The President's Budget for Fiscal Year
2015
Opportunity for All: The Presidentfs Fiscal Year 2015
Budget
A Roadmap for Growth, Opportunity, and Fiscal
Responsibility: The Presidentfs Budget provides a roadmap for
accelerating economic growth, expanding opportunity for all Americans, and
ensuring fiscal responsibility. It invests in infrastructure, job training,
preschool, and pro-work tax cuts, while reducing deficits through health, tax,
and immigration reform.
Builds on Bipartisan Progress: The Budget adheres to the
2015 spending levels agreed to in the Bipartisan Budget Act and shows the
choices the President would make at those levels. But it also shows how to
build on this progress to realize the nationfs full potential with a fully paid
for $56 billion Opportunity, Growth, and Security Initiative, split evenly
between defense and non-defense priorities.
WHAT THE PRESIDENTfS BUDGET DELIVERS:
- Stronger Growth and Job Creation:
- Advanced manufacturing – Invests in American innovation and
strengthens our manufacturing base, including a national network of 45
manufacturing institutes.
- Research and innovation – Supports
ground-breaking research to fight disease, protect the environment, and
develop new technologies, and makes permanent the R&D Tax Credit.
- Pro-growth infrastructure – Lays out an
ambitious, four-year $302 billion surface transportation reauthorization
proposal paid for with transition revenue from pro-growth business tax
reform.
- Government reform – Promotes government management that delivers
improved services that are more effective, efficient, and supportive of
economic growth.
- Opportunity for All:
- Tax cuts for working Americans – Doubles the maximum value of the
childless worker EITC to build on the EITCfs success in encouraging people
to enter the workforce and reducing poverty; improves tax benefits that help
middle-class and working families pay for child care and college and save
for retirement.
- Preschool for all – Invests in the Presidentfs vision of making
access to high-quality preschool available to every four-year-old
child.
- Job-driven training – Invests in new efforts to drive greater
performance and innovation in workforce training to equip workers with
skills that match the needs of employers.
- Fiscal Responsibility:
- Continues historic progress in slowing health care cost growth –
Builds on the savings and reforms in the Affordable Care Act with additional
measures to strengthen Medicare and Medicaid, slow health care cost growth,
and improve the quality of care.
- Pro-growth tax reform – Curbs inefficient and
unfair tax breaks that benefit the wealthiest, and ensures that everyone is
paying their fair share.
- Immigration reform – Supports comprehensive
reform of our broken immigration system, which independent economists say
will grow our economy and shrink our deficits.
- Further reduces the deficit and debt – By paying for new
investments and tackling our true fiscal challenges, reduces deficits to 1.6
percent of GDP by 2024, and stabilizes debt as a share of the economy by
2015 and puts it on a declining path after that.
* * *
Investing in American Innovation to Create Jobs and
Opportunity
To compete in the 21st Century economy and make America a magnet
for job creation and opportunity, the Budget invests in American innovation,
strengthening our manufacturing base and keeping our nation at the forefront of
technological advancement. And to ensure our energy security and address global
climate change, it continues to focus on domestic energy production, the
development of clean energy alternatives, and the promotion of energy
efficiency.
- Transforms regions across the country into global epicenters of
advanced manufacturing by supporting the Presidentfs goal of creating 45
manufacturing innovation institutes over 10 years, building on the four
institutes already launched and the five additional institutes that will be
launched 2014.
- Expands and enhances SelectUSA, using a whole of Government
approach to attract business investment to the United States.
- Maintains commitment to world-class science and research, targeting
R&D resources to areas most likely to directly contribute to the creation
of transformational technologies that can create the businesses and jobs of
the future, such as advanced manufacturing, clean energy, health care, and
agriculture. Also reforms and makes permanent the Research and
Experimentation Tax Credit to further incentivize private-sector
R&D.
