Today, President Barack Obama proposed a $4.23 trillion FY 2017 budget, which will be his last in office. Overall, the White House’s proposal sticks with the discretionary spending limits set by last year’s budget deal.
Predictably the lame-duck budget was met with dismissal by Congress. Republican appropriators are complaining that the Administration is circumventing the budget caps by leaning heavily on new mandatory funding for programs that typically would receive discretionary dollars controlled by Congress. However, the President’s budget is symbolically the beginning of the federal appropriations conversations.
Included in the request was $19 billion for cybersecurity efforts a proposed a 35 percent increase in federal funds for the next budget year to boost the nation’s ability to safeguard its computer networks, both private and public, from attacks while preserving privacy.
For the third year in a row, the President proposed his College Opportunity and Graduation Bonus. In FY17, the program would provide $547 million for colleges that do a good job graduating low-income students on time. Department officials said the proposal is an important complement to student-focused incentives like the new $300 Pell bonus for recipients who take at least 15 credits per semester. The bonus would reward institutions that improve in this area, regardless of how well they were doing in the first place.
Other items of note include:
Defense S&T is cut by more than $535 million with nearly 40% of the cuts coming from 6.1 basic research.
The budget provides $7.96 billion for the National Science Foundation, of which $7.56 is discretionary and $400 million is new mandatory funding. For discretionary, this would be a 1.3% increase, but including mandatory an increase of 6.7%, over FY 2016. All directorates, including SBE and GEO received 6 percent increases.
The Administration is is requesting $19.025 billion for the National Aeronautics and Space Administration (NASA), which is $300 million below FY 2016. This includes mandatory spending. The current fact sheet available doesn’t break out discretionary vs. mandatory. The Science directorate would get $5.6 billion, which is an increase of $12 million or 0.02%. Space Tech would be $827 million, an increase of 20%. Aeronautics would get $790 million, an increase of 23.4%. NASA Space Grant would receive $24 million.
NIST provided funding to expand the National Network for Manufacturing Innovation (NNMI) institutes by providing $42 million to launch two new institutes in 2017 and continue operations of the first Commerce led institute. The Budget also proposes an additional $1.9 billion in mandatory funding for an additional 27 institutes, completing the President’s vision for a network of 45 institutes over the next ten years.
- NOAA OAR would get $519.7 million, which would be an increase of 12.4%. NOAA Climate Research was allocated $159.1 million.
- $12 million increase for investments in finding solutions to the challenge of ocean acidification. NOAA’s ocean acidification program
- NOAA SeaGrant would get $68.9 million, which is $4 million below FY 2016.
The Department of Education received $69.4 billion in FY2017 for discretionary spending, an increase of roughly $1 billion from FY2016. An initial pass at the budget includes big wins for ESSA programs and supports including preschool and Head Start ($9.6 billion for Head Start, an increase of $434 million).
ED and the Administration announced previously that it was creating an enforcement unit within the Office of Federal Student Aid to respond to allegations, and the budget request includes $13.6 million specifically for FSA enforcement and oversight activities.
- Pell: The Budget would see the maximum grant award for students boosted by $20, from $5,915 to $5,935, the administration is proposing an additional $2 billion for changes to encourage students to complete their degrees
- FAFSA Changes: The Budget proposes to eliminate up to 30 burdensome and unnecessarily complex questions, shortening the FAFSA application substantially, and making it easier for students and families to access critical resources to pay for college.
- Tax Changes: The Budget would streamline and expand education tax benefits by: 1) consolidating the Lifetime Learning Credit into an expanded AOTC; 2) exempting Pell Grants from taxation and the AOTC calculation; and 3) eliminating tax on student loan debt forgiveness, while repealing the complicated student loan interest deduction for new borrowers.