2009 Budget
On June 5, 2008, the House passed the final agreement on the fiscal year 2009 budget (S. Con. Res. 70), which makes another down payment to fulfill commitments we have made to the American people, while restoring fiscal responsibility by putting us on the path to budget surpluses starting in 2012. The budget funds proven investments that boost economic growth, create jobs, make America safer, promote fiscally responsible tax relief to millions of households, and help families struggling to make ends meet in an economic downturn.
Read a side-by-side comparison of the Budget Conference Report vs. the President's budget>>
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Watch Speaker Pelosi speak in support of the 2009 budget>>
Restores Fiscal Responsibility — The budget is fiscally responsible, returning to balance in 2012 and beating the President’s bottom line by $83 billion over its five years (2009-2013). It complies with the House pay-as-you-go rule that requires all mandatory spending and revenue provisions to be deficit-neutral. The conference agreement contains initiatives to crack down on wasteful spending, and its deficit-neutral reserve funds will ensure that new initiatives are offset by reductions in lower-priority spending. The budget relies on realistic economic assumptions from the non-partisan Congressional Budget Office.
Rejects the President’s Harmful Cuts — The conference agreement on the budget rejects the
President’s deep cuts affecting a wide range of services and constituencies, including:
- $479 billion of Medicare cuts and $94 billion in cuts to Medicaid over ten years;
- more than $18 billion over five years in new fees for veterans and military retirees;
- cuts to services that help our communities, including the Community Development Block
- Grant and the Low-Income Home Energy Assistance Program;
- the elimination of several state and local law enforcement programs, including the State
- Criminal Alien Assistance Program, Byrne Grants, and COPS; and
- cuts to EPA grants that help protect public health and maintain environmental quality.
Strengthens the Economy — The conference agreement on the budget invests in programs that boost our economy, including:
- Innovation — Provides crucial funding for the Democratic innovation agenda and the America COMPETES Act to enhance our competitive edge, increasing funding for math and science education and research.
- Energy — Increases funding for efficient and renewable energy programs, rejecting the President’s cuts to research as well as weatherization assistance for lower-income families, and accommodates legislation to encourage the production of renewable energy alternatives, increased energy efficiency, investments in new energy and vehicle technologies, and training workers for “green collar” jobs.
- Education — Provides significantly more than the President for vital education, job training, and social services programs for 2009.
- Infrastructure — Invests in highways, water, and other infrastructure by providing sufficient funding and a reserve fund to facilitate new initiatives in a deficit-neutral manner.
Provides Tax Relief and Help for Struggling Families — The conference agreement on the budget rejects the President’s policy of paying for tax cuts by adding to the debt burden of our children and grandchildren and by imposing unacceptable cuts to vital public services.
- Tax Relief — Accommodates tax relief from the Alternative Minimum Tax for more than 20 million households, as well as middle-income tax cuts and other tax relief, so long as they comply with the pay-as-you-go rule.
- Children’s Health — Accommodates up to a $50 billion increase to expand children’s health insurance to cover millions of uninsured children, in accordance with the paygo rule.
- Safety Net — Strengthens safety net programs by providing needed funding for home heating assistance (LIHEAP), the Social Services Block Grant, and housing aid – in contrast to the President’s budget, which cuts funding for these programs.
Makes America Safer — The conference agreement on the budget funds defense, provides additional resources for veterans’ health care, and adds substantially to homeland security.
- Defense — Funds defense while shifting funds to high priorities such as reducing “loose nukes” and nuclear nonproliferation programs, and quality of life improvements for the troops and their families.
- Veterans — Addresses veterans’ needs by rejecting the President’s proposed new fees on veterans. Instead, it increases veterans’ funding by $3.7 billion relative to the amount needed to keep pace with inflation, enough to allow VA to treat 5.8 million patients in 2009, including 333,275 Iraq and Afghanistan war veterans.
- Homeland Security — Protects Americans at home by increasing homeland security funding over the Administration’s request and rejecting the President’s cuts to first responder programs, including Community Oriented Policing Services (COPS) and firefighter assistance grants. Our budget provides higher funding levels for the four budget functions that fund the bulk of the non-DOD homeland security initiatives, compared with the President’s budget.