of $18.5 million of $18.5 level spending a lower because it requests a good proxy provides A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET No. 3139, July 27, 2016, https://www.heritage.org/jobs-and-labor/report/why-it-time- 2016, 27, July 3139, No. , p. 13, https://www.dol.gov/sites/default/files/budget/2019/FY2019BIB.pdf (accessed (accessed 13, https://www.dol.gov/sites/default/files/budget/2019/FY2019BIB.pdf , p. Backgrounder U.S. Department of Labor FY 2015 Annual Performance Report Annual Performance 2015 FY Labor of Department U.S. Blueprint for Balance: No. 10-05, July 7, 2010, http://www.heritage.org/research/reports/2010/07/inflated-federal-pay-how-americans-are- 2010, July 7, 10-05, No. FY 2019 Department of Labor Budget in Brief Budget Labor of Department FY 2019 , Mathematica Policy Research, October 2003, https://www.mathematica-mpr.com/api/sitecore/MediaLibrary/ActualDownl 2003, October Research, Policy , Mathematica based savings over the 2019–2028 period would equal $219.327 billion. This 10-year figure includes interactive effects with other Heritage effects includes interactive figure 10-year billion. This equal $219.327 period would the 2019–2028 over based savings https://www.dol.gov/sites/default/files/documents/general/budget/CBJ-2017-V1-01.pdf (accessed April 24, 2018). 24, April (accessed https://www.dol.gov/sites/default/files/documents/general/budget/CBJ-2017-V1-01.pdf in accrual-based discretionary savings from permanent changes and $32.209 billion in one-time savings from the buyout option for federal federal option for the buyout from billion in one-time savings changes and $32.209 permanent from savings discretionary in accrual-based in savings from eliminating grants from the International Labor Affairs Bureau. Although costs of the grants within the ILAB are not readily not are within the ILAB of the grants costs Although Bureau. Labor Affairs the International from grants eliminating from in savings between be the difference to grants ILAB eliminating from the savings estimate we Thus, grants. ILAB based on eliminating in FY 2019 is $274 million, even though unfair-labor-practice complaints have fallen by 40 percent since FY 1990 and election petitions have fallen by by fallen have petitions FY 1990 and election since 40 percent by fallen have complaints though unfair-labor-practice million, even is $274 Foundation experts’ proposals to bring federal personnel compensation in line with private sector compensation. sector in line with private compensation personnel bring federal to proposals experts’ Foundation FY 2019 request. FY 2019 Heritage Foundation Employees,” because the savings savings longer-term to this proposal’s compared small are savings FY 2019 and figures. report Heritage Foundation Heritage experts assume that FY 2018 spending remains constant in FY 2019. in FY constant remains spending FY 2018 that assume Heritage experts in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018). 15, May Public Law 115-141, 115th Cong., https://www.congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf (accessed May 15, 2018). Heritage experts experts Heritage 2018). 15, May (accessed https://www.congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf 115th Cong., 115-141, Public Law the FY 2018 appropriated level of $59.8 million as reported in the Consolidated Appropriations Act, 2018, and the $18.5 million proposed million proposed and the $18.5 2018, Act, Appropriations in the Consolidated million as reported of $59.8 level appropriated the FY 2018 that FY 2018 spending remains constant in FY 2019. Reducing the NLRB’s budget by 45 percent in FY 2019 would bring its spending in line would in FY 2019 percent 45 by budget NLRB’s the Reducing in FY 2019. constant spending remains FY 2018 that this total, the act specifies $145 million to expand opportunities for apprenticeship programs and lists $93 million for ex-offender activities activities ex-offender for million $93 and lists programs for apprenticeship expand opportunities to million $145 specifies the act this total, reform-compensation-federal-employees#_ftn3. Savings for FY 2019 have been updated to reflect the most recent, September 2017 federal federal 2017 September recent, the most reflect to been updated have FY 2019 for Savings reform-compensation-federal-employees#_ftn3. Savings for FY 2019 have been updated to reflect the most recent, September 2017 federal employment data as found on fedscope.opm.gov fedscope.opm.gov found on as data employment federal 2017 September recent, the most reflect to been updated have FY 2019 for Savings Retirement report and figures. Foundation in the original Heritage as assumed to 2017 as opposed in 2019 implementation reflect and to accrued the to list sense it makes retirement, benefits until receive but do not actually each year earn FERS credits workers Since accruals. available, the available, with previous funding levels for its caseload. This would save taxpayers $123 million in FY 2019. In FY 2018, projected NLRB budget authority authority NLRB budget projected In FY 2018, million in FY 2019. $123 taxpayers save would its caseload. This for funding levels with previous million. $151 spending to FY 2019 bring the NLRB’s would percent 45 of reduction A proportional amount. larger an even as authorized under both WIOA and the Second Chance Act. Estimated savings exclude these $145 million and $93 million amounts. million amounts. million and $93 these $145 exclude savings Estimated Act. Chance and the Second under both WIOA as authorized assume that FY 2018 spending remains constant in FY 2019. in constant spending remains FY 2018 that assume Women’s Bureau as reported for FY 2018 in U.S. Department of Labor, of Labor, Department in U.S. FY 2018 for reported as Bureau Women’s Compliance Programs as specified in the Consolidated Appropriations Act, 2018; the specified FY 2018 spending level of $12.5 million for the $12.5 million of level 2018 spending the specified FY 2018; Act, Appropriations Consolidated in the as specified Programs Compliance FY 2019 Department of Labor Budget in Brief Budget Labor of Department FY 2019 Final Report %7BEA39AE2D-BF35-41B0-9FD4-5550A46947C6%7D&fileMime=application%2Fpdf (accessed May 2, 2018). 2, May (accessed %7BEA39AE2D-BF35-41B0-9FD4-5550A46947C6%7D&fileMime=application%2Fpdf savings represent accrual-based savings: the long-term savings generated by the impact of the policy change on 2019 retirement benefit retirement change on 2019 of the policy the impact by generated savings the long-term savings: accrual-based represent savings billion include $13.340 savings FY 2019 rates. contribution retirement of lower as a result government the federal to will occur that savings salaries by 5 percent. Total savings over the 2019–2028 period would equal $27.1 billion. This 10-year figure includes interactive effects with effects includes interactive figure 10-year This billion. equal $27.1 period would the 2019–2028 over savings Total 5 percent. salaries by employees to convert their accumulated FERS benefits to TSP contributions with a 25 percent reduction in actuarial value. Total accrual- value. in actuarial reduction with a 25 percent contributions TSP to FERS benefits their accumulated convert to employees other Heritage Foundation experts’ proposals to bring federal personnel compensation in line with private-sector compensation. in line with private-sector compensation personnel bring federal to proposals experts’ other Heritage Foundation overtaxed-to-overpay-the-civil-service. Employees.” Federal for Compensation Reform to It Is Time and Sherk,”Why in Greszler as detailed reforms compensation employee employee compensation reforms as detailed in Rachel Greszler and James Sherk, “Why It Is Time to Reform Compensation for Federal Federal for Compensation Reform to It Is Time and James Sherk, “Why in Rachel Greszler as detailed reforms compensation employee in the original as assumed to 2017 as opposed in 2019 implementation reflect and to on fedscope.opm.gov as found data employment reduce to would be of the proposal effect long-term The time. over compound increases pay automatic time as workers’ over compound oad?fileId=%7BEA39AE2D-BF35-41B0-9FD4-5550A46947C6%7D&fileName=jobcorpsadmin.pdf&fileData=jobcorpsadmin.pdf%20-%20 Peter Z. Schochet, Sheena McConnell, and John Burghardt, and John Burghardt, Sheena McConnell, Z. Schochet, Peter Estimated savings of $374 million for FY 2019 are based on Heritage Foundation experts’ analysis of proposed comprehensive federal federal comprehensive of proposed analysis experts’ Foundation based on Heritage are FY 2019 million for of $374 savings Estimated Savings of $1.719 billion for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Act, 2018, 2018, Act, Appropriations Consolidated as specified in the level appropriated the FY 2018 based on are 2019 FY billion for of $1.719 Savings James Sherk, “Inflated Federal Pay: How Americans Are Overtaxed to Overpay the Civil Service,” Heritage Foundation Foundation Heritage the Civil Service,” to Overpay Overtaxed Americans Are How Pay: Federal James Sherk, “Inflated Estimated savings of $45.549 billion for FY 2019 are based on Heritage Foundation experts’ analysis of proposed comprehensive federal federal comprehensive of proposed analysis experts’ based on Heritage Foundation are FY 2019 billion for of $45.549 savings Estimated Estimated savings of $123 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are FY 2019 million for of $123 savings Estimated Estimated savings of $738 million for FY 2019 are based on the FY 2018 full-year spending level as reported in U.S. Department of Labor, of Labor, Department in U.S. as reported spending level full-year on the FY 2018 based are FY 2019 million for of $738 savings Estimated U.S. Department of Labor, of Labor, Department U.S. Estimated savings of $157 million for FY 2019 are based on the FY 2018 appropriated level of $103.5 million for the Office of Federal Contract Contract Federal of the Office million for of $103.5 level appropriated based on the FY 2018 are FY 2019 million for of $157 savings Estimated Estimated savings of $10.5 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated FY 2018 based on the are FY 2019 million for of $10.5 savings Estimated Estimated savings of $3.248 billion for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated on the FY 2018 based are FY 2019 billion for of $3.248 savings Estimated Act, 2018. This proposal would reduce spending by 45 percent, or $123 million of the appropriated $274 million. Heritage experts assume assume million. Heritage experts $274 million of the appropriated or $123 percent, 45 spending by reduce would proposal This 2018. Act, Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Act, 2018, which specifies $3.486 billion for activities including the WIOA, the Second Chance Act of 2007, and the Apprenticeship Act. Of Act. and the Apprenticeship 2007, of Act Chance the Second including the WIOA, for activities billion which specifies $3.486 2018, Act, Analysis Report Analysis
8. 5. 6. 9. ENDNOTES 11. 10. 1. 2. 3. 7. 4. LABOR/HHS 190 21. 20. .12 .13 .14 .15 .16 .17 .18 .19
JCX-67-17, December 18,2017, https://www.jct.gov/publications.html?func=startdown&id=5053 (accessed May 16,2018), andJoint The optionto “UseanAlternative Measure ofInflation to Index SocialSecurity andOtherMandatory Programs” includes$2.6billionin This proposal would alsoreduce theriskofataxpayer bailoutamounting to hundreds ofbillionsdollars. Estimated savings of $2.6billioninFY2019 come from Congressional Budget Office, Congressional Budget Office, “The President’s Proposal to Accrue Retirement Costs for Federal Employees.” Reg Jones,“The SpecialRetirement Supplement,” FEDweek, January22,2018, http://www.fedweek.com/reg-jones-experts-view/special- This proposal hasnosavings inFY2019, butitwould improve thesolvency ofthePBGCandmultiemployer pensionplans,increasing the This proposal hasnoestimated savings for FY2019. However, itwould likely generate significant savings over timeasit would cause federal Estimated savings of$594 millionfor FY2019 are accrual-based savings, whichmeansthat theactual savings donotaccrue to thefederal Estimated savings of$100 millionfor FY2019 are based ontheCBO’s estimated first-year savings from eliminating thespecial retirement Estimated savings of$5.701 billionfor FY2019 are basedonHeritageFoundation experts’ analysis ofproposed comprehensive federal Estimated savings of $20.26 billionfor FY2019 include$23.56billionperyear insavings from reducing fraud andlimitingeligibility inthe Ibid., p. 61. The optionto “UseanAlternative Measure ofInflation to Index SocialSecurity andOtherMandatory Programs” includes$2.6 value oftheirchildtax credit, however. Somelow-income families may notreceive afulldoublingofthecredit, andsomehigher-income government until thefuture years whenemployees donotreceive theFEHBbenefitsthey otherwise would have.Savings estimates are gov andto reflect implementation in2019 asopposed to 2017 asassumed intheoriginalHeritage Foundation report andfigures. Heritage over the2019–2028 period.This 10-year figure includesinteractive effects withotherHeritage Foundation experts’ proposals tobring employee compensation reforms asdetailed inGreszler andSherk,“Why ItIsTime to Reform Compensation for Federal Employees.” cbo.gov/sites/default/files/114th-congress-2015-2016/reports/52142-budgetoptions2.pdf (accessed May 16,2018).Savings would grow over credit provisions increased thecost oftheCTC by 126 percent, from $53.6 billionto $67.7 billionin2019. SeeJoint Committee onTaxation, org/sites/default/files/2018-04/BG3162.pdf. This report provides estimated savings for FY2015. Heritage experts conservatively assume a on thenumberandwages offederal employees. Total savings over the2019–2028 periodwould equal$34.04 billion.This 10-year figure similar level ofsavings inFY2019 withtheexception ofthesavings from thechildtax credit, whichdoubledin2019 andbeyond (including sector compensation. supplement asfound inCongressional Budget Office, Reducing theDeficit:Spendingand Revenue Options Committee on Taxation, U.S. Congress, Waste, Fraud, andAbuseStrengthen Marriage,” HeritageFoundation Savings for FY2019 have beenupdated to reflect themost recent, September 2017 federal employment data as found on fedscope.opm. www.jct.gov/publications.html?func=startdown&id=4971 (accessed May 16,2018). Notalltaxpayers experienced thesame increase inthe a higherrefundable portion)asaresult oftheTax CutsandJobsAct. The Joint Committee onTaxation estimated that theTCJA’s childtax with 2019 beingthefirst year ofimplementation. workers to desire lower-cost plansandwould increase competition amongFEHBplans.ACBO analysis ofasimilarproposal for aflat mandatory spendinginFY2018, thefirst year ofimplementation. Thus, Heritage experts assume thesame$2.6billioninFY2019 savings probability that pensioners would receive more orallofwhat theirpensionplanspromised themandwhat thePBGCissupposedto insure. reports/03-10-reducingthedeficit.pdf (accessed May 16,2018). retirement-supplement/ (accessed April12,2018). files/107th-congress-2001-2002/reports/accrual.pdf (accessed May 16,2018). We applythis value to current statistics (September 2017) federal personnel compensation inlinewithprivate-sector compensation. families that would beaffected by thisproposal will experience adoublingoftheirchildtax credit value, we conservatively estimate that families that received onlyapartialornochildtax credit before willreceive thefull$2,000 value in2019. Althoughmost lower-income the November 2016 Heritagereport) to $12.2 billion in2019. All$20.26 billioninsavings represents mandatory spending. the childtax credit provisions inthisproposal willincrease thevalue ofthecredit for families by 60percent, from $7.6 billion(asreported in this proposal by Heritageexperts) projected savings of$42 billionover 10years, or$4.2 billionperyear. SeeCongressional Budget Office, time, amounting to $4.7 billionover 10years. All$100 millioninsavings represents mandatory spending. U.S. Congress, “Estimated Budget Effects ofthe Conference Agreement for H.R.1, The ‘Tax Cuts andJobs Act,’ Fiscal Years 2018–2017,” Estimates come from Robert Rector andJamieBryan Hall,“Reforming theEarnedIncome Tax Credit andAdditional ChildTax Credit to End EITC andACTC andanaddedcost billionperyear of$3.3 for reducing marriagepenaltiesintheEITC, for anet savings of$20.26 billion. FEHB contribution alongsidelimited contribution growth (something that would come naturally through competition andchoice under President’s Proposal to Accrue Retirement Costs for Federal Employees,” Foundation experts estimate that thisreform would reduce federal employment by 2.2percent andgenerate total savings of$71.168 billion includes interactive effects withotherHeritage Foundation experts’ proposals to bring federal personnel compensation inlinewithprivate- by year backby oneyear basedonimplementation in2019 instead of2018. billion inmandatory spendinginFY2018. The CBO report estimates savings for FY2027 through FY2026. We move theestimated savings based onaCBO report that estimated thevalue ofFEHBbenefits at 6.4 percent of workers’ pay. See Congressional Budget Office, “The Blueprint for Balance: Blueprint for Estimates of Federal Tax Expenditures for Fiscal Years 2016–2020 AFEDERAL BUDGET FOR FISCAL YEAR2019 , March 2011, p. 37, https://www.cbo.gov/sites/default/files/112th-congress-2011-2012/ Options for Reducing theDeficit: 2017 to 2026 The Heritage Foundation | Foundation Heritage The CBO Paper Backgrounder , June2002, https://www.cbo.gov/sites/default/ Options for Reducing theDeficit: 2017 to 2026 No. 3162, November 16,2016, https://www.heritage. heritage.org/BlueprintForBalance , December 2016, p. 36, https://www. , JCX-3-17, January30, 2017, https:// , p. 73. LABOR/HHS 191 , p. 46. , p. heritage.org/BlueprintForBalance , September 2015, p. 43, https://www.cbo.gov/sites/ 43, p. 2015, , September Options for Reducing the Deficit: 2017 to 2026 to 2017 the Deficit: Reducing Options for The Heritage Foundation | , October 2016, p. 11, https://www.cafonline.org/about-us/publications/2016- p. 2016, , October A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Federal Housing Assistance for Low-Income Households Low-Income for Assistance Housing Federal CAF World Giving Index 2016 Giving Index World CAF Blueprint for Balance: No. 4668, March 28, 2017, https://www.heritage.org/sites/default/files/2017-03/IB4668.pdf. The estimated cost of this proposal of this proposal cost The estimated https://www.heritage.org/sites/default/files/2017-03/IB4668.pdf. 28, 2017, 4668, March No. billion for FY 2019 are based on reducing half of HUD’s budget by 10 percent. Estimated savings include $1.869 billion in discretionary in discretionary billion $1.869 include savings Estimated 10 percent. by budget half of HUD’s based on reducing are FY 2019 billion for in the next year includes its effects on increasing total Pell Grants and federal student loans by making them accessible to students across across students to accessible by making them loans student federal and Pell Grants total on increasing effects includes its year in the next Loan Forgiveness.” It also assumes that FY 2018 is the first year of implementation, so Heritage experts apply the FY 2018 savings level to level savings experts apply the FY 2018 so Heritage year of implementation, is the first FY 2018 that It also assumes Forgiveness.” Loan score CBO (The forgiveness. for would no longer be eligible borrowers as more time, over significantly increase would Savings FY 2019. Department of Education, “Department of Education Fiscal Year 2018 Congressional Action,” March 27, 2018, https://www2.ed.gov/about/ 2018, 27, March Action,” Congressional 2018 Fiscal Year of Education “Department of Education, Department to a CBO report, approximately 50 percent of housing assistance goes to elderly and disabled recipients ($23.961 billion). See Table 2, billion). See Table ($23.961 elderly and disabled recipients goes to of housing assistance 50 percent approximately report, a CBO to federal student aid programs and eliminate the PLUS Loan program would mitigate its costs in the short run. In the long run, this proposal in the short run. In the long run, this proposal its costs mitigate would program Loan the PLUS and eliminate aid programs student federal publications/caf-world-giving-index-2016 (accessed April 25, 2018). April 