CBO: Biden budget cuts emergency funding.

President Biden’s Proposed Budget Falls Short of Projections

What You Need to Know

President Joe Biden’s proposed discretionary budget for 2024 is lower than expected, according to a report by the Congressional Budget Office (CBO). The proposed funding is 4% below CBO projections for the year and 12% for the coming decade. The reductions were achieved by budgeting less for emergency requirements than the CBO had projected. Spending is also below CBO projections by about 2%. Defense spending is 3% below CBO’s projection, and all other categories are 1% under the estimate.

What is Discretionary Spending?

Discretionary spending is spending that Congress votes on each year. This includes funding national defense, border security, transportation, education, some veterans’ benefits, environmental protection, nutrition programs, and most other government services. The other major category in the federal budget is non-discretionary spending. It is called non-discretionary because Congress does not vote on its approval. This includes funding for programs like Social Security, Medicare, and student loans, which were approved by Congress years ago.

Lowest Percentage of GDP in 50 Years

Measured as a percentage of the nation’s gross domestic product (GDP), the two categories of discretionary spending total 5.3%. Defense spending is projected to equal 2.5% of GDP and non-defense spending 2.8%. This is the lowest percentage of GDP in both categories for 50 years, according to the CBO.

What Does This Mean?

President Biden’s proposed budget falls short of projections, but it is important to understand the difference between discretionary and non-discretionary spending. While discretionary spending is subject to annual approval by Congress, non-discretionary spending is not. The proposed budget may have an impact on funding for national defense, border security, transportation, education, veterans’ benefits, environmental protection, and nutrition programs. It remains to be seen how Congress will respond to the proposed budget and what changes may be made.

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