Senate Budget Committee Chairman Mike Enzi (R-WY) introduced the Senate Budget today, whihc differs in big ways from a House GOP blueprint introduced yesterday. Both aim to balance the budget (the Senate in 10 years, the House in nine) and both cut over $5 billion in spending (the Senate cuts $5.1 trillion and the House would cut $5.5 trillion). It proposes an additional $236 billion in cuts to non defense discretionary spending from FY2017-FY2025 and it would leave the defense discretionary caps at the sequester levels.
Most importantly, and a point that goes directly to the contention in the House Republicans, the Senate GOP budget only provides $58 billion for a war funding account known as the Overseas Contingency Operations (OCO) fund — much less than the $90 billion included in the House GOP budget. In a move to appease House defense hawks, the House Budget had a huge increase in the OCO, which is not subject to the Sequester caps. The budget resolution effectively draws a line in the sand over war funding by creating a point of order against raising Overseas Contingency Operations account funding above $58 billion next year. Points of order require 60 votes to pass. That means any move to boost the OCO funding would need the support of Senate Democrats. Obama has proposed $51 billion in war funds for the military.
As for policy directives, the Senate proposal includes reconciliation instructions for the Senate Finance and Senate Health, Education, Labor, and Pensions (HELP) Committees to each find no less than $1 billion of savings over 10 years to put toward deficit reduction by no later than July 31, 2015. It also creates a Deficit-Neutral Reserve Fund (DNRF), a budget gimmick that allows Committee chairs to break budget constraints and will not result in a budget point of order, for the HELP Committee to reauthorize the Higher Education Act (HEA). The budget proposal also creates a DNRF for improvements in medical research, innovation and safety, among other health reforms. The budget also calls for a DNRF for energy legislation, which could include reforms to research programs at the Department of Energy.
Similar to the House Republican Budget, the Senate budget would cut Pell — and cut $90 billion from the Pell grant program over 10 years. Additionally, the proposal would set non-defense discretionary spending at $493 billion for 2016.
The Senate is marking up the budget Wednesday and Thursday, and it is expected that the full Senate will consider the proposal next week.
The Office of Federal Relations is currently monitoring the legislation and will make more information known as it becomes available.