Fy10 Overview

8/14/2019 Fy10 Overview

http://slidepdf.com/reader/full/fy10-overview 1/146

A New Era of Responsibility

Renewing America’s Promise

O f f i c e o f M a n a g e m e n t a n d B u d g e t

w w w . b u d g e t . g o v





A A New Era of Responsibility

Renewing America’s Promise

O f f i c e o f M a n a g e m e n t a n d B u d g e t

w w w . b u d g e t . g o v





Table of Contents

President’s Message ....................................................................................................................................1

Inheriting a Legacy of Misplaced Priorities ..............................................................................................5

Jumpstarting the Economy and Investing for the Future ......................................................................17

Conclusion .................................................................................................................................................43

Department of Agriculture .......................................................................................................................45

Department of Commerce .........................................................................................................................51

Department of Defense .............................................................................................................................53

National Intelligence Program .................................................................................................................57

Department of Education .........................................................................................................................59

Department of Energy ..............................................................................................................................63

Department of Health and Human Services ...........................................................................................67

Department of Homeland Security ..........................................................................................................71

Department of Housing and Urban Development ..................................................................................73

Department of the Interior .......................................................................................................................77

Department of Justice ...............................................................................................................................81Department of Labor ................................................................................................................................83

Department of State and Other International Programs .......................................................................87

Department of Transportation .................................................................................................................91

Department of the Treasury .....................................................................................................................93

Department of Veterans Affairs ...............................................................................................................95

Corps of Engineers—Civil Works .............................................................................................................97

Environmental Protection Agency ...........................................................................................................99

National Aeronautics and Space Administration ..................................................................................103

National Science Foundation..................................................................................................................105

Small Business Administration..............................................................................................................107

Social Security Administration ..............................................................................................................109

Corporation for National and Community Service ...............................................................................111

Summary Tables .....................................................................................................................................113

Page



U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON, D.C. 2009

For sale by the Superintendent of Documents, U.S. Government Printing Office

Internet: bookstore.gpo.gov Phone: (866) 512-1800 DC Area: (202) 512-1800

Fax: (202) 512-2250 Mail: Stop IDCC, Washington, DC 20402-0001

ISBN: 978-0-16-082552-1

GENERAL NOTES

1. All years referenced for economic data are calendar yearsunless otherwise noted. All years referenced for budgetdata are fiscal years unless otherwise noted.

2. At the time of this writing, only three of the appropriationsbills for 2009 had been enacted; therefore, references to

2009 spending in the text and tables reflect approximateestimates of final likely appropriations action that set totaldiscretionary funding at the level assumed to conformto the total level for appropriations in the ConcurrentResolution on the Budget for 2009. Adjustments are alsomade to include the costs of the just-enacted AmericanRecovery and Reinvestment Act of 2009.

3. Details in the tables may not add to the totals due torounding.

4. Web address: http://www.budget.gov



Throughout America’s history, there have beensome years that appeared to roll into the nextwithout much notice or fanfare. Budgets are pro-posed that offer some new programs or eliminatean initiative, but by and large continuity reigns.

Then there are the years that come alongonce in a generation, when we look at where the

country has been and recognize that we need abreak from a troubled past, that the problems weface demand that we begin charting a new path.This is one of those years.

We start 2009 in the midst of a crisis unlikeany we have seen in our lifetimes. Our economyis in a deep recession that threatens to be deeperand longer than any since the Great Depression.More than three and a half million jobs were lostover the past 13 months, more jobs than at anytime since World War II. In addition, another 8.8

million Americans who want and need full-timework have had to settle for part-time jobs. Manu-facturing employment has hit a 60-year low. Ourcapital markets are virtually frozen, making itdifficult for businesses to grow and for families toborrow money to afford a home, car, or college ed-ucation for their kids. Many families cannot paytheir bills or their mortgage payments. Trillionsof dollars of wealth have been wiped out, leav-ing many workers with little or nothing as theyapproach retirement. And millions of Americansare unsure about the future—if their job will bethere tomorrow, if their children will be able togo to college, and if their grandchildren will beable to realize the full promise of America.

This crisis is neither the result of a normalturn of the business cycle nor an accident of his-tory. We arrived at this point as a result of an eraof profound irresponsibility that engulfed both

private and public institutions from some of ourlargest companies’ executive suites to the seatsof power in Washington, D.C. For decades, toomany on Wall Street threw caution to the wind,chased profits with blind optimism and little re-gard for serious risks—and with even less regardfor the public good. Lenders made loans withoutconcern for whether borrowers could repay them.

Inadequately informed of the risks and over-whelmed by fine print, many borrowers took ondebt they could not really afford. And those inauthority turned a blind eye to this risk-taking;they forgot that markets work best when thereis transparency and accountability and when therules of the road are both fair and vigorously en-forced. For years, a lack of transparency createda situation in which serious economic dangerswere visible to all too few.

This irresponsibility precipitated the interlock-

ing housing and financial crises that triggeredthis recession. But the roots of the problems weface run deeper. Government has failed to fullyconfront the deep, systemic problems that yearafter year have only become a larger and largerdrag on our economy. From the rising costs of health care to the state of our schools, from theneed to revolutionize how we power our economyto our crumbling infrastructure, policymakers inWashington have chosen temporary fixes overlasting solutions.

The time has come to usher in a new era—a new era of responsibility in which we act notonly to save and create new jobs, but also to laya new foundation of growth upon which we canrenew the promise of America.

This Budget is a first step in that journey. Itlays out for the American people the extent of

PRESIDENT’S MESSAGE



2 A NEW ERA OF RESPONSIBILITY

the crisis we inherited, the steps we will take to jumpstart our economy to create new jobs, andour plans to transform our economy for the 21stCentury to give our children and grandchildrenthe fruits of many years of economic growth.

It is true that we cannot depend on govern-ment alone to create jobs or to generate long-termgrowth. Ours is a market economy, and theNation depends on the energy and initiative of private institutions and individuals. But at thisparticular moment, government must lead theway in providing the short-term boost neces-sary to lift us from a recession this severe andlay the foundation for future prosperity. That’swhy immediately upon taking office, my Admin-istration worked with the Congress to pass the

American Recovery and Reinvestment Act. Thisplan’s provisions will put money in the pocketsof the American people, save or create at leastthree and a half million jobs, and help to reviveour economy.

This moment is one of great paradox andpromise: while there are millions of Americanstrying to find work, there is also so much workto be done. That’s why the Recovery Act and ourBudget will make long overdue investmentsin priorities—like clean energy, education,

health care, and a new infrastructure—that arenecessary to keep us strong and competitive inthe 21st Century.

To finally spark the creation of a clean energyeconomy, we will make the investments in thenext three years to double our Nation’s renew-able energy capacity. We will modernize Federalbuildings and improve the energy efficiency of millions of American homes, saving consumersand taxpayers billions on our energy bills. In theprocess, we will put Americans to work in new

jobs that pay well—jobs installing solar panelsand wind turbines; constructing energy efficientbuildings; manufacturing fuel efficient vehicles;and developing the new energy technologies thatwill lead to even more jobs and more savings,putting us on the path toward energy indepen-dence for our Nation and a cleaner, safer planetin the process.

To improve the quality of our health care whilelowering its cost, we will make the immediate in-

vestments needed to computerize all of America’smedical records within five years while protect-ing the privacy of patients. This is a necessary

step to reducing waste, eliminating red tape,and avoiding the need to repeat expensive medi-cal tests. We also will fundamentally reform ourhealth care system, delivering quality care tomore Americans while reducing costs for us all.This will make our businesses more competi-tive and ease a significant and growing burdenmiddle-class families are bearing.

To give our children a fair shot to thrive in aglobal, information-age economy, we will equipthousands of schools, community colleges, and

universities with 21st Century classrooms, labs,and libraries. We’ll provide new technology andnew training for teachers so that students in Chi-cago and Boston can compete with kids in Beijingfor the high-tech, high-wage jobs of the future.We will invest in innovation, and open the doorsof college to millions of students. We will pursuenew reforms—lifting standards in our schoolsand recruiting, training, and rewarding a newgeneration of teachers. And in an era of skyrock-eting college tuitions, we will make sure that thedoors of college remain open to children from all

walks of life.

To create a platform for our entrepreneursand workers to build an economy that can leadthis future, we will begin to rebuild America forthe demands of the 21st Century. We will repaircrumbling roads, bridges, and schools as well asexpand broadband lines across America, so thata small business in a rural town can connect andcompete with its counterparts anywhere in theworld. And we will invest in the science, research,and technology that will lead to new medicalbreakthroughs, new discoveries, and entire newindustries.

Regaining our economic strength also is criti-cal to our national security. It is a major sourceof our global leadership, and we must not let itwaver. That’s why this Budget makes critical in-

vestments in rebuilding our military, securing our



PRESIDENT’S MESSAGE 3

homeland, and expanding our diplomatic effortsbecause to provide for the security of the UnitedStates we need to use all elements of our power.Moreover, to honor the service of those who haveworn our military’s uniform, we will make the in-

vestments necessary to take care of our veterans.

For these initiatives to lay a foundation forlong-term economic growth, it’s important thatwe not only change what Washington investsin, but how Washington does business. We mustusher in a new era of responsibility in which weempower citizens with the information they needto hold their elected representatives accountablefor the decisions they make. We need to put tiredideologies aside, and ask not whether our Govern-ment is too big or too small, or whether it is the

problem or the solution, but whether it is workingfor the American people. Where it does not, wewill stop spending taxpayer dollars; where it hasproven to be effective, we will invest. This is theapproach, for example, we have begun in allocat-ing funds to education, health care, and nationalsecurity. And as we continue the budgetary pro-cess, we will identify more cuts and reallocationsfor the full Budget presented this spring, and un-dertake efforts to reform how the programs youfund are managed so that overruns are avoided,waste is cut, and you get the most effective and

efficient Government possible.

In the little more than a month my Administra-tion has had in office, we have not had the timeto fully execute all the budget reforms that areneeded, and to which I am fully committed. Thosewill come in the months ahead, and next year’sbudget process will look much different.

But this Budget does begin the hard workof bringing new levels of honesty and fairnessto your Government. It looks ahead a full 10years, making good-faith estimates about whatcosts we would incur; and it accounts for itemsthat under the old rules could have been leftout, making it appear that we had billions moreto spend than we really do. The Budget also be-gins to restore a basic sense of fairness to thetax code, eliminating incentives for companiesthat ship jobs overseas and giving a generous

package of tax cuts to 95 percent of workingfamilies.

Finally, while we have inherited record budgetdeficits and needed to pass a massive recovery

and reinvestment plan to try to jump-start oureconomy out of recession, we cannot lose sight of the long-run challenges that our country faces andthat threaten our economic health—specifically,the trillions of dollars of debt that we inherited,the rising costs of health care, and the growingobligations of Social Security. Therefore, whileour Budget will run deficits, we must begin theprocess of making the tough choices necessaryto restore fiscal discipline, cut the deficit in half by the end of my first term in office, and put ourNation on sound fiscal footing.

Some may look at what faces our Nation andbelieve that America’s greatest days are behindit. They are wrong.

Our problems are rooted in past mistakes, notour capacity for future greatness. We should neverforget that our workers are more innovative andindustrious than any on earth. Our universitiesare still the envy of the world. We are still hometo the most brilliant minds, the most creative en-trepreneurs, and the most advanced technology

and innovation that history has ever known. Andwe are still the Nation that has overcome greatfears and improbable odds. It will take time, butwe can bring change to America. We can rebuildthat lost trust and confidence. We can restore op-portunity and prosperity. And we can bring abouta new sense of responsibility among Americansfrom every walk of life and from every corner of the country.

B ARACK OBAMA

THE WHITE HOUSE,

FEBRUARY 26, 2009.








Every sector of our economy has been affect-ed by this recession. The automobile industry,which required a Government rescue this pastwinter, has shed 204,000 jobs since the start of this recession. Over the last year, the Big Threeautomakers have seen sales plunge anywherebetween 39 and 55 percent. Manufacturing as awhole has been hard hit with employment fall-ing to a 60-year low (see Figure 4, Manufactur-

ing Employment). Housing startsand permits continue to fall; infact, the U.S. Census reported thathousing starts were at the lowestlevels since monthly recording

of these data began in 1959 (seeFigure 5, Housing Starts). At thesame time, mortgages in the fore-closure process increased 204 per-cent between October 2006 andOctober 2008, and over 1 millionproperties went into foreclosurein 2008.

Unsurprisingly, consumerconfidence too is at an all timelow (see Figure 6, Consumer

Confidence). Some Americansare unable to keep up with themounting bills and dwindling

prospects: last fiscal year, personal bankrupt-cy filings topped 1 million, an increase of al-most 30 percent from 2007. The overall pictureis bleak: GDP fell at a 3.8 percent annualizedrate in the last quarter of 2008, the biggesteconomic contraction in more than a quarterof a century.

A central cause of this sudden downturn has

been a meltdown in our capitaland credit markets. The subprimemortgage crisis is the result of aperfect storm of excessive risk-taking by both investors and bor-rowers, inadequate disclosure,non-existent or myopic oversight,market gatekeepers compromisedby conflicts of interest, and irre-sponsible lending to thousands of

Americans who, when offered thechance to own their own home,were advised to throw caution tothe wind. Through sophisticatedfinancial engineering, bad loansmade on Main Street made theirway onto the books of some of thelargest firms on Wall Street, andthen were sold to pension fundsand individual investors around

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46

-3.5

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0

0.5

Peak Months

APR 1960 JUL 1981 JUL 1990 MAR 2001 DEC 2007

Job Losses in Five Recessions

Source: Employment data from Bureau of Labor Statistics. Business cycle peak dates from National Bureau of Economic Research.