- Advances the Presidentfs gall-of-the-aboveh strategy on energy by
investing in the safe and responsible production of natural gas; promoting
cleaner-burning fossil fuel technology such as natural gas with carbon
capture; supporting the development of clean energy alternatives; advancing
energy efficiency in our cars, trucks, homes, and buildings; expanding and
making permanent the tax credit for renewable energy production; and
eliminating $4 billion per year in taxpayer subsidies to the oil, gas, and
other fuel producers.
- Supports the Presidentfs Climate Action Plan to cut carbon
pollution in the U.S. by reducing emissions through reasonable standards and
improving energy efficiency; enhance preparedness and resilience to climate
change; and strengthen U.S. leadership in international efforts to address
global climate change and prepare for its impacts.
Building a 21st Century Infrastructure
Building a durable and reliable infrastructure will create good American jobs
that cannot be outsourced and will provide businesses with the transportation
and communication networks our economy needs. The Budget includes significant
investments to repair our existing infrastructure and build the infrastructure
of tomorrow.
- Includes a $302 billion, four-year surface transportation
reauthorization proposal to support infrastructure projects and create
jobs while improving Americafs roads, bridges, transit systems, and
railways. Emphasizes gfix-it-firsth investments to repair existing
transportation infrastructure, while also modernizing our infrastructure by
making new investments in transit, intercity passenger rail, and competitive
grant programs. Pays for investments in infrastructure with transition revenue
from business tax reform that simplifies the tax code and promotes economic
growth.
- Boosts private investment in infrastructure through a Rebuild America
Partnership, establishing an independent National Infrastructure Bank to
leverage private and public capital to support infrastructure projects of
national and regional significance; and creating America Fast Forward (AFF)
Bonds, building on the successful Build America Bonds program to attract new
sources of capital for infrastructure investment.
- Modernizes and improves the Federal permitting process for major
infrastructure projects, cutting through red tape and getting more timely
decisions on Federal permits and reviews while ensuring that projects lead to
better outcomes for communities and the environment.
- Launches a National Parks Centennial Initiative, putting youth,
returning veterans, and other Americans to work restoring some of our greatest
historical, cultural, and natural treasures.
Equipping All Americans with a High-Quality Education and the Skills
They Need
Americans must be prepared with the skills and knowledge necessary to compete
in the 21st Century economy. Expanding educational opportunities is critical to
equipping all children with these skills and positioning them to succeed as
adults. The Budget includes investments and initiatives to improve all levels of
education, from early childhood education through college, as well as
significant new efforts to ensure our workforce has the skills needed by
American businesses.
- To build a foundation for success in the formative early years of life,
increases access to high-quality early childhood education.
- Supports a Preschool for All initiative, in partnership with the
States, to provide all low- and moderate-income four-year-olds with access
to high-quality preschool, while encouraging States to expand those programs
to reach additional children from middle-class families and establish
full-day kindergarten policies.
- Extends and expands evidence-based, voluntary home visiting
programs, which enable nurses, social workers, and other professionals to
connect families to services and educational supports.
- Pays for these initiatives by raising Federal tobacco taxes, which
will also help discourage youth smoking and save lives.
- Provides access to high-quality infant and toddler care to a total
of more than 100,000 children through Early Head Start-Child Care
Partnerships, and supports Head Start grantees who are expanding program
duration and investing in teacher quality, through additional funding in the
Opportunity, Growth, and Security Initiative.
- Launches a new Race to the Top for Equity and Opportunity
competition centered on increasing the academic performance of high-need
students and closing the achievement gap.
- Creates a new, competitive program to redesign high schools to
provide students with challenging, innovative and relevant learning
experiences, and to reward high schools that develop partnerships with
colleges, employers, and other entities to deliver new opportunities for
students to gain the knowledge and skills that will help them succeed in
todayfs economy, with additional funding in the Opportunity, Growth, and
Security Initiative.
- Provides 100,000 teachers in 500 districts with access to professional
development to help them make effective use of new broadband
connectivity, through further investments in the Opportunity, Growth, and
Security Initiative, as the Administration works to achieve the
Presidentfs goal of connecting 99 percent of American students to the digital
age through broadband and wireless in schools and libraries.