25, (accessed publications/caf-world-giving-index-2016 responses from both educational institutions and students that cannot reasonably be predicted. cannot reasonably that and students institutions both educational from responses reported in Jamie Bryan Hall and Mary Clare Reim, “Time to Reform Higher Education Financing and Accreditation,” Heritage Foundation Foundation Heritage Financing and Accreditation,” Higher Education Reform to “Time Reim, Hall and Mary Clare in Jamie Bryan reported non-Title VII funds under the Elementary and Secondary Education Act ($6.904 billion) and a 10 percent reduction in Title I and Title VII I and Title in Title reduction billion) and a 10 percent ($6.904 Act Education and Secondary VII funds under the Elementary non-Title mandatory spending in FY 2018. Heritage experts assume that the FY 2018 savings and spending levels will apply for FY 2019 because they because they FY 2019 will apply for levels and spending savings the FY 2018 that assume Heritage experts spending in FY 2018. mandatory of the policy. year of full implementation the first represent the long run. over significantly outlays federal reduce likely would requirements appropriations in FY 2018. appropriations assumes that the policy applies to new borrowers after implementation of the proposal.) implementation after borrowers new applies to the policy that assumes a wider range of education options. (Additional loans cost the federal government money because we use fair-value accounting, a more a more accounting, use fair-value because we money government the federal loans cost options. (Additional of education a wider range lending caps on strict place to with the proposals in conjunction this proposal Implementing loans’ true costs.) of federal measure accurate and $11.058 billion in net mandatory spending. Heritage experts assume that FY 2018 spending remains constant in FY 2019. We propose propose We in FY 2019. constant spending remains FY 2018 that assume Heritage experts spending. mandatory billion in net and $11.058 According and elderly populations. disabled low-income those for excluding housing programs of federal phased-in elimination a 10-year, Congressional Budget Office, Office, Budget Congressional spending ($1.781 billion). spending ($1.781 savings and $527 million in mandatory savings. in mandatory million and $527 savings cpb.org/appropriation (accessed May 2, 2018). May (accessed cpb.org/appropriation of the President’s Fiscal Year 2018 Budget,” https://www.cbo.gov/system/files/115th-congress-2017-2018/dataandtechnicalinformati Budget,” 2018 Fiscal Year of the President’s Public Service “Eliminat[ing] from savings million in FY 2018 includes $425 CBO The 16, 2018). May (accessed on/52891-education.pdf could lead to savings by increasing competition and driving down college costs. college and driving down competition increasing by savings lead to could of the estimated FY 2019 spending level based on a 10-year phaseout of the program. phaseout a 10-year based on spending level FY 2019 of the estimated VI, and I, non-Title non-Title of spending on most includes elimination This 16, 2018). May (accessed overview/budget/budget18/18action.pdf of Housing and Urban Development, “Budget Authority by Program, Comparative Summary, Fiscal Years 2017–2019,” https://www.hud. 2017–2019,” Fiscal Years Summary, Comparative Program, by Authority “Budget Urban Development, of Housing and default/files/114th-congress-2015-2016/reports/50782-lowincomehousing-onecolumn.pdf (accessed May 16, 2018). Thus, savings of $2.396 of $2.396 Thus, savings 16, 2018). May (accessed default/files/114th-congress-2015-2016/reports/50782-lowincomehousing-onecolumn.pdf gov/sites/dfiles/CFO/documents/2%20-%20FY19CJ%20-%20Dept.%20Summary%20-%20Budget%20Authority%20-%20Updated.pdf gov/sites/dfiles/CFO/documents/2%20-%20FY19CJ%20-%20Dept.%20Summary%20-%20Budget%20Authority%20-%20Updated.pdf Issue Brief Issue (accessed May 16, 2018). Total HUD spending authority in FY 2018 was $47.922 billion, including $37.387 billion in net discretionary spending discretionary billion in net $37.387 billion, including $47.922 was in FY 2018 spending authority HUD Total 16, 2018). May (accessed Estimated savings of –$1.2 billion (in other words, an additional cost of $1.2 billion) for FY 2019 are based on Heritage experts’ estimates as estimates based on Heritage experts’ are FY 2019 billion) for of $1.2 an additional cost billion (in other words, of –$1.2 savings Estimated Heritage experts do not include any savings for this proposal because the federal funding stream for TANF is fixed. However, stronger work stronger However, is fixed. TANF for stream funding federal because the this proposal for savings do not include any Heritage experts Estimated savings of $2.3 billion for FY 2019 are based on Heritage experts’ estimates as reported in ibid. as reported estimates on Heritage experts’ based are FY 2019 of $2.3 billion for savings Estimated in ibid. as reported estimates based on Heritage experts’ are FY 2019 billion for of $5.5 savings Estimated Estimated savings of $8.685 billion for FY 2019 are based on FY 2018 grant levels under the Every Student Succeeds Act as reported in U.S. in U.S. reported as Act Succeeds Student under the Every levels grant based on FY 2018 are FY 2019 of $8.685 billion for savings Estimated Estimated savings of $986 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are FY 2019 million for of $986 savings Estimated Estimated savings of $11.0 billion in FY 2019 come from Congressional Budget Office, Office, Budget Congressional from come billion in FY 2019 of $11.0 savings Estimated Estimated savings of $2.396 billion in FY 2019 come from HUD’s annualized FY 2018 total spending authority as reported in U.S. Department Department in U.S. as reported spending authority total FY 2018 annualized HUD’s from come in FY 2019 billion of $2.396 savings Estimated Institute of Museum and Library Services, “Grants to States,” https://www.imls.gov/grants/grants-states (accessed April 25, 2018). April 25, (accessed https://www.imls.gov/grants/grants-states States,” to “Grants Services, of Museum and Library Institute National Public Radio, “Public Radio Finances,” http://www.npr.org/about-npr/178660742/public-radio-finances (accessed April 25, 2018). April 25, (accessed http://www.npr.org/about-npr/178660742/public-radio-finances “Public Radio Finances,” Public Radio, National Charities Aid Foundation, Estimated savings of $240 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are FY 2019 million for of $240 savings Estimated 2018). April 25, (accessed https://www.imls.gov/about-us Us,” “About Services, of Museum and Library Institute This proposal has no estimated savings. has no estimated proposal This Corporation for Public Broadcasting, “CPB’s Federal Appropriation Request & Justification: Detailed FY 2019/2021 Request,” https://www. Request,” FY 2019/2021 Detailed & Justification: Request Appropriation Federal “CPB’s Public Broadcasting, for Corporation Estimated savings of $425 million for FY 2019 are based on Congressional Budget Office, “Proposals for Education—CBO’s Estimate Estimate Education—CBO’s for “Proposals Office, Budget based on Congressional are FY 2019 million for of $425 savings Estimated Estimated savings of $768 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are FY 2019 million for of $768 savings Estimated Estimated savings of $445 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated as specified in the level appropriated based on the FY 2018 are 2019 FY million for of $445 savings Estimated Heritage experts do not include any estimated savings for this proposal because its fiscal impact would depend on a range of behavioral range of behavioral would depend on a because its fiscal impact this proposal for savings estimated do not include any Heritage experts Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. The CPB received $445 million in federal million in federal $445 CPB received The in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Act, 2018. Heritage experts assume that the FY 2018 spending level of $9.863 billion remains constant in FY 2019. Savings equal 10 percent percent equal 10 Savings FY 2019. in constant billion remains of $9.863 spending level the FY 2018 that assume Heritage experts 2018. Act, The option to “Eliminate Supplemental Security Benefits for Disabled Children” includes $1 billion in discretionary spending and $10 billion in $10 spending and $1 billion in discretionary includes Children” for Disabled Benefits Security Supplemental “Eliminate option to The “Characteristics of Households Receiving Housing Choice Vouchers, Project-Based Rental Assistance, or Public Housing Assistance, 2013,” in 2013,” or Public Housing Assistance, Assistance, Rental Project-Based Vouchers, Housing Choice of Households Receiving “Characteristics
28. 29. 27. 25. 26. 24. 23. 22. 38. 39. 35. 36. 37. 34. 32. 33. 31. 30. 40. LABOR/HHS 49. 48. 47. 46. 45. 44. 43. 42. 41. 192 63. 62. 61. 60. 52. 51. 50. .53 .54 .55 .56 .57 .58 .59
Ibid.
Trustees,” https://www.ssa.gov/oact/trsum/ (accessed April25, 2018). April 24, 2018). Analysis HealthModel.All$2.28billioninsavings represents mandatory spending. Analysis HealthModel.All$23.41 billionrepresents mandatory spending. Analysis HealthModel.All$28.221billioninsavings represents mandatory spending. Analysis HealthModel.All$26.437 billioninsavings represents mandatory spending. Analysis HealthModel.All$5.938 billioninsavings represents mandatory spending. Analysis billioninsavings HealthModel.All$6.315 represents mandatory spending. ActuarialStudies/MedicaidReport.html (accessed April25, 2018), andU.S. Department ofHealthandHumanServices, Centers for Medicare Analysis HealthModel.All$16.21 billioninsavings represents mandatory spending. Analysis HealthModel.All$115.864 billioninsavings represents mandatory spending. Estimated savings of $26.437 billionfor FY2019 are basedonestimates from HeritageFoundation staff usingtheHeritage Center for Data Figure 2,“Historical andProjected MedicaidExpenditures andAnnualGrowth Rates, FY1966–2021,” inU.S. Department ofHealthand Estimated savings of $23.41 billionfor FY2019 are basedonestimates from HeritageFoundation staff usingtheHeritage Center for Data Estimated savings of $28.221billionfor FY2019 are basedonestimates from HeritageFoundation staff usingtheHeritage Center for Data The Affordable Care Act imposesa40percent excise tax onthe cost ofhealthplansabove definedthresholds. This tax, commonly referred This proposal hasnosavings inFY2019. Althoughitcould affect federal tax revenues, thisproposal would have noimpact on Estimated savings billionfor of $6.315 FY2019 are basedonestimates from HeritageFoundation staff usingtheHeritage Center for Data Social Security Administration, Office oftheChief Actuary, “ASummaryofthe 2017 Annual Reports:SocialSecurity andMedicare Boards of Estimated savings of $5.938 billionfor FY2019 are basedonestimates from HeritageFoundation staff usingtheHeritage Center for Data See Congressional Budget Office, thegovernmentBasing contribution to healthplansonanaverage bid would yield$69 billioninsavings; basingthe contribution onthe Estimated savings of$61 billionfor FY2019 are basedonestimates from Congressional Budget Office, Estimated savings of$2.28billionfor FY2019 are basedonestimates from HeritageFoundation staff usingtheHeritage Center for Data Estimated savings of$115.864 billionfor FY2019 are basedonestimates from HeritageFoundation staff usingtheHeritage Center for Data Estimated savings of $16.21 billionfor FY2019 are basedonestimates from HeritageFoundation staff usingtheHeritage Center for Data U.S. Department ofHealthandHumanServices, “Federal FinancialParticipation inState Assistance Expenditures; Federal Matching Shares Estimated savings of$56.5 millionfor FY2019 are based ontheCBO’s most recent April2018 baselinespendingprojections. The CBO Hans von Spakovsky andElizabeth Slattery, “Betsy DeVos Stands Upfor DueProcess Rights inCampusSexual Assault Cases,” The Daily Harris,“CampusSamantha JudiciariesonTrial: AnUpdate from theCourts,” HeritageFoundation Ryan T. Anderson, “Obama Unilaterally Rewrites Law, ImposesTransgender Policy onNation’s Schools,” The DailySignal,May 13,2016, Table 1,“Direct SpendingandRevenue Effects oftheInsurance Coverage Provisions ofthe Affordable Care Act,” in Congressional Budget Ryan T. Anderson, “Trump Right to FixObama’s Unlawful Transgender SchoolPolicy,” The DailySignal,February 22,2017, http://dailysignal. cbo.gov/sites/default/files/09-18-PremiumSupport.pdf (accessed April 24, 2018). com/2017/02/22/trump-right-to-fix-obamas-unlawful-transgender-school-policies/. second-lowest planoptionwould yield$275 billioninsavings. Congressional Budget Office, savings represents mandatory spending. October 6,2015, http://www.heritage.org/education/report/campus-judiciaries-trial-update-the-courts. Office, “Insurance Coverage Provisions ofthe Affordable Care Act—CBO’s March Baseline,” 2015 https://www.cbo.gov/sites/default/ for Medicare: Updated Analysis of Illustrative Options for Medicaid without grandfathering and assumes that theCBO’s estimates for thefirst year ofimplementation would apply for FY2019. All$61 billionin and Medicare Services, Office ofthe Actuary, September 30, 2017,” Signal, September 8,2017, http://dailysignal.com/2017/09/08/betsy-devos-stands-due-process-rights-campus-sexual-assault-cases/. reports/53077-premiumsupport.pdf (accessed May 16,2018). Heritageexperts usetheCBO’s analysis ofthesecond-lowest bidoption pdf/167966/FMAP17.pdf (accessed April25, 2018). projects $113 millioninspendingfor FY2019, andthisproposal reduces that amount by 50percent. federal spending. for Medicaid,theChildren’s HealthInsurance Program, andAidto NeedyAged, Blind,orDisabledPersons for October 1,2016 Through files/51298-2015-03-ACA.pdf (accessed April25, 2018). to asthe“Cadillac tax,” was supposedto beimplemented in2018 buthassince beendelayed by Congress until 2020. November 2013, p. 204, https://www.cbo.gov/sites/default/files/cbofiles/attachments/44715-OptionsForReducingDeficit-3.pdf (accessed Research-Statistics-Data-and-Systems/Research/ActuarialStudies/Downloads/MedicaidReport2015.pdf (accessed April25, 2018). Human Services, Centers for Medicare andMedicaid Services, Office ofthe Actuary, http://dailysignal.com/2016/05/13/obama-unilaterally-rewrites-law-imposes-transgender-policy-on-nations-schools/. , “Data for Figures andTables in2012 Report,” https://www.cms.gov/Research-Statistics-Data-and-Systems/Research/ Federal Register Blueprint for Balance: Blueprint for A Premium SupportSystem for Medicare: Analysis of Illustrative Options , Vol. 80, No. 227 (November 25, 2015), pp. 73779–73782, https://aspe.hhs.gov/sites/default/files/ 2015 Actuarial Report ontheFinancialOutlookfor Medicaid AFEDERAL BUDGET FOR FISCAL YEAR2019 , October 2017, https://www.cbo.gov/system/files/115th-congress-2017-2018/ The Heritage Foundation | Foundation Heritage The 2012 Actuarial Report ontheFinancialOutlook Options for Reducing theDeficit: 2014 to 2023 heritage.org/BlueprintForBalance Legal Memorandum A Premium SupportSystem , pp. iiandiii,https://www.cms.gov/ , September 2013, https://www. No. 165, , LABOR/HHS 193 Issue Brief Issue Commentary, Commentary, Surveying the Military: the Military: Surveying , EdChoice, October 16, 2017, 16, 2017, October , EdChoice, No. 4751, August 10, 2017, https:// 2017, 10, August 4751, No. heritage.org/BlueprintForBalance Issue Brief Issue No. 4824, March 5, 2018, https://www.heritage.org/sites/ 2018, 5, March 4824, No. No. 3180, June 2, 2017, https://www.heritage.org/sites/default/ June 2, 2017, 3180, No. Issue Brief Issue The Heritage Foundation | Backgrounder A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Blueprint for Balance: No. 3280, January 24, 2018, https://www.heritage.org/civil-society/report/the-pro-life-agenda-progress-report-the-115th- 2018, January 24, 3280, No. https://www.edchoice.org/wp-content/uploads/2017/10/Surveying-The-Military-by-Paul-DiPerna-Lindsey-M-Burke-and-Anne-Ryland-1.pdf https://www.edchoice.org/wp-content/uploads/2017/10/Surveying-The-Military-by-Paul-DiPerna-Lindsey-M-Burke-and-Anne-Ryland-1.pdf https://www.acf.hhs.gov/ofa/resource/work-participation-rates-fiscal-year-2014 (accessed April 24, 2018). 24, April (accessed https://www.acf.hhs.gov/ofa/resource/work-participation-rates-fiscal-year-2014 Freedom for Military Families and Other Federally Connected Children,” Heritage Foundation Heritage Foundation Children,” Connected Federally and Other Families Military for Freedom Estimated Fiscal Impacts on District Schools,” Heritage Foundation Foundation Heritage Schools,” on District Fiscal Impacts Estimated Foundation No. 4619, October 28, 2016. October 4619, No. Foundation No. 4520, February 24, 2016, and Rachel Sheffield, “Welfare Reform and Upward Mobility Act Can Restart Welfare Reform,” Heritage Reform,” Welfare Restart Can Act Mobility Upward and Reform “Welfare and Rachel Sheffield, 2016, 24, February 4520, No. files/2017-10/BG3180.pdf; Lindsey M. Burke and Anne Ryland, “Modernizing the Federal Impact Aid Program: A Path Toward Educational Educational Toward Path A Aid Program: Impact Federal Anne Ryland, “Modernizing the and M. Burke Lindsey files/2017-10/BG3180.pdf; www.heritage.org/sites/default/files/2017-08/IB4751_0.pdf; and Paul DiPerna, Lindsey M. Burke, and Anne Ryland, Burke, M. Lindsey Paul DiPerna, and www.heritage.org/sites/default/files/2017-08/IB4751_0.pdf; www.usccb.org/issues-and-action/religious-liberty/conscience-protection/upload/HHS-Refuses-to-Enforce-Weldon-Amendment-FACT- 2018). April 24, (accessed SHEET.pdf Services, Administration for Children and Families, Office of Family Assistance, “Work Participation Rates—Fiscal Year 2014,” May 12, 2016, May 12, 2014,” Year Rates—Fiscal Participation “Work Assistance, Family of Office and Families, Children for Administration Services, Work Activity as a Percent of the Total Number of Work-Eligible Individuals, Fiscal Year 2014,” in U.S. Department of Health and Human of Health Department in U.S. 2014,” Year Individuals, Fiscal Number of Work-Eligible of the Total as a Percent Activity Work Backgrounder congress-and-the-trump. default/files/2018-03/IB4824_0.pdf; Lindsey M. Burke and Anne Ryland, “A GI Bill for Children of Military Families: Transforming Impact Impact Transforming Families: of Military for Children “A GI Bill and Anne Ryland, M. Burke Lindsey default/files/2018-03/IB4824_0.pdf; (accessed May 2, 2018). May (accessed U.S. Conference of Catholic Bishops, Secretariat of Pro-Life Activities, “HHS Refuses to Enforce Weldon Amendment,” June 24, 2016, http:// 2016, June 24, Amendment,” Weldon Enforce to “HHS Refuses Activities, of Pro-Life Bishops, Secretariat of Catholic Conference U.S. Table 6C, “Temporary Assistance for Needy Families: Average Monthly Number of Work-Eligible Individuals with Hours of Participation by by of Participation Hours Individuals with Number of Work-Eligible Monthly Average Needy Families: for Assistance 6C, “Temporary Table Foundation Heritage Reform,” Welfare for Priorities “Setting and Rachel Sheffield, Rector see Robert detail, additional For See Lindsey M. Burke, “Military Families Deserve Education Choice: A Response to Carol Burris,” Heritage Foundation Heritage Foundation Burris,” Carol to A Response Choice: Education Deserve Families “Military M. Burke, See Lindsey Melanie Israel, “The Pro-Life Agenda: A Progress Report for the 115th Congress and the Trump Administration,” Heritage Foundation Heritage Foundation Administration,” and the Trump the 115th Congress for Report A Progress Agenda: Pro-Life “The Melanie Israel, What America’s Servicemembers, Veterans, and Their Spouses Think About K–12 Education and the Profession Education About K–12 Think Spouses and Their Veterans, Servicemembers, America’s What April 3, 2018, https://www.heritage.org/education/commentary/military-families-deserve-education-choice-response-carol-burris; https://www.heritage.org/education/commentary/military-families-deserve-education-choice-response-carol-burris; April 3, 2018, Foundation Heritage Accounts,” Savings Education Aid into Jonathan Butcher, “Giving Every Child in a Military Family the Chance for a Bright Future: Education Savings Accounts, Impact Aid, and Impact Accounts, Savings Education Future: a Bright for the Chance in a Military Family Child Every “Giving Butcher, Jonathan
68. 66. 67. 65. 64.