Percent decline from business cycle peaks

Months from Peak

Figure 2

1940 1948 1956 1964 1972 1980 1988 1996 2004-4

-3

-2

-1

0

1

2

3

4

5

Annual Change in Payroll Employment1940-2008

Millions of jobs

Source: Bureau of Labor Statistics.Note: Values reflect December to December changes in seasonally-adjusted payroll employment.

Figure 1



INHERITING A LEGACY OF MISPLACED PRIORITIES 7

the world. Once the real estatemarket began to cool, loans de-faulted at alarming numbers, thesecomplex financial products startedto lose their value, and the credit

boom unraveled, erasing enormouswealth for both families and busi-ness as well as the jobs fueled byconsumer spending.

The resulting collapse laid lowsome of the most prominent fi-nancial institutions in the Ameri-can economy, and has wiped outtrillions of dollars in wealth andretirement savings for millions of

Americans who thought they had

successfully provided for theirgolden years. Uncertainty abouthow far and wide the contagionhas spread has brought our financial systemto a near standstill. Loans to consumers, smallbusinesses, and other borrowers are hard tocome by, and likewise, the mortgage squeezeacts as a brake on the return of housing de-mand. The injection of unprecedented amountsof funds by the Federal Reserve and throughthe Troubled Asset Relief Program (TARP) at-tempted to restore confidence in the financial

markets to get capital flowingonce more and has slowed or per-haps halted the meltdown—but ithas not been enough to fully re-store confidence and the smoothoperation of credit markets. Alack of trust still pervades mar-kets. When that happens, inves-tors pull their money out of themarket, depositors make runs atbanks, and banks stop lendingto companies and to one anoth-er. Because of this lack of trust,our credit markets are effectivelystill frozen. As a result, business-es are unable to expand, familiesare unable to finance a new home,a new car, or a college educationfor their kids; and our economysuffers.

AN ANEMIC RECOVERY ALREADY H AS HURT

AMERICAN F AMILIES

Adding insult to injury, American families haveentered this recession weakened by the anemicrecovery from the last downturn at the beginningof this decade. For millions of Americans, the re-covery from 2001 through 2007 was hardly one atall. Measured by job gains, the economic recovery

1994 1995 1997 1999 2001 2003 2005 2006 2008

0

2

4

6

8

10

12

14

16

The Underemployment Rate

Source: Bureau of Labor Statistics.

U-6—Underemployment Rate

U-3—Official Unemployment Rate

U-6—Total unemployed, plus discouraged

workers, plus all other marginally attachedworkers, plus total employed part time for

economic reasons as a percent of the

civilian labor force plus discouragedworkers and all other marginally attached

workers.

Percent

Figure 3

1946 1953 1960 1967 1974 1981 1988 1995 2002 200911

12

13

14

15

16

17

18

19

20

Manufacturing Employment is Lower than atAny Time Since 1946

Millions of employees

Source: Bureau of Labor Statistics.

Figure 4




in the 2000s was the weakest one in a generation.From 2001 to 2007, the period in which the econo-my was expanding as measured by the growth inoutput, only 99,000 jobs were created each monthon average. The period began with an outrightdecline in employment that did not end until2003. Average job gains were more than twice aslarge during the expansions of the 1980s (228,000a month) and the 1990s (200,000 a month) (see

Figure 7, 2000s Economic Recov-ery Brought Weakest Job Gains).Real wages also showed very littleimprovement in the latest expan-sion, rising on average at an annu-

alized rate of just 0.1 percent eachmonth, compared with 0.7 percentduring the 1990s expansion.

On top of that, this was the firsteconomic recovery since WorldWar II where real median house-hold income did not rise above itsprevious peak (see Figure 8, RealMedian Household Incomes). Be-tween 2000 and 2007, median in-come among households headed

by those under 65 fell by $1,951.To keep up, more and more Amer-icans have turned to credit and

debt: by 2007, household debt as a percentageof disposable personal income was 133.7 per-cent. And some Americans have not been ableto keep up, falling out of the middle class andinto poverty. From 2000 to 2007, the number of

Americans living in poverty increased by near-ly 5.7 million, and 1.7 more children lived inpoverty in 2007 than in 2000. In fact, 18 per-cent of children, about 13 million in total, lived

in poverty in 2007.

IGNORING OUR LONG-TERM

CHALLENGES

As the typical family saw itsincome decline and the under-pinnings of our economic growthbecome increasingly unsustain-able, nothing was done to ad-dress these mounting problems.These problems then were madeworse by policies that benefitedthose at the top at the expenseof almost all Americans and bya failure to tackle some of themost significant, structural im-pediments to long-term economicgrowth.

1960 1966 1972 1978 1984 1990 1996 2002 20080

0.5

1.0

1.5

2.0

2.5

3.0

Housing Starts have Reachedan All-Time Low

Millions of housing units per month

Source: U.S. Census Bureau.

Figure 5

1967 1972 1977 1982 1987 1992 1998 2003 20080

20

40

60

80

100

120

140

160

Consumer Confidence Has Fallen to aForty-Year Low1985 = 100

Source: Conference Board, monthly values interpolated 1966-1977.

Figure 6




Growing Imbalance: AccumulatingWealth and Closing Doors to the MiddleClass

For the better part of three decades, a dispro-

portionate share of the Nation’s wealth has beenaccumulated by the very wealthy. Technologicaladvances and growing global competition, whiletransforming whole industries—and birthingnew ones—has accentuated the trend toward ris-ing inequality. Yet, instead of using the tax code tolessen these increasing wage disparities, changesin the tax code over the past eight years exacer-bated them.

According to the Internal Revenue Service, theNation’s top 400 taxpayers made more than $263

million on average in 2006, but paid income taxesat the lowest rate in the 15 years in which thesedata have been reported. In constant dollars, theaverage income of the top 400 taxpayers nearlyquadrupled since 1992.

It’s no surprise, then, that wealth began to beever more concentrated at the top. By 2004, thewealthiest 10 percent of households held 70 per-cent of total wealth, and the combined net worthof the top 1 percent of families was larger thanthat of the bottom 90 percent. In fact, the top 1

percent took home more than 22percent of total national income,up from 10 percent in 1980 (seeFigure 9, Top One Percent of Earn-ers). And these disparities are feltfar beyond one’s bank statementas several studies have found adirect correlation between healthoutcomes and personal income.

There is nothing wrong withpeople succeeding and makingmoney. But there is somethingwrong when the opportunity forall Americans to get ahead, to en-ter the middle class, and to createa better life for their children be-comes more and more elusive. Thatis what has been happening: Theladder into the middle class and

beyond has become harder and harder to climb.The American dream has slowly slipped beyondthe grasp of millions as we have deliberately ig-nored the very investments in our people thatstrengthen the middle class and neglected the

drivers of economic growth that will sustain oureconomy for the long run.

Education

We know that the key to success in the 21stCentury lies in investing in our people—in giv-ing the chance to get a world-class educationfrom cradle to career. Economists from across thespectrum agree that in this digital age, a highly-educated and skilled workforce is critical not onlyto individual opportunity, but also to the overall

success of our economy. The more people we edu-cate to the highest standards possible, the bet-ter off all of us will be. Yet too many children arenot getting the world-class education that theydeserve and that they need to thrive in this infor-mation-age economy.

Research has shown that there is a high returnfor investments made in high-quality, compre-hensive programs supporting disadvantaged chil-dren, and their families, from birth. Some studiesshow that for every dollar invested, there is a $4

1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007-300

-200

-100

0

100

200

300

400

500

2000s Economic Recovery BroughtWeakest Job Gains in a Generation

Average Net Jobs Per Month, 1974-2008Thousand jobs per month

Source: Bureau of Labor Statistics, Establishment Survey, dates for expansions from National Bureau ofEconomic Research.

Average of 228,000Jobs/Month During1980s Expansion

Average of 200,000Jobs/Month During1990s Expansion

Average of 99,000Jobs/Month During

2000s Expansion

Figure 7




to $9 return to society in higher earnings, highergraduation and employment rates, less crime,decreased need for special education services,less use of the public welfare system, and betterhealth. However, we have yet to make a seriouscommitment to our youngest learners.

From kindergarten through high school, toomany of our students are falling behind. Accord-

ing to the National Assessment of EducationalProgress, the Nation’s Report Card, in 2007 onlyone-third of fourth-graders was able to demon-strate solid academic performance in reading.Similarly, only 31 percent of eighth-graders dem-onstrated solid academic performance, a per-centage that has remained stagnant since 1992.

Achievement levels are similarly disappointingin mathematics.

We have not yet created a credible system of accountability for strong outcomes and a way toprovide teachers and principals with the toolsthey need to get results. The problem is exac-erbated by our failure to invest in the physicalstructures of our schools. A 2004 report by theNational Center for Education Statistics foundthat 8.5 percent of public schools have exceededtheir capacity; in almost one out of five schools,teachers have to teach in common areas such as

gyms and cafeterias; and one infour schools report that teachersdo not have their own classroomsin which to teach.

Another part of the problem isthat when these students gradu-ate from high school and look to-ward continuing their education,they face high costs of collegeattendance. The average tuitionand fees at public, four-year in-stitutions between the 2000-2001school year and 2008-2009 yearincreased by more than 26 per-cent, after adjusting for inflationand increases in tax credits and

financial aid (see Figure 10, Aver-age Annual Undergraduate Tu-ition). It’s no surprise, then, that

60 percent of college students graduate withdebt, and the typical debt load is over $20,000.Facing numbers like these, many students willsimply decide that they cannot afford college,and many more already in college will decidethat they cannot afford to stay. While 94 per-cent of high school students in the top quintileof socioeconomic status continue on to post-sec-ondary education, only 54 percent of those in the

bottom quintile do so.

If all our young children are not able to go toa high-quality school with modern facilities andgreat teachers and if older students are unableto afford to go to college and stay there untilgraduation, there is no way that our economy willbe able to expand opportunity, strengthen themiddle class, and compete in a global economy.

Health Care

One of the other big drains on family bud-gets and on the performance of the economy asa whole has been the increasing costs of healthcare. Yet the evidence suggests that substantialreductions in costs could be achieved without sac-rificing the quality of health care delivered. Andin part because of the high costs of the currentsystem, too many Americans remain uninsured

1967 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007

30

35

40

45

50

55

60

65

70

75

Real Median Household Incomes Have Not

Returned to the Levels Reached in the 1990s

Source: U.S. Census Bureau.

Family Head Age 45 to 54



Dollars in thousands

Figure 8






for the Federal Budget but also for family bud-gets.

F AILURE TO INVEST IN THE FUTURE

America’s prosperity has always risen fromthe ground up, seeded by the hard work andingenuity of our workers, inventors, and en-

trepreneurs. But germs of a good idea or anew way of doing business cannot take rootand flourish without the Nation preparing theconditions for growth. That takes sound man-agement of the economy; access to capital; andinvestments in science, technology, and infra-structure. That’s why we built the great land-grant universities as our Nation expandedwest, sent the Greatest Generation to collegeon the G.I. Bill, and invested in science andtechnology at the height of the Cold War. It’swhy previous generations built the Erie Canalat the start of the 19th Century, the transcon-tinental railroad after the Civil War, and theinterstate highway system in the 1950’s. It’swhy we electrified rural America during thedepths of the Great Depression and laid fiberoptic cables in our own time.

Investing in the future has beencritical to long-term economicgrowth and creating high-paying

jobs for our people throughout ourhistory. Yet, over the past several

years, we’ve been delinquent inmaking these down payments onfuture growth.

Infrastructure

As our society becomes moremobile and interconnected, theneed for 21st Century transpor-tation networks has never beengreater. As our economy slows,repairing and upgrading our in-

frastructure is an effective wayto revive it and create new jobs.In the longer term, infrastruc-

ture investment will enable the United Statesto compete with the rest of the world and keepgood jobs here at home. After all, in this dayand age, businesses can now locate almost any-where in the world and bring the jobs they cre-ate with them—and a modern infrastructure iscritical if those jobs are to come to and stay in

America.

Yet too many of our Nation’s railways, high-ways, bridges, airports, and neighborhood streetsare not keeping up with the needs of our Nationdue to lack of investment and strategic long-term planning. The American Society of CivilEngineers gives our country’s infrastructure thegrade of a “D.” The unsatisfactory condition andoperational performance of our roads and bridgescarries real costs from billions of dollars in carrepairs to wasted fuel and time. The Texas Trans-portation Institute 2007 Urban Mobility Reportestimates that drivers experienced over 4.2 bil-lion hours of delay and wasted approximately 2.9billion gallons of fuel in 2005.

Looking forward, we are behind in buildingthe infrastructure that we need to compete inthe global, information-age economy and are atrisk of losing our Nation’s scientific dominance.Over the last three decades, Federal funding

1994-95 1996-97 1998-99 2000-01 2002-03 2004-05 2006-07 2008-090

2

4

6

8

10

12

14

16List Price

Net Price (net of average grant and education tax benefits)

Average Annual Undergraduate Tuition, Room and Boardfor Public Four-Year Institutions (List and Net Prices)

Source: College Board.

Dollars in thousands

Figure 10




for the physical, mathematical,and engineering sciences hasdeclined as a percentage of GDPat a time when other countriesare substantially increasing their

own research budgets. At onepoint not long ago, the UnitedStates led the world in broadbanddeployment; now, that leadershipis in question. Wireless networksin many countries abroad arefaster and more advanced thanour own. Our electrical grid isstill constructed around thesame model of 100 years ago, andin some places is as old. Powerinterruptions and outages cost

Americans at least $80 billioneach year. Finally, because of an insistence on putting dogmaahead of science, the United States has fallenbehind in some of the most important, cutting-edge research such as stem-cell research.