- Improves the impact of the Federal investment in science, technology,
engineering, and mathematics (STEM) education by creating a fresh
framework for delivering STEM education, supporting what works, and reducing
fragmentation.
- Makes a high-quality college education more affordable by
continuing our commitment to Pell Grants, providing bonuses to colleges that
improve educational outcomes for Pell Grant recipients, supporting the
development and refinement of a new college ratings system supporting
State-driven reforms to improve the performance of higher education
institutions, investing in innovative approaches to higher education, and
expanding income-driven repayment options to help student borrowers better
manage their loan debt.
- Includes significant new investments to give workers the skills and
training they need to pursue in-demand jobs and careers, and drives
greater performance and innovation in the workforce system, including funding
in the Opportunity, Growth, and Security Initiative to promote on-the-job
apprenticeships that have proven successful in other advanced countries and
job-driven training through community colleges.
- Supports new public-private partnerships to help the long-term
unemployed build skills and transition back into good jobs that can
support their families.
- Invests in educating the health care workforce to improve access to
health care services, including support to place and maintain 15,000
providers in the National Health Service Corps that will serve areas across
the country that need them most, and creating 13,000 graduate medical
education residency slots over ten years in primary care and other high need
specialties.
Expanding Opportunity and Middle Class Security
Our economy is moving forward and businesses are creating jobs. But to
build real, lasting economic security we need to create more opportunities for
all working and middle class Americans to get ahead. The Budget includes a
series of proposals to help ensure that if you work hard and play by the rules,
you can find a good job, feel secure about your community, and support a
family.
- Builds on the Presidentfs Executive Order that raised the minimum wage
to $10.10 for individuals working under Federal contracts by calling on
the Congress to reward hard work for all Americans by raising the minimum wage
to $10.10 and indexing it to inflation thereafter, while also raising the
minimum wage for tipped workers for the first time in over 20 years.
- Improves wage and benefit conditions for American workers, by
increasing enforcement of the laws that ensure workers receive the wages and
overtime pay they earned, as well as the right to take job-protected leave for
family and medical purposes, and by supporting State paid leave
programs.
- Calls on the Congress to extend unemployment insurance for
the 1.7 million Americans looking for work who have had their assistance cut
off, reviving a vital economic lifeline and boosting job creation and economic
growth.
- Supports the Administrationfs Promise Zone initiative, which is
creating partnerships between the Federal Government, local communities, and
businesses to create jobs, promote economic security, expand educational
opportunities, increase access to quality, affordable housing, and improve
public safety. With the additional resources provided in the Opportunity,
Growth, and Security Initiative, supports 35 new Promise Neighborhoods and up
to 10 new Choice Neighborhoods.
- Includes resources needed to end veteransf homelessness in 2015 and end
chronic homelessness in 2016, keeping us on track to meet the Presidentfs
goal of ending homelessness across the country.
- Expands the Earned Income Tax Credit (EITC) for childless workers,
doubling the maximum credit to $1,000.
- Makes the credit available to young adult workers age 21-24, to
provide added support and reward for work during the crucial years at the
beginning of a young personfs career, and to older workers up to the Social
Security full retirement age.
- Pays for the EITC expansion by closing high-income tax
loopholes.
- Helps workers with disabilities remain in the workforce, providing
new resources for the Social Security Administration, in partnership with
other Federal agencies, to test innovative strategies.
- Improves retirement security by supporting the Presidentfs proposal
to create a new simple, safe and affordable gstarterh retirement savings
account called MyRA. Also proposes to establish automatic enrollment in
IRAs (or gauto-IRAsh) for employees without access to a workplace savings
plan. Maintains the Presidentfs strong commitment to preserve Social
Security for future generations.
- Supports implementation of the Affordable Care Act, ensuring that
every American can access high-quality, affordable coverage, providing health
insurance to millions of Americans who would otherwise be uninsured, while
driving down health care cost growth and reducing the deficit.
