2010 Budget
On April 29th, the House passed the Budget Conference Report (S.Con.Res. 13) by a vote of 233-193. The budget makes important investments to strengthen our economy and our country while cutting the deficit by nearly two-thirds by 2013. On April 2nd, the House passed the initial FY 2010 Budget Resolution, H.Con.Res. 85.
The budget conference report reflects President Obama’s economic plan, a blueprint for economic recovery and new jobs now—and sustainable economic growth and prosperity for years to come.
For the first time in years, we will have an honest budget that:
- creates jobs with targeted investments in affordable health care, clean energy, and education
- cuts taxes for middle-income families by more than $1.7 trillion over 10 years
- cuts the deficit by nearly two-thirds in four years
- cuts non-defense discretionary spending as a percent of the economy
Read the full text of the Budget Resolution>>
Restoring Fiscal Responsibility in the Budget>>
Read the Latest Budget Fact Checks>>
Speaker Pelosi spoke in support of the budget resolution>>
INVESTING IN OUR FUTURE
The budget conference report makes strategic investments to rebuild our economy over the longer term, including investments in health care reform, education, and clean energy.
- Affordable Health Care: Our budget creates a deficit-neutral reserve fund for health care reform. It also provides reconciliation instructions as a fallback option to consider health care reform in the event Congress has not acted by the fall (if necessary, requiring committees to report a reconciliation bill by October 15).
- College Affordability: Our budget creates a deficit-neutral reserve fund for a College Affordability Initiative. It also provides reconciliation instructions as a fallback option to consider this initiative in the event Congress has not acted by the fall (if necessary, requiring committees to report a reconciliation bill by October 15).
- Clean Energy: Our budget also creates a deficit-neutral reserve fund to promote energy independence, calling for investments in energy efficiency and clean energy to launch a sustainable era of job creation and make America a global technology leader once again.
TAX FAIRNESS
The budget conference report:
- Cuts taxes for middle income families by more than $1.7 trillion over 10 years
- The cuts include an extension of the 2001 and 2003 income tax cuts for the vast majority of Americans
- The Making Work Pay tax cut for 95% of American workers—one the fastest and broadest tax cuts in history—is fully in place for two years as part of the American Recovery and Reinvestment Act, and can be continued as the economy grows, if the costs are offset
ENDING AN ERA OF IRRESPONSIBILITY
It will take some time to turn around the fallout from the failed policies of the last eight years under President Bush, including:
- a record surplus of $5.6 trillion over 10 years under President Clinton … turned into record deficits of $5.8 trillion under President Bush
- the national debt doubled, and the amount of debt held by foreign countries tripled
- the smallest rate of job growth in three-quarters of a century
- flat wages, and more Americans living in poverty and without health insurance
RESTORING FISCAL RESPONSIBILITY
The budget conference report:
- cuts the deficit by nearly two-thirds in four years (by 2013), and even further by 2014
- is the key vote in Congress that reduces the deficit
- pares the Bush deficit from 12% of our GDP to just 3% in 2014
- reduces non-defense discretionary spending $10 billion below the President’s proposed budget for 2010 and continues restraint in the following years
- puts us on a path to cutting non-defense discretionary spending to its lowest level as a percent of the economy in nearly half a century
- takes steps to reduce health care costs, one of the largest contributors to the deficit, and a growing burden on our businesses’ ability to compete and on our families’ prosperity.
HONEST ACCOUNTING
The budget conference report marks the beginning of a new era of honesty in budgeting, finally accurately representing costs like the wars in Iraq and Afghanistan and emergency disaster aid. Previous budgets masked these costs to make the deficit appear smaller.
BUDGET CONFERENCE REPORT: A NEW DIRECTION
FISCAL RESPONSIBILITY |
Our budget cuts the deficit by nearly two-thirds in four years, putting the budget on a fiscally sustainable path needed for future economic strength. Is in sharp contrast to the historic budget deficit inherited by President Obama and the 111th Congress – a deficit of well over $1 trillion in 2009. Also reaffirms our commitment to statutory PAYGO. |
ECONOMIC |
Our budget makes strategic investments in education, health care reform, and clean energy jobs that are necessary to jumpstart our economy and make America globally competitive for years to come. |
MIDDLE-CLASS |
Our budget includes a $1.7 trillion tax cut for middle-income taxpayers – permanently extending the 2001 and 2003 tax cuts (10 percent rate, marriage penalty relief, and child tax credit) for the vast majority of Americans. Our budget can also accommodate additional tax relief supporting working families, businesses, communities, or states, that is consistent with the pay-as-you-go rule. |
EDUCATION |
Our budget builds on the Recovery Act’s historic investment in education, including Title I, Special Ed, and Pell Grants. Matches the President’s increase in education funding. Creates a reserve fund for a deficit-neutral College Affordability Initiative. Provides reconciliation instructions as a fallback option to consider the College Affordability Initiative in the event Congress has not acted by the fall (if necessary, requiring committees to report a reconciliation bill by October 15). |
ENERGY |
Our budget builds on the significant funding and tax incentives in the Recovery Act by increasing investments and job creation in clean energy and energy efficiency. Provides an increase of $540 million (or 10 percent) for FY 2010. Also allows for fiscally responsible legislation to promote a clean energy economy over the long term. |
HEALTH CARE |
Our budget supports the President’s goals for health care reform that will lower costs, improve quality and expand coverage. Creates a health care reform deficit-neutral reserve fund. Provides reconciliation instructions as a fallback option to consider health care reform in the event Congress has not acted by the fall (if necessary, requiring committees to report a reconciliation bill by October 15). |
VETERANS |
Our budget is another historic commitment to veterans: an increase of $5.6 billion (or 11.7 percent) in FY 2010 for veterans’ health care and other services. Ends the Bush Administration’s ban on enrolling modest-income veterans for VA health care. Rejects authorizing the VA to bill private insurance companies for treating veterans’ service-connected conditions. Allows Congress to provide VA medical funding a year in advance. |