Print
Category: National News

Washington, DC - Under the President’s leadership, we have turned our economy around and created 14 million jobs. Our unemployment rate is below five percent for the first time in almost eight years. Nearly 18 million people have gained health coverage as the Affordable Care Act has taken effect. And we have dramatically cut our deficits by almost three-quarters and set our Nation on a more sustainable fiscal path.

Yet while it is important to take stock of our progress, this Budget is not about looking back at the road we have traveled. It is about looking forward and making sure our economy works for everybody, not just those at the top. It is about choosing investments that not only make us stronger today, but also reflect the kind of country we aspire to be – the kind of country we want to pass on to our children and grandchildren.

The Budget makes critical investments in our domestic and national security priorities while adhering to the bipartisan budget agreement signed into law last fall, and it lifts sequestration in future years so that we continue to invest in our economic future and our national security. It also drives down deficits and maintains our fiscal progress through smart savings from health care, immigration, and tax reforms.

The Budget shows that the President and the Administration remain focused on meeting our greatest challenges – including accelerating the pace of innovation to tackle climate change and find new treatments for devastating diseases; giving everyone a fair shot at opportunity and economic security; and advancing our national security and global leadership – not only for the year ahead, but for decades to come.

BUILDING ON OUR ECONOMIC AND FISCAL PROGRESS

The Budget makes critical investments while adhering to the bipartisan budget agreement signed into law last fall. It lifts sequestration in 2018 and beyond so that we continue to invest in our economic future and our national security. It also drives down deficits and maintains our fiscal progress through smart savings from health care, immigration, and tax reforms.

A Record of Job Growth and Economic Expansion. Under the President’s leadership, the U.S. economy has become an engine of job growth and economic expansion, outpacing other advanced economies in recovery from the Great Recession. American businesses have added 14 million jobs over the past 71 months – the longest streak of job growth on record. Our unemployment rate is below five percent for the first time in almost eight years. And the economy added 903,000 new manufacturing jobs in the last six years – the first sustained job growth in the sector since the 1990s. Nearly 18 million Americans have gained health insurance under the Affordable Care Act and our high school graduation rate is at an all-time high.

Reflecting on Our Fiscal Progress. We have made remarkable economic and fiscal progress, showing what’s possible when strategic investment to grow our economy is paired with smart reforms, for example to our health care system, that address the true drivers of our long-term fiscal challenges. Since 2009, under the President’s leadership, Federal deficits have fallen by nearly three-quarters – the most rapid sustained defi­cit reduction since just after World War II. The annual deficit in 2015 fell to 2.5 percent of the Gross Domestic Product (GDP), the lowest level since 2007, and well below the average of the last 40 years.

Building on Our Success for a Stronger Economy. The President’s Budget continues that approach, investing in America’s future and laying out a path to address our greatest challenges. It builds on the bipartisan budget agreement secured last fall, adhering to the discretionary levels provided for 2017, while also putting forward paid-for mandatory investments that are critical to building durable economic growth in the future and maintaining America’s edge as the leader in innovation and cutting-edge science. The Budget proposes a number of reforms – including a detailed international tax reform plan – that would modernize the business tax code to make it fairer and more efficient, and to create jobs. The Budget also finishes the job the past two bipartisan agreements started by preventing the return of harmful sequestration funding levels in 2018 and beyond, replacing the savings by closing tax loopholes and reforming tax expenditures, and with smart spending reforms. 

Investing in Economic Growth While Maintaining Fiscal Responsibility. The Budget more than pays for all new investments, achieving $2.9 trillion of deficit reduction over 10 years, from health, tax, and immigration reforms, and other proposals. The Budget includes roughly $375 billion of health savings that grow over time and builds on the ACA with further incentives to improve qual­ity and control health care cost growth. The Budget achieves more than $955 billion in deficit reduction from reducing tax benefits for high-income households, helping to bring in sufficient revenues to make vital investments while also helping to meet our promises to seniors.  The Budget reflects the President’s support for commonsense, comprehensive immigration reform along the lines of the 2013 bipartisan Senate-passed bill, which CBO has estimated would reduce the deficit by about $170 billion over 10 years and by almost $1 trillion over two decades.