Ensuring Our Nationfs Safety and Security
Economic growth and opportunity can only be achieved if America is safe and
secure. The Budget supports efforts to promote the countryfs security and
well-being both at home and abroad.
- Supports the gNow is the Timeh initiative, the Presidentfs plan to
protect our children and our communities by reducing gun violence through
improved background checks by the FBI and improved data via the National
Criminal History Improvement Program, inspections of Federally-licensed
firearms dealers, improved tracing and ballistics analysis, and efforts
to keep guns out of the hands of dangerous criminals. The Budget provides
training for State and local law enforcement to prevent and respond to active
shooters and prevent mass casualties, invests in programs to identify mental
health issues early and continues the Comprehensive School Safety Program and
other initiatives to enhance school security.
- Supports the gSmart on Crimeh initiative, which is a comprehensive
review by the Department of Justice of the criminal justice system in order to
identify reforms that would ensure federal laws are enforced more fairly and –
in an ear of reduced budgets – more efficiently. Under this initiative, the
Department is taking steps to modify its charging policies with regard to
mandatory minimum sentences for certain federal low-level, drug-related
offenses, improve diversion and reentry policies, strengthen protections for
the most vulnerable populations, and increase investments to build stronger
and safer communities.
- Addresses growing cost and damage from wildfires by creating a
dedicated source of funding outside of the discretionary budget caps for
wildland fire suppression, providing funding certainty in future years for
firefighting costs, freeing up resources to invest in areas that will promote
fire risk reduction and long-term forest and rangeland health and
preservation, and maintaining fiscal responsibility by addressing wildfire
disaster needs through agreed-upon funding mechanisms.
- Advances national security priorities and provides resources and
capabilities to protect the security of the United States and its interests
around the world.
- Responsibly transitions from the completion of our military mission
in Afghanistan in 2014 to political and security support for a unified
Afghanistan government as it takes full responsibility for its own
future.
- Ensures we maintain ready, modern, and capable defense forces to
address any threats we might face, including threats from terrorism and
cyber attacks.
- Funds humanitarian and diplomatic efforts in Syria and supports
transition and reform throughout the Middle East and North Africa.
- Advances our strategic rebalancing toward the Asia-Pacific
region.
- Enhances stability and creates markets for U.S. businesses with
investments in Power Africa and supports young leaders.
- Promotes peace and security by supporting global health care and
addressing climate change.
- Strengthens oversight of intelligence activities.
- Enhances the protection of U.S. diplomatic facilities and personnel
overseas.
- Ensures we meet our obligations to our troops and veterans who have
given so much to the country by providing significant resources to support
veteransf medical care, help military families, assist soldiers transitioning
to civilian life, reduce veteransf homelessness, and improve the disability
claims processing system. Also includes reforms to our military
compensation system called for by our uniformed military leadership, to make
sure that our military can invest in the training, equipment, and support that
it needs.
Managing Government to Drive Further Growth and
Opportunity
The Budget takes key steps to both continue and enhance the Administrationfs
efforts to deliver a Government that is more effective, efficient, and
supportive of economic growth.
- Includes initiatives to deliver better, faster, and smarter services to
citizens and businesses, including investing in new approaches to digital
services to provide a world-class customer service experience to citizens and
businesses to Government information technology.
- Expands the use of shared services between Federal agencies and
strategic sourcing to leverage the buying power of the Government,
bringing greater value and efficiency for taxpayer dollars.
- Continues to open Government data and research for public and
private sector use to spur innovation and job creation, while ensuring strong
privacy protections.
- Invests in training, development, and recruitment of the Federal
workforce, unlocking the potential of our Government and ensuring that we
can attract and retain the best talent and foster a culture of
excellence.
Opportunity, Growth, and Security Initiative: Securing
Our Nationfs Future
The Budget adheres to the funding levels in the bipartisan budget
compromise reached by Congress in December, but also demonstrates the
Presidentfs vision for an even stronger future for the country by
including a fully-paid for $56 billion Opportunity, Growth, and Security
Initiative showing where additional investments should be made in critical
areas to create more jobs and opportunity and help the country reach its
full potential. The Initiative is split evenly between defense and
non-defense discretionary funding and includes investments in the critical
areas of education; research and innovation; infrastructure and jobs;
opportunity and mobility; public health, safety and security; more
efficient and effective Government; and national defense. It
will:
- Help restore our global edge in basic research.