Clean Energy

This lack of investment in the future is mostglaring in the area of clean energy. For decades,we have talked about the security imperative we

have to wean our Nation off foreign oil, which isoften controlled by those whose interests are in-imical to ours. And in recent years, a consensushas developed over the need to limit greenhousegas emissions, which produce global warming andincrease the risk of severe storms and weatherconditions that might ruin crops, devastate cities,and destabilize whole regions. All of these factsare reason enough to invest in clean energy tech-nologies. But there is an economic imperative toembrace these investments as well.

The clean energy sector presents us with im-mense promise—to develop and dominate a newindustry sector and to create high-paying jobshere at home. From new, highly fuel-efficient carsto renewable sources of power, there are a host of emerging technologies that can spur the growthof new business while creating millions of new

jobs. Our economic competitors know that. That’s

why they are racing to dominate these industriesand to transform their economies.

Yet, the last Administration approached ourenergy needs by focusing on finding more of thefossil fuels we use now. As a result, we are stilladdicted to fossil fuels and more dependent onforeign oil than ever before. We have yet to makeimportant policy changes and critical investments

in the clean energy infrastructure that we’ll needto transform our economy. Beyond clean energy,we have not kept up with investing in the basicscience and research that will power this sectorand the entire economy in decades to come. In fact,as a share of GDP, American Federal investmentin the physical sciences and engineering researchhas dropped by half since 1970.

ERODING TRUST AND ACCOUNTABILITY

Government is able to work on behalf of thepeople and attend to their immediate needs andlong-range problems when it truly is a govern-ment of, by, and for the people. Part of what ailsour economy is a profound disconnect betweenour leaders in Washington and the rest of the Na-tion.

2000 2001 2002 2003 2004 2005 2006 2007 200890

100

110

120

130

140

150

160

170

Since 2000 Family Health Insurance Premiums Have

Increased Much Faster than Workers' Real EarningsIndex Levels 2000 = 100

Source: Kaiser Family Foundation / Bureau of Labor Statistics.

Inflation Adjusted Family Health Insurance PremiumsHave Increased 58% Since 2000

While Real Hourly EarningsHave Increased Just 3% Since 2000

Figure 11




Over the past eight years, policy was made be-hind closed doors. In many cases, unprecedentedlevels of secrecy have been invoked to block pub-lic scrutiny. In such an environment, the well con-nected and those who are able to hire high-priced

lobbyists were able to carve out huge loopholes inour tax code, win massive subsidies that shiftedthe tax burden to small businesses and the mid-dle class, and obtain exemptions from the basicrules of the road for themselves and their clients.

And they did this all without paying for it or be-ing held to account. This must change.

Fiscal Irresponsibility

Another manifestation of irresponsibility isthe large budget deficits we are inheriting. These

deficits, over time, will harm economic growthand impose burdens on our children and grand-children. For the past eight years, in a time of eco-nomic growth, the Government spent recklesslyon tax cuts for the few and hand-outs for the well-off and well-connected, mismanaged billions of dollars in taxpayer money, and failed to honor theresponsibilities we have to future generations.Massive new programs have routinely been omit-ted from the Budget to mask their true cost, whilea new entitlement program and massive tax cutswere proposed and signed into law without any

attempt to pay for them. Between 2000 and 2008,real Government outlays increased at a 3.6 per-cent annual average rate, three times the 1.2 per-cent annual average rate between 1992 and 2000.This has helped turn a surplus of $236 billion at

the end of the Clinton Administration, that wasprojected to grow still larger over time, into a def-icit of more than $1 trillion in 2009. (see Figure12, Surpluses Have Turned to Deficits). Further-more, the amount of debt held by the public hasnearly doubled to $6.4 trillion from 2001 to 2008.We are now living with the fallout of this deep fis-cal irresponsibility.

Unfortunately, we are also inheriting the worsteconomic crisis since the Great Depression—which will force us to increase deficit spending

temporarily as we try to jumpstart economicgrowth. This is an extraordinary response to anextraordinary crisis, and as we come out of thisrecession, we must return to the path of fiscal re-sponsibility. It will mean tough choices—choicesthat are tougher because of the legacy of fiscalirresponsibility left to us.

Erosion of Market Oversight

Our Nation depends on private initiative andon free markets. But the financial crisis has re-

minded us that without a watchfuleye, the markets can spin out of control. In recent years, a dogmaticderegulatory approach to our capi-tal markets, driven by ideologyrather than pragmatism, has nowput those very markets—the envyof the world—in their most seriouscrisis in decades. Policymakers for-got that markets work when thereis transparency of financial infor-mation for investors and consum-ers alike; independent oversight;and accountability enforced by ac-tive and uncompromised regula-tors. Because of deliberate policydecisions, balance sheets did notaccurately reflect the risks thatfirms were taking; large pools of capital were left unregulated while

1980 1984 1988 1992 1996 2000 2004 2008-14

-12

-10

-8

-6

-4

-2

0

2

4

Surpluses Have Turned to DeficitsSurpluses (Deficits) as share of GDP

Projected (2009)

Figure 12




more and more investors were exposed to them;and conflicts of interest compromised the creditrating agencies upon which investors relied. In-

vestors and consumers ended up participatingin complex transactions without full disclosure

of the relevant risks, and eventually these mort-gages, credit card debts, and other loans ended upcosting many Americans dearly.

Because our regulatory system atrophied andits patchwork quilt of different regulators andstandard-setters was left untouched, it failed tokeep pace with financial innovation. As a result,investors were led into investments that theyneither understood nor were appropriate to theirrisk profile, and many people took on debts thatthey never could have hoped to pay. Corners were

cut, and rules were bent. At every level, some of the most important market actors failed to live upto their responsibilities and failed to do what in-

vestors need of them to invest their hard-earnedmoney wisely.

An Unresponsive Government

It is no coincidence that the policy failures of thepast eight years have been accompanied by un-precedented Governmental secrecy and unprece-dented access by lobbyists and the well-connected

to policymakers in Washington. Consequently,the needs of those in the room trump those of their fellow citizens. We saw this with the EnergyTask Force convened in 2002. When a SupremeCourt order finally opened up its proceedings toreview, it became apparent that regulatory deci-sions were made that reflected specific requestsby industry representatives with the Govern-ment’s ear.

The growth of Federal contracting is anotherinstance where special interests benefited fromspecial access. Federal spending on contractsmore than doubled from about $208 billion in2000 to more than $423 billion in 2006—and yet

the number of contract officers overseeing thesecontracts remained flat. The value of contractsnot subject to full and open competition grewfrom $48.6 billion to $112.5 billion during thesame period. Cost-type contracts that are partic-ularly vulnerable to waste since they provide noincentive to control costs increased more than 75percent under the previous Administration.

This special-interest driven use of taxpayerdollars shows up in the billions of dollars in im-proper overpayments for Medicare and Medic-

aid, the billions that Federal taxpayers pay outto fund corporate loopholes; and in the $4 billionin Iraq-related spending auditors estimate is lostto waste and ineffective programs. Most egre-giously, we see this irresponsibility in the tens of thousands of Federal contractors and Medicareservice providers who make money off of the Gov-ernment, but fail to pay all their taxes—costingus billions.

For the Nation to move out of this economiccrisis, and to put our country on the path to

productivity and growth, the American peopleneed its leaders to live up to their responsibilities.That means opening the doors to citizen input;holding those entrusted with taxpayer dollarsaccountable for their use; and setting strong,enforceable rules of the road to keep ourmarkets free and fair. With a government that isaccountable to the people, we can jumpstart oureconomy in a way that is both quick and wise,and begin to make the long-term investments inareas long neglected.





17

There are no quick and easy fixes to the reces-sion plaguing our economy. This crisis has beenmany years in the making, and it is likely to getworse before it gets better. There is no doubtthat our Nation has the creativity, capability,and industriousness to lift ourselves out of thisdownturn and begin the process of transform-ing our economy for the 21st Century. As we do

this, we need to remember that throughout ourhistory, the United States has grown and pros-pered when all Americans have shared in theopportunities created by our economy. While oureconomy has made the transition from an agrar-ian economy to an industrial one and on to aninformation-age economy, this essential truthhas not changed: America thrives when all ourpeople have the chance to succeed.

The past eight years have discredited once andfor all the philosophy of trickle-down econom-

ics—that tax breaks, income gains, and wealthcreation among the wealthy eventually will worktheir way down to the middle class. In its place,we need economic opportunity to trickle up. Weneed policies that will strengthen the middleclass and create the conditions to spur innova-tion and sustainable economic growth. Somemay say that in this current environment thisis aiming too high. Settling never has been the

American way, and now is no time to lower oursights. While we have inherited unprecedentedbudget deficits and a weakened economy, nowis precisely the time for the country to makethe long overdue investments that will funda-mentally transform our economy so that we cancompete and thrive in the decades ahead. As we

jumpstart our economy out of this recession, the American people expect and demand that theirGovernment does so with unprecedented trans-parency and accountability so that they know

where their tax dollars are going and how thesefunds are being spent.

IMMEDIATE RELIEF AND ECONOMIC STIMULUS

As the year started, it became clear there wasa wide and growing shortfall between what the

economy could produce and what it was produc-ing. If we kept on this course, economists pre-dicted that the economy would shed millions of additional jobs, the unemployment rate could ex-ceed 10 percent, and over the next two years, thecountry would lose roughly $2 trillion in income.With traditional monetary policy levers largelyexhausted, the Congress passed and the Presi-dent signed into law the American Recovery andReinvestment Act of 2009 (the “Recovery Act”),a nationwide effort to create jobs and transformour economy to compete in the 21st Century.

Because speed is of the essence when it comesto acting to save our economy and millions of

jobs, approximately three-quarters of the fundsin this package will be spent out over the next18 months. Many of the long-term investmentswill stimulate the economy too as these elementsof the package are simultaneously designed tospark economic growth, save or create 3 to 4 mil-lion jobs, and help families through these toughtimes. To provide immediate relief and get theeconomy moving again, the Administration will:

Make Permanent the $800 “Making WorkPay” Tax Cut for Workers and Their Fami-lies. The Recovery Act created the Making WorkPay tax credit, a refundable income tax credit,which will offset the payroll tax on up to thefirst $6,450 of earnings for about 95 percent of all American workers while still preserving the

JUMPSTARTING THE ECONOMY ANDINVESTING FOR THE FUTURE

17




important principle of a dedicated revenue sourcefor Social Security. This helps small business own-ers struggling to meet expenses. And with fami-lies squeezed, this tax cut will put needed moneyin their pockets for them to make ends meet and

cover the costs of necessities. This is the first-stage of a middle-class tax cut promised duringthe presidential campaign. The Budget will makeMaking Work Pay permanent.

Continue to Cut Taxes for the Familiesof Millions of Children Through an Expan-sion of the Child Tax Credit. By expandingthe Child Tax Credit, the Recovery Act provideda new tax cut and increased the generosity of theexisting credit to millions of children—fulfillingthe promise that a family that works hard and

plays by the rules will be able to raise their chil-dren above the poverty line. The Budget makesthis tax cut permanent.

Increase Food Stamp Benefits for Over 30Million Americans. Even in tough times, ourNation is a nation of plenty, and no one shouldhave to go hungry. The Recovery Act will spendnearly $20 billion to increase food stamp benefitsfor overstretched families, and provide additionalsupport for food banks, school lunch programs,and the Special Supplemental Nutrition Program

for Women, Infants, and Children (WIC) program.

Provide Nearly 60 Million Retired andDisabled Americans an Immediate $250Through Temporarily Increasing Benefits.These vulnerable populations are the first onesto feel an economic downturn. Through the Re-covery Act, we will spend almost $15 billion toprovide nearly 60 million retired Americans and

Americans with disabilities an immediate $250through temporarily increasing Social Security,Supplemental Security Income, and Veteransbenefits.

Extend, Expand, and Reform Unemploy-ment Insurance (UI) Benefits. With unem-ployment on the rise and those out of work goinglonger without new jobs, we have provided botha boost to our economy and to these workers’well-being by extending the Emergency Unem-

ployment Compensation program through De-cember 2009, increasing weekly UI benefits by$25, and providing financial incentives for Statesto modernize their UI systems to expand cover-age. Beyond this year, the Administration will

update the Nation’s UI system to better addressthe challenges and realities of the 21st Centuryworkforce. The Budget proposes changes to makethe UI program a more responsive and effectivesocial safety net and economic stabilizer. The Ad-ministration will propose to make the permanentExtended Benefit program more responsive tochanging economic conditions, making benefitsavailable more quickly and avoiding the delaysassociated with special, temporary extended un-employment programs. Finally, despite the effortsof States to reduce improper benefit payments,

over $3.9 billion in UI benefits were erroneouslypaid in 2008. The Administration will tackle thisproblem by increasing funding for program integ-rity and proposing legislative changes that wouldhave the direct and indirect effect of reducing UIimproper payments by $3.9 billion and reducingemployer tax evasion by almost $300 million over10 years.

Reform Asset Tests. The Administrationwould like to work with the Congress to revisitasset limits for Federal means-tested programs

in the wake of new and expanded refundable taxcredits. Current asset rules across a variety of programs are antiquated, inconsistent, and pres-ent obstacles for low-income individuals who as-pire to achieve self-sufficiency. The intersectionof the new credits and outdated asset rules maydisqualify new and current individuals and fami-lies from Federal benefits, including Medicaidand Supplemental Nutrition Assistance Program(formerly Food Stamps).