The Budget keeps deficits below three percent of GDP while stabilizing debt and putting it on a declining path for most of the next decade – key measures of fiscal progress – showing that investments in growth and opportunity are compatible with putting the Nation’s finances on a strong and sustainable path.

INNOVATION TO FORGE A BETTER FUTURE

The Budget invests in accelerating the pace of American innovation, so we can create jobs and build the economy of the future while tackling our greatest challenges, including addressing climate change and finding new treatments and cures for devastating diseases. The Budget includes investments in:

Building a 21st Century Transportation System. The Budget invests $320 billion over 10 years in a multi-agency initiative to build a clean transportation system for the 21st Century that speeds goods to market while reducing America’s reliance on oil, cutting carbon pollution, and strengthening our resilience to the effects of the changing climate.  Overall, the 21st Century Clean Transportation Plan will increase American investments in clean transportation infrastructure by roughly 50 percent above current levels while reforming the transportation investments already being made to move America to more sustainable, low-carbon investments.

Prioritizing Research and Development. The Budget sustains the Administration’s consistent prioritization of R&D with an invest­ment of $152 billion for R&D overall through both discretionary and mandatory funding proposals, a four percent increase from 2016.

Protecting and Expanding the Nation’s Water Supply. The Budget supports the Administration’s two-part water innovation strategy to boost water sustainability and reduce the price and energy costs of new water supply technology to increase the resilience of our Nation’s water supplies to stressors like climate change and population growth, among others.

Supporting Adoption of Clean Energy. In addition to Mission Innovation funding, the Budget provides over $1.3 billion to accelerate the adoption of clean energy sources such as solar, wind, and low-carbon fossil fuels, and energy-efficiency technologies.

Partnering with Communities to Tackle Climate Risk. The Budget invests in programs that advance our scientific understanding of projected climate impacts, including changes in droughts, wildland fires, and coastal and inland flooding; assist communities in planning and preparing for future risks; and support risk-reduction and adaptation projects on the ground.

Protecting and Preserving Public Lands and Oceans. The Budget includes robust funding to support proven programs like the Land and Water Conservation Fund that allow Federal agencies and their partners to enhance the resilience of our lands and waters, and continue to preserve and share our cultural and historical identity.

Leading Global Efforts to Cut Carbon Pollution and Enhance Climate Change Resilience. In support of the President’s Climate Action Plan, the Budget provides $1.3 billion to advance the goals of the Global Climate Change Initiative (GCCI) through important multilateral and bilateral engagement with major and emerging economies. This amount includes $750 million in U.S. funding for the Green Climate Fund (GCF), which will help developing countries leverage public and private financing to invest in reducing carbon pollution and strengthening resilience to climate change.

OPPORTUNITY FOR ALL

As the President stated in the 2016 State of the Union Address, one of the Nation’s key challenges is how to give everyone a fair shot at opportunity and economic security. In today’s global economy, our competitiveness depends on tapping the full potential of all Americans. To address this challenge, the Budget supports education; training and support for workers and their families; access to health care; and other investments to ensure that all Americans contribute to and benefit from our economic growth.

Improving Access to High-Quality Child Care and Early Education. High-quality child care and early education for young children support parents in the workforce and help foster healthy child development and school readiness. The Budget aims to ensure that children have access to high-quality learning starting at birth by:

Putting All Students on a Path to College and Careers. We have made significant progress in expanding educational opportunities and we are getting results: high school graduation rates are up, drop-out rates are down, and far more students are attending college than in 2008. But there's more we must do to ensure that all children get a high-quality education that allows them to reach their full potential.  The Budget focuses on providing equity and opportunity for all students in elementary and secondary education and expanding college opportunity and quality by:

Helping Workers Get the Skills They Need for the 21st Century Economy. A nation’s ability to ensure a steady and consistent pipeline of highly skilled workers is one key ingredient to helping its economy grow and thrive.  One of the surest paths to ensuring that the economy works for everyone is to expand access to job training and education for in-demand skills.  The Budget supports this agenda by:

Helping Americans Thrive in the 21st Century Economy. The Budget invests in programs that help ensure workers in the 21st century economy can balance work and family obligations, stay healthy, save for retirement, and are protected during temporary periods of unemployment and upon return to work. The Budget also supports evidence-based efforts to reduce poverty and help those who are struggling to get back on their feet.

