House Budget Committee’s Discretionary Spending Cap Proposal Represents Unsound Policy

Publication Date: March 2004

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Richard Kogan; Robert Greenstein

Research Area: Banking and finance

Keywords: Federal budget; Fiscal future; Economic projections

Type: Report

Abstract:

The House Budget Committee approved legislation on March 17 that would establish binding caps for each of the next five years on overall levels for discretionary programs (i.e., programs that are non-entitlements). Under the measure, which was introduced by House Budget Committee Chairman Jim Nussle, the cap for each year would be set at the overall levels for discretionary programs contained in the final budget resolution that the House and Senate agree to in conference.

Although the discretionary caps will be set based on the levels in the conference agreement, this analysis uses for illustrative purposes the levels in the resolution reported by the House Budget Committee. The levels in the Committee plan are very similar to those in the Senate budget resolution, so the conference agreement is likely to be very close to the discretionary totals in the House Budget Committee’s plan.