CREATING JOBS AND INVESTING IN LONG-TERM

ECONOMIC GROWTH

These tax and benefit provisions of the re-covery plan will provide an immediate stimula-tive effect on the economy. The other part of thestimulus comes from expenditures on projectsthat will promote medium-term economic activ-



JUMPSTARTING THE ECONOMY AND INVESTING FOR THE FUTURE 19

ity while also providing some lift to the economyin the near term—as homes are weatherized, andhealth records are digitized—to name just a few.In addition to immediate hiring and expansionas these projects begin, the American people will

reap benefits from these investments for years tocome because the economic benefits of modern in-frastructure, world-class schools, investments inresearch and development, health care reform,and clean energy will be enjoyed by generationsof Americans. The expenditures in many of theseareas then serve a dual role: to revive the econo-my in the short term and to restore its health forthe long term. Through ambitious investmentsin clean energy, health care, education and otherkey areas, the plan will address long-ignored na-tional priorities and make a historic down pay-

ment on our Nation’s economic future. The 2010Budget will support, and in some cases extend aswell as expand the down payments made in theRecovery Act.

Building a 21st Century Infrastructure

A century ago, Theodore Roosevelt called to-gether leaders from business and governmentto develop a plan for a 20th Century infrastruc-ture. More than 50 years ago, Republican DwightEisenhower and Democrat Al Gore, Sr. worked

together to launch the Interstate Highway Sys-tem. Today, however, too many of our Nation’srailways, highways, bridges, airports, and neigh-borhood streets are aging and congested due tolack of investment and strategic long-term plan-ning. In the short term, modernizing our infra-structure will create new jobs and provide a boostto the economy. In the longer term, infrastructureinvestment will provide our Nation a foundationfor long-term economic growth. The Budget will:

Establish a National Infrastructure Bank.The Budget proposes to expand and enhance exist-ing Federal infrastructure investments through aNational Infrastructure Bank designed to deliverfinancial resources to priority infrastructure proj-ects of significant national or regional economicbenefit. The mission of this entity will be to notonly provide direct Federal investment but alsoto help foster coordination through State, munici-

pal, and private co-investment in our Nation’smost challenging infrastructure needs. Theseprojects will directly and indirectly support jobsand stimulate substantial long-term economicgrowth.

Invest in Our Nation’s Roads, Bridges,and Mass Transit. The President is committedto instituting accountability for the $35.9 billionprovided in the Recovery Act and to responsiblyreauthorizing the Nation’s highway and masstransit programs. The Administration intends towork with the Congress to reform surface trans-portation programs both to put the system on asustainable financing path and to make invest-ments in a more sustainable future, enhancingtransit options and making our economy more

productive and our communities more livable.Further, our surface transportation system mustgenerate the best investments to reduce conges-tion and improve safety. To do so, the Administra-tion will emphasize the use of economic analysisand performance measurement in transportationplanning. This will ensure that taxpayer dollarsare better targeted and spent.

Initiate a New Federal Commitment toHigh-Speed Rail. To provide Americans a 21stCentury transportation system, the Administra-

tion proposes a $1 billion-a-year high-speed railState grant program, in addition to the $8 bil-lion provided in the Recovery Act. This proposalmarks a new Federal commitment to give thetraveling public a practical and environmentallysustainable alternative to flying or driving. Di-rected by the States, this investment will lead tothe creation of several high-speed rail corridorsacross the country linking regional populationcenters.

Improve and Modernize Air Traffic Con-trol. Because of an outdated air-traffic controlsystem and over-scheduling at airports alreadyoperating at full capacity, an ordinary trip to abusiness meeting or to visit family can becomemarred by long delays. The Budget provides $800million for the Next Generation Air Transporta-tion System in the Federal Aviation Administra-tion, a long-term effort to improve the efficiency,




safety, and capacity of the air traffic control sys-tem. The 2010 Budget supports moving from aground-based radar surveillance system to a moreaccurate satellite-based surveillance system; de-

velopment of more efficient routes through the

airspace; and improvements in aviation weatherinformation.

Maintain Rural Access to the AviationSystem. The Administration is committed tomaintaining small communities’ access to theNational Airspace System. The Budget providesa $55 million increase over the 2009 level to ful-fill current program requirements as demandfor subsidized commercial air service increases.However, the program that delivers this subsidyis not efficiently designed. Through the budget

process, the Administration intends to work withthe Congress to develop a more sustainable pro-gram model that will fulfill its commitment whileenhancing convenience for travelers and improv-ing cost effectiveness.

Enhance Security at Over 90 Major Ports,to Improve Homeland Security, Increase In-ternational Trade and Commerce, and Cre-ate Jobs. This investment will help make ourNation’s ports a vital and secure link to the globaleconomy, not a vulnerable entry point for those

who seek to harm us. The Administration is com-mitted to improving the protection of our criti-cal port infrastructure. The Budget continues toprovide risk-based funding through the Port Se-curity Grant Program and builds upon the over$1.4 billion provided for port security grants overthe past few years. These awards can be used bygrantees to purchase a wide variety of security-enhancing investments including watercraft forincreased patrolling of facilities, canine, bomb-sniffing units, and updating port vulnerabilityassessments. Additional funding will be used byCustoms and Border Protection to purchase tech-nology enhancements, such as non-intrusive in-spection X-ray equipment and radiation portalmonitors to detect nuclear materials.

Invest in Clean and Safe Drinking Water.The Budget requests $3.9 billion for the Environ-mental Protection Agency’s Clean Water State

Revolving Fund and the Drinking Water StateRevolving Fund (SRFs), in addition to the $6billion provided in the Recovery Act. With thishistoric increase, the programs will fund over1,000 clean water and nearly 700 drinking water

projects annually based on average project costs.In addition, the Recovery Act will support over1,300 new wastewater projects and over 700 newdrinking water SRF projects. Through Recovery

Act funding for the Department of Agriculture’s(USDA’s) rural water and wastewater grants andloans, the Administration will support a $3.8 bil-lion program level for the repair, upgrade, andconstruction of 2,000 rural water and sewer sys-tems, providing new or improved service to 3 mil-lion people. Together with funding increases forthe SRFs, the Administration will pursue SRF

program reforms that will put resources for theseongoing needs on a firmer foundation.

Expand Access to Broadband. As a country,we have made significant public investments sothat, regardless of economic status, Americanshave access to telephone service and electricity. Inthis day and age, we must do the same for broad-band. Like any network, the more people who area part of it, the stronger we all are. The more com-munities that have access to high-speed Internetconnections, the more businesses can grow and

jobs can be created. When that happens, the en-tire Nation wins. That is why the Recovery Act in-cluded $7.2 billion for broadband expansion andthe 2010 Budget includes $1.3 billion in USDAloans and grants for the Department of Agricul-ture to increase broadband capacity and improvetelecommunication service as well as educationand health opportunities in rural areas.

Invest in the Sciences. Investments in sci-ence and technology foster economic growth;create millions of high-tech, high-wage jobsthat allow American workers to lead the globaleconomy; improve the quality of life for all Ameri-cans; and strengthen our national security. TheRecovery Act included a $5 billion investmentin key science programs, which is by itself an al-most 50-percent increase for these programs over2008 and represents a significant down-paymenttoward the President’s plan to double the fund-




ing for these agencies over 10 years. Under thePresident’s doubling plan, the Budget provides a16-percent increase over 2008 funding levels forthe National Science Foundation and similarlylarge increases for the Department of Energy’s Of-

fice of Science and the Department of Commerce’sNational Institute of Standards and Technology.The Budget also increases support for promising,but exploratory and high-risk research propos-als that could fundamentally improve our under-standing of climate, revolutionize fields of science,and lead to radically new technologies. In addi-tion, the Budget funds cutting-edge, fundamentalresearch in traditional and emerging disciplinesto help transform the Nation’s air transporta-tion system and to support future aircraft. TheNational Aeronautics and Space Administration

(NASA) research in aeronautics will focus on howto increase airspace capacity and mobility, en-hance aviation safety, and improve aircraft per-formance while reducing noise, emissions, andfuel consumption.

Creating a Clean Energy Economy

The high gas prices of last summer only under-scored what we have known for decades: we can-not afford to depend so heavily on foreign oil andother fossil fuels to power our economy. While the

national security implications have been clearfor some time, the more we learn about globalwarming, the more we see that failure to weanourselves off of fossil fuels also jeopardizes oureconomy and our entire planet.

Countries and companies around the world rec-ognize this and are working day and night to de-

velop clean energy technologies that will changeeverything from how we generate our electricityto how we power our cars and trucks. While thechallenge is great, the promise of the moment isunparalleled. If we lead the world in the researchand development of clean energy technology, wecan create a whole new industry with high-paying

jobs that cannot be shipped overseas. Some com-pare the promise of this sector to information tech-nology. The difference is that with clean energy wecan bring new jobs to rural areas long left behindin economic growth. Moreover, if we take the time

now to start transforming our economy, we willenjoy the benefits of a lower cost and more effi-cient energy supply for years to come. As a downpayment on an energy independent, clean energyeconomy, in this Budget, the Administration will:

Begin a Comprehensive Approach toTransform Our Energy Supply and SlowGlobal Warming. The Administration is devel-oping a comprehensive energy and climate changeplan to invest in clean energy, end our addictionto oil, address the global climate crisis, and cre-ate new American jobs that cannot be outsourced.

After enactment of the Budget, the Administra-tion will work expeditiously with key stakehold-ers and the Congress to develop an economy-wideemissions reduction program to reduce green-

house gas emissions approximately 14 percentbelow 2005 levels by 2020, and approximately 83percent below 2005 levels by 2050. This programwill be implemented through a cap-and-tradesystem, a policy approach that dramatically re-duced acid rain at much lower costs than the tra-ditional government regulations and mandates of the past. Through a 100 percent auction to ensurethat the biggest polluters do not enjoy windfallprofits, this program will fund vital investmentsin a clean energy future totaling $150 billion over10 years, starting in FY 2012. The balance of the

auction revenues will be returned to the people,especially vulnerable families, communities,and businesses to help the transition to a cleanenergy economy.

Provide the Capital to Double RenewableEnergy Generating Capacity. Renewable pow-er has grown dramatically over the past severalyears. Unfortunately, the current credit crisis hasbrought this dynamic progress to a halt. The pro-grams in the Recovery Act will help to revive therenewable industry, doubling the amount of re-newable energy generated. Collectively, the loanguarantees provided in the recovery plan and inthis Budget are expected to leverage tens of bil-lions of dollars in private capital. The Recovery

Act also extends the production tax credit (PTC)to 2012 for wind and 2013 for other renewablesources of energy. This extension creates threeyears of certainty for investors, eliminating the




delays historically associated with the PTC. The Act also expands authority for clean renewableenergy bonds and creates new manufacturing taxcredits to spur domestic manufacturing of cleanenergy equipment

Develop Low-Carbon Emission Technolo-gies. The Recovery Act provides funding to meetthe President’s campaign commitment to buildfive commercial scale coal-fired plants with car-bon capture and storage technology through pub-lic-private partnerships. The Energy Departmentwill also scale up its demonstration projects forgeologic storage for carbon dioxide. Combined,this funding will set the foundation for signifi-cant efforts to mitigate greenhouse gas emissionsfrom coal-fired power plants.

Modernize Federal Buildings and Slashthe Federal Government’s Energy Bill by 25Percent. The Federal Government is the largestenergy consumer in the world. Making substan-tial investments to reduce Federal energy con-sumption can spur job creation while deliveringlong-term Government savings through lowerenergy bills. The Budget will build upon the morethan $11 billion provided for building moderiza-tion in the Recovery Act to achieve the President’s25 percent energy efficiency improvement goal by

2013.

Weatherize Low-Income Homes, SavingWorking Families on Average $350 Per Year. Across the Nation, families spend a significantportion of their budget running their furnacesand air conditioners as well as keeping the lightson. By upgrading a home’s furnace, sealing leakyducts, and adding insulation, a homeowner cancut their energy bills by 20 to 40 percent, and thesubstantial savings accrue in summer as well aswinter and for years to come. By adding-energyefficient appliances and lighting, the savings areeven greater. The Department of Energy’s weath-erization budget of $227 million in 2008 couldonly provide benefits for 76,000 U.S. homes. Whilethe Nation has weatherized about six million low-income homes since 1976, more than 28 millionremain eligible. The Budget will build upon the$5 billion provided in the Recovery Act for weath-

erization assistance in order to spur developmentof an industry that will have the capacity to meetthe President’s goal of weatherizing one millionhomes annually.

Use Title XVII Loan Guarantee to ReduceGreenhouse Gas Emissions. Loan guarantee volume under Title XVII of the Energy and Policy Act of 2005 will support innovative and advancedtechnologies that avoid, reduce, or sequester an-thropogenic greenhouse gas emissions or air pol-lutants. The Budget will support a wide-range of eligible projects such as renewable energy sys-tems, electric system transmission projects, andcarbon capture and sequestration projects thatwill result in a cleaner environment and poten-tially, a transformed energy sector.

Help State and Local Governments beMore Energy Efficient. After the Federal Gov-ernment, State and local governments are someof the largest users of energy. Facing budgetshortfalls, many States and local governmentsnow lack sufficient financial resources to tap thefull potential of clean energy development anddeployment. This situation is exacerbated by pri-

vate sector financing drying up as a result of therecent credit crisis. The Budget will build upon$6.3 billion provided for clean energy and energy

efficiency grants to state and local governmentsin the Recovery Act to help support their effortsto reduce their energy use.

Green Our Nation’s Farms. The Budgetincreases funding levels over those provided inprevious years for programs, such as the Conser-

vation Stewardship Program and the Environ-mental Quality Incentives Program that provideincentives for farmers to better conserve theirlands and reduce pollution such as from animalfeeding operations. In addition, USDA intends towork with farmers to help them take advantageof opportunities to participate in emerging mar-kets for carbon credits, alternative energy andin other environmental services, such as wildlifehabitat, clean water, and clean air.

Modernize the Electric Grid. We knowthat the existing electricity grid today is insuf-




ficient and outdated. In order to bring signifi-cant amounts of renewable energy online, tens of thousands of miles of new, high-voltage nationaltransmission is necessary. For example, NorthDakota—a State with significant wind energy

potential—cannot carry the energy to the popu-lation centers that need the electricity withouta new transmission superhighway. The Budgetwill build on efforts in the Recovery Act to createthis new, smarter electric grid for the integrationand use of greater amounts of renewable ener-gy; increased utilization of innovative efficiencytechnologies; and a reduction in the electric con-gestion that costs ratepayers billions of dollarseach year. The Recovery Act includes funds tocomplete additional significant work in improv-ing the national grid with regional transmission

planning and interconnection based transmissionplanning. Included is a $100 million workforcetraining program. To make the grid smarter, mil-lions of Smart Meters—a key first step to a SmartGrid—will be deployed as well as investments ina host of other smart grid technologies.

Preparing Our Children for the 21stCentury Economy

America faces few more urgent challengesthan preparing our children to compete in a glob-

al economy. The decisions our leaders make abouteducation in the coming years will shape our fu-ture for generations to come. The Administrationis committed to meeting this challenge, and its

vision for a 21st Century education begins withdemanding more reform and accountability cou-pled with the resources needed to carry out thatreform; asking parents to take responsibility fortheir children’s success; and recruiting, retain-ing, and rewarding an army of new teachers toteach at new, successful schools that prepare ourchildren for success in college and the workforce.Throughout our history, our Nation’s schools fromthe local elementary school to the large univer-sity have been the gateway into the middle classand a better life for millions. That is why it’s soimportant that the investments we make in ed-ucation are ones that work—that help childrenlearn and pursue their dreams. When it comesto our children’s future, we cannot waste dollars

on methods, programs, and initiatives that arenot effective and efficient. Consequently, in thisBudget, the Administration makes significantinvestments in approaches that have proven todeliver for our children and will reallocate funds

away from and terminate programs that do not.To restore the promise of America’s public educa-tion and to help America’s children again lead theworld in achievement, creativity, and success, theBudget will:

Make A New Investment In Early Child-hood Education. We know that a dollar invest-ed in early education will pay off handsomely asthese children grow older. That is why the Admin-istration is proposing to help States strengthentheir early education programs. The Administra-

tion will broaden the reach of these programsand boost their quality—encouraging new invest-ment, a seamless delivery of services, and betterinformation for parents about program optionsand quality. In addition, through funds from theRecovery Act and this Budget, the President willprovide funding to double the number of childrenserved by Early Head Start and expand HeadStart, both of which have proven to be successfulwith younger children. Finally, the Departmentof Health and Human Services will begin a majoreffort to ramp up a new Nurse-Home Visitation

program. Rigorous research has shown that awell-structured program can have large and mea-surable impacts in helping at-risk expectant andnew parents give their children a healthy startin life.

Support High Standards and Rigorous Assessments Aligned with the Demandsof the Global Economy. Students need tomeet high standards, and tests need to mea-sure the full range of skills that childrenmust learn. Building on investments madethrough the Recovery Act, the Administrationwill help States strengthen their standardsso they are rigorous and reflect readiness forsuccess in college and a career. Resources willalso be available to improve the quality of assessments, including assessments for stu-dents with disabilities and English languagelearners. Such reforms will lay the ground-




work for reauthorizing the Elementary andSecondary Education Act.

Prepare and Reward Effective Teachersand Principals. Almost all successful students

can remember a teacher who had an outsized im-pact on their education. Indeed, the quality of theeducation workforce is a critical factor in educa-tional success. The Budget builds on the invest-ments funded under the Recovery Act designedto significantly upgrade the skills and effective-ness of the education workforce. The Adminis-tration will invest in efforts to strengthen andincrease transparency around results for teacherand principal preparation programs, includingprograms in schools of education, alternative cer-tification programs, and teacher and principal

residency programs. The Budget supports addi-tional investments in State and local efforts, de-

veloped in consultation with teachers and otherstakeholders, to implement systems that rewardstrong teacher performance and help less effec-tive teachers improve or, if they do not, exit theclassroom. Resources are also included to developbetter systems and strategies for recruiting, eval-uating, and supporting teachers and other educa-tors to provide a better supply and distribution of well-prepared and effective education workforce.

Increase Support for Effective CharterSchools. The President’s Budget will promotesuccessful models of school reform by takingthe first major step to fulfilling its commitmentto double support for charter schools. The De-partment of Education will help create new,high-quality charter schools, ensure that Statesproperly monitor and support these schools, and,in the case of chronic underperformance, close ex-isting charter schools.

Expand Pell Grants and Put the Programon Sure Footing. Because the Administrationis committed to making college affordable for all

Americans, the 2010 Budget builds on the Recov-ery Act by supporting a $5,550 Pell Grant maxi-mum award in the 2010-2011 school year. But it’snot enough just to make Pell Grants more gener-ous and to put on a short-term patch. Fourteentimes since 1973, the maximum Pell Grant has

failed to increase even in nominal dollars. Tomake sure that we have a highly educated work-force and that the opportunity to go to college isnot determined by how much money you have,the Budget puts the Pell Grant program on sure

footing. The Administration will index Pell grantsto the Consumer Price Index plus 1 percent in or-der to account for inflation in this sector. In ad-dition, the Administration proposes to make thePell Grant program mandatory to provide a regu-lar stream of funding and eliminate the practiceof “backfilling” billions of dollars in Pell shortfallseach year.

Stabilize the Student Loan Program forStudents and Save Billions of Dollars forTaxpayers. Right now, the subsidies in the

Government-guaranteed student loan programare set by the Congress through the political pro-cess. That program has not only needlessly costtaxpayers billions of dollars, but has also sub-

jected students to uncertainty because of turmoilin the financial markets. The President’s Budgetasks Congress to end the entitlements for finan-cial institutions that lend to students, and insteadto take advantage of low-cost and stable sources of capital so students are ensured access to loans—while providing high-quality services for studentsby using competitive, private providers to service

loans. The approach in the Budget, originating allnew loans in the direct lending program, savesmore than $4 billion a year, and reinvests it inaid to students. The Budget also makes campus-based, low-interest loans more widely avail-able through a new modernized Perkins Loanprogram, overhauling the inefficient and inequi-table current Perkins program.

Help At-Risk Students Complete College. It is not enough for our Nation to enroll more stu-dents in college; we also need to graduate morestudents from college. A few States and institu-tions have begun to experiment with these effortsto accomplish this, but there is much more theycan do. The Budget includes a new five-year, $2.5billion Access and Completion Incentive Fund tosupport innovative State efforts to help low-in-come students succeed and complete their collegeeducation. The program will include a rigorous




evaluation component to ensure that we learnfrom what works.

Make Permanent the New American Op-portunity Tax Credit. If we do not make college

more affordable, we run the risk of losing a wholegeneration of potential and productivity. To helpstudents pay for college, the Administration cre-ated a new $2,500 American Opportunity TaxCredit in the Recovery Act. The credit makes col-lege more affordable for millions of middle-classfamilies and for the first time makes college taxincentives partially refundable. The Budget pro-poses to make this tax cut permanent.

Eliminate or Cut Education Programswith Records of Low Performance. When it

comes to educating our children, we cannot affordto waste a dollar. The Administration proposes toeliminate, cut, or place under intensive reviewEducation Department programs that are nothelping to improve educational outcomes for stu-dents. These are efforts that lack strong evidenceto justify taxpayer support and that, in manycases, could be funded in competitive fundingstreams that require evidence of results.

Invest in Innovations and in What Works.While it is important to increase support for

education, it is also critical to invest in learningwhich programs are effective and in growing theones that are. Through the Innovation Fund, the

Administration will invest in school systems andnon-profit organizations with demonstrated trackrecords of success in raising student achievementto expand their work or implement new innova-tive approaches. For instance, the Harlem Chil-dren’s Zone aims to improve college-going ratesby combining a rigorous K-12 education with afull network of supportive services—from earlychildhood education to after school activities tocollege counseling—in an entire neighborhoodfrom birth to college. It has yielded encouragingresults, and the President’s Budget provides fundsto expand this concept by supporting “PromiseNeighborhoods,” a new effort to test innovativestrategies to improve academic achievement andlife outcomes in high-poverty areas. The Budgetalso increases funding for rigorous evaluation in

a first step toward doubling the Department of Education’s support for education research. TheDepartment’s Institute of Education Scienceswill use this funding to conduct rigorous evalu-ations of approaches to improve student learning

and achievement with a focus on evaluating andscaling up promising innovative practices.

Triple the Number of Graduate Fellow-ships in Science to Help Spur the NextGeneration of Home-Grown Scientific In-novation. The industries of tomorrow will be-gin with ideas dreamed up in the classrooms andlaboratories of today. Without investments inhuman capital today, we will not be able to reapthe benefits of scientific innovation. That is whythe Administration provided in the Recovery Act

funds to be used as a down-payment toward thegoal of tripling the number of graduate fellows inscience.

Lowering Health Care Costs and Ensuring Broader Health Care Coverage

One of the biggest drains on American pocket-books is the high cost of health care. Many fami-lies are one illness or accident away from financialruin. Health insurance costs reduce workers’take-home pay to a degree that is both underap-

preciated and unnecessarily large. At the sametime, health care costs are consuming a growingshare of Federal and State government budgets.The United States spends over $2.2 trillion onhealth care each year—almost $8,000 per person.That number represents approximately 16 per-cent of the total economy and is growing rapidly.By 2017, almost 20 percent of the economy—morethan $4 trillion—will be spent on health care.

Across our Nation, health care costs vary sub-stantially, yet the higher-cost areas do not gen-erate better health outcomes than the lower-costareas. Even among our Nation’s leading medicalcenters, costs vary significantly—with costs atsome centers twice as high as others—but thehigher-cost centers do not achieve higher qualitythan the lower-cost centers. Some researchers be-lieve that health care costs could be reduced bya stunning 30 percent—or about $700 billion a




year—without harming quality if we moved as aNation toward the proven and successful practic-es adopted by the lower-cost areas and hospitals.

Capturing this opportunity would help to boost

family take-home pay and put the Nation on asounder fiscal path. It will require many steps,including expanding the use of health informa-tion technology, more aggressively studying whatworks and what doesn’t, experimenting withdifferent payment systems to health care pro-

viders, and promoting prevention and healthy liv-ing—many of which are advanced dramaticallythrough the Recovery Act.

At the same time that we strive to containcosts, we cannot stand by as tens of millions of

American lack health care coverage. An un-healthy workforce leads to an unhealthy economy,and moving to provide all Americans with healthinsurance is not only a moral imperative, but itis also essential to a more effective and efficienthealth care system.

The President has already begun the process of reforming health care by:

Instituting Temporary Provisions to MakeHealth Care Coverage More Affordable for

Americans Who Have Lost Their Jobs. Aspart of the Recovery Act of 2009, the Administra-tion will provide Americans who lose their jobs orhave recently lost their jobs a tax credit to keeptheir health insurance through COBRA. Thesesteps are estimated by the Joint Committee onTaxation to help provide coverage for approxi-mately seven million Americans.

Increasing Health Care Coverage for Chil-dren. In one of his first official acts, the Presi-dent signed into law the reauthorization of theChildren’s Health Insurance Program (CHIP)—bipartisan legislation vetoed twice by the previ-ous President. It provides the support, options,and incentives for States to provide coverage foran additional four million children on average inCHIP and Medicaid who are now uninsured. ThePresident is committed to implementing this lawquickly and aggressively to help families whose

children are at risk of losing coverage in thisweak economy.

Computerizing America’s Health Recordsin Five Years. The current, paper-based medical

records system that relies on patients’ memoryand reporting of their medical history is prone toerror, time-consuming, costly, and wasteful. Withrigorous privacy standards in place to protectsensitive medical record, we will embark on an ef-fort to computerize all Americans’ health recordsin five years. This effort will help prevent medi-cal errors, and improve health care quality, andis a necessary step in starting to modernize the

American health care system and reduce healthcare costs.

Developing and Disseminating Informa-tion on Effective Medical Interventions.Medicine is changing so rapidly it is almost impos-sible for any individual physician to keep abreastof all the latest research studies. Without themost recent information on effective treatments,it is increasingly more difficult for a doctor to givea patient the type of individualized treatment heor she deserves. Each month, for instance, nearly500 articles are published on breast cancer alone.Despite this profusion of research, there are oftengaps especially an absence of data that compares

how well different diagnostic tests and treatmentswork for the very same conditions and diseases.To help physicians get the information they needto provide the highest quality care for patients,the Recovery Act of 2009 devotes $1.1 billion tocomparative effectiveness research—the reviewsof evidence on competing medical interventionsand new head-to-head trials. The informationfrom this research will improve the performanceof the U.S. health care system.

Investing in Prevention and Wellness. Overa third of all illness is the result of poor diet, lack of exercise, and smoking. Indeed, obesity alone leadsto many expensive, chronic conditions includinghigh blood pressure, heart disease, diabetes, andeven cancer. Furthermore, there are important

vaccines that can prevent diseases, and screeningtests that can detect cancer and other diseases atan early stage when they are more curable. Yet






medical interventions to improve the qualityof care delivered.

!" Maintain Long-Term Fiscal Sustainability. The plan must pay for itself by reducing thelevel of cost growth, improving productivity,

and dedicating additional sources of revenue.

Financing Health Care Reform. The re-serve fund is financed by a combination of re-balancing the tax code so that the wealthiestpay more as well as specific health care savingsin three areas: promoting efficiency and account-ability, aligning incentives toward quality, andencouraging shared responsibility (see Table 1).Taken together, the health care savings wouldtotal $316 billion over 10 years while improvingthe quality and efficiency of health care, without

negatively affecting the care Americans receive.These savings include:

!" Reducing Medicare Overpayments to Private Insurers Through Competitive Payments.Under current law, Medicare overpays Medi-care Advantage plans by 14 percent moreon average than what Medicare spends forbeneficiaries enrolled in the traditional fee-for-service program. The Administrationbelieves it’s time to stop this waste and willreplace the current mechanism to estab-

lish payments with a competitive system inwhich payments would be based upon an av-erage of plans’ bids submitted to Medicare.This would allow the market, not Medicare,to set the reimbursement limits, and savetaxpayers more than $175 billion over 10years, as well as reduce Part B premiums.

!" Reducing Drug Prices. Prescription drugcosts are high and rising, causing too many

Americans to skip doses, split pills, or nottake needed medication altogether. The Ad-ministration will accelerate access to make

affordable generic biologic drugs availablethrough the establishment of a workableregulatory, scientific, and legal pathway forgeneric versions of biologic drugs. In orderto retain incentives for research and devel-opment for the innovation of breakthroughproducts, a period of exclusivity would beguaranteed for the original innovator prod-

uct, which is generally consistent with theprinciples in the Hatch-Waxman law for tra-ditional products. Additionally, brand biolog-ic manufacturers would be prohibited fromreformulating existing products into newproducts to restart the exclusivity process,

a process known as “ever-greening.” The Ad-ministration will prevent drug companiesfrom blocking generic drugs from consum-ers by prohibiting anticompetitive agree-ments and collusion between brand nameand generic drug manufacturers intended tokeep generic drugs off the market. Finally,the Budget will bring down the drug costsof Medicaid by increasing the Medicaid drugrebate for brand-name drugs from 15.1 per-cent to 22.1 percent of the Average Manu-facturer Price, apply the additional rebateto new drug formulations, and allow Statesto collect rebates on drugs provided throughMedicaid managed care organizations. Allthe savings would be devoted to the healthcare reserve fund.

!" Improving Medicare and Medicaid Payment Accuracy. The Government AccountabilityOffice (GAO) has labeled Medicare as “high-risk” due to billions of dollars lost to over-payments and fraud each year. The Centersfor Medicare and Medicaid Services (CMS)

will address vulnerabilities presented byMedicare and Medicaid, including Medicare

Advantage and the prescription drug benefit(Part D). CMS will be able to respond morerapidly to emerging program integrity vul-nerabilities across these programs throughan increased capacity to identify excessivepayments and new processes for identifyingand correcting problems.

!" Improving Care after Hospitalizations and Reduce Hospital Readmission Rates. Near-

ly 18 percent of hospitalization of Medicarebeneficiaries resulted in the readmission of patients who had been discharged in the hos-pital within the last 30 days. Sometimes thereadmission could not have been prevented,but many of these readmissions are avoid-able. To improve this situation, hospitalswill receive bundled payments that cover not

just the hospitalization, but care from cer-




tain post-acute providers the 30 days afterthe hospitalization, and hospitals with highrates of readmission will be paid less if pa-tients are re-admitted to the hospital withinthe same 30-day period. This combinationof incentives and penalties should lead tobetter care after a hospital stay and resultin fewer readmissions—saving roughly $26billion of wasted money over 10 years. Themoney saved will also be contributed to the

reserve fund for health care reform.!" Expanding the Hospital Quality Improve-

ment Program. The health care systemtends to pay for quantity of services notquality. Experts have recommended thathospitals and doctors be paid based on de-livering high quality care, or what is called“pay for performance.” The President’sBudget will link a portion of Medicare pay-ments for acute in-patient hospital servicesto hospitals’ performance on specific quality

measures. This program will improve thequality of care delivered to Medicare ben-eficiaries, and the higher quality will saveover $12 billion over 10 years. Again, themoney saved will be contributed to the Re-serve Fund for health care reform.

!" Reforming the Physician Payment System to Improve Quality and Efficiency. The Admin-istration believes that the current physician

payment system, while it has served to limitspending to a degree, needs to be reformed togive physicians incentives to improve qual-ity and efficiency. Thus, while the baselinereflects our best estimate of what the Con-gress has done in recent years, we are notsuggesting that should be the future policy.

As part of health care reform, the Adminis-tration would support comprehensive, butfiscally responsible, reforms to the payment

formula. The Administration believes Medi-care and the country need to move towarda system in which doctors face better incen-tives for high-quality care rather than sim-ply more care.

!" Reducing Itemized Deduction Rate for Fam-ilies With Incomes Over $250,000. Lower-ing health care costs and expanding healthinsurance coverage will require additionalrevenue. In the health reform policy discus-sions that have taken place over the past

few years, a wide range of revenue optionshave been discussed—and these optionsare all worthy of serious discussion as the

Administration works with the Congress toenact health care reform. The Administra-tion’s Budget includes a proposal to limitthe tax rate at which high-income taxpay-ers can take itemized deductions to 28 per-cent—and the initial reserve fund would be

Table 1.

Reserve for Health Reform

$ in billions 2010 2011 2012 2013 2014 2010-14 2010-19

Federal Health Savings ............................... -1.8 -5.1 -18.0 -24.5 -34.3 -83.7 -316.0

Aligning incentives toward quality ............................. 0.0 -0.4 -1.3 -1.7 -2.1 -5.4 -20.5

Promoting efficiency/accountability .......................... -1.8 -4.3 -16.2 -22.2 -31.5 -75.9 -287.4

Encouraging shared responsibility ............................ 0.0 -0.4 -0.6 -0.7 -0.8 -2.4 -8.1

New Revenues....................................................... ........ -11.1 -30.8 -33.5 -35.5 -110.8 -317.8

Subtotal: Reserve for Health Reform .......... -1.8 -16.2 -48.8 -58.0 -69.8 -194.6 -633.8

Additional resources and new benefits, tobe determined with Congress

Net Cost—Reserve Fund .................................. 0.0 0.0 0.0 0.0 0.0 0.0 0.0




funded in part through this provision. Thisprovision would raise $318 billion over 10years.

Restoring America’s Place in the Worldand Keeping America Safe

Just as a strong economy bolsters our stand-ing in the world and enhances our national se-curity, strong leadership in the world helps usthrive in an interdependent, global economy. Theline between economic policy and foreign policy isnow very hard to draw. In the past, our greatestthreats came from distant countries with armiesand navies who engaged us in direct battle. Now,our open, interdependent world that makes it soeasy to do business, travel, or communicate withpeople from all over the globe also makes us vul-

nerable to new threats and security challenges. As we all learned on September 11th, a smallband of terrorists has the ability to kill thousandsof civilians who are just going about their lives.Dangerous weapons, including nuclear materi-als, could fall into the hands of terrorists. Pro-grammers sitting in their local coffee shop couldlaunch cyber-attacks on the Pentagon, the CIA, orkey parts of our security infrastructure. A smallnation thousands of miles away which slips intochaos and anarchy could become a failed statethat incubates terrorists and regional conflict. An

outbreak of a deadly infectious disease in a ru-ral, undeveloped corner of the world can quicklymake its way to our biggest cities.

America alone cannot defeat these threats, butneither can the world defeat them without Amer-ica. That is why the Administration will investin our Armed Forces and our wounded warriorsto ease the burdens of two wars and multipledeployments, while also asking more of our al-lies in Afghanistan and elsewhere. And it is whythe Administration will increase investments inother elements of our national power—like diplo-macy, economic development, and education—sothat we end the reliance on our military alone todefeat emerging threats. In addition, the Admin-istration will make critical investments for Amer-ica’s veterans to make sure that they receive thefunding and the care they deserve for defendingthis country.

Taken together, this will restore America’sleadership role in the world after years of disre-garding our allies and ignoring the values thathave earned America respect the world over. Al-ready, the President has pledged to close the de-

tention facility at Guantanamo Bay, Cuba withina year and has overhauled detention and interro-gation practices. He is committed to responsiblyredeploying our combat brigades from Iraq whilebringing all the elements of American powerto bear on the threat posed by extremists from

Afghanistan and Pakistan. The President willwork with our allies to ensure that Iran lives upto its responsibilities to the world community, andrededicate America to the agreement at the heartof the Nuclear Nonproliferation Treaty to worktoward a world without nuclear weapons while

working over the next four years to lock down allloose fissile material.

These are big challenges, and while we recog-nize the perils we face, we must not forget that itis also a time of immense promise. We can rebuildour alliances and rally the world to tackle thesetruly transnational challenges, replace despairwith hope, and keep America secure, prosperous,and free. To achieve these goals, we need to al-locate our resources to reflect the reality of thethreats we face today and do so in a way that lim-

its waste. The Administration will:

Increase Funding for the Department of Defense (DOD). As we look to the challengesfacing our Nation, it’s imperative that we investour defense dollars effectively and wisely. To thatend, the President is committed to supportingthe men and women who make our military thebest in the world. He wants to increase the size of the Army and Marine Corps, improve the pay forour men and women in uniform, and improve themedical treatment of wounded servicemembers.

At the same time, the President will pursue areform of the acquisition process to make surethat funds are not being wasted on expensive andoutdated weapon systems. To fund these efforts,the Administration requests for DOD an increaseof $20.4 billion, or 4 percent, from the 2009 enact-ed level of $513.3 billion excluding funding in theRecovery Act. This funding increase allows DOD




to address the President’s highest priorities. Inaddition, the Administration will request suffi-cient funding to enable the Department to carryout the recommendations of the 2005 DefenseBase Closure and Realignment Commission and

meet the mandated September 2011 implemen-tation deadline, which will help to align DOD’sdomestic bases and medical facilities with opera-tional needs—and will go a long way to prevent-ing the mistreatment reported at Walter Reed

Army Medical Center over the past few years.

Responsibly Remove Combat Forces FromIraq and Focus on the Fight in Afghanistan.The Budget recognizes and funds the President’sstrategy to increase our resources in Afghanistanwhile responsibly removing combat brigades from

Iraq. To address the costs of military operationsin Iraq and Afghanistan, the Administration re-quests $75.5 billion for the remainder of 2009 and$130 billion for 2010. The Administration willprovide the details of the 2009 supplemental ap-propriations request to the Congress in the nextfew weeks, and will transmit the detailed 2010request with the President’s 2010 Budget.

Increase the Size of the Army and MarineCorps. While the best technology and up-to-dateequipment are important to maintaining the

predominance of our military, our Armed Forcesultimately rely on the commitment and skill of the men and women who wear its uniform. Rec-ognizing this, the Budget supports additionalpermanent forces in the Army and Marine Corps,which will increase to 547,400 and 202,000, re-spectively, by the end of 2010. This growth is twoyears ahead of schedule and will reduce stress onservicemembers and their families, while provid-ing heightened readiness for a full spectrum of military operations anywhere in the world.

Increase Pay for Men and Women in Uni-form. After years of asking more and more fromour troops and their families, this Budget re-flects the priorities of an Administration thatis committed to caring for the servicememberswho protect our security and the families whosupport them. The Budget includes funding fora 2.9 percent pay raise for men and women in

uniform, an amount that will improve their pur-chasing power.

Improve Mental Health Care for Soldiersand Veterans. The Budget funds expanded ef-

forts at DOD to address mental health needs.Post-traumatic stress disorder, traumatic braininjury (TBI) and associated ailments are, andwill continue to be, key military medical chal-lenges facing the Armed Forces for years to come.DOD will fully implement a comprehensive TBIregistry including a single point of responsibil-ity to track incidents and recovery. The armedservices will expand the number of integratedmental health professionals with their deployedunits to better channel medical attention to thosewho need help quickly. In addition, the National

Intrepid Center of Excellence for PsychologicalHealth and TBI will be dedicated in the late fallof 2009. This will serve as the clinical researchand educational arm of DOD’s Center of Excel-lence for psychological health and TBI. The Bud-get expands the mental health screening andtreatment services offered by the Department of

Veterans Affairs (VA) and focuses on reaching vet-erans in rural areas. The VA also will increase thenumber of Vet Centers and mobile health clinicsto expand access to mental health screening andtreatment in rural areas. In addition, new fund-

ing ensures that veterans and their families areinformed of these resources and are encouragedto pursue needed care.

Reform Defense Department Acquisition.When it comes to the defense of our Nation, it’scritical that every dollar is spent in the most ef-fective way possible. Funds need to be allocatedin ways that take into the account the needs of to-day as well as the threats of tomorrow. Moreover,we must make sure that the men and women whoserve our Nation in its defense have the train-ing, resources, material, and support they needto do the job. We know that DOD’s new weaponsprograms are among the largest, most expensive,and technically difficult that the Department hasever tried to develop. Consequently, they carry ahigh risk of performance failure, cost increases,and schedule delays. With this in mind, the Ad-ministration is committed to reforming the de-




fense acquisition process so that taxpayer dollarsare not wasted. The Administration will set real-istic requirements and stick to them and incorpo-rate “best practices” by not allowing programs toproceed from one stage of the acquisition cycle to

the next until they have achieved the maturityto significantly lower the risk of cost growth andschedule slippage.

Put the United States on a Path to DoubleForeign Assistance. It has become clear overthe past decade that all the elements of Americanpower must be developed to protect our people,interests, and values. That is why the Admin-istration is committed to placing the Nation ona path to double foreign assistance to $50 bil-lion. Doing so, the United States will reach out

to the global community, lay the groundwork forstability and security at home and abroad, andstrengthen its role as a leader in global develop-ment and diplomacy. These are important invest-ments that will help bring stability to other partsof the globe and greater security for our Nation.Through increased foreign assistance funding,the United States will embark on several newinitiatives that will give children in the poorestcountries access to education; foster global foodsecurity through sustainable agriculture; expandgoodwill and inspire service by increasing the

size of the Peace Corps; and help stabilize post-conflict states, creating room for them to plantthe seeds of democracy.

Expand the Size of the Foreign Service.To face the threats of the 21st Century, we needto use all the instruments of our power, includ-ing diplomacy, to ensure the safety and securityof the United States. The 2010 Budget includesfunding for the first year of a multi-year effort tosignificantly increase the size of the Foreign Ser-

vice at both the Department of State and the U.S. Agency for International Development (USAID). An increased cadre of State and USAID ForeignService officers will help advance our critical for-eign policy goals and deliver on our expandingU.S. foreign assistance commitments.

Increase Funding for Global Health Pro-grams. Boosting the quality of health around

the world is not only a moral consideration; it isalso in the country’s interest as pandemics andpoor health care can destabilize whole regionsas well as travel around the globe. In the Bud-get, the United States will continue to build on

its commitment to save lives through increasinginvestments in global health programs, includ-ing in areas such as maternal and child health,family planning and other core health programs,while also emphasizing a commitment to HIV/

AIDS, malaria, and tuberculosis through success-ful programs such as the President’s EmergencyPlan for AIDS Relief and the Malaria Initiative.In addition, together with our multilateral part-ners, the Administration will continue to provideglobal leadership to improve the health status of the world’s poorest populations.

Reinvigorate Counter-Proliferation, Anti-Terrorism, and Transnational Crime-Fight-ing Efforts. The Budget will fund reinvigoratedefforts to counter nuclear proliferation, terrorism,and transnational crime. Specifically, the Bud-get includes first-year funding for a multi-yearcounterterrorism and law enforcement assis-tance program that strengthens the capabilitiesof our international partners in the WesternHemisphere and other critical regions around theworld. The Budget also provides additional non-

proliferation and counter-proliferation funding tohelp secure nuclear materials and promote safecivilian uses of nuclear energy.

Meet Our Challenges in Afghanistan, Pak-istan, and Iraq. The 2010 Budget refocuses U.S.resources toward addressing the resurgence of alQaeda and the Taliban in Afghanistan and Paki-stan. The Administration increases non-militaryassistance to both countries, providing additionalfunding for governance, reconstruction, counter-narcotics, and other development activities thatwill help counter extremists. It expands thenumber of civilian personnel in Afghanistan andPakistan in an effort to stabilize strategic areasof the countries, build government capacity, andsuccessfully manage expanded assistance pro-grams. In Iraq, the Administration strengthensour assistance to those who have been displacedfrom their homes because of the war, and realigns




our assistance efforts in Iraq to ensure that Iraq-is can assume more responsibility for their ownpolitical and economic future.

Boost Compensation to Disabled Military

Retirees. The Budget contains a proposal to ex-pand concurrent receipt of military retired payand Veterans Disability Compensation to retireeswho were medically retired from active service.Under current law, these benefits are offset. Dis-abled military retirees would receive significantlygreater compensation when the offset is removed.

Improve the Quality of Life for Our ArmedForces. The Administration is committed to im-proving the quality of life for American militarypersonnel. Therefore, the Budget continues to

sustain and modernize barracks and dormitorieshousing service members around the world andworks to end all inadequate housing for militaryfamilies. It provides funds to build or renovatebase facilities at a rate sufficient to ensure thesafety and functionality of all structures whilemeeting the needs of users.

Care for Wounded, Ill, and Injured Ser-vicemembers. DOD will continue its efforts toimprove the medical care and housing for wound-ed, ill, and injured servicemembers. DOD will

add 21 more Warrior in Transition Complexes atposts throughout the continental United States,as well as sites in Alaska, Hawaii and Germany.DOD and the VA will expand pilot programs toexpedite processing of injured troops through theDisability Evaluation System. The expedited sys-tem substantially reduces the time required todetermine disability rating and, more important-ly, alleviates frustration caused by a needlesslycomplex process.

Increase Funding for VA by $25 BillionOver the Next Five Years. The President’s Bud-get increases funding for VA by $25 billion overthe next five years in order to honor our Nation’s

veterans and expand the services they receive.Some of these funds will be used to transform

VA into a 21st Century organization, includinginvestments in information technology that di-rectly benefit veterans in the areas of both health

care and benefits. Through improved electronicmedical records, VA will more efficiently retrieveactive duty health records from DOD and enableall VA care sites to access the records of veteransneeding care. The VA will also invest in the de-

velopment of rules-based electronic processes toincrease accuracy, consistency, and timeliness in veterans’ receipt of benefits.

Dramatically Increase Funding for VAHealth Care. The President’s Budget funds VAmedical care with the resources it needs to pro-

vide 5.5 million veterans with timely and highquality care. This funding also enables VA to cre-ate Centers of Excellence for hearing and visionimpairment and to provide additional veteran-oriented specialty care in areas including pros-

thetics, spinal cord injury, aging, and women’shealth.

Restore Health Care Eligibility for Mod-est-Income Veterans. For the first time sinceJanuary 2003, the President’s Budget restoreseligibility for VA health care to non-disabled vet-erans earning modest incomes. By 2013, this ini-tiative will bring over 500,000 additional veteransinto the VA health care system while maintaininghigh quality and timely care for the lower-incomeand disabled veterans who currently rely on VA

medical care.

Combat Homelessness by Safeguarding Vulnerable Veterans. The Administration ex-pands VA’s current services to homeless veter-ans through a collaborative pilot program withnon-profit organizations. This pilot will helpmaintain stable housing for veterans who are atrisk of falling into homelessness while helping

VA to continue providing them with supportiveservices.

Facilitate Timely Implementation of theComprehensive Education Benefits Veter-ans Earn Through Their Dedicated Service. This Budget supports VA’s prompt, accurate, andefficient implementation of the Post-9/11 GI Bill--providing unprecedented levels of educationalassistance to the men and women who haveserved our country through active military duty.




CHANGING THEW AYW ASHINGTON DOES

BUSINESS

Just as important as changing what Washing-ton does is to change how it does it. We cannot

begin to tackle the challenges we face in the shortterm to revive our economy and in the long termto put us on the path to growth without restoringresponsibility and accountability to Government.Being entrusted with Americans’ tax dollars isa huge responsibility, and for far too long, therehas been insufficient regard for how those fundsare spent; a high tolerance of waste, fraud, andabuse; and a passive acceptance of inefficienciesand ineffectiveness. Changing this will take time,and in the few weeks that the Administration hasbeen in office, it has started that lengthy process.

Restoring Fiscal Discipline and Planning for the Future

Over the past eight years, fiscal recklessnessreplaced fiscal responsibility. Huge tax cuts andspending increases were undertaken without be-ing paid for. Large extra-budgetary expenses puta veneer on our fiscal situation. Special interest-driven spending grew out of control. Long-termchallenges to our country and our fiscal situationwere ignored. Taken together, this has put the

Nation in an even more precarious fiscal positionas we confront this economic crisis. In light of thisinheritance of irresponsibility, the Administra-tion in its first weeks has taken the initial stepsto restore fiscal discipline by requesting andsigning into law an economic recovery bill thatis free of all earmarks and by instituting a sys-tem whereby the public will be able to track howand where recovery funds are actually used. Tocontinue this progress in the months and yearsahead, the Administration will:

Cut the Deficit in Half by End of the Presi-dent’s First Term. The current economic crisishas resulted in a $1 trillion a year gap betweenwhat the economy can produce and what it is ac-tually producing. With all the monetary policylevers already employed, the Government hadto step in to stimulate the economy and avoid aneconomic catastrophe. While the Recovery Act

has entailed increasing deficit spending—sincethat is the fastest and surest way to create jobs ina recession—we cannot see this as a new norm. Itis an extraordinary response to an extraordinarycrisis. So while this Budget will add to our na-

tional deficit in the short-term, the President iscommitted to cutting in half by the end of his firstterm in office the deficit he inherited on January20, 2009.

Review the Budget Line-By-Line forWaste. The President believes that we shouldbe investing taxpayer dollars in efforts and pro-grams with proven records of success and real-locating or cutting programs that do not work orwhose benefits are not worth their cost. To thisend, the Administration has begun an exhaus-

tive line-by-line review of the Federal Budget, thefirst stage of which will be partially reflected inthe spring release of the full FY 2010 Budget andwill continue in subsequent years. However, al-ready the Administration has identified cuts andsavings that include:

!" Increasing Federal Health Savings. Asdiscussed in detail above, the Presidentis proposing substantial savings in healthcare by aligning incentives toward qual-ity, promoting efficiency, and encouraging

responsibility.!" Eliminating Cotton Storage Credits. The

President’s Budget proposes to eliminate therequirement for the Government to pay thestorage costs of cotton that is put under loanwith USDA. Cotton is the only commodityfor which this assistance is provided with-out exception. Storage credits for cotton havebeen found to have a negative impact on theamount of cotton on the market. Becausecotton storage is covered by the Government,producers may store their cotton for longer

than necessary. There is no reason the Gov-ernment should be paying for the storage of cotton, particularly since it does not providethis assistance for most other commodities.

!" Eliminating Mine Clean-Up Payments to States that Have Completed Clean-Up. Aban-doned Mine Lands (AML) payments from theOffice of Surface Mining are made to States




with abandoned coal mines requiring cleanup. These AML payments were originally in-tended to be used only for clean-up efforts.In 2006, a provision was added that providedpayments, available for unrestricted use, forStates that have completed clean-up of all of

their abandoned coal mines. This proposalwould eliminate these unrestricted pay-ments to States that have completed clean-up, saving close to $200 million in 2014.

!" Eliminating the Resource Conservation and Development (RC&D) Program. The Budgeteliminates funding for RC&D. First begunin 1962, the program was intended to buildcommunity leadership skills through the es-tablishment of RC&D councils that wouldaccess Federal, State and local programs for

the community’s benefit. After 47 years, thisgoal has been accomplished. These councilshave developed sufficiently strong State andlocal ties that the Administration believesthey are now able to secure funding for theircontinued operation without Federal assis-tance.

!" Reforming the Market Access Program(MAP). The Budget reforms MAP by reduc-ing program funding for overseas brandpromotion and minimizes the benefits thatlarge for-profit entities may indirectly gainas members of trade associations who partic-ipate in MAP. An annual funding reductionof 20 percent will improve the program byplacing greater emphasis on promoting ge-neric American agricultural products over-seas and assisting small business entities.

!" Reducing Direct Payments to Farmers. ThePresident wants to maintain a strong safetynet for farm families and beginning farmerswhile encouraging fiscal responsibility. Aspart of a broad effort to move farmers from

a program of direct payments to a programwhere agricultural producers earn paymentsfrom environmental improvements, thePresident’s Budget phases out direct pay-ments over three years to farmers with salesrevenue of more than $500,000 annually.Presently, direct payments are made to evenlarge producers regardless of crop prices, in-

come, and profits or whether the land is stillfarmed.

!" Increasing Collection of Delinquent Tax From Federal Contractors. Federal contractors owebillions of dollars in unpaid Federal taxes.

IRS currently collects some of this debt bylevying Federal payments made to thesedebtors. In some cases, administrative proce-dures prevent IRS from collecting this debt.In fact, IRS loses the opportunity to collectapproximately $114 million per year in taxdebt because of administrative delays. TheBudget proposes to address this problem bystreamlining administrative processes in or-der to make it easier for IRS to collect taxdebt owed by Federal contractors.

!" Eliminating or Reforming Small, Ineffec-

tive Housing and Urban Development Pro- grams. Programs that are either ineffec-tive or duplicative divert us from achievingtheir ultimate policy goals and are a wasteof taxpayer dollars. The Administrationproposes eliminating a list of programsthat includes: the American Dream Down-payment Initiative, which is too small tooperate effectively and the CommunityDevelopment Loan Guarantee program,which is not structured effectively to en-courage communities to finance large-scaledevelopment; plus reform the Rural Hous-ing and Economic Development program sothat it is not duplicative of similar USDAprograms.

!" Eliminating Education Programs With Re-cords of Low Performance. When it comes toeducating our children, we cannot afford towaste a dollar. The Administration propos-es to immediately terminate, or intensivelyreview with an expectation of overhaulingor terminating, a series of small Education

Department programs. Many of these pro-grams have long provided funding for nar-rowly focused curricula, staffing choices, orschool types. None has strong evidence to

justify this support; the programs eitherhave never been seriously evaluated or havereceived weak evaluations; and the pro-grams often could be funded in competitive




funding streams that could require evidenceof results.

!" Return to Honest Budgeting. Too oftenin the past several years, budget tricks wereused to make the Government’s books seem

stronger than they actually were. If thisBudget used the gimmicks employed in recentbudgets, it would show in excess of another$250 billion annually in available funds eachyear, and a bottom line that would appearapproximately $2.6 trillion better over 10years. Pretending that the Budget has thismoney available may be gratifying, but it’san accounting sleight-of-hand, not reality.We should not tolerate these kinds of trickswhen it comes to accounting for the public’stax dollars. This Budget, therefore, provides

a projected cost for the wars in Iraq and Afghanistan; does not assume that all of the2001 and 2003 tax legislation magically dis-appears at the end of 2010; does not allowthe alternative minimum tax to take overthe tax code, which almost every observeragrees is unrealistic; recognizes the statis-tical likelihood of natural disasters insteadof assuming that there will be no disastersover the next decade; includes a contingentreserve as a placeholder in case further leg-islative action becomes necessary to stabi-

lize the financial system; and provides a 10-year rather than a 5-year look into our fiscalsituation.

Account for Future Emergencies. One cannever know what kind of disaster or unexpectedemergency may occur that will require the helpof the Federal Government. If we do not accountfor these costs as we project the Federal Govern-ment’s future fiscal health, we run the risk of allowing these unforeseen events to cause evenmore economic pain and derail our long-termgrowth. In the past, budgets assumed that therewould not be any natural disasters in our Nationthat would necessitate Federal help—no majorearthquakes, hurricanes, floods, or man-made di-sasters. This omission is irresponsible, and haspermitted past Administrations to project deficitsthat were lower than were likely to occur. Break-ing with past practice, the President’s Budget

puts more than $20 billion annually (the statisti-cal probability of the costs of dealing with theseemergencies) in its budget projections.

Return to Pay-As-You-Go Budgeting.