- Support high-quality early learning opportunities across
the country, prepare teachers to take advantage of broadband technology
in the classroom, invest in closing the achievement gap, and redesign
high schools to help students succeed in todayfs economy.
- Invest in our communities through emergency response
activities, juvenile justice programs, and support for Promise Zones,
and fund a national network of manufacturing institutes that will spur
economic development.
- Put people back to work, restoring our national parks,
renovating veteransf hospitals, and modernizing our national airspace
system; and invest in building Americansf skills through apprenticeships
and job-driven training at community colleges.
- Invest in research, community assistance, and resilient
infrastructure that will better prepare us for the effects of climate
change.
- Put a stop to short-sighted cuts that compromise efficiency
and effectiveness, and cost money over the long run, such as growing
deferred maintenance backlogs, sharp cuts to Federal employee training,
and erosions in customer service at agencies like the Social Security
Administration and the Internal Revenue Service.
- Enhance our national security by accelerating modernization of
key weapons systems, accelerate progress in restoring military readiness
degraded by sequestration, support nuclear R&D and infrastructure,
and invests in defense facilities and construction across the
country.
The Opportunity, Growth, and Security Initiative will be paid for with
a balanced package of tax loophole closers and spending reforms.
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Reducing Long-Run Deficits and Promoting Sustainable Long-Run
Growth
Under the Presidentfs leadership, the deficit has been cut in half as a share
of the economy, the largest four-year deficit reduction since the demobilization
from World War II. While making investments to grow the economy and expand
opportunity, the Budget continues this progress, bringing deficits down as a
share of the economy to 1.6 percent by 2024. It also stabilizes debt as a
share of the economy by 2015 and puts it on a declining path after that.
In last yearfs Budget, the President included a compromise proposal intended
as a show of good faith to spark additional negotiations with Congressional
Republicans about the nationfs long-term deficits and debt and to encourage all
parties to come together to remove the economically-damaging sequestration
cuts. Although that compromise proposal remains on the table, given
Congressional Republicansf unwillingness to negotiate a balanced long-term
deficit reduction deal, the Presidentfs 2015 Budget returns to a more
traditional Budget presentation that is focused on achieving the Presidentfs
vision for the best path to create growth and opportunity for all Americans, and
the investments needed to meet that vision.
The Budget shifts away from harmful short-term deficit reduction by replacing
remaining sequestration cuts with smart, balanced long-term deficit
reduction. It focuses on the primary drivers of long-term deficits –
rising health care costs and inadequate revenues to meet the needs of our aging
population while making the investments needed to strengthen the economy both
now and in the future.
- Builds on the ACA by including $402 billion in additional health
savings that will strengthen Medicare and Medicaid and other Federal
health programs by implementing payment innovations and other reforms that
encourage high quality and efficient care.
- Includes tax reform measures making the tax code more efficient and
fair while reducing the deficit by about $650 billion over the next
decade.
- Reduces the value of itemized deductions and other tax preferences
to 28 percent for the wealthiest, a limitation that would affect only the
top three percent of families in 2014, and restores the deduction rate to
the level it was at the end of the Reagan Administration.
- Observes the Buffett Rule, requiring that millionaires pay no less
than 30 percent of income—after charitable contributions—in taxes,
preventing high-income households from using tax preferences to reduce their
tax bills to less than what many middle class families pay.
- Calls on the Congress to enact bipartisan commonsense, comprehensive
immigration reform consistent with the Presidentfs principles and that
builds on the bipartisan legislation that has already passed the Senate, which
the Congressional Budget Office has found would reduce the deficit by almost
$1 trillion and increase the economy by $1.4 trillion over the next twenty
years.
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