White House, Congress Reach Deal on Federal Budget

House and Senate appropriators have released details of the almost $40 billion in spending reductions that were agreed upon over the weekend in order to avoid a federal government shutdown. The six-month continuing resolution (CR) would set FY11 spending levels at $1.049 trillion, $78.5 billion less than President Obama's FY11 budget request (see the February 16, 2011 Special Federal Budget Issue) and $39.9 billion less than the FY10 spending bill as enacted. More than half of the total spending reductions relate to health, labor and education, including the elimination of over 55 programs in those areas. The CR would allow the federal government to continue to operate until September 30, 2001, the end of the fiscal year. Another high-stakes debate over federal spending is expected next month, when Congress must vote to raise the federal debt ceiling to avoid a default.

Most basic research programs survived without major reductions, but several applied research programs and high-tech economic development programs would be affected. The National Institutes of Health would receive $30.7 billion, a $284 million cut from FY10 actual funding. Many energy programs, particularly programs linked to green and renewable energy, would have their funding reduced, including the Department of Agriculture's Renewable Energy Program, the Department of Energy's Energy Efficiency and Renewable Energy division and the Department of Labor's Green Jobs Innovation Fund. The Appalachian Regional Commission and Denali Commission would have their funding reduced by $8 million and $16 million, respectively. Four administration "czar" positions, all currently vacant, would be eliminated, including the "health care czar", the "climate change czar", "urban affairs czar" and the "car czar". The bill also includes a 0.2 percent across-the-board reduction for all non-defense programs, representing an estimated savings of $1 billion.

Highlights from the CR's reductions (from FY10 enacted levels unless otherwise noted) to TBED programs include:

Department of Agriculture

• USDA Rural Development - $3.33 billion ($10 million reduction), including reductions for salaries and expenses
• National Institute on Food and Agriculture - $1.36 billion ($126 million reduction), including reductions for research and education activities, extension activities and integrated activities
• Agriculture Research Service - $1.22 billion ($44 million reduction)
• National Agriculture Statistics Service - $157 million ($5 million reduction)
• Renewable Energy Program - $34 million reduction
• Distance Learning, Telemedicine, and Broadband Program - $16 million reduction

Department of Commerce

• Economic Development Assistance Programs - $246 million ($9 million reduction), same as the president's request
  
  • National Institute of Standards and Technology
  • Scientific and Technical Research and Services - $508 million ($7 million reduction)
• Technical Innovation Program - $44.9 million (25 million reduction), with no funding for new grants

Department of Energy

• Office of Science - $4.88 billion ($35 million reduction)
• Energy Efficiency and Renewable Energy - $1.83 billion ($438 million reduction)
• Fossil Energy Research and Development - $586 million ($226 million reduction)
• Nuclear Energy - $734 million ($56 million reduction)
• Electricity Delivery and Energy Reliability - $145 million ($31 million reduction)

National Science Foundation

• Research and Related Activities - $5.58 billion ($43 million reduction)
• Education and Human Resources - $863 million ($10 million reduction)

Other notable reductions include:

• Department of Treasury's Community Development Financial Institutions Fund - $227 million ($20 million reduction)
• Department of Homeland Security's Science and Technology Programs - $829 million ($175 million reduction)
• Department of Labor's Green Jobs Innovation Fund - no funding

Read the full text of the continuing resolution (H.R. 1473) at: http://thomas.loc.gov/cgi-bin/query/z?c112:H.R.1473:.

Read the House Appropriations Committee summary of the bill at: http://appropriations.house.gov/_files/41211SummaryFinalFY2011CR.pdf.