Legislative Branch LEG. BRANCH
Ȗ ADDITIONAL READING and others inpublicservice. ties toMembers ofCongress, congressionalstaff, and provide traininganddevelopment opportuni careers inpublicservice,promote leadershipskills, Itaimstoattract youngpeopleto Stennis (D–MS). ed asalivingtributetothecareerofSenatorJohn The StennisCenterisalegislative programintend Leadership for Public Service Eliminate Funding fortheStennisCenter 196 Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Cuts,” HeritageFoundation Justin Bogie, “Congress ShouldLook Toward Legislative Branch Appropriations BillasaStarting Point for Spending epublic esiden $1.4 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) ee Issue Brief No. 4573, June8,2016. ADDRESSED ADDRESSED ADDRESSED REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT A E T CTE U - S D - The Heritage Foundation | Foundation Heritage The Congress shouldacttodosonow. called foreliminationoftheStennisCenter, and example. Past budgets andappropriationsbillshave Leaders ProgramatTheHeritage Foundation isone to thoseprovided by theStennisCenter. TheYoung Numerous privateentitiesprovide servicessimilar PRESIDENT appropriations. Continues toprovidefundingconsistentwithprevioustwoyears’
HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C LEG. BRANCH - 197 - C S - R E T A N E ION S T ANA L 4 P heritage.org/BlueprintForBalance X
E HOUSE PRESIDENT receive the employer contribution for coverage in contribution for coverage the employer receive The Administration took this regula the exchange. under either authority statutory tory action without that Code, the law 5 of the U.S. or Title the ACA the FEHBP. governs an administra OPM ruling was Because the 2013 Trump could reverse action, President Donald tive If President the OPM decision administratively. the act, Congress should restore Trump does not and end this spe original intent of the statute cial contribution. The Heritage Foundation | S - U T A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED No. 2831, August 2, 2013. 2831, August No. ee 19) L A Blueprint for Balance: Backgrounder S ommitt 2 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ This change meant that Members and This change meant that Members an S t 3 e Budget R t $90 esiden epublic Edmund F. Haislmaier, “Administration Disregards the Law and Gives Special Obamacare Deal to Congress,” The The Congress,” to Deal Special Obamacare and Gives the Law Disregards “Administration Haislmaier, F. Edmund 2013. 7, Daily Signal, August 2013. 11, November Events, Human Standard,” A Big Double and Obamacare: “Congress E. Moffit, Robert Escape,” No Easy Trap: in the Obamacare “Congress and Joseph A. Morris, F. Haislmaier, Edmund E. Moffit, Robert Heritage Foundation R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ reversed this change through a ruling that allowed this changereversed through a ruling that allowed though they even of Congress and staff, Members to continue to are no longer enrolled in the FEHBP, staff would no longer receive the employer contri would no longer the employer receive staff health insurance. On of their cost the bution toward Personnel Management the Office of 2013, 7, August instead required Members and staff to obtain their to obtain and staff required Members instead insurance health ACA’s through the health coverage exchange. Under Section 1312 (d)(3)(D) of the ACA, Congress Congress (d)(3)(D) of the ACA, Under Section 1312 the Federal to end its participation in in 2010 voted Program (FEHBP) and Benefits Health Employees Eliminate Funding for Congressional Subsidies Subsidies for Congressional Funding Eliminate Exchange Insurance Health Care Act’s for the Affordable LEG. BRANCH 4. 198 3. 2. 1. ENDNOTES Act, 2018, Law Public 115-141, 115thCong., https://www.congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf (accessed May 13,2018). Edmund F. Haislmaier, “Administration Disregards theLaw andGives SpecialObamacare Dealto Congress,” The DailySignal,August 7, 2013, Robert E.Moffit, Edmund F.Haislmaier, andJosephA.Morris, “Congress intheObamacare Trap: NoEasy Escape,” Heritage Foundation Estimated savings of$1.4 millionfor FY2019 are basedonthe FY 2018 appropriated level asspecifiedinthe Consolidated Appropriations Savings of$90 millionfor FY2019 includethefollowing data, assumptions, andcalculations. The D.C. HealthInsurance Exchange reports dc.gov/node/1282351 (accessed May 14, 2018). For individuals,Heritageexperts usethereported premium cost of$3,803 for agoldplan dc-state-health-insurance-exchange/ (accessed May 14, 2018). LegiStorm reports that theaverage ageofcongressional staff is31inthe exchange. Heritageexperts assume that 50percent ofthe11,000 employees whoreceive thesubsidyhave self-only coverage, 50percent Backgrounder risen significantly each year, Heritage experts conservatively assume that costs hold steady inFY2019. reported for thesmallbusiness exchange, soHeritageexperts usetheaverage goldfamily premium of$18,004 from theindividualmarket million intransfers from Navy operations andmaintenance. for a27-year-old purchased inthesmall-business exchange. This cost likely understates theactual premium cost for congressional staffers that asofearly2017, “about 11,000” congressional members andstaff were usingthe exchange for coverage. Louise Norris,“DCHealth Insurance Marketplace: History andNews oftheState’s Exchange,” healthinsurance.org, March 31,2018, https://www.healthinsurance.org/ Moffit, “Congress andObamacare: ABigDouble Standard,” Department ofInsurance, 2018 Securities “Sample andBanking, Approved Premiums Compared to 2017,” October 18,2017, https://disb. House and32 intheSenate. LegiStorm, “The 115thCongress by theNumbers,” https://www.legistorm.com/congress_by_numbers/index/ Heritage experts assume that FY2018 spending remains constant inFY2019. Savings include$430,000 indirect spendingandupto $1 http://humanevents.com/2013/11/11/congress-and-obamacare-a-big-double-standard/ (accessed April 19, 2018). http://dailysignal.com//2013/08/07/administration-disregards-the-law-and-gives-special-obamacare-deal-to-congress/, andRobert E. have family coverage, andtheFEHBsubsidycovers 75 percent ofemployees’ premiums. Althoughexchange healthinsurance costs have because they have anaverage agebetween 31and32, andpremium costs increase withage. There are noaverage family premiums by/senate.html (accessed May 14, 2018). The D.C. HealthInsurance Exchange provides average premium costs for 2018. D.C. Government, No. 2831,August 2,2013, http://www.heritage.org/research/reports/2013/08/congress-in-the-obamacare-trap-no-easy-escape. Blueprint for Balance: Blueprint for AFEDERAL BUDGET FOR FISCAL YEAR2019 Human Events The Heritage Foundation | Foundation Heritage The , November 11,2013,
heritage.org/BlueprintForBalance Military Construction, Veterans Affairs, and Related Agencies MILCONVA End Enrollment inVA Medical Care forVeterans ADDITIONAL READING in Priority Groups 7and8 The DepartmentofVeterans(VA) Affairsshould 2014 CongressionalResearchServicestudy revealed years thanhasthenumberofveteran patients. 200 veteran, andthenumberofnon-veterans usingVA resources shouldbeusedsolelytoprovide health health careserviceshasincreasedfaster inrecent that morethanoneofevery 10VA patientsisnot a care toveterans. focus ontheuniqueneedsofmilitarymedicine.A Ȗ Ȗ Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr John S.O’Shea, “Reforming Veterans HealthCare: Now andfor theFuture,” HeritageFoundation Justin Bogie, “Congress ShouldExercise Restraint inVeterans Affairs Funding Bill,” Heritage Foundation No. 4585, June24, 2016. No. 4548, May 17, 2016. epublic esiden $2.9 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT NOT A T 2 VA VA U S The Heritage Foundation | Foundation Heritage The Veterans inPriorityGroups(PGs)7and8donot The VA ranksveterans whoseekmedicalcareona veterans inPGs7and8. ScarceVA healthcaredol lars shouldbespentfirst on veterans withthemost income and geographic incomethresholds.income andgeographic The ing tosuchfactorsasincomeanddisability status. have compensable service-connecteddisabilities, the highest priority. Thegroupsaredefinedaccord and theirincomestendtoexceed theVA’s national department shouldnot beproviding benefitsfor severe disabilities. scale ofonetoeight,withthelower numbersbeing PRESIDENT HOUSE E X heritage.org/BlueprintForBalance
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X E HOUSE PRESIDENT excessive benefit payouts. Simply returning to the Simply returning benefit payouts. excessive would re pay, retirement offset payments disability $9 billion taxpayers save benefits and duce excessive the men and women who serve without generating who serve the men and women more each in annual benefits, with the highest an with the highest benefits, more each in annual to more than $200,000. nual benefit amounting and 2026. 2017 and $139 billion between in 2018 long-standing pre-2004 policy, under which veteran under which veteran pre-2004 policy, long-standing who also receive VA disability benefits rose from disability VA who also receive 33 percent in 2005 to just over 50 percent in 2015. 50 percent in 2015. over to just 33 percent in 2005 More than 2,300 veterans received $100,000 or $100,000 received than 2,300 veterans More The U.S. government should honor its promise to government The U.S. The Heritage Foundation | S U T - A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED No. 4295, November 6, 2014. November 4295, No. ee 19) L A Blueprint for Balance: Issue Brief Issue S ommitt 3 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $9.0 esiden epublic Romina Boccia, “Triple-Dipping: Thousands of Veterans Receive More than $100,000 in Benefits Every Year,” Year,” Every in Benefits than $100,000 More Receive of Veterans Thousands “Triple-Dipping: Boccia, Romina Heritage Foundation R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ programs simultaneously. Under this concur Under programs simultaneously. compensating veterans for the same service twice. service for the same veterans compensating collecting full Defense Department retirement Department retirement collecting full Defense and VA disability benefits simultaneously. Military benefits simultaneously. disability and VA rent-receipt policy, the share of military retirees the share of military retirees policy, rent-receipt rationale for this offset policywas that concurrent rationale for this offset was payments and disability of retirement receipt retirees eligible for VA disability benefits lost $1 in lost benefits disability eligible for VA retirees and Disability Compensation for Veterans Compensation and Disability Until 2003, military retirees were prohibited from were prohibited retirees military Until 2003, $1 in VA disability benefits they collected. The benefits disability $1 in VA Policy changes instituted in 2004 allowed Defense changes in 2004 allowed Policy instituted to collect benefits from both Department retirees Defense Department retirement benefits for every for every benefits retirement Defense Department ADDITIONAL READING Eliminate Concurrent Receipt of Retirement Pay of Retirement Receipt Concurrent Eliminate MILCONVA Unrelated Duties toMilitary Narrow EligibilityforVeterans Disability by Excluding Disabilities ADDITIONAL READING Disability compensation forveterans shouldfocus worsened duetomilitaryservice. 202 conditions thatwerenot necessarily incurredor during active-duty militaryservice,aswellfor conditions orinjuriesthatoccurredworsened on service-relatedconditions. Veterans areeligible for disability compensation fromtheVA formedical Ȗ Ȗ SAVINGS INBILLIONS Sena R House Budge Pr John S.O’Shea, “Reforming Veterans HealthCare: Now andfor theFuture,” HeritageFoundation No. 4585, June24, 2016. epublic esiden $2.0 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 5 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED P I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT NOT A T UDE T I A U L L S D Y The Heritage Foundation | Foundation Heritage The The U.S. Office(now GeneralAccounting Govern vice-related conditionsandsave $2billionin2018 veterans’ disability compensation forthesenon-ser ment Accountability Office)identified seven con ment Accountability and $25.7 billionfrom2017 to2026. and uterinefibroids. ease, hemorrhoids, multiplesclerosis, osteoarthritis, chronic obstructive pulmonarydisease,Crohn’s dis ditions thatarenot likely tobecausedorworsened by militaryservice:arteriosclerotic heartdisease, PRESIDENT more inlinewithcurrentmedicalprinciplesandstandards. Calls forsystematicoverhaulofdisabilityratingssystemtobringit HOUS E X heritage.org/BlueprintForBalance P E 6 Thisproposal wouldcease L ANA T S ION E N A Issue Brief T E R S C - - - - MILCONVA 203 Report for for Report , GAO/HRD-89-60, , GAO/HRD-89-60, Options for Reducing the the Reducing Options for Options for Reducing the Deficit: Reducing Options for Options for Reducing the Deficit: Reducing Options for heritage.org/BlueprintForBalance The Heritage Foundation | A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET , June 3, 2014, http://fas.org/sgp/crs/misc/R43579.pdf (accessed April 11, 2018). (accessed http://fas.org/sgp/crs/misc/R43579.pdf , June 3, 2014, VA Benefits: Law Allows Compensation for Disabilities Unrelated to Military Service to Military for Disabilities Unrelated Compensation Allows Law Benefits: VA Blueprint for Balance: , December 8, 2016, p. 265, https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/52142- 265, p. 8, 2016, , December , p. 59. The option to “Narrow Eligibility for Veterans’ Disability Compensation by Excluding Certain Disabilities Unrelated to to Disabilities Unrelated Certain Excluding by Compensation Disability Veterans’ for Eligibility “Narrow to option The 59. , p. ,” p. 34. The option to “Eliminate Concurrent Receipt of Retirement Pay and Disability Compensation for Disabled Veterans” Disabled Veterans” for Compensation and Disability Pay Retirement of Receipt Concurrent “Eliminate option to The 34. p. ,” budgetoptions2.pdf (accessed May 14, 2018). The option to “End Enrollment in VA Medical Care for Veterans in Priority Groups 7 and 8” and 8” 7 Groups in Priority Veterans for Care Medical in VA “End Enrollment option to The 2018). 14, May (accessed budgetoptions2.pdf includes $9.0 billion in mandatory spending in FY 2018. Heritage experts assume that the FY 2018 savings level will apply for FY 2019 (as FY 2019 apply for will level savings the FY 2018 that assume Heritage experts in FY 2018. spending billion in mandatory includes $9.0 includes $5.4 billion in discretionary budget authority savings and $2.5 billion in increased mandatory spending in FY 2018, for a net a net for 2018, spending in FY mandatory $2.5 billion in increased and savings authority budget billion in discretionary includes $5.4 Military Duties” includes $2.0 billion in mandatory spending in FY 2018. Heritage experts assume that the FY 2018 savings level will apply for will apply for level savings the FY 2018 that assume Heritage experts spending in FY 2018. billion in mandatory Military Duties” includes $2.0 of the policy. implementation year of full the first because it represents FY 2019) for billion level $2.9 the estimated (as opposed to FY 2019 Honorable Tom Coburn, M.D., Ranking Minority Member, Committee on Homeland Security and Governmental Affairs, U.S. Senate, re: U.S. Senate, Affairs, and Governmental on Homeland Security Committee Member, Minority Ranking M.D., Coburn, Tom Honorable represents mandatory savings. mandatory represents represent the first year of full implementation of the policy. year of full implementation the first represent Compensation, and Social Security Disability Insurance,” GAO14-854R, September 30, 2014, http://www.gao.gov/assets/670/666267.pdf http://www.gao.gov/assets/670/666267.pdf 2014, 30, September GAO14-854R, Insurance,” Disability and Social Security Compensation, Members and Committees of Congress of Members and Committees Deficit: 2017 to 2026 to 2017 Deficit: savings of $2.9 billion. Heritage experts assume that the FY 2018 savings and spending levels will apply for FY 2019 because they because they FY 2019 will apply for and spending levels savings the FY 2018 that assume experts billion. Heritage of $2.9 savings opposed to the estimated $13 billion level for FY 2019) because it represents the first year of full implementation of the policy. All $9.0 billion $9.0 All the policy. of year of full implementation the first because it represents FY 2019) for billion level $13 the estimated opposed to (accessed May 14, 2018). 14, May (accessed Erin Bagalman, “The Number of Veterans That Use VA Health Care Services: A Fact Sheet,” Congressional Research Service Service Research Congressional Sheet,” Fact A Services: Health Care Use VA That Number of Veterans Erin Bagalman, “The Estimated savings of $2.9 billion for FY 2019 are based on estimates from Congressional Budget Office, Office, Budget Congressional from based on estimates are 2019 FY billion for of $2.9 savings Estimated Seto J. Bagdoyan, Acting Director, Forensic Audits and Investigative Service, U.S. Government Accountability Office, letter to The to letter Office, Accountability Government U.S. Service, and Investigative Audits Forensic Director, Acting Bagdoyan, J. Seto U.S. General Accounting Office, Office, Accounting General U.S. Estimated savings of $2.0 billion for FY 2019 are based on estimates from Congressional Budget Office, Office, Budget Congressional from based on estimates are FY 2019 billion for of $2.0 savings Estimated Estimated savings of $9.0 billion for FY 2019 are based on estimates from Congressional Budget Office, Office, Budget Congressional from on estimates based are FY 2019 billion for of $9.0 savings Estimated 2017 to 2026 to 2017 2017 to 2026 to 2017 All $2.0 billion represents mandatory savings. mandatory billion represents All $2.0 July 31, 1989, http://www.gao.gov/products/GAO/HRD-89-60 (accessed April 11, 2018). (accessed http://www.gao.gov/products/GAO/HRD-89-60 July 31, 1989, “Disability Compensation: Review of Concurrent Receipt of Department of Defense Retirement, Department of Veterans Affairs Disability Disability Affairs of Veterans Department Retirement, of Defense Department of Receipt of Concurrent Review Compensation: “Disability 5. 6. ENDNOTES 1. 2. 3. 4.
