Current U.S. Discretionary Spending
FY 2020 Budget Request
The Constitution gave Congress the authority to raise and spend money for the federal government. The budget process traditionally begins with the president's budget. It describes his priorities and what the various agencies need for next year's operations. The discretionary budget and taxes are the two main tools of discretionary fiscal policy.
The discretionary budget does not include Social Security, Medicare, or Medicaid. These are part of the mandatory budget. These programs were authorized by previous Acts of Congress. The mandatory budget estimates how much it will cost to provide these benefits.
FY 2020 Budget
The Trump administration released its budget on March 11, 2020. It asked for $1.426 trillion in discretionary spending. Here's Trump's budget request by department:
Trump's FY 2020 Discretionary Budget Request (in Billions)
|Dept of Defense||$750|
|All Other Agencies||$246.5|
Discretionary Budget Myth Busters
The media blames the discretionary budget for deficit spending, which has created a huge national debt. That's a big concern, now that the debt-to-GDP ratio is more than 100 percent. What's the best way to cut the budget deficit? Here are the five biggest myths:
Myth #1: Just stop sending aid to foreign countries.
Fact: The United States only budgeted $1.8 billion on foreign aid for FY 2019. Cutting that wouldn't do much to reduce the $1.1 trillion budget deficit.
Myth #2: Defense spending should be increased, even if other programs must be cut.
Fact: Total U.S. military spending for FY 2020 $989 billion. It includes more than the Department of Defense budget of $576 billion. You must also count the $174 billion which pays for the War on Terror, including military operations in Iraq, Syria, and the War in Afghanistan. There are five other agencies that support defense that should also be included. They are the FBI and Cybersecurity, under the Justice Department budget; the National Nuclear Security Administration, under the Energy Department budget; Homeland Security; the Department of Veterans Affairs; and the State Department.
They add $212.9 billion to the base budget. They also add $26.1 billion to the emergency fund. This huge expense must be reduced if the deficit is to be cut in any meaningful way.
Myth #3: If we reduce military spending, the world will think we are weak.
Fact: The U.S. military budget is greater than those of the next 10 largest spenders combined. The second biggest spender, China, only spent $228 billion. Russia spent $69.4 billion. Our allies are enjoying the benefits of a safer world at the U.S. taxpayers' expense. President Trump has asked them to pay more but continues to increase defense spending.
Myth #4: Military spending creates jobs.
Fact: Defense spending is not the best way to create jobs. A UMass/Amherst study found that $1 billion in military spending created 8,555 jobs. The same amount spent on public transit created 19,795 construction jobs. Spending on public works is the most cost-effective unemployment solution.
Myth #5: The best way to balance the budget is to cut entitlement spending.
Fact: Entitlement programs, such as Social Security, Medicare, Medicaid, and welfare programs are the biggest portions of the budget. Medicare and Medicaid are growing thanks to higher health care costs. But they were created by Acts of Congress. They can't be cut without another Act of Congress. The majority of Congress would have to agree to change the laws that enabled them. That won't happen, because it would be political suicide. Current Social Security and Medicare recipients would vote those Congressmen out of office at the next election.
Understand the Current Federal Budget: