FY 2017 Federal Budget: Obama,Trump and Enacted Budgets

Compare Congress' Enacted Budget to Trump and Obama's Requests

Marines from the 3rd Marine Aircraft wing walk by a V-22 Osprey
Marines from the 3rd Marine Aircraft wing walk by a V-22 Osprey. Photo by Sandy Huffaker/Corbis via Getty Images

The fiscal year 2017 federal budget outlines U.S. government revenue and spending from October 1, 2016 through September 30, 2017. The Office of Management and Budget estimates revenue will be $3.460 trillion. That's less than the estimated $4.037 trillion in spending. That means a $577 billion budget deficit. (Source: "FY 2018 Budget, Table S-4." OMB, May 23, 2017.)

Revenue

The OMB estimated FY 2017 revenue of $3.460 trillion.

Income taxes contributed $1.660 trillion, payroll taxes are $1.174 trillion and corporate taxes add $324 billion. The remaining $302 billion is from excise taxes, estate taxes, interest on Federal Reserve deposits and other miscellaneous sources. (Source: "FY 2018 Budget, Table S-4." OMB, May 23, 2017.)

Tax Freedom Day occurs in late April. That's how long taxpayers work to pay for all government revenue collected. 

Spending

The federal government will spend $4.037 trillion in FY 2017. Government spending has three components: discretionary, mandatory and interest on the debt. 

Discretionary: Congress appropriate funds each year for agencies covered by the discretionary budget. For FY 2017, the Congressional bill appropriated $1.07 trillion. It added $118.2 billion in Emergency Funding. It is not subject to limits imposed by sequestration. Most of that goes toward Overseas Contingency Operations.

That pays for military operations in the Middle East. That increases the total discretionary budget to $1.188 trillion.

Here is a breakout of discretionary spending. It compares three budgets. The first column shows Obama's budget request. The second column shows Trump's budget request. The third column is actual spending Congress enacted on May 1, 2017.

 

FY 2017 Budget: Obama Budget Request, Trump's Budget Request, Amount Enacted by Congress (in billions)

DepartmentObama BudgetTrump Budget Enacted
Defense Dept   $523.9   $546.6    $516.1
Education     $69.4     $63.6      $68.0
Energy     $30.2     $27.7      $37.8
    NNSA     $12.9     $12.5      $12.9
Human Services     $77.9     $72.4      $73.5
Homeland     $40.6     $44.1      $42.4
HUD     $38.0     $33.6      $38.8
Justice     $18.1     $18.9      $18.1
NASA     $18.3     $19.2      $19.7
State     $37.8     $35.4      $36.6
VA     $75.1     $74.5      $75.1
All Other Depts.   $135.9   $131.9    $128.9
Subtotal$1,065.2$1,080.5 $1,070.0
Emergency Funding     $84.2   $101.8    $101.8
Total Discretionary $1,149.4$1,182.3 $1,171.8

 

President Obama submitted the FY 2017 request to Congress on February 9, 2016. That initiated the budget process. Congress can use the president's budget as a guide for its appropriations. This becomes the annual discretionary spending bill. Congress would have submitted the bill to the President for signature by September 30, 2016 if it had followed this process. (Source for Obama's budget: "Table S-5. Mid-Session Review Fiscal Year 2017," Office of Management and Budget, July 15, 2016.)

But it was an election year. So, Congress passed a bill called the continuing resolution. It continued funding for federal departments at then-current levels. Otherwise, the government would have shut down like it did in 2013. (Source: "FY 2018 Budget, Table 2." OMB, March 16, 2017.)

President Trump submitted a budget amendment on March 16, 2017. It asked Congress to change discretionary spending from the amount it enacted in its Continuing Resolution.  (Source: "FY 2017 Budget Amendment." OMB, March 16, 2017.)

On April 30, 2017, the Congressional leaders agreed on a budget. The Senate and House approved the spending bill on May 1, 2017. It appropriated $1.07 trillion in discretionary spending. That's $500,000 more than Obama's budget.

Congress added a total of $101.8 billion in emergency funding.

It looks like Congress cut $7.8 billion in defense spending, but in fact it added that back and more in emergency funding.  (Sources: "Congress's Enacted Budget," May 1, 2017, except for Justice and VA, which are based on Congress' budget enacted  in FY 2016. "What's in the Spending Bill?" The Washington Post, May 1, 2017.)

Mandatory: The government will spend $2.573 trillion on mandated benefits. This portion of the budget is an estimate, not an appropriation. That means Congress can't change it as part of the normal budget process. Congress mandated the benefit payments when it passed the laws that created the programs. The most recent estimates are from the FY 2018 budget.

  • Social Security – $946 billion. Payroll taxes fund 100 percent of the cost.
  • Medicare – $593 billion. Payroll taxes and premiums fund 57 percent of the cost.
  • Medicaid – $378 billion. Paid out of the general fund.
  • All other – $656 billion. This includes food stamps and Supplemental Security Income. All programs are paid out of the general fund except for Unemployment Compensation, which is partially funded by payroll taxes. The Affordable Care Act and TARP are self-funded.

Interest on the DebtInterest payments on the national debt are not officially part of the mandatory budget, but the payments must be made. The expected payment is $276 billion for FY 2017. That will increase in future years now that interest rates are rising

Deficit

The Treasury Department reported that the actual deficit for FY 2017 was $666 billion. Revenue was a record $3.3 trillion. Spending was also a record, at almost $ 4 trillion. The deficit was 14 percent higher than the prior year. Further details are not available.

The FY 2017 deficit was budgeted at $577 billion. That's total expected revenue of $3.460 trillion minus total expected spending of $4.037 trillion. 

FY 2017 (in billions)SubtotalTotal
Revenue $3,460
Mandatory$2,573 
Interest on the Debt   $276 
Discretionary (Enacted)$1,172 
Total Spending $4,021
Deficit    $561

To compare U.S. budget deficits through history, see U.S. Deficit by Year and Deficit by President. 

Compare to Other U.S. Federal Budgets