Multiple Subcommittees MULTIPLE “official time”withfederallaborunions. Thisallows ADDITIONAL READING for OutsideOrganizations Federal tonegotiate law requiresfederalagencies while ontheclockasafederalemployee. Taxpay Stop Paying Federal Employees WhoWork ontheClock 206 unions withfree“officialspace”infederalbuildings to conductunionwork.Thesepracticesprovide no the federalgovernment. Most alsoprovide agencies ers pay forfederalunionstonegotiatecollective federal employees toworkfortheirlaborunion bargaining agreements, filegrievances, andlobby Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr James Sherk,“Official Time:Good Value forthe Taxpayer?” testimony before the Committee on Oversight and Government Reform, U.S. HouseofRepresentatives, June3,2011. epublic esiden $163 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL T NOT NOT NOT A UDE T U - S D The Heritage Foundation | Foundation Heritage The The government shouldrequireunionofficersto would save over $150million ayear. value for the office space they use. These changes value fortheofficespacetheyuse.Thesechanges government should also charge unionsfairmarketgovernment shouldalsocharge clock outwhentheyaredoingunionwork.The of government unions. public benefitanddirectlysubsidizetheoperations PRESIDENT Members’ duesshouldpayforunion employeesandtheiractivities. HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E
N A T E RSC MULTIPLE - 207 C S R E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE PRESIDENT by approximately $8.4 billion in appropriations for billion in appropriations $8.4 approximately by for construction projects. for construction federally funded construction projects would allow allow projects would federally funded construction saving taxpayers billions of dollars every year with billions of dollars every taxpayers saving out reducing the effective amount of funds available amount of funds out reducing the effective a third of all government construction. Many state state Many construction. a third of all government are partially or wholly funded and local projects that the Davis–Bacon Act applies to approximately Actthat the Davis–Bacon to approximately applies Act from the Davis–Bacon states and prohibiting and Housing the Departments of Transportation, restrictions would cost substantially less. Repealing Repealing less. substantially would cost restrictions on restrictions prevailing-wage imposing separate lawmakers to reduce federal construction spending to reduce federal construction lawmakers with federal dollars and without prevailing-wage and without prevailing-wage with federal dollars Urban Development, and Defense and other areas, areas, and Defense and other Urban Development, The Congressional Budget Office has estimated estimated Budget Office has The Congressional The Heritage Foundation | S - U - T A NOT NOT NOT NOT T S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET ADDRESSED ADDRESSED ADDRESSED ADDRESSED ee No. 3185, January 21, 2017. 3185, No. 19) L A Blueprint for Balance: S ommitt 2 esolution esolution OPO t R tudy C Backgrounder R P s Budget (FY20 ’ an S t e Budget R t $8.4 esiden epublic Foundation Foundation the Committee on Education and the Workforce, U.S. House of Representatives, April 14, 2011. April 14, House of Representatives, U.S. and the Workforce, on Education the Committee James Sherk, “Examining the Department of Labor’s Implementation of the Davis–Bacon Act,” testimony before before testimony Act,” of the Davis–Bacon Implementation of Labor’s the Department James Sherk, “Examining Heritage Accurately,” More Rates Davis–Bacon Calculating Jobs by Can Create James Sherk, “Labor Department R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ building infrastructure and other federally funded and other building infrastructure both the Government Accountability and the the Government Office both for construction labor. Construction unions lobby unions lobby Construction labor. for construction peatedly criticized the Labor Department for using peatedly criticized self-selected statistically unrepresentative samples samples unrepresentative self-selected statistically construction by nearly 10 percent. by construction construction projects to pay “prevailing wages.” In “prevailing wages.” projects to pay construction However, labor in the relevant area. construction actual Davis–Bacon rates usually reflect union rates rates usually reflect union actual Davis–Bacon tors, but it also needlessly inflates the total cost of cost also needlessly inflates the total but it tors, the cost advantage of their non-union competi the cost that average 22 percent above actual market wages. actual market 22 percent above that average to calculate the prevailing-wage rates. Consequently, Consequently, rates. to calculate the prevailing-wage theory, these should reflect going market rates for should reflect these going market theory, heavily to maintain this restriction, which reduces to maintain this restriction, heavily Department of Labor’s Inspector General have re General have Inspector Department of Labor’s The Davis–Bacon Act requires taxpayers to overpay ActThe Davis–Bacon to overpay requires taxpayers The Davis–Bacon ActThe Davis–Bacon federally financed requires ADDITIONAL READING Repeal the Davis–Bacon Act the Davis–Bacon Repeal MULTIPLE Policy Riders June 2015, throughoutAmerica theSupreme CourtoftheUnitedStatesredefinedmarriage bymandating Americans tousesuchanabundant,affordableenergy sourcewillonlybringeconomicpaintohouseholds Anthony Kennedy faith by noted areheld“ingood inhismajorityopinionrecognizinggay marriage, enactedin1931,effectively requiresconstruction contractorsonfederalprojectstouseunion (DBA), Act Fortunately, theSixth Circuit Courtissuedastay blockingimplementation oftherule, Bacon andPLAswouldsave morethan$100billionover thenext 10yearsundercurrentspendinglevels. PLAs wouldstretch eachfederalconstruction dollar, delivering moreinfrastructure withouttheneedto 208 Collective bargainingagreementsrequireusingunioncompensation rates, following union work rules, and woman shouldnever disqualifythemfromgovernment programs. Educationalinstitutions, forexample, andbenefitscalesfollowwage unionworkrules. Theserulesinflatethecost offederalconstruction reasonable andsincerepeopleherethroughouttheworld.” increase spendinglevels. Barringcomplete repeal,Congresscouldsuspendtheruleforprojectsfundedby relations arereserved forsuchamarriage. shouldbeeligibleforgovernment contractswithouthavingrequirements ofchildwelfareagencies to meet therelevant heavy-duty trucks, airplanes, hydraulic fracturing,andnewexisting power plants. More than80percent hiring allworkers onfederallycontractedprojectsthroughunionhiringhalls. PLAsinflateconstruction under theCleanWater fromcertainman-madeditchestoso-called waters thataredrylandmost Act, ofthe temporary. Iftheruleovercomes legalbattles, Congress shouldblockfundingforitsimplementation. time. Absent congressionalaction,thisattack onpropertyrightsandstate power couldsoonmove forward. that,aseventhe governmentJustice toforcetheseentitiesorpeopleviolatebeliefsaboutmarriage that government entitiesmust treatsame-sex relationshipsas marriages. TheCourt,however, didnot the appropriationsbillorrequireLaborDepartmenttousesuperiorBureauofStatistics datato and businesseswithnoclimateorenvironmental benefittoshow forit.Thecumulative economiclosswill regulationstoreducegreenhousegasemissions fromvehicles,and implementedaseriesofclimatechange abandon thereligiousvaluesthatledthemtohelporphanedchildreninfirst place.Congressshould against the87percentofworkers whoarenot membersofaunion.EliminatingDavis–Bacon andprohibiting Prohibit fundingfortheWaters Rule. oftheUnitedStates(WOTUS) Prohibit any from regulatinggreenhousegasemissions. agency Prohibit government discriminationintaxpolicy, grants, contracting,andaccreditation. Eliminate orrollbackDavis–Bacon requirementsandprojectlaboragreements. of Engineers’controversial WOTUS rule wouldgreatlyexpandthetypesofwaters thatcouldbecovered of America’s energyneedsismet through conventional carbon-based fuels. Restricting opportunitiesfor on anindividual’s orgroup’s istheunionofonemanandwomanorthatsexual beliefthatmarriage estimate Davis–Bacon sothattheymorecloselyreflectmarket “prevailingwages” pay. EliminatingDavis– costs by 12percentto18ontopofincreasedcosts attributed toDavis–Bacon anddiscriminate of government contractstosignacollective bargainingagreementasaconditionofwinningprojectbid. should beeligibleforgovernment contracts, student loans, andother formsofsupportaslongthey same standards ofcompetence istheunionofamanand aseveryone else,buttheirviewthatmarriage say thatprivateschools, charities, businesses, orindividualsmust alsodoso. Thereisnojustification for prohibit government discriminationintaxpolicy, grants, contracts, licensing,oraccreditationbased power totaxisthepower todestroy. RespectforfreedomaftertheSupremeCourt’s rulingtakes several forms. Charities, schools, andother organizationsthatinteractwiththegovernment shouldbeheldtothe be hundredsofthousands ofjobsandtrillionsdollarsgrossdomestic product. by nearly10percentonaverage. Similarly, projectlaboragreements(PLAs)requirethemaincontractor educational Blueprint for Balance: Blueprint for criteria. Adoption andfostercriteria. Adoption careorganizationsthatmeet thesubstantive AFEDERAL BUDGET FOR FISCAL YEAR2019 4 The Heritage Foundation | Foundation Heritage The 3 AsAmericanshave longunderstood, the The Obama Administration proposed TheObamaAdministration TheEPA andArmy Corps heritage.org/BlueprintForBalance 5 butthisstay isonly TheDavis–Bacon In In MULTIPLE 209 as well as in as well as 6 The Data Access The Data Act 7 3516). § heritage.org/BlueprintForBalance Standards must be codified; Standards must 9 11 This type of taking was deemed to be for a “public deemed to be for a “public This type of taking was On June 23, 2005, the United States Supreme 2005, 23, On June The Heritage Foundation | 10 A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET that the government may seize private property and transfer it seize private property and transfer may that the government No funds should be used for any grant for which the recipient does which the recipient grant for any should be used for No funds Blueprint for Balance: However, the Office of Management and Budget has unduly restricted the Data the Office of Management the has unduly restricted and Budget Access Act, However, 8 Kelo v. City of New London City of New v. Kelo by the agency.” the by property itself poses a concrete harm to health and safety. property itself poses a concrete property either for economic development, unless the condemnor can demonstrate that the taking would the condemnor can demonstrate unless property either for economic development, power, should provide property owners in all states necessary protection from economic development and from economic development protection necessary in all states owners property should provide power, closely related takings, such as blight-related takings. Since there is a subjective element to determining element to determining there is a subjective Since such as blight-related takings. closely related takings, compliance with the standards of the Information Quality Act (44 U.S. Code Quality Act of the Information with the standards compliance (44 U.S. guidelines are insufficient. Enforce data-quality standards. data-quality Enforce a concrete harm to health and safety, should be allowed to be seized. Congress should withhold grants for should be allowed harm to health and safety, a concrete and there is little accountability that could ensure agency accountability that could and there is little Act. with the Information Quality compliance to another private party for economic development. private to another that it is within its landmark decision and, to the extent meaningful action in the decade since this take the quality, objectivity, utility, and integrity of information (including statistical information) disseminated information) disseminated statistical and integrity of information (including utility, objectivity, the quality, the Data Accessthe Data Act, Act Appropriations FY 1999 Omnibus part of the 105–277), (Public Law use broad definitions of “blight” to seize private property, including non-blighted property that is located including non-blighted property that is located use broad definitions of private property, “blight” to seize use” and allowed under the Fifth Amendment of the United States Constitution. Congress has failed to States Constitution. under the Fifth Amendment of the United use” and allowed hospitals, and nonprofit organizations are available to the public. The Information Quality available to the public. The Information are and nonprofit organizations Act requires the hospitals, not have occurred but for economic development and is for a public use, or to address blight, unless the and is for a public use, or to address blight, but for economic development occurred have not infrastructure development to states or other jurisdictions that invoke eminent domain to seize private jurisdictions that invoke or other to states development infrastructure in an allegedly as property that poses blighted area. Only property that itself is legitimately blighted, such requires federal agencies to ensure that data produced under grants to and agreements with universities, requires federal agencies universities, grants to and agreements with to ensure that data produced under not agree to make all data produced under the grant publicly available in a manner that is consistent with with that is consistent in a manner publicly available under the grant all data produced agree to make not Office of Managementmaximizing to “issue guidelines ensuring and with respect to and Budget, agencies, would not have occurred were it not for the purpose of economic development. Local governments often Local governments for the purpose of economic development. occurred were it not have would not whether a taking is for economic development, the condemnor should be required to establish that a taking be required to establish the condemnor should a taking is for economic development, whether Court held in Credible science and transparency are necessary elements of sound policy. transparency elements Credible science and are necessary Withhold grants for seizure of private property. Withhold grants MULTIPLE 4. 7. 3. 2. 210 11. 10. 1. ENDNOTES 9. 6. 5. .8
July 2,2015, http://thf_media.s3.amazonaws.com/2015/pdf/FS_160.pdf. Government: Fiscal Year 2014 Consolidated Appropriations Act of2001, Law Public 106–554, 106thCong., December 21,2000, §515, https://www.gpo.gov/fdsys/pkg/ See EricA.Fischer, Access “Public to Data from Federally Funded Research: Provisions inOMB Circular A-110,” Congressional Research Kelo v. City of New London State of Ohioet al.v. U.S. Army Corps of Engineerset al. Obergefell v. Hodges The HeritageFoundation, “People ofFaith Deserve Protection from Government Discrimination intheMarriageDebate,” See CurtisW. Copeland andMichaelSimpson,“The Information Quality Act: OMB’s Guidance andInitialImplementation,” Congressional Daren Bakst, “A DecadeAfter Estimated savings of$163 millionfor FY2019 are basedonU.S. Office of Personnel Management, Robert Gordon andDianeKatz, eds., Estimated savings of$8.392 billionfor FY2019 were calculated by comparing current publicconstruction spendingof$291.1 billion 2019 andthat federal taxpayers capture allofthevalue ofthesavings from eliminating Davis–Bacon. construction spending($93.155 billionin2018). Intheabsence ofDavis–Bacon’s 9.9 percent increase incosts, that spendingwould cost only Mismeasure of Wages Service as documented inSarah Glassman, MichaelHead, David G.Tuerck, andPaul Bachman, Statistics Administration, U.S. Census Bureau, April2,2018, https://www.census.gov/construction/c30/pdf/pr201802.pdf (accessed annually asfound inpress release, “Monthly Construction Spending,February 2018,” U.S. Department ofCommerce, Economics and almost certainly understates thetruecosts ofofficialtime, asa 2014 GAO report foundsignificant problemsandinaccuracies inagencies’ to Improve Tracking andReporting of theUse andCost of Official Time propertyowners#_ftn1. pdf (accessed May 14, 2018). Heritageexperts donotincludeany estimated savings for charging unionsfor theiruseoffederal office space reporting ofofficialtimethat led tounderreporting. See U.S. Government Accountability Office, $84.763 billion,adifference of$8.392 billion.Heritage experts assume that theFY2018 public construction costs remain constant inFY uscourts.gov/opinions.pdf/15a0246p-06.pdf (accessed May 14, 2018). time/reports/2014-official-time-usage-in-the-federal-government.pdf (accessed May 14, 2018). TheOPM estimated the cost ofofficialtime No. 3026, June22,2015, http://www.heritage.org/research/reports/2015/06/a-decade-after-kelo-time-for-congress-to-protect-american- Foundation, 2015, http://www.heritage.org/research/reports/2015/03/environmental-policy-guide. PLAW-106publ554/pdf/PLAW-106publ554.pdf (accessed April12,2018). Research Service Effectiveness, “President SignsData Access Law (P.L. 105-277,” http://www.thecre.com/ombpapers/PL105-277.htm (accessed April 12,2018). DavisBaconPrevWage080207Final.pdf (accessed May 14, 2018). The CBO estimates that Davis–Bacon covers 32 percent ofallpublic May 14, 2018), to spendinglevels intheabsence ofDavis–Bacon. Davis–Bacon increases construction costs by anestimated 9.9 percent in FY2014 at $162.5 million.Absent more recent data, Heritageexperts assume thesamefigure of $162 million for FY2019. This estimate because Heritageexperts donothave thenecessary data to estimate those savings. Report for Congress Report for Congress , 576 U.S. ___(2015), https://www.supremecourt.gov/opinions/14pdf/14-556_3204.pdf (accessed May 14, 2018). , Beacon HillInstitute at Suffolk University, February 2008, http://www.beaconhill.org/BHIStudies/PrevWage08/ Blueprint for Balance: Blueprint for , 545 U.S. 469 (2005),https://www.law.cornell.edu/supct/html/04-108.ZS.html (accessed April12,2018). , March 1,2013, https://fas.org/sgp/crs/secrecy/R42983.pdf (accessed April12,2018), andCenter for Regulatory , March 2017, https://www.opm.gov/policy-data-oversight/labor-management-relations/reports-on-official- Kelo : Time for Congress to Protect AmericanProperty Owners,” HeritageFoundation Environmental Policy Guide:167 Recommendations for Environmental Policy Reform , August 19, 2004, https://fas.org/sgp/crs/RL32532.pdf (accessed April12,2018). AFEDERAL BUDGET FOR FISCAL YEAR2019 , Nos.15-3799/3822/3853/3887, Order ofStay (6thCir. 2015), http://www.ca6. The Heritage Foundation | Foundation Heritage The , GAO-15-9, October 2014, https://www.gao.gov/assets/670/666619. The Federal Davis–Bacon Act: The Prevailing heritage.org/BlueprintForBalance Labor Relations Activities: Actions Needed Official TimeUsageinthe Federal Backgrounder Factsheet , The Heritage