Ensuring Access to Quality, Affordable Health Care. The Budget supports the Affordable Care Act, which is already providing coverage for millions of Americans through the Health Insurance Marketplaces, the delivery of financial assistance to make coverage affordable, and the expansion of Medicaid.  It also supports:

Incentivizing Justice Reform with the 21st Century Justice Initiative. The Administration continues to support criminal justice reform that enhances public safety, avoids excessive punishment and unnecessary incarceration, and builds trust between the justice system and the community. The Budget includes a $5 billion investment for a new 21st Century Justice Initiative that will focus on achieving three objectives: reducing crime, reversing practices that have led to unnecessarily long sentences and unnecessary incarceration, and building community trust.

NATIONAL SECURITY AND GLOBAL LEADERSHIP

Economic growth and opportunity can only be achieved if America is safe and secure. The Budget provides the resources to address security threats wherever they arise and continue to demonstrate American leadership around the world.

Destroying ISIL. The President’s highest priority is keeping the American people safe. That is why the United States is leading the global coalition that will de­stroy the Islamic State of Iraq and the Levant (ISIL). The Budget provides over $11 billion for the Department of Defense (DOD) and the Department of State to support U.S. efforts to continue to hunt down terrorists; provide training and equipment to forces fighting ISIL on the ground; help stabilize communities liberated from ISIL in Syria and Iraq; disrupt ISIL’s financing and recruitment; strengthen our regional partners, provide humanitarian assistance to those impacted by the conflict; and support a political solution to the Syrian civil war.

Countering Violent Extremism. The President’s Budget includes funding for innovative, community-based approaches that seek to discourage violent extremism and to improve the ability of communities to identify potential extremists and intervene where necessary to thwart radical behavior that may lead to violence. 

Securing the Digital Economy for All Americans Through Strengthened Cybersecurity. The Budget invests $19 billion in overall Federal resources for cybersecurity to support a broad-based cybersecurity strategy for securing the Government, enhancing the security of critical infrastructure and important technologies, investing in next-generation tools and workforce, and empowering Americans. In particular, this funding will support the Cybersecurity National Action Plan, which takes near-term actions and puts in place a long-term strategy to enhance cybersecurity awareness and protections, protect privacy, maintain public safety as well as economic and national security, and empower Americans to take better control of their digital security.

Supporting the Transition in Afghanistan. The Budget includes resources to reinforce Afghanistan’s security and development by supporting military training and assistance, as well as health, education, justice, economic growth, governance, and other civilian assistance programs necessary to promote stability and strengthen diplomatic ties with the international community. The Budget also supports the U.S. military mission to train, advise, and assist the Afghan National Security Forces and maintain a counterterrorism capability.

Countering Russian Aggression and Supporting European Allies. The Budget includes $4.3 billion for political, economic, public diplomacy, and military support to build resilience and reduce vulnerabilities to Russian aggression among NATO allies and partner states in Europe, Eurasia, and Central Asia. As part of that effort the Budget includes $3.4 billion for the Department of Defense’s European Reassurance Initiative (ERI).

Providing Further Support for the Central American Regional Strategy. The Budget provides necessary resources to further support the U.S. Strategy for Engagement in Central America by investing in a long-term, comprehensive approach designed to address the root causes of migration of unaccompanied children and families from the region.

Advancing the Rebalance to Asia and the Pacific. The Budget supports the Administration’s commitment to a comprehensive regional strategy in Asia and the Pacific that reinforces a rules-based order and advances security, prosperity, and human dignity across the region. For instance, the Budget provides the necessary resources to implement the Trans-Pacific Partnership (TPP) — a historic, high-standard trade agreement with 11 countries of the region that levels the playing field for American workers and American businesses.

Growing Partnerships in Africa. The Budget provides funding to ensure United States will uphold the commitments it made during the U.S.-Africa Leaders Summit in 2014, including with respect to Power Africa, Trade Africa, the Security Governance Initiative (SGI), the Young African Leaders Initiative (YALI), the African Peacekeeping Rapid Response Partnership (APRRP), and the Early Warning and Response Partnership (EWARP). It also provides resources for implementing the peace agreement in South Sudan.