No. 160, State, Foreign Operations, and Related Programs SFOPS End Funding fortheUnited Nations Development Program ADDITIONAL READING The UNDPconductsprojectsinmorethan170 2012 reportcommissionedby theUNDPfoundthat U.N. system’s premieranti-poverty agency, butthe 212 impact ofthebillionsdollarsitspendsevery year the organizationspentover $8billiononantipov erty activitiesbetween 2004and2011 butthatthis on antipoverty programsisunclear. For example,a countries aroundtheworld.Itaspirestobe focus was lost atthecountrylevel: Ȗ Ȗ Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Ambassador Terry Miller, “The United Nations andDevelopment: Grand Aims,Modest Results,” Heritage At the strategic planning level and at the execu tive boardlevel, poverty reductionisaccordedtop Brett D. Schaefer, “Why DoesUNDPContinue to AidRepressive Regimes?” The DailySignal,August 27, 2010. Foundation epublic esiden $80 t e BudgetR t an S ’ s Budget(FY20 P Special Report R tudy C t R OPO esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) No. 86,September 22,2010. ee ADDRESSED P I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL A T R NOT A T UDE UDE UDE T I A U L - L S D D D - Y The Heritage Foundation | Foundation Heritage The Moreover, UNDPaidmeanttoassist suffering vertently helpstoperpetuate theirsuffering.Inthe in Iran,NorthKorea, Venezuela, andZimbabwe. past, the UNDP has funded inappropriate activities populations inmany authoritariancountriesinad PRES account. Recommends eliminatingInternational OrganizationsandPrograms account andsaysUNDPis“susceptibletofraud,waste,abuse.” Reduces contributionstoInternationalOrganizationsandPrograms which fundsUNDP. No fundingforInternationalOrganizationsandProgramsaccount, level, however, thefocusonpoverty reductionof tivities have onlyremote connectionswithpoverty, ten becomesdiluted….Many of[theUNDP’s] ac if atall. priority. By thetimeissuereachescountry IDE N T 2 HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E RSC 3 - - - SFOPS 213 - - C S R E T A N E ION S T No. 4224, May 19, 2014. 19, May 4224, No. ANA L P heritage.org/BlueprintForBalance Issue Brief Issue X E HOUSE T N IDE No. 4735, July 14, 2017. July 14, 4735, No. OPIC would be eliminated, but DFI would continue to serve the same role. PRES business. In today’s globalized trading and invest today’s In business. franchises in Russia, a chain of Wendy’s branded a chain of Wendy’s franchises in Russia, in Georgia, and development franchise restaurants pervasive, but the number of countries that now but the number of countries that now pervasive, stantial political risk to investors is far less than the political risk to investors stantial of Century 21 brand real estate franchising in Brazil. real estate of Century 21 brand ago, when international financial markets were less markets when international financial ago, their decisions not on whether a government agency government a whether on not decisions their territories while a unity government was formed was unity government territories while a ment environment, foreign investors should base foreign investors ment environment, merits. economic sense on its own makes million to finance 13 projects in the Palestinian Palestinian 13 projects in the million to finance lack access to financial markets or that pose sub lack access to financial markets OPIC activities might have been justified 50 years been justified have OPIC activities might will cover their risks, but on whether investment investment but on whether their risks, will cover with Hamas; and financing for Papa John’s pizza John’s Papa financing for with Hamas; and 160-plus countries where OPIC is authorized to do 160-plus countries where OPIC is authorized The Heritage Foundation | Issue Brief Issue Y - D S L - L U - A - I T UDE T A NOT NOT NOT R T A NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I P ADDRESSED ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 4 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t 171 –$ esiden epublic Proposal to Close Down OPIC,” Heritage Foundation Heritage Foundation OPIC,” Down Close to Proposal Heritage Foundation OPIC,” Privatize to “Time Schaefer, D. and Brett Riley Bryan Bryan Riley, Brett D. Schaefer, and James M. Roberts, “Congress Should Support the Trump Administration’s Administration’s Should Support the Trump “Congress and James M. Roberts, Schaefer, D. Brett Riley, Bryan R House Budge Pr Sena Ȗ Ȗ INCREASE IN MILLIONS INCREASE IN Ȗ Ȗ from political disruption; and capitalizes invest and capitalizes from political disruption; ples include $85 million in loans for a major hotel a major hotel ples include $85 million in loans for support U.S. economic security or interests. Exam economic security or interests. support U.S. subsidizes risk insurance against losses resulting losses against subsidizes risk insurance environments, countries have less reason to adopt less reason to adopt countries have environments, offer investment loans and political-risk insurance. loans and political-risk offer investment countries, OPIC provides loans and loan guarantees, loans and loan guarantees, OPIC provides countries, and apartment complex in Afghanistan that was that was and apartment complex in Afghanistan never properly overseen and never completed; $67 completed; and never properly overseen never investor-friendly policies. investor-friendly ment funds. In today’s global economy, many pri many economy, global In today’s ment funds. ministration to promote investment in developing in developing investment to promote ministration OPIC can displace these private options. Worse, Worse, these private options. OPIC can displace vate firms in the developed and developing worlds and developing developed vate firms in the when it guarantees investments in risky foreign when it guarantees investments Created in 1969 at the request of the Nixon Ad of the Nixon the request Created in 1969 at It is also far from clear that OPIC projects directly It is also far from clear that OPIC projects ADDITIONAL READING Eliminate the Overseas Private Investment Corporation Investment Private the Overseas Eliminate SFOPS Eliminate Funding fortheUnited Nations Population Fund ADDITIONAL READING For years, theU.S. withheldfundingfortheUNFPA was $68millioninFY2016. 214 hibits U.S. internationalaidfromsupportingcoer under theKemp–Kasten Amendment,whichpro the U.S. hassincesenttensofmillionstaxpayer that hewouldallow fundingtobereinstituted, and tion. dollars totheUNFPA. Themost recentallocation cive abortionproceduresorinvoluntary steriliza Ȗ Ȗ Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Olivia Enos,Sarah Torre, andWilliam T. Wilson, “An Economic andHumanitarianCasefor Pressing Chinato Rescind the Two-Child Policy,” HeritageFoundation Record-Setting Contributions to theU.N.,” HeritageFoundation Brett D. Schaefer, “Congress ShouldRenew theReport Requirement onU.S. Contributions to theU.N. andReverse epublic esiden 6 In2009, PresidentBarackObamaannounced $33 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 5 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED P I I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL NCL A Backgrounder T R NOT A T UDE UDE UDE T I A U L - - - L S D D D Y The Heritage Foundation | Foundation Heritage The No. 3146,November 18,2016. In aJanuary 23, 2017, PresidentialMemorandum, President DonaldTrumpdirectedthe“Secretary of withhold $32.5millioninfundingfortheUNFPA. not fundorganizationsorprogramsthatsupport mitted by law, toensurethatU.S. taxpayer dollarsdo the Trump Administration announcedthatitwould the TrumpAdministration State totake allnecessary actions, totheextent per cive abortionorinvoluntary sterilization.” participate in the management ofaprogramcoer participate inthemanagement PRES abortion fundingabroad.” account andobjectstoUNFPAfunding for“familyplanningand Recommends eliminatingInternational OrganizationsandPrograms including UNFPA. Reduces contributionstoInternationalOrganizationsandPrograms, international organizations,includingUNFPA. which fundsvoluntarycontributionstoU.N.-aliatedandother No requestforInternationalOrganizationsandProgramsaccount, WebMemo IDE N T No. 3324, July22,2011. HOUS E X heritage.org/BlueprintForBalance P E L ANA T S ION E N A T E 7 InApril, RSC 8 - - SFOPS - - 215 RSC E T A N E ION S T Congress enforced the 25 Congress enforced 11 ANA L P heritage.org/BlueprintForBalance X E HOUSE T N IDE Recommends enforcing 25 percent cap on U.S. assessments. FY 2019 State Department Congressional Budget Justification requests $1.196 billion for Contributions to International Peacekeeping. PRES percent cap in FY 2018 and should continue to do and should 2018 percent cap in FY so until the U.N. adopts a maximum peacekeeping a maximum peacekeeping adopts so until the U.N. an unfair cost burden” and “that no nation should burden” and “that no nation an unfair cost assessment of 25 percent. to the U.N., stating that “[t]he United States bears that “[t]he United States stating to the U.N., keeping budget to 25 percent. President Trump re budget to 25 percent. keeping the burden, to bear a disproportionate share of have its desire to reduce the U.S. share of the U.N. peace share of the U.N. the U.S. its desire to reduce speech 2017 in his September iterated this objective militarily or financially.” The Trump Administration has repeatedly stated The Trump Administration stated has repeatedly The Heritage Foundation | - D D S - U In T 10 UDE UDE A NOT NOT T NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I ADDRESSED ADDRESSED No. 3023, June 11, 2015. 3023, No. ee 19) L No. 4781, November 1, 2017. November 4781, No. A Blueprint for Balance: Backgrounder S ommitt 9 esolution esolution OPO t R tudy C Issue Brief Issue R P s Budget (FY20 ’ an S t e Budget R t $234 esiden epublic Brett D. Schaefer, “The U.S. Should Push for Fundamental Changes to the United Nations Scale of Assessments,” Scale of Assessments,” Nations the United to Changes Fundamental Should Push for U.S. “The Schaefer, D. Brett Heritage Foundation Brett D. Schaefer, “Diplomatic Effort to Reduce America’s Peacekeeping Dues Must Start Now,” Heritage Start Now,” Dues Must Peacekeeping America’s Reduce to Effort “Diplomatic Schaefer, D. Brett Foundation R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ Ȗ Ȗ ended this practice for FY 2018 and should con and should for FY 2018 ended this practice arrears until the U.N. adopts a scale of assessments assessments a scale of adopts arrears until the U.N. above the 25 percent cap to avoid arrears. Congress Congress arrears. cap to avoid the 25 percent above that specifies a 25 percent maximum share for any percent maximum share for any that specifies a 25 tinue to enforce the cap and not pay any resulting resulting any pay cap and not tinue to enforce the the past, appropriations bills allowed payments payments appropriations bills allowed the past, keeping at 25 percent of the budget, but the U.N. budget, but the U.N. at 25 percent of the keeping member state. will assess the U.S. at 28.434 percent in 2018. at 28.434 will assess the U.S. Current U.S. law caps U.S. payments for U.N. peace for U.N. payments caps U.S. law Current U.S. ADDITIONAL READING Enforce Cap on United Nations Peacekeeping Assessments Peacekeeping Nations on United Cap Enforce SFOPS Reduce U.S.Reduce Funding fortheUnited Nations Relief ADDITIONAL READING West BankandGaza,wherethePalestinian gov The UNRWA was established morethan60years Refugees (UNHCR),whichaddressesevery otherRefugees 216 winding down theUNRWA status toendtherefugee and Works forPalestine Agency Refugees refugee population fortheU.N.,refugee isconsistent with ment orrepatriation,butby status applyingrefugee term prospectsforpeace,theU.S. shouldencourage Convention.the 1951Refugee To advancethelong- the UNRWA: employed Thedefinitionof“refugee” to thedescendantsoforiginalrefugees, ithas ago asatemporaryinitiative toaddresstheneeds ago ernment shouldberesponsiblefortheirneeds. The citizens oftheirhost states or resettlement inthe of Palestinians andfacilitate theirintegrationas caused theproblemtogrow larger. Thisisuniqueto of Palestinian andfacilitatetheirresettle refugees by theUnitedNationsHighCommissionerfor Ȗ SAVINGS INMILLIONS Ȗ Sena R House Budge Pr Backgrounder Brett D. Schaefer andJamesPhillips,“Time to Reconsider U.S. SupportofUNRWA,” HeritageFoundation epublic esiden $182 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO No. 2997, March 5, 2015. esolution esolution 12 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED P I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT NOT A T UDE T I A - U L L S D - Y The Heritage Foundation | Foundation Heritage The January 2018 andnotified theUNRWA that future The Trump Administration decidedtowithhold The TrumpAdministration $65 millionofascheduled$125payment in Congress should work with the Administration Congress shouldworkwiththeAdministration refugees totheUNHCR,shiftingUNRWArefugees funding integration, anddemandingthatthePalestinians under theresponsibilityofUNHCR. to governments hosting Palestinians tofacilitate to phaseouttheUNRWA by supportingapolicy the UNRWA. and thosemorerecentlydisplacedshouldbeplaced assume responsibilityfortheservicesprovided by of shiftingresponsibilityforrecentPalestinian funding woulddependontheadoption ofreforms. few remainingfirst-generation Palestinian refugees PRES for humanitarianneeds. requests $2.04billionunderMRA-OverseasContingencyOperation FY 2019StateDepartmentCongressionalBudgetJustification IDE N T HOUSE E X heritage.org/BlueprintForBalance P L
ANA T S ION E N A T E R S C SFOPS 217
15 - RSC E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE 14 Recommends ending U.S. funding for Special Climate Change Fund and Least Developed Countries Fund, which are managed by GEF. FY 2019 State Department Congressional Budget Justification requests $68.3 million for GEF. PRESIDENT fund-recipient level, accountability at the executive at the executive accountability fund-recipient level, provide affordable, reliable energy, not govern not affordable, reliable energy, provide should commit to free-market principles that will should commit to free-market of the Sea. agreements such as the U.N. Convention on the Law on the Law Convention as the U.N. agreements such the U.S. and international climate-change projects, to information, anticorruption measures at the measures to information, anticorruption report, the GEF lacks transparencyreport, the GEF lacks in public access sources. ment-selected technologies and energy level, and participation of project stakeholders. and participation of project level, Instead of using taxpayer dollars to fund energy of using taxpayer Instead According to a 2014 Transparency International According to a 2014 The Heritage Foundation | - D D - S - U CTE T UDE E A NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ I ADDRESSED ADDRESSED (Washington: The Heritage Foundation and Dow Jones & Company, Inc., 2015). Jones & Company, and Dow Foundation Heritage The (Washington: No. 2802, May 28, 2013. May 2802, No. ee 19) L A Blueprint for Balance: S ommitt 13 esolution esolution OPO t R tudy C Backgrounder Backgrounder R P s Budget (FY20 ’ an S t e Budget R t $140 esiden epublic David W. Kreutzer, “A Cure Worse Than the Disease: Global Economic Impact of Global Warming Policy,” Heritage Policy,” of Global Warming Impact Disease: Global Economic the Than Worse Cure “A Kreutzer, W. David Foundation Kim, B. Miller and Anthony 5 in Terry Chapter and Development,” Energy, Freedom, “Economic Loris, D. Nicolas 2015 Index of Economic Freedom Economic of Index 2015 R House Budge Pr Sena Ȗ Ȗ SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ by the World Bank and U.N. in 1991, the GEF has in 1991, Bank and U.N. World the by financial mechanism for a been the designated and the Least Developed Countries Fund, with a with Countries Fund, Developed and the Least its inception Since projects. al-warming-adaptation Stockholm Convention on Persistent Organic Pol on Persistent Stockholm Convention ty, U.N. Framework Convention on Climate Change, on Climate Convention Framework U.N. ty, heavy emphasis on grants and financing for glob emphasis on grants and heavy including the U.N. Convention on Biological Diversi Convention including the U.N. number of problematic international agreements, international agreements, number of problematic lutants, U.N. Convention to Combat Desertification, to Combat Desertification, Convention U.N. lutants, Layer, as well as a number of international waters as well as a number of international waters Layer, Minamata Convention on Mercury, and Montreal and Montreal on Mercury, Minamata Convention the Ozone that Deplete on Substances Protocol The GEF manages the Special Climate Change Fund The GEF manages Climate Change the Special Fund ADDITIONAL READING Eliminate Funding for the Global Environment Facility Environment Global for the Funding Eliminate SFOPS “links U.S.“links businessestoexportopportunitiesby Eliminate theU.S. Trade andDevelopment Agency ADDITIONAL READING The USTDA was createdin1961tohelpcompanies 218 able infrastructure andeconomicgrowth inpartner and reverse trademissionswhilecreatingsustain and servicesforprioritydevelopment projectsin er-subsidized crony corporatism. countries.” emerging economies. TheUSTDA assertsthatit create U.S. jobsthroughtheexportofU.S. goods funding projectplanningactivities, pilot projects, become little morethananother sourceoftaxpay Ȗ Ȗ SAVINGS INMILLIONS Ȗ Ȗ Sena R House Budge Pr “Eliminate theU.S. Trade andDevelopment Agency,” inRepublican Study Committee, James M.Roberts andBrett D. Schaefer, “An Overhaul ofAmerica’s Foreign Assistance Programs IsLong Overdue,” Economy: Fiscal Year 2018 Budget Heritage Foundation epublic esiden $80 t e BudgetR t an S ’ 17 s Budget(FY20 P Inpractice,however, theUSTDA has R tudy C t R OPO esolution esolution 16 ommitt S Backgrounder Blueprint for Balance: Blueprint for A L 19) ee , pp. 150–151. No. 3247, September 19, 2017. ADDRESSED I I REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL T NOT A E UDE UDE T CTE U S - - D D D The Heritage Foundation | Foundation Heritage The The USTDA’s activitiesbelongmoreproperlytothe way istoreducethefederalbudget deficitandthere instead offederaltreasurybonds. Adollarborrowed more foreigndollarscanbespentonU.S. exports available tobuyU.S. exportsorinvest intheprivate development istoreducetradebarriers. Another sector oftheU.S. economy. private sector. Thebest way topromote tradeand from abroadby thegovernment isadollarnot by reducefederalborrowing fromabroadsothat PRES Cuts $60millionandclosesdownUSTDA. Does notassumeclosureofUSTDA. in FY2018. $12.1 milliontoconductanorderlycloseoutoftheagencybeginning IDE N T HOUSE E X heritage.org/BlueprintForBalance P L Securing America’s Future ANA 18 T S ION E N A T E RSC - SFOPS 219 - - heritage.org/BlueprintForBalance foreign aid. path to development; or advancing U.S. diplomatic or advancing U.S. path to development; sector, which is the most reliable and sustainable reliable and sustainable which is the most sector, structured, with its core health and humanitarian with its core health and humanitarian structured, addressing by national interests support America’s charge of all U.S. development assistance with the assistance development charge of all U.S. goal from the need for of graduating all countries and security priorities. humanitarian crises; promoting policy changeshumanitarian crises; promoting missions incorporated into the State Department. missions incorporated the private led by for economic growth necessary velopment (USAID) needs to be completely re be completely (USAID) needs to velopment Properly designed and directed, U.S. foreign aid can Properly designed and directed, U.S. The United States AgencyThe United States De for International The Millennium Challenge should take Corporation The Heritage Foundation | - - - - A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET No. 3247, September 19, 2017. 19, September 3247, No. Blueprint for Balance: Backgrounder 19 $1.2 Heritage Foundation Heritage Foundation James M. Roberts and Brett D. Schaefer, “An Overhaul of America’s Foreign Assistance Programs Is Long Overdue,” Overdue,” Is Long Programs Assistance Foreign of America’s Overhaul “An Schaefer, D. and Brett James M. Roberts SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ foreign policy by supporting allies and countering foreign policy supporting by or serve U.S. interests effectively. interests U.S. or serve eliminate duplication and waste, and address chang and waste, eliminate duplication countries, and promote U.S. national security and national security U.S. and promote countries, opportunities for American products and invest opportunities for guished far too long. As a result, many U.S. foreign U.S. guished far too long. As a result, many agencies, must be refitted to meet 21st-centu to meet be refitted must agencies, aid programs, split among more than 25 federal aid programs, aid programs can no longer help countries in need assistance needs to update concepts and priorities, and priorities, needs to update concepts assistance adversaries. These are worthy goals. U.S. foreign U.S. goals. These are worthy adversaries. ry challenges. ing circumstances. Fundamental reform has lan Fundamental ing circumstances. ments by catalyzing economic growth in developing in developing catalyzing economic growth ments by long been to assist people in crises, enhance market enhance market people in crises, long been to assist Overhaul Foreign Assistance Programs Assistance Foreign Overhaul The broad goals of U.S. assistance programs have have programs assistance The broad goals of U.S. America’s fragmented and micromanaged foreign America’s ADDITIONAL READING SFOPS Taking steps toconsolidateoreliminatethefollowing programscouldresultinconsiderableannual 220 Cold War accountthathasfulfilleditspurpose. Save $52.5millionby eliminatingtheAfricanDevelopment Foundation andtheInter-American Foundation. Save morethan$1billionby eliminatingAssistance forEuropeEurasiaandCentralAsia(AEECA), apost– .budgetary savings Sena Sena Sena Sena R House Budge Pr R R House Budge House Budge Pr Pr R House Budge Pr epublic epublic epublic epublic esiden esiden esiden esiden t t t t e BudgetR e BudgetR e BudgetR e BudgetR t t t t an S an S an S an S ’ ’ ’ ’ s Budget(FY20 s Budget(FY20 s Budget(FY20 s Budget(FY20 P P P P R R R R tudy C tudy C tudy C tudy C t R t R t R t R OPO OPO OPO OPO esolution esolution esolution esolution esolution esolution esolution esolution ommitt ommitt ommitt ommitt S S S S Blueprint for Balance: Blueprint for A A A A L L L L 19) 19) 19) 19) ee ee ee ee ADDRESSED ADDRESSED ADDRESSED ADDRESSED P P P P I I I I I I REJ REJ REJ REJ REJ REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S S S S NCL NCL NCL NCL NCL NCL A A A A T T T T R R R R NOT NOT NOT NOT A A A A E E E E E E T T T T UDE UDE UDE UDE UDE UDE T T T T CTE CTE CTE CTE CTE CTE I I I I A A A A U U U U L L L L L L L L S S S S D D D D D D D D D D D D Y Y Y Y The Heritage Foundation | Foundation Heritage The PRESIDENT PRES PRES PRESIDENT Cuts $54millionandeliminatestheseprograms. In FY2018,$26.3million. Consolidates intoUSAID.Nodollaramountspecified. Cuts $54millionandeliminatesthese programs. In FY2018,$26.3million. Consolidates intoUSAID.Nodollaramountspecified. Appropriates $691.6million. Appropriates $691.6million. In FY2018,$52.5million. In FY2018,$52.5million. Appropriates $750.3million. Appropriates $750.3million. IDE IDE N N T T HOUSE HOUS HOUS HOUSE E E E E X X X X heritage.org/BlueprintForBalance P P P P E E L L L L ANA ANA ANA ANA T T T T S S S S ION ION ION ION E E E E N N N N A A A A T T T T E E E E R RSC R RSC S S C C SFOPS 221 C C S S R R RSC RSC E E E E T T T T A A A A N N N N E E E E ION ION ION ION S S S S T T T T ANA ANA ANA ANA L L L L P P P P heritage.org/BlueprintForBalance X X X X E E E E HOUSE HOUSE HOUSE HOUSE In FY 2018, up to $10 million for DCA administrative expenses. In FY 2018, up to $10 million for DCA administrative expenses. In FY 2018, $59.8 million. In FY 2018, $59.8 million. In FY 2018, $9.12 million for DCA administrative expenses. In FY 2018, $9.12 million for DCA administrative expenses. In FY 2018, $9.12 million for DCA administrative expenses. In FY 2018, $9.12 million for DCA administrative expenses. Cuts $60 million. Cuts $60 million. PRESIDENT PRESIDENT PRESIDENT PRESIDENT The Heritage Foundation | D D D D D D D D D D S S S S U U U U CTE CTE CTE CTE CTE CTE CTE CTE T T T T UDE UDE E E E E E E E E A A A A NOT NOT NOT NOT NOT NOT T T T T NCL NCL S S S S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ REJ REJ REJ REJ REJ REJ REJ I I ADDRESSED ADDRESSED ADDRESSED ADDRESSED ADDRESSED ADDRESSED ee ee ee ee 19) 19) 19) 19) L L L L A A A A Blueprint for Balance: S S S S ommitt ommitt ommitt ommitt esolution esolution esolution esolution esolution esolution esolution esolution OPO OPO OPO OPO t R t R t R t R tudy C tudy C tudy C tudy C R R R R P P P P s Budget (FY20 s Budget (FY20 s Budget (FY20 s Budget (FY20 ’ ’ ’ ’ an S an S an S an S t t t t e Budget R e Budget R e Budget R e Budget R t t t t esiden esiden esiden esiden epublic epublic epublic epublic R R R House Budge Pr House Budge House Budge Pr Pr R Pr House Budge Sena Sena Sena Sena portion of its $9 million annual administrative cost. portion of its $9 million annual administrative work to the Millennium Challengework to the Millennium Corporation. Cut $60 million from the Department of Labor’s International Labor Affairs budget and move its remaining its remaining and move Affairs budget Labor International of Labor’s from the Department Cut $60 million Move USAID’s Development Credit Authority (DCA) to the Millennium Challenge Corporation to save a Millennium Challenge to the Corporation to save (DCA) Credit Authority Development USAID’s Move SFOPS 222 20 percent. Save $80millionannuallyby closingthe15smallest ofUSAID’s 100overseas missions, administering their existing foreignaidprogramsfromUSAIDregionaloffices, andreducingthecost ofthoseprograms by Sena Sena R House Budge Pr R House Budge Pr epublic epublic esiden esiden t t e BudgetR e BudgetR t t an S an S ’ ’ s Budget(FY20 s Budget(FY20 20 P P R R tudy C tudy C t R t R OPO OPO esolution esolution esolution esolution ommitt ommitt S S Blueprint for Balance: Blueprint for A A L L 19) 19) ee ee ADDRESSED ADDRESSED ADDRESSED ADDRESSED ADDRESSED ADDRESSED ADDRESSED ADDRESSED AFEDERAL BUDGET FOR FISCAL YEAR2019 S S T T NOT NOT NOT NOT NOT NOT NOT NOT A A T T U U S S The Heritage Foundation | Foundation Heritage The PRESIDENT PRESIDENT HOUSE HOUSE E E X X heritage.org/BlueprintForBalance P P L L ANA ANA T T S S ION ION E E N N A A T T E E R R S S C C SFOPS 223 heritage.org/BlueprintForBalance If a treaty has not received the advice and consent received If a treaty has not U.N. system revenues from assessed and voluntary voluntary from assessed and revenues system U.N. The Heritage Foundation | A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Blueprint for Balance: In the FY 2019 budget, the Trump Administration the Trump budget, and that “the Department of State announced In the FY 2019 21 should therefore be funded by the nations that have legally accepted their obligations. The only exception The only exception their obligations. legally accepted the nations that have should therefore be funded by exception, however, does not allow for the funding of treaty bodies or any delegation other than that of the delegation other for the funding of treaty bodies or any allow does not however, exception, of the Senate and has not been properly implemented in U.S. law, the U.S. should not fund any of its activities, of its activities, fund any should not the U.S. law, been properly implemented in U.S. of the Senate and has not the nations that are party to them and Treaties are compacts between or elsewhere. either in the U.S. conduct a cost-benefit analysis of U.S. participation in all international organizations and establish a and establish in all international organizations participation U.S. analysis of conduct a cost-benefit for the Department in the Office of Inspector General international-organization issues dedicated unit for of State. contributions increased from $14.96 billion in 2002 to $45.72 billion in 2016. The U.S. remains the largest the largest remains The U.S. 2016. billion in in 2002 to $45.72 billion $14.96 increased from contributions provided U.S. the period. In 2016, that over contributions annually one-fifth of total providing contributor, Do not fund activities related to unratified treaties. Do not address the question of whether the U.S. is receiving good value for those contributions. The U.S. should should The U.S. is receiving good those contributions. value for the U.S. of whether address the question to this principle is that the U.S. should be able to pay the costs of its own diplomatic delegations that attend diplomatic delegations that attend of its own the costs should be able to pay to this principle is that the U.S. to submit an annual report to Congress on U.S. contributions to the U.N. system, but that report does not but that report does not system, to the U.N. contributions report to Congress on U.S. to submit an annual meetings related to treaties the U.S. is negotiating or related to treaties to which the U.S. is not party. This This party. is not is negotiating or related to treaties to which the U.S. related to treaties the U.S. meetings Increase oversight of international organizations. of international oversight Increase which the United States belongs advances American interests.” States belongs advances American which the United United States. USAID will review multilateral aid and contributions to evaluate how each multilateral organization to each to evaluate how multilateral aid and contributions USAID will review $9.72 billion to the U.N. system according to the U.N. Chief Executives Board. The Department of State Board. Chief Executives to the U.N. according system billion to the U.N. $9.72 Authorities Act, Fiscal Year 2017 (S.1635), enacted in 2016, requires the Office of Management and Budget enacted in 2016, (S.1635), 2017 Act,Authorities Fiscal Year Policy Riders Policy SFOPS 4. 7. 3. 2. 14. 13. 12. 11. 10. 1. 18. 17. 16. 15. ENDNOTES 9. 6. 224 5. .8
“Approved Resources for Peacekeeping Operations for thePeriod from 1July2017 to 30June2018,” A/C.5/71/24, 71st Sess., June30, 2017, January 14, 2013, http://www.foxnews.com/world/2013/01/14/uns-55b-anti-poverty-agency-doesnt-do-much-to-reduce-poverty-according- The projected shares come from Report oftheSecretary-General, “Implementation ofGeneral Assembly Resolutions 55/235 and55/236,” Act, 2018. Heritage experts assume that FY2018 spending remains constant inFY2019. Act, 2018. Heritage experts assume that FY2018 spending remains constant inFY2019. A/70/331/Add.1, 70th Sess., December 28, 2015, http://www.un.org/en/ga/search/view_doc.asp?symbol=A/70/331/Add.1 (accessed April 3,2018). Act, 2018, Law Public 115-141, 115thCong., https://www.congress.gov/115/bills/hr1625/BILLS-115hr1625enr.pdf (accessed May 15, 2018). Nurith Aizenman, “Citing AbortionsinChina,Trump CutsFunds for U.N. Family PlanningAgency,” NPR,April4, 2017, https://www.npr.org/ Estimated savings of$32.5 millionfor FY2019 are basedontheFY2018 appropriated level asspecifiedinthe Consolidated Appropriations Brett Schaefer, “Why DoesUNDPContinue to AidRepressive Regimes?” The DailySignal,August 27, 2010, http://dailysignal. Daniel Briggs,“The Kemp–Kasten Provision andUNFPA Funding,” AmericansUnited for Life, April23,2010, http://www.aul.org/2010/04/ Savings million(anincrease of–$171 million)for inspendingof$171 FY2019 are basedontheCBO’s most recent April2018 baseline Donald J. Trump, “Presidential Memorandum Regarding theMexico City Policy,” The White House, January23,2017, https://www.whitehouse. Bryan Riley andAnthony B. Kim,“Freedom to Trade: AGuidefor Lawmakers,” HeritageFoundation Estimated savings of$140 millionfor FY2019 are basedontheFY2018 appropriated level asspecifiedinthe Consolidated Appropriations Donald J. Trump, “Remarks by President Trump to the72nd Session oftheUnited Nations General Assembly,” The White House, Estimated savings of$79.5 millionfor FY2019 are basedontheFY2018 appropriated level asspecifiedinthe Consolidated Appropriations U.S. Trade andDevelopment Agency, “Our Mission,” http://www.ustda.gov/about/mission (accessed January12,2016). Lisa ElgesandClaire Martin, See, for example, GlobalEnvironment Facility, “About Us,” https://www.thegef.org/about-us (accessed May 16,2018), andGlobal Estimated savings of $182 millionfor FY2019 are basedon50percent ofthereported 2017 contribution of$364.3 millionaslisted inUnited The U.S. peacekeeping assessment isestablished inthree-year sets, themost recent beingfor 2016–2018. The specificassessment can Estimated savings of $234millionfor FY2019 are basedonreducing theU.S. share offundingfrom 28.4344 percent to 25percent. The Savings of$79.8 millioninFY2019 are basedonregular resource contributions by theUnited States asreported inU.N. Development George Russell, “UN’s $5.7B Anti-Poverty Agency Doesn’t DoMuchto Reduce Poverty, According to ItsOwnAssessment,” Fox News, 2014, https://www.transparency.org/whatwedo/publication/protecting_climate_finance_adaptation_fund (accessed April3,2018). gov/presidential-actions/presidential-memorandum-regarding-mexico-city-policy/ (accessed April3,2018). experts assume that FY2017 donations remain constant through FY2019. Savings are basedon reducing spendingby 50percent in or closed. established asatrust fundin1967 andbeganoperations in1969. In1987, itwas officially renamedtheUnited Nations Population Fund, com/2010/08/27/why-does-undp-continue-to-aid-repressive-regimes/. sections/goatsandsoda/2017/04/04/522040557/citing-abortions-in-china-trump-cuts-funds-for-u-n-family-planning-agency (accessed spending savings, for atotal spending spending projections. The higherspendingincludes$323 millionindiscretionary revenue losses, partiallyoffset by $152 millioninmandatory October 20, 2015, http://thf-reports.s3.amazonaws.com/2015/BG3064.pdf. assembly/ (accessed April5, 2018). September 19, 2017, https://www.whitehouse.gov/briefings-statements/remarks-president-trump-72nd-session-united-nations-general- approved U.N. Peacekeeping budget was $6.803 billionfor July1,2017, to June30, 2018, asfound inUnited Nations General Assembly, million inFY2019. reflecting itslead role intheUnited Nations system inthearea ofpopulation. The originalabbreviation, UNFPA, was retained.” United fluctuate from year to year withineachthree-year scaleandalsowhennew scalesare adopted usingupdated economic data. Inaddition, frequently-asked-questions#acronym (accessed May 16,2018). funding/core-donors.html (accessed May 16,2018). Heritageexperts assume that spendingholdssteady inFY2018 and2019. the U.N. peacekeeping budget canchangesignificantly asnew missions are established or existing missions are expanded, contracted, the-kemp-kasten-provision-and-unfpa-funding/ (accessed January26, 2016). “The United Nations Fund for Population Activities was to-its/ (accessed April3,2018). Environment Facility, “Conventions,” https://www.thegef.org/partners/conventions (accessed May 16,2018). FY 2019 to draw down theagency’s funding. Rankings as[of] December 31,2017,” https://www.unrwa.org/sites/default/files/overalldonor_ranking.pdf (accessed May 16,2018). Heritage Nations Relief andWorks Agency for Palestine Refugees, “2017 Pledges to UNRWA’s Programmes (Cash andIn-kind)—Overall Donor May 16,2018). Reducing theU.S. share from 28.4344 percent (asprojected for 2018 andassumed for FY2019) to 25percent saves $234 Nations Population Fund, “Frequently Asked Questions: What DoesUNFPA Stand For?” last updated January2018, https://www.unfpa.org/ Heritage experts assume that FY2018 spending remains constant inFY2019. Programme, “Our Funding: Regular Resource Contributions for 2017 asofJanuary2018,” http://www.undp.org/content/undp/en/home/ http://undocs.org/a/c.5/71/24 (accessed May 16,2018). Heritageexperts assume that this spendinglevel holds steady through FY2019. Blueprint for Balance: Blueprint for Protecting Climate Finance: AnAnti-Corruption Assessment of theAdaptation Fund increase of $171 millioninFY2019. of$171 AFEDERAL BUDGET FOR FISCAL YEAR2019 The Heritage Foundation | Foundation Heritage The heritage.org/BlueprintForBalance Backgrounder . Transparency International, No. 3064, SFOPS
225 Issue Brief Issue Congressional Congressional No. 3247, September 19, 2017. 2017. 19, September 3247, No. , https://www.state.gov/documents/ heritage.org/BlueprintForBalance Backgrounder The Heritage Foundation | A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Blueprint for Balance: No. 4154, February 26, 2014, https://www.heritage.org/report/us-should-demand-increased-transparency-and-accountability-un-revenues-rise. 2014, 26, February 4154, No. million from reducing the Department of Labor’s International Labor Affairs budget and moving its remaining work to the Millennium to the work remaining its and moving budget Labor Affairs International of Labor’s the Department reducing million from in FY 2019. constant spending remains 2018 FY that assume in ibid. Heritage experts reported million) and Inter-American Foundation ($24 million) based on the CBO’s most recent April 2018 baseline spending projections; $60 baseline spending projections; April 2018 recent most CBO’s million) based on the ($24 Foundation million) and Inter-American administering their existing foreign aid programs from USAID regional offices, and reducing the cost of those programs by 20 percent as by 20 percent programs of those cost the reducing and offices, regional USAID from aid programs foreign their existing administering Challenge Corporation; $4.5 million in administrative savings from moving USAID’s Development Credit Authority to the Millennium the Millennium to Authority Credit Development USAID’s moving from savings administrative million in $4.5 Challenge Corporation; of State, Department in U.S. as reported budget administrative million $9 on its current based Challenge Corporation Overhaul of America’s Foreign Assistance Programs Is Long Overdue,” Heritage Foundation Foundation Heritage Overdue,” Is Long Programs Assistance Foreign of America’s Overhaul Budget Justification: Department of State, Foreign Operations, and Related Programs, Fiscal Year 2018 Year Fiscal Programs, Related and Operations, Foreign State, of Department Justification: Budget smallest 15 USAID missions, ranked according to overall budget amount requested for each USAID mission, and adding a total of 20 percent of 20 percent a total and adding mission, each USAID for requested amount budget overall to according ranked missions, 15 USAID smallest of the grants and other assistance requested for the smallest 15 missions, which can be cut when those programs are administered more more administered are those programs when which can be cut 15 missions, smallest the for requested and other assistance of the grants regional location. from a efficiently organization/271013.pdf (accessed May 16, 2018); and $80 million from closing the 15 smallest of USAID’s 100 overseas missions, missions, 100 overseas of USAID’s the 15 smallest closing and $80 million from 16, 2018); May (accessed organization/271013.pdf estimated. Estimated savings for FY 2019 include $995 million from eliminating Assistance for Europe, Eurasia and Central Asia based Asia and Central Eurasia Europe, for Assistance eliminating million from include $995 FY 2019 for savings Estimated estimated. ($31 Foundation Development the African eliminating for million $55 baseline spending projections; April 2018 recent most on the CBO’s The estimate of $80 million in annual savings was calculated by summing the annual operating expenses (Objective 6) for each of the 6) for (Objective expenses summing the annual operating by calculated was of $80 million in annual savings estimate The Heritage Foundation Rise,” Revenues as U.N. and Accountability Transparency Should Demand Increased “U.S. Schaefer, D. Brett Estimated savings of $1.195 billion for FY 2019 are based on proposed reforms reported in James Roberts and Brett Schaefer, “An “An Schaefer, and Brett Roberts in James reported reforms on proposed based are FY 2019 billion for of $1.195 savings Estimated Although a comprehensive overhaul would generate substantial savings, we include only a portion of those savings that can easily be that savings only a portion of those include we savings, substantial generate would overhaul comprehensive Although a
19. 21. 20.