Preparing for the Future. In addition to addressing today’s changing security environment, the Budget makes sig­nificant investments to maintain our military’s superiority and ensure the United States always has an operational advantage over any potential adversary. The Budget does this by driving smart and essential innovation: pursuing new research and technology development; supporting updates and refinements to operational concepts and warfighting strategies; supporting capaci­ty building among local partners; building the Force of the Future; and pursuing additional enterprise reform.

Sustaining the President’s Development and Democracy Agenda. The Budget continues to advance the Administration’s development and democracy initiatives and activities as it seeks to reduce extreme poverty, encourage broad-based economic growth, and support democratic governance and human rights – and to drive progress toward meeting the global development vision and priorities adopted in the 2030 Agenda for Sustainable Development.  This includes investments in Feed the Future, the President’s food security initiative; development programs that mobilize the private sector to deliver tangible results and advance U.S. interests; food aid and other humanitarian assistance programs; the First Lady’s Let Girls Learn Initiative; and effective global health programs, including for the President’s Malaria Initiative and the President’s Emergency Plan for AIDS Relief (PEPFAR).

Honoring Our Commitment to Veterans. The Budget ensures continued investment in the five pillars the President has outlined for supporting the Nation’s veterans: providing the resources and funding they deserve; ensuring high-quality and timely health care; getting veterans their earned benefits quickly and efficiently; ending veteran homelessness; and helping veterans and their families get good jobs, an education, and access to affordable housing. It also puts forward a proposal to fundamentally reform the broken appeals process for disability claims so that it can best serve our veterans.

A GOVERNMENT OF THE FUTURE

The President is committed to driving last­ing change in how Government works – change that makes a significant, tangible, and positive difference in the economy and the lives of the American people. Over the past seven years, the Administration has launched successful efforts to modernize and improve citizen-facing services, eliminate wasteful spending, reduce the Federal real property footprint, improve the use of evidence to improve program performance, and spur innova­tion in the private sector by opening to the public tens of thousands of Federal data sets and inno­vation assets at the national labs.

Supporting the President’s Management Agenda. The Budget includes investments to continue driving the President’s Management Agenda by improving the service we provide to the American public; leveraging the Federal Government’s buying power to bring more value and efficiency to how we use taxpayer dollars; opening Government data and research to the private sector to drive innovation and economic growth; promoting smarter information technology; modernizing permitting and environmental review processes; creating new Idea Labs to support employees with promising ideas; and, attracting and retaining the best talent in the Federal workforce. 

Supporting Digital Service Delivery for Citizens. In 2014 the Administration piloted the U.S. Digital Service, a unit of innovators, entrepreneurs, and engineers. This team of America’s best digital experts has worked in collaboration with Federal agencies to implement streamlined and effective digital technology practices on the Nation’s highest priority programs. This work includes collaborating with the Department of Education to launch the new College Scorecard to give stu­dents, parents, and their advisors most reliable national data to help with college choice and supporting the U.S. Citizenship and Immigration Services (USCIS) transition to launch the new myUSCIS which makes it easier for users to access information about the immigration process and immigration ser­vices. To institutionalize the dramatic improve­ments that this approach has demonstrated, the Budget supports the Administration’s aggressive goal of hiring and placing 500 top technology and design experts to serve in the Government by January 2017.

Strengthening Federal Cybersecurity. As outlined above, the Budget provides $19 billion in resources for cybersecurity. This includes the creation of a new $3.1 billion revolving fund, the Information Technology Modernization Fund (ITMF), to retire the Government’s antiquated IT systems and transition to more secure and efficient modern IT systems, funding to streamline governance and secure Federal networks, and investments to strengthen the cybersecurity workforce and cybersecurity education across society. 

Building Evidence and Encouraging Innovation. The President has made it clear that policy decisions should be driven by evidence so that the Federal government can do more of what works and less of what does not. The Administration's evidence-based approaches have resulted in important gains in areas ranging from reducing veteran homelessness, to improving educational outcomes, to enhancing the effectiveness of international development programs. The Budget invests in expanding evidence-based approaches, developing and testing effective practices, and enhancing government’s capacity to build and use evidence, in particular by expanding access to administrative data and further developing Federal, State, local, and tribal data infrastructure.

Reorganizing Government to Succeed in the Global Economy. The Budget also includes proposals to consolidate and reorganize Government agencies to make them leaner and more efficient, and it increases the use of evidence and evaluation to ensure that taxpayer dollars are spent wisely on programs that work.