Transportation, Housing and Urban Development, and Related Agencies THUD Ȗ Ȗ ADDITIONAL READING and planesonnearlyone-thirdoftheroutesareat often empty: EASflightstypicallyareonlyhalf-full, The EASsquandersfederalfundsonflightsthatare ing modesoftransportationsuchasintercitybuses. on subsidizedroutescouldbeserved by other, exist stant dollarterms, despitethefactthatcommuters EAS hasincreasedby 600percentsince1996incon subsidies totheseairports. Infact,spendingonthe program, theEASstill provides millionsofdollarsin the originalintentionthatitwouldbeatemporary lowing deregulationoftheairlineindustry. Despite program toprovide subsidiestoruralairportsfol The EASwas established in1978asatemporary Program AirService Eliminate theEssential 228 Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Eli Lehrer, “EAS aComplete Waste ofTaxpayer Money,” HeartlandInstitute, undated. Term Sustainability for Highway Programs,” HeritageFoundation Justin Bogie, NorbertJ. Michel,andMichaelSargent, “Senate BillShouldCutWasteful Programs andProvide Long- epublic esiden $431 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 1 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED P I I AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL NCL A T R NOT NOT A T UDE UDE T I A U L - L S D D Y - - The Heritage Foundation | Foundation Heritage The federal government. be overseen by state orlocalauthorities, not by the If certainroutesaretobesubsidized,theyshould ket-distorting andwasteful activitieslike theEAS. The federalgovernment shouldnotinmar engage perday.than anaverageof10passengers dole, airportsserved by theEASmust serve nomore just 40milesaway.(Harrisburg) To remainonthe even thoughtravelers have accesstoamajorairport daily flightsinandoutofLancaster, Pennsylvania, vides $2.5millionannuallytocontinuenear-empty least two-thirdsempty. For example,theEASpro PRES Eliminates EAS. mandatory spending. Cuts discretionaryEASfundingby$93millionbutdoesnotreform IDE Issue Brief N T No. 4566, May 18,2016. HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E RSC - - THUD 229 - RSC E T A N E ION S T ANA L P heritage.org/BlueprintForBalance X E HOUSE No. 4566, May 18, 2016. May 4566, No. Issue Brief Issue FY 2018 elimination of ARC removed from FY 2019 proposal. Eliminates ARC. PRESIDENT program directs federal funding to a concentrated program directs federal ear where funds are further group of 13 states at the community level. for specific projects marked and localities see the need for increased If states should be responsible they areas, spending in these carve-out This duplicative for funding it themselves. should be eliminated. The Heritage Foundation | D D - - S U The CTE T UDE 3 E A NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ I ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 2 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $161 esiden epublic Justin Bogie, Norbert J. Michel, and Michael Sargent, “Senate Bill Should Cut Wasteful Programs and Provide Long- and Provide Programs Cut Wasteful Bill Should “Senate Michel, and Michael Sargent, Norbert J. Bogie, Justin Heritage Foundation Programs,” Highway for Sustainability Term R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ ADDITIONAL READING Ȗ port “heritage crafts industries.” tourism and Department of Transportation’s highway program highway Department of Transportation’s funding to projects federal in addition to diverting merit, such as those meant to sup of questionable lished in 1965 as part of President Lyndon Johnson’s of President Lyndon Johnson’s lished in 1965 as part agenda. duplicates The commission Great Society the under construction and infrastructure highway Eliminate the Appalachian Regional Commission the AppalachianEliminate Regional estab Regional Commission was The Appalachian THUD 230 Ȗ Ȗ ADDITIONAL READING local andfederalsubsidies. dueto This islargely million shortfallfor2018, even afterreceivinghuge grim. Theagency’s budgetprojectionshows a$300 as Metro’s financialpicturelooksincreasingly These ridershipandsafety issuescometothefore percent from2016 to2017. plummeted every yearsince2009anddeclined13 maintenance andupdates. Metrorail ridershiphas mize serviceroutes, andset properprioritiesfor tocontrolcosts,tives forthetransitagency opti Federal subsidiesfortheWMATA decreaseincen appropriations fromCongress. thority, istheonlytransitauthoritytoreceive direct The WMATA, Washington, D.C.’s localtransitau Metropolitan Area Transit Authority Eliminate SubsidiesfortheWashington Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr October 16,2007. Ronald D. Utt, “Washington Metro NeedsReform, NotaFederal Bailout,” HeritageFoundation Michael Sargent, “Death Spiral orNot,Washington’s Metro IsaTotal Disaster,” epublic esiden $150 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 4 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED I REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL T NOT NOT A E UDE T CTE U - - S - D D The Heritage Foundation | Foundation Heritage The the system. Congressshouldeliminatesubsidiesto eral taxpayers, many ofwhomwilllikely never use strategy hasbeentodemandmoremoneyfromfed Instead offixingitsmanifoldissues, theWMATA’s current dilapidatedstate withlittle consequence. Metro’s shortcomingsandallowed ittoreach its Federal subsidiesfortheWMATA have masked for ridership. employees thanany other system whenadjusted any ofthemajorurbanrailsystems, andithasmore most mileof expensive tooperateperpassenger Metro’s exorbitant costs: Therailsystem is the WMATA intoamoreeffective transitagency. the WMATA andallow market incentives toturnthe PRESIDENT Eliminates WMATAfunding. No cutsinWMATAfunding.
HOUSE E National Interest X heritage.org/BlueprintForBalance P L ANA T S ION E N WebMemo , November 4, 2016. A T E No. 1665, RSC - THUD - - 231 RSC E T A N E ION S T ANA L E P heritage.org/BlueprintForBalance
X E HOUS T N IDE Reduces funding by $757 million and seeks to reform long-distance routes and other operations. Assumes lower operating subsidies. Eliminates operating and capital grants. PRES Amtrak’s monopoly on passenger rail service and Amtrak’s and private companies to enter the market allow passenger they see a via provide rail service where ble commercial market. notoriously behind schedule, as evidenced by poor by behind schedule, as evidenced notoriously rates. on-time performance operating sub Amtrak’s Congress should eliminate subsidies and phase out its capital sidies in FY 2018 management time Amtrak’s years to give five over more closely with work plans, to modify business and eliminate costs, reduce labor the private sector, the Secretary Simultaneously, lines. money-losing to of Transportation should generate a proposal over profitable routes and turn privatize Amtrak’s routes to the responsibilities for state-supported should repeal During this phaseout, Congress states. The Heritage Foundation | - Y Y D D D S L L - - - L L U A A I I T UDE UDE UDE T T A NOT R R T A A NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I P P ADDRESSED No. 3290, June 13, 2011. 3290, No. ee 19) L A Blueprint for Balance: WebMemo S ommitt 5 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $308 esiden epublic Tad DeHaven, “Downsizing the Federal Government: Privatizing Amtrak,” Cato Institute, June 2010. Institute, Cato Amtrak,” Privatizing Government: the Federal “Downsizing DeHaven, Tad Rail,” Passenger Reform to Sector Use the Private Would Proposal Amtrak New Mica’s “Chairman Utt, D. Ronald Heritage Foundation R House Budge Pr Sena SAVINGS IN MILLIONS SAVINGS IN Ȗ Ȗ ADDITIONAL READING Ȗ Ȗ costs, driven by the generous by wages and benefits driven costs, constitute labor agreements, union required by Amtrak trains are operating costs. half of Amtrak’s performance and service for customers. Amtrak’s Amtrak’s performance and service for customers. compe monopoly on passenger rail service stifles Labor for passengers. costs tition that could lower Amtrak is characterized by an unsustainable finan an unsustainable Amtrak is characterized by by cial situation and management that, hamstrung has failed to improve unions and federal regulations, received about $71 billion (in 2016 dollars) in tax dollars) 2016 about $71 billion (in received grants. federal payer-funded rail companies. In FY 2016, it received an operating it received In FY 2016, rail companies. and a capital and debt-service grant of $289 million Amtrak has Since its inception, grant of $1.1 billion. The National Railroad Passenger Corporation, now Corporation, now Passenger The National Railroad the federal gov created by as Amtrak, was known private passenger bankrupt over ernment to take Eliminate Grants to the National Rail Passenger Rail Passenger National to the Grants Eliminate Service (Amtrak) Corporation THUD 232 Ȗ Ȗ ADDITIONAL READING politically connectedentities. Finally, themaritime teed Loan(TitleXI)Program—another handoutto hire U.S. shipbuildersunderitsMaritimeGuaran taxpayer-backed loanguarantees forcompaniesto efficient orcompetitive. MARADfurtherprovides handout topoliticallyfavored firmsthatmay not be subsidies tosmallshipyards areataxpayer-funded in protectionism andsubsidies. For example,its MARAD andthelaws itimplementsaresteeped for thebenefitofspecialinterests. oversee andimplementduplicative andcrony laws national emergency. Decadeslater, itcontinuesto maintain amaritimefleet thatcanbeusedduringa MARAD was createdin1950, anditspurposeisto and Repeal theMaritimeJones Act DownClose theMaritimeAdministration Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Maritime-Related Industries,” HeritageFoundation Brian Slattery, Bryan Riley, andNicolas D. Loris, “SinktheJonesAct: Restoring America’s Competitive Advantage in Backgrounder Wendell Cox andRonald D. Utt, “How to CloseDown theDepartment ofTransportation,” HeritageFoundation epublic esiden $680 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO No. 1048,August 17, 1995. esolution esolution 6 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED P I REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S NCL A T R NOT NOT A E T UDE T CTE I A U L Backgrounder - L S D D Y The Heritage Foundation | Foundation Heritage The multaneously, Congressshouldrepealthemaritime for thisprogramtotheDepartmentofDefense.Si Defense ReadyReserve Fleet andtransferfunding should sellthegovernment-owned shipsinthe roles toanother agency. Thefederalgovernment istration andtransferitsinternationalregulatory Congress shouldclosedown theMaritimeAdmin 75 percentofitscrewfromtheU.S. be onaU.S.-built andU.S.-flagged vessel withatleast (or persons)shippedbetween twoU.S. citiesmust able andoverly burdensomestandards: Any cargo Jones established in1920, Act, requiresunreason Jones andMARAD’s Act wasteful subsidyprograms. PRESIDENT Repeals JonesAct. Includes MARADfunding. No. 2886,May 22,2014.
HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C - - - THUD - 233 RSC Policy Policy E T A N traffic congestion by traffic congestion E ION S T ANA increase L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Limits funding to $1 billion for projects with existing full-funding grant agreements; winds down CIG program. Phases out CIG over five years. PRES they are truly effective. as when a streetcar receives a Capital Investment a Capital Investment receives as when a streetcar will Grant, the project These proj cars. down slowing blocking a lane and of federal A review budget. over ects are perennially completed examining 15 projects that were studies nearly by budget over that the projects were shows for these the costs Worse, 30 percent on average. funding from detract rail projects tend to expensive as buses needed by such more practical services, residents. low-income for Capital Congress should terminate funding and private the states Grants and allow Investment where sector to manage and fund transit systems The Heritage Foundation | D D D S - U - T UDE UDE UDE A NOT T NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I ADDRESSED In some cases, such In some cases, 8 ee 19) L A Blueprint for Balance: S ommitt 7 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ No. 727, June 19, 2013. June 19, 727, No. an S t e Budget R t $2.6 esiden epublic Randal O’Toole, “Paint Is Cheaper Than Rails: Why Congress Should Abolish New Starts,” Cato Institute Institute Cato Starts,” Should Abolish New Congress Rails: Why Is Cheaper Than “Paint Randal O’Toole, Analysis on Committee and Transit, on Highways the Subcommittee before testimony Institute, Cato Randal O’Toole, 11, 2013. December House of Representatives, U.S. and Infrastructure, Transportation R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ Ȗ ADDITIONAL READING Ȗ relief,” “environmental benefits,” and “economic and benefits,” “environmental relief,” longer in effects” but—tellingly—no development clude “operating efficiencies.” ing infrastructure. “congestion Criteria for eligible projects include to build costly and unnecessary transit systems transit systems and unnecessary to build costly to operate and maintain. that they can ill afford exist This comes at the expense of maintaining New Starts is a competitive grant program that New Starts is a competitive maintenance not transit projects, funds only novel the incentive localities it gives systems, of existing as part of the Intermodal Surface Transportation as part of the Intermodal Efficiency purpose of giving transit Act with the Because agencies projects. grants for new transit Eliminate Capital Investment Grants Investment Capital Eliminate in 1991 Grants were created Capital Investment THUD 234 Ȗ Ȗ ADDITIONAL READING its maintenanceandoperationactivities. in 1998, eliminatingany futuretaxpayer fundingfor borders theseaway, equivalent privatizeditsagency tory. Theseaway openedin1959. Canada,whichalso Lawrence Seaway thatiswithinUnitedStatesterri with maintainingandoperatingthepartofSaint the SLSDCisagovernment-owned entitycharged Created throughtheWiley–Dondero of1954, Act Privatize theSaintLawrence Seaway Development Corporation Ȗ Ȗ SAVINGS INMILLIONS Sena R House Budge Pr Term Sustainability for Highway Programs,” HeritageFoundation Justin Bogie, NorbertJ. Michel,andMichaelSargent, “Senate BillShouldCutWasteful Programs andProvide Long- Growth,” Cato Institute, undated. Chris Edwards, “Downsizing theFederal Government: Department ofTransportation Timeline ofGovernment epublic esiden $40 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 9 ommitt S Blueprint for Balance: Blueprint for A L 19) ee ADDRESSED ADDRESSED ADDRESSED REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S T NOT NOT NOT A E T CTE U S D - The Heritage Foundation | Foundation Heritage The Canada’s exampleandprivatizetheSLSDC. the burdenontaxpayers. Congressshouldfollow productivityandcompetitivenessage andreduce Privatization ofthiskindintheU.S. wouldencour PRESIDENT Maintains SLSDCfunding. Issue Brief No. 4566, May 18,2016. HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C - THUD - 235 - - RSC E T A No. 99, April 2012. 99, No. N E ION S T ANA Policy Brief Policy L E P heritage.org/BlueprintForBalance X E HOUS T N IDE Eliminates TIGER. Eliminates TIGER. Eliminates TIGER. PRES to do with interstate commerce. These projects to do with interstate the local communities that should be funded by eliminate the benefit from them. Congress should TIGER program. Detroit, Michigan. TIGER grants amount to “ad Michigan. TIGER grants amount Detroit, bureaucrats because federal earmarks,” ministrative choose of Congress) Members powerful (prodded by and in turn meet project must the criteria that a That gives grants. will receive decide which projects to pander to Washington, incentives cities perverse not money for projects they may asking for federal from receiv or state city another to keep need just ing the funds. in perverse The TIGER grant program creates and local duplicates state for localities, centives and squanders transportation agency programs, little that have federal resources on local projects The Heritage Foundation | D D D S U T UDE UDE UDE A NOT T NCL NCL NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET I I I ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 10 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $1.5 esiden epublic Baruch Feigenbaum, “Evaluating and Improving TIGER Grants,” Reason Foundation Foundation Reason TIGER Grants,” and Improving “Evaluating Baruch Feigenbaum, R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ ADDITIONAL READING California; a $14.5 million “Downtown Promenade” million “Downtown California; a $14.5 in line million streetcar in Akron, Ohio; and a $27.5 under the purview of local government and serve and serve under the purview of local government projects include Past federal objective. no stated mall in Fresno, a $16 million, six-mile pedestrian Through the TIGER program, Washington sends Through the TIGER program, Washington for projects that clearly fall federal dollars to pay too tempting a spending opportunity for Congress a spending opportunity for too tempting up and has remained and the Administration to give a permanent fixture. temporary program that funded road, rail, transit, temporary program Eight in the national interest. and port projects this “temporary” program has proven years later, provides competitive grants administered by the by grants administered competitive provides Transportation. It began as part Department of U.S. intended to be a bill and was of the 2009 stimulus Eliminate the National Infrastructure Investment (TIGER) Program (TIGER) Investment Infrastructure the National Eliminate Program Investment The National Infrastructure THUD 236 Ȗ ADDITIONAL READING greatest needforcapitalinvestment, theyreceive of airtravelers. airportshave Thoughtheselarge the largest airportsintheU.S. serve nearly 90percent to thoseoffarlessimportance.For example,the60 fliers’ resourcesfromthemost significantairports The AIPfunctionsasamiddleman,redistributing ports canoperate. are tiedtostrict regulationsthatgovern how air improvements, suchasrunways andtaxiways, and can beusedonlyforcertaintypesof“airside”capital ets, aswellother aviation activities. AIPgrants primarily by federaltaxes airlinetick onpassenger ments atpublic-useairports. Thegrantsarefunded The AIPprovides federalgrantsforcapitalimprove and ReformAirportFunding Eliminate theAirportImprovement Program Ȗ SAVINGS INBILLIONS Sena R House Budge Pr Funding,” HeritageFoundation Michael Sargent, “EndoftheRunway: Rethinking theAirportImprovement Program andtheFederal Role inAirport epublic esiden $4.0 t e BudgetR t an S ’ s Budget(FY20 P R tudy C t R OPO esolution esolution 11 ommitt S Blueprint for Balance: Blueprint for A L 19) ee Backgrounder ADDRESSED ADDRESSED ADDRESSED REJ AFEDERAL BUDGET FOR FISCAL YEAR2019 S T No. 3170, November 23,2016. NOT NOT NOT A E T CTE U - S D - - The Heritage Foundation | Foundation Heritage The provements inalocal,self-reliant,andfree-mar resources andallow airportstofundcapitalim the inefficientandinequitabledistribution offlier for theirservices. Thesereformswoulderadicate that prohibitairportsfromchargingmarket prices ticketsenger taxes, andreformfederalregulations Congress shouldeliminatetheAIP, reducepas Instead ofcontinuingthisredistributive scheme, receive about30percentofAIPgrants. fliers andthuscontributeatrivialshareofrevenue, ports, whichserve lessthan1percentofcommercial only 27percentofAIPgrants. Noncommercialair ket manner. PRESIDENT Maintains AIPfunding.
HOUSE E X heritage.org/BlueprintForBalance P L ANA T S ION E N A T E R S C - - - - THUD - 237 - - RSC No. 2763, 2763, No. E T A N E ION S T Backgrounder ANA L P heritage.org/BlueprintForBalance X E HOUSE Maintains FTA funding. Would devolve federal transit spending to states and localities. PRESIDENT their jurisdictions and an incentive to adopt policy to adopt their jurisdictions and an incentive cost-ef their transit systems’ changes that improve and performance. fectiveness activities. Even worse, federal transit grants pres worse, federal Even activities. build new to incentives perverse ent localities with neglecting maintenance of their transit routes while Transit is infrastructure. and other systems existing nature and should therefore be inherently local in or regional level. funded at the local phase out the should The federal government by years five Transit Administration over Federal 20 percent per reducing federal transit funding by oper FTA’s year and simultaneously reducing the Phasing out proportion. the same by ating budget and local governments state the program would give of transit in time to evaluate the appropriate role The Heritage Foundation | - D D - S - U - CTE T UDE E A NOT NOT T NCL S A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET REJ I ADDRESSED ADDRESSED ee 19) L A Blueprint for Balance: S ommitt 12 esolution esolution OPO t R tudy C R P s Budget (FY20 ’ an S t e Budget R t $2.3 esiden epublic January 31, 2013. Wendell Cox, “Transit Policy in an Era of the Shrinking Federal Dollar,” Heritage Foundation Foundation Heritage Dollar,” of the Shrinking Federal in an Era Policy “Transit Cox, Wendell R House Budge Pr Sena SAVINGS IN BILLIONS SAVINGS IN Ȗ Ȗ ADDITIONAL READING When it issues grants for streetcars, subways, and subways, When it issues grants for streetcars, is subsidizing purely local or regional FTA the buses, of dollars in subsidies, transit has largely failed in all of dollars in subsidies, of these areas. transit were to offer mobility to low-income citizens transit were to offer mobility to low-income reduce greenhouse gas emis areas, in metropolitan congestion. Despite billions traffic relieve and sions, Fund (HTF), to support transit in 1983. The tran to support transit in 1983. (HTF), Fund accounts for nearly within the HTF sit diversion for funding one-fifth of HTF spending. The reasons The federal government began to use federal gaso began The federal government Trust into the Highway pay which drivers line taxes, provides grants to state and local governments and and local governments grants to state provides to operate, maintain, and im transit authorities subways. such as buses and transit systems prove Phase Out the Federal Transit Administration Transit Phase Out the Federal Administration Transit Federal Created in 1964, the THUD 238 clear pictureoftheshortcomingscurrentpractice. should scrutinizeallpossiblefactors, fromindustry practicestogovernment regulation,inordertoprovide a Officetoexamineand determine thereasonsforthese Accountability excessive construction costs. The GAO those inpeercountries, especiallywithregardtomegaprojects. CongressshouldrequiretheGovernment United States. Request theGovernment Officeto Accountability examineinfrastructure construction costs inthe with consistent dataregardingthefederalgovernment’s activitiesinsubsidizingtransportation. transportation modes. Reproducingthestudy onaperiodicbasiswouldprovide lawmakers andtravelers and thetraveling publicwithoutdatedinformationabouthow federalsubsidiesaredistributed among comparable metrics. Since2004,however, the DOThasnot updatedthereport,leaving most policymakers federal subsidiestargetedtorail,transit,air, andhighway travelers since1990andpresentedthemusing transportation.Thereportdetailedreport thatassessedthefederalsubsidiestopassenger theamountof various modesoftransportation.In2004,theDOT’s BureauofTransportationStatistics produceda transportation. Require theDepartmentofTransportation (DOT)tostudy total federalsubsidiestopassenger quality, andless-expensive components. bureaucratic andprotectionist mandatewouldgive U.S. infrastructure accesstomorenumerous, better canapplyforawaiver.entire projectby upto25percentbefore theprojectagency Endingorwaiving this expensive asthosemadeinJapan. Overall, BuyAmericaprovisions areallowed toincrease thecost ofan percent inthecaseofChinese-madesteel. Inaddition,busesmadeintheU.S. werefoundtobetwiceas in recentyearshascost morethansteel madeinWestern EuropeorChina—apriceincreaseofroughly30 which oftenleadstohighercosts forprojects. BuyAmericarequirestheuseofAmerican-madesteel, which States. Thisprotectionist mandatelimitsselectionandpricecompetition amonginputmanufacturers, “Buy America”mandates, which requirethatcertaininputcomponentsmust bemanufacturedin theUnited Eliminate “BuyAmerica”restrictions. Bacon andPLAswouldsave morethan$100billionover thenext 10yearsundercurrentspendinglevels. estimate Davis–Bacon sothattheymorecloselyreflectmarket “prevailingwages” pay. EliminatingDavis– the appropriationsbillorrequireLaborDepartmenttousesuperiorBureauofStatistics datato increase spendinglevels. Barringcomplete repeal,Congresscouldsuspendtheruleforprojectsfundedby PLAs wouldstretch eachfederalconstruction dollar, delivering moreinfrastructure withouttheneedto the 87percentofworkers whoarenot membersofaunion.EliminatingDavis–Bacon andprohibiting by 12percentto18ontopofincreasedcosts attributed toDavis–Bacon anddiscriminateagainst all workers onfederallycontractedprojectsthroughunionhiringhalls. PLAsinflateconstruction costs bargaining agreementsrequireusingunioncompensation rates, following unionworkrules, andhiring contracts tosignacollective bargainingagreementasaconditionofwinningprojectbid.Collective percent onaverage. Similarly, projectlaboragreements(PLAs)requirethemaincontractorofgovernment benefit scalesandfollow unionworkrules. Theserulesinflatethecost offederalconstruction bynearly10 enactedin1931,effectively requiresconstruction and Act, contractorsonfederalprojectstouseunion wage Eliminate orrollbackDavis–Bacon requirementsandprojectlaboragreements. Policy Riders Dataandrecentreportsindicatethatinfrastructure construction costs intheU.S. exceed Congressshouldrecommissionthe2004study thatdetailed thefederalsubsidiesto Blueprint for Balance: Blueprint for AFEDERAL BUDGET FOR FISCAL YEAR2019 Most federallyfundedinfrastructure projectsmust complywith The Heritage Foundation | Foundation Heritage The heritage.org/BlueprintForBalance TheDavis–Bacon THUD 239 No. 727, June 19, 2013, 2013, June 19, 727, No. Policy Analysis Policy heritage.org/BlueprintForBalance The Heritage Foundation | A FEDERAL BUDGET FOR FISCAL YEAR 2019 FISCAL FOR A FEDERAL BUDGET Blueprint for Balance: http://www.cato.org/publications/policy-analysis/paint-cheaper-rails-why-congress-should-abolish-new-starts (accessed March 6, 2018). March (accessed http://www.cato.org/publications/policy-analysis/paint-cheaper-rails-why-congress-should-abolish-new-starts in the Consolidated Appropriations Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. All $4.0 billion All $4.0 in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Appropriations in the Consolidated spending. mandatory represents in savings FY 2019 funding for the Northeast Corridor and National Network. Savings also include $227 million in reduced capital grants, representing representing grants, capital million in reduced $227 also include Savings Network. and National Corridor the Northeast funding for FY 2019 Fund for FY 2019. The discretionary savings estimates are based on FY 2018 enacted levels, and Heritage experts assume FY 2018 spending FY 2018 assume and Heritage experts levels, enacted on FY 2018 based are estimates savings discretionary The FY 2019. for Fund total FY 2018 appropriated level as specified in the Consolidated Appropriations Act, 2018. Savings exclude the $300 million designated for the $300 million designated exclude Savings 2018. Act, Appropriations Consolidated as specified in the level appropriated FY 2018 total Heritage of Homeland Security. or Department of Defense the Department to be transferred would which Program, the Maritime Security for a total of $2.250 billion in FY 2019. a total for $70 million in projected operating subsidies. Operating subsidies are assumed to be 21 percent (the ratio observed under the previous the previous under observed (the ratio be 21 percent to assumed subsidies are subsidies. Operating operating million in projected $70 reduction in the total outlays of $11.252 billion for FY 2018 based on a five-year phaseout beginning in 2019. Savings include $23 million in Savings phaseout beginning in 2019. based on a five-year FY 2018 billion for of $11.252 outlays in the total reduction pdf (accessed March 8, 2018). March pdf (accessed remains constant in FY 2019. constant remains a 20 percent reduction in the projected level of $1.19 billion. of $1.19 level projected in the reduction a 20 percent accounting system that divided funding between operating subsidies and grants for capital and debt service) of the $335 million in total in total million of the $335 capital and debt service) for subsidies and grants operating between divided funding that system accounting authorized for both the ARC and the Delta Regional Authority, and $3.25 million to be transferred to the ARC from the Federal Aviation Aviation the Federal from the ARC to transferred be million to and $3.25 Authority, and the Delta Regional the ARC both for authorized as specified in the Consolidated Appropriations Act, 2018, Public Law 115-141, 115th Cong., https://www.congress.gov/115/bills/hr1625/BILLS- Cong., 115th 115-141, Law Public 2018, Act, Appropriations Consolidated in the as specified Commission. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume experts Heritage Commission. 115hr1625enr.pdf (accessed May 15, 2018), as well as $126 million in mandatory savings for FY 2019 based on the CBO’s most recent April April recent most based on the CBO’s FY 2019 for savings in mandatory million as $126 as well 2018), 15, May (accessed 115hr1625enr.pdf experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume experts discretionary spending for the FTA’s administrative expenses and $2.228 billion in mandatory spending for the FTA’s transit formula grants, grants, formula transit the FTA’s spending for and $2.228 billion in mandatory expenses administrative the FTA’s spending for discretionary 2018 baseline spending projections. The mandatory savings include payments to the Essential Air Service and Rural Airport Improvement Airport Improvement and Rural Air Service the Essential to include payments savings mandatory The baseline spending projections. 2018 Estimated savings of $161 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated specified in the as level appropriated based on the FY 2018 are FY 2019 million for of $161 savings Estimated Estimated savings of $40 million for FY 2019 are based on the total FY 2018 appropriated level as specified in the Consolidated Consolidated as specified in the level appropriated FY 2018 total based on the are FY 2019 of $40 million for savings Estimated Estimated savings of $431 million for FY 2019 are based on $305 million in discretionary savings based on the FY 2018 appropriated level level appropriated on the FY 2018 based savings on $305 million in discretionary based are FY 2019 million for of $431 savings Estimated Estimated savings of $1.5 billion for FY 2019 are based on the total FY 2018 appropriated level as specified in the Consolidated Consolidated as specified in the level appropriated FY 2018 based on the total are FY 2019 billion for of $1.5 savings Estimated Estimated savings of $2.250 billion for FY 2019 are based on the total FY 2018 appropriated level as specified in the Consolidated Consolidated as specified in the level appropriated FY 2018 total based on the are FY 2019 of $2.250 billion for savings Estimated Estimated savings of $4.0 billion for FY 2019 are based on the total FY 2018 appropriated level for “Grants-In-Aid for Airports” as specified for “Grants-In-Aid for level appropriated FY 2018 based on the total are FY 2019 billion for of $4.0 savings Estimated Estimated savings of $2.645 billion for FY 2019 are based on the total FY 2018 appropriated level as specified in the Consolidated Consolidated the as specified in level appropriated FY 2018 based on the total are FY 2019 billion for of $2.645 savings Estimated Estimated savings of $150 million for FY 2019 are based on the FY 2018 appropriated level as specified in the Consolidated Appropriations Appropriations Consolidated in the as specified level appropriated based on the FY 2018 are FY 2019 for million of $150 savings Estimated Heritage experts do not include any savings from repealing the Jones Act. Estimated savings of $680 million for FY 2019 are based on the are FY 2019 of $680 million for savings Estimated the Jones Act. repealing from savings do not include any Heritage experts Randal O’Toole, “Paint Is Cheaper Than Rails: Why Congress Should Abolish New Starts,” Cato Institute Institute Cato Starts,” Should Abolish New Congress Rails: Why Is Cheaper Than “Paint Randal O’Toole, Estimated savings of $308 million for FY 2019 are based on CBO’s most recent April 2018 baseline spending projections. Savings include Savings baseline spending projections. April 2018 recent most based on CBO’s are FY 2019 for of $308 million savings Estimated Appalachian Regional Commission, “ARC Project Guidelines,” revised 2011, p. 5, https://dca.ga.gov/sites/default/files/arc_project_guidelines. 5, p. 2011, revised Guidelines,” Project “ARC Commission, Appalachian Regional Appropriations Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. Savings represent a 20 percent a 20 percent represent Savings in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Appropriations Appropriations Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Appropriations in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Appropriations Appropriations Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Appropriations Act, 2018. Heritage experts assume that FY 2018 spending remains constant in FY 2019. constant spending remains FY 2018 that assume Heritage experts 2018. Act, Act, 2018. Savings include $155 million authorized for the Appalachian Regional Commission, as well as half of the $6 million in grants as half of the $6 million in grants as well Commission, the Appalachian Regional for million authorized include $155 Savings 2018. Act,
8. 5. 6. 9. ENDNOTES 12. 11. 10. 1. 2. 3. 7. 4.