While the economic crisis we have inherited is aonce-in-a-generation meltdown, it should not beseen as an opportunity to abandon the fiscal dis-cipline that we owe each and every taxpayer inspending their money. This discipline is criticalto keeping the United States strong in a global,interdependent economy. Moving forward, weneed to return to pay-as-you-go budgeting thatwe had in the 1990s for all non-emergency mea-sures. The President and his economic team lookforward to working with the Congress to developbudget enforcement rules that are based on the

tools that helped create the surpluses of a decadeago, including statutory pay-as-you-go rules.

Create a Reserve for Financial Stabiliza-tion Efforts. The Nation has inherited deepproblems in its financial system. Additional ac-tion is likely to be necessary to stabilize the fi-nancial system and thereby facilitate economicgrowth. Although the Administration is not re-questing additional funds from the Congress atthis point and although it is not yet possible toprovide a precise estimate of how much addi-

tional Federal action may be involved should the Administration need to request such funds, thePresident’s Budget nonetheless includes a $250billion contingent reserve for further efforts tostabilize the financial system. The approach forthis financial stabilization reserve is similar inspirit to the one adopted with regard to futurewar costs; the Budget includes a placeholder forfuture war costs even though such costs if any aredifficult to predict. Estimates of the value of thefinancial assets acquired by the Federal Govern-ment to date suggest that the Government willget back approximately two-thirds of the moneyspent purchasing such assets—so the net cost tothe Government is roughly 33 cents on the dol-lar. These transactions are typically reflected inthe budget at this net cost, since that budgetaryapproach best reflects their impact on the Gov-ernment’s underlying fiscal position. The figurerecorded in this Budget as a placeholder simi-




larly reflects this net cost concept. The $250 bil-lion reserve would support $750 billion in assetpurchases.

The existence of this reserve in the Budget does

not represent a specific request. Rather as eventswarrant, the Administration will work with theCongress to determine the appropriate size andshape of such efforts, and as more information be-comes available the Administration will define anestimate of potential costs. In addition, should arequest become necessary, the Administration iscommitted to working with the Congress so thatto the maximum extent possible, taxpayers arepaid back over time for any additional emergencyassistance provided to the financial system. Thecompensation to taxpayers could include requir-

ing dividend payments, warrants, equity and oth-er forms of upside opportunities from those firmsreceiving assistance. The compensation couldalso include a fee or assessment on financial in-stitutions or financial activity, which would haveto commence only when the financial system hadstabilized and which would be designed to mini-mize adverse effects on the long-term recovery of our financial system.

Limit Pay Increases in the Federal Work-force. As families are tightening their belts in

this economic crisis across the country, the Presi-dent ordered a freeze of White House senior staff pay. In this Budget, Federal employees also willbe asked to do their part: the 2010 pay increasefor Federal civilian employees, 2.0 percent, is re-sponsive to the current economic climate, bring-ing Federal pay and benefit practices more in linewith the private sector.

Making Saving for Retirement Easier asthe Economy Recovers. Over the long-termfamilies need personal savings, in addition toSocial Security, to prepare for retirement andto fall back on during tough economic times likethese. However, 75 million working Americans—roughly half the workforce—currently lack accessto employer-based retirement plans. In addition,the existing incentives to save for retirement areweak or non-existent for the majority of middle-and low-income households. The President’s 2010

Budget lays the groundwork for the future es-tablishment of a system of automatic workplacepensions, on top of and clearly outside Social Se-curity, that is expected to dramatically increaseboth the number of Americans who save for re-

tirement and the overall amount of personal sav-ings for individuals. Research has shown that thekey to saving is to make it automatic and simple.Under this proposal, employees will be automati-cally enrolled in workplace pension plans—andwill be allowed to opt out if they choose. Em-ployers who do not currently offer a retirementplan will be required to enroll their employees ina direct-deposit IRA account that is compatiblewith existing direct-deposit payroll systems. Theresult will be that workers will be automaticallyenrolled in some form of savings vehicle when

they go to work—making it easy for them to savewhile also allowing them to opt out if their familyor individual circumstances make it particularlydifficult or unwise to save. Experts estimate thatthis program will dramatically increase the sav-ings participation rate for low and middle-incomeworkers to around 80 percent.

Creating a More Ethical and TransparentGovernment and Improving Oversight

Washington cannot be responsive to the Ameri-

can people if the doors of Government are shutto everyone except those with lobbyists and influ-ence. An unresponsive Government not only of-fends our democratic sensibilities; it also leads todisastrous policy outcomes—initiatives and pro-grams that are constructed to serve a select fewand not the public interest.

That is why in his first days in office, the Pres-ident signed an executive order that: prohibitsexecutive branch employees from accepting giftsfrom lobbyists; closes the revolving door that al-lows Government officials to move to and fromprivate sector jobs in ways that give that sectorundue influence over Government; and requiresthat Government hiring be based upon qualifica-tions, competence, and experience—not politicalconnections. The President has ordered every oneof his appointees to sign a pledge abiding by thesetough new rules as a down payment on the change




he has promised to bring to Washington. In threeseparate Presidential Memoranda, the Presidentinstructed all members of his Administration tooperate under principles of openness, transpar-ency, and of engaging citizens with their Govern-

ment; and ended the practice of having othersbesides the President assert executive privilegefor records after an administration ends.

Building on his career working for a more ethi-cal and transparent Government, the Presidentwill:

Shine a Bright Light on Washington Lob-bying. The Administration will take steps tomake sure that the public has specific, useful,and meaningful information about how lobbyists

are trying to influence Federal spending and taxpolicy. A centralized, online database will containlobbying reports, disclose how much money Fed-eral contractors are spending on lobbying, andprovide other relevant information.

Let Americans Track How Their Tax Dol-lars Are Spent. Americans have a right to knowhow the Government spends their tax dollars, butthat information is usually hard to find and oftennot made available at all. The President is com-mitted to changing that by making this data easy

to find and review. He will:

!" Maintain Recovery.gov, an unprecedented ef-fort to bring transparency and accountabil-ity to the money spent in the American Re-covery and Reinvestment Act. This site willallow taxpayers learn where recovery fundsare going, for what purpose, and to what re-sult.

!" Give the public five days to review all non-emergency bills before they are signed intolaw.

!" Disclose each earmark and the name of thelegislator who asked for each earmark, andmake this information available on a search-able public website.

!" Clean up military contracting by establish-ing the reporting requirements, accounting,and accountability needed for good gover-

nance and cost savings, and by scrutinizingno-bid contracting.

Increase Transparency in Earmarks. From 1994 until 2006, the cost and number of Congressional earmarks expanded dramati-

cally, raising concerns that lawmakers werefunneling Federal money home to projects thatmay not be the best use of taxpayer dollars. In2007 and 2008, the Congress took importantsteps to shine light on the allocation of congres-sional earmarks by requiring members’ namesto be listed next to requests funded in appro-priations bills and reports, while also reducingthe total funding for earmarks. However, morework needs to be done. The Administration willcontinue to work with the Congress to providegreater transparency and accountability of ear-

marks, and to ensure that the American peopleare made well aware of how and where Federalmoney is spent.

Bolster Oversight of the Financial Mar-kets. Robust markets depend on clear rules of the road enforced by strong, impartial regulators.This past year, the consequences of poor marketoversight became abundantly clear. The Budget,therefore, will increase resources for the Secu-rities and Exchange Commission (SEC) by over13 percent and the Commodity Futures Trading

Commission (CFTC) by over 44 percent rela-tive to 2008 levels. In 2010, the SEC will buildits staff and technology resources and pursue arisk-based, efficient regulatory structure thatwill better detect fraud and strengthen markets.The CFTC will implement new program respon-sibilities promulgated in the Farm Bill—fillinggaps in regulatory oversight of energy and over-the-counter derivatives trading, as well as for-eign exchange.

Making Government More Effective

For decades, the argument in Washington hasbeen between those who say that government isthe cause of every problem and those who saythat it’s the answer. What has become clear overthe past eight years, especially in light of theFederal Government’s response to Hurricane Ka-trina, is that what bothers Americans is bad gov-




ernment—government that does not to do its jobeffectively and efficiently. To make Governmentmore effective, the Administration will:

Eliminate Wasteful Redundancy. Too often,

Federal departments take on functions or servic-es that are already being done or could be doneelsewhere within the Federal Government moreeffectively. The result is unnecessary redundancyand the inability of the Government to benefitfrom economies of scale and integrated, stream-lined operations. The Administration will conductan immediate and periodic public inventory of administrative offices and functions and requireagency leaders to work together to root out re-dundancy. Where consolidation is not the rightstrategy to improve efficiency, the Administration

will improve information-sharing and use of com-mon assets to minimize wasteful duplication.

Streamline Government Procurement. The President will implement the GAO’s recom-mendations to reduce erroneous Federal pay-ments, reduce procurement costs with purchasecards, and implement better management of sur-plus Federal property.

Reform Federal Contracting and Acquisi-tion. The Administration will take several steps

to make sure that taxpayers get the best dealpossible for Government expenditures. We willreview the use of sole source, cost-type contracts;improve the quality of the acquisition workforce;and use technology to create transparency aroundcontracting. We will review acquisition programsthat are on the GAO high-risk list for being over-budget and prone to abuse. The Administrationalso will clarify what is inherently a governmen-tal function and what is a commercial one; criticalGovernment functions will not be performed bythe private sector for purely ideological reasons.

Put Performance First. The President iscreating a focused team within the White Housethat will work with agency leaders and the Officeof Management and Budget (OMB) to improve re-sults and outcomes for Federal Government pro-grams while eliminating waste and inefficiency.This unit will be composed of top-performing and

highly-trained Government professionals andwill be headed by a new Chief Performance Offi-cer (CPO). The CPO will work with Federal agen-cies to set tough performance targets and holdmanagers responsible for progress. The President

will meet regularly with cabinet officers to reviewthe progress their agencies are making towardmeeting performance improvement targets.

Enforce Standards in Addition to Measur-ing Performance. The Administration will fun-damentally reconfigure the Program AssessmentRating Tool. We will open up the insular perfor-mance measurement process to the public, theCongress and outside experts. The Administra-tion will eliminate ideological performance goalsand replace them with goals Americans care

about and that are based on congressional intentand feedback from the people served by Govern-ment programs. Programs will not be measuredin isolation, but assessed in the context of otherprograms that are serving the same population ormeeting the same goals.

Increase Use of Technology. Meeting 21stCentury challenges will require a Governmentthat leverages 21st Century technologies andkeeps up with the private sector. The Presidentwill appoint the Nation’s first Chief Technology

Officer (CTO) to ensure that our Government andall its agencies have the right infrastructure, pol-icies and services for the 21st Century. The CTOwill work with each of the Federal agencies, to en-sure that they use best-in-class technologies andshare best practices.

Make Sure that Taxpayer Dollars AreSpent Wisely in Our Large EntitlementPrograms. With billions of dollars being spentin programs such as Social Security, Medicare,and Medicaid upon which so many Americansrely, it is important that they are run efficientlyand effectively. The Administration will makesignificant investments in activities to ensurethat taxpayer dollars will be spent correctly,expanding oversight activities in the largestbenefit programs and increasing investmentsin tax compliance and enforcement activities.




The Administration proposes a significantincrease in program integrity activities at theSocial Security Administration (SSA), the De-partment of Health and Human Services (HHS),the Department of Labor (DOL), and the Inter-

nal Revenue Service (IRS). The Administrationproposes a multi-year strategy, which will permitthe agencies to pay closer attention to the riskof improper payments, commensurate with thelarge and growing costs of the programs adminis-tered by these agencies, including Social Security,Medicare, Medicaid, and Unemployment Insur-ance (UI). As an example, the funding providedfor SSA will enable the agency to work down abacklog of Continuing Disability Reviews, whichdetermine whether an individual continues toqualify for Disability Insurance or Supplemental

Security Income. The number of these reviewshas fallen in recent years even as the DisabilityInsurance program has grown.

There is solid and rigorous evidence that theseinvestments can significantly decrease the rate of

improper payments and recoup many times theirinitial investment. For every $1 spent by SSA ona disability review, $11 is saved in erroneous pay-ments. Similarly, for every $1 spent by HHS tofight health care fraud, approximately $1.60 issaved or averted, and the IRS activities recoup $5for every $1 spent. As shown in Table 2, the ini-tial five-year investment of $13.5 billion for 2010through 2014 is estimated to result in nearly $50

billion in lower spending and additional tax rev-enue over the next 10 years, with additional sav-ings accruing after the 10-year period.

In addition to the initiatives described above,

the Administration will launch a new Feder-al-State partnership to reduce error and im-proper payments in Federal means-testedprograms administered by States. Many State-administered programs—such as Medicaidand the Supplemental Nutrition AssistanceProgram (formerly Food Stamps)—operateindependently of each other yet serve similarlow-income populations. Integrating and mod-ernizing processes will provide opportunitiesto improve services to beneficiaries, improveeligibility determination, and reduce errors.

Through this initiative, the Federal Govern-ment will collaborate with States to identifythe most promising approaches and fund de-

velopment and rigorous testing to determinewhich ones have a high return on investmentthat could be replicated on a broader scale.

OMB will oversee the development of rigorousmethodologies for measuring the potential sav-ings from these investments, including bothadministrative efficiency gains and reductionsin erroneous payments. No projects would befunded unless they demonstrate their poten-tial to result in more than one dollar in admin-istrative and program savings for each dollarinvested once the project is fully in effect. The

Table 2.

Program Integrity Savings from Increased Investment in Years 2010 through 2014

(in billions of dollars) 2011 2012 2013 2014 2010-2014 2010-2019

SSA ................................... –1.7 –2.5 –3.4 –4.4 –12.1 –27.9

HHS ................................... –0.5 –0.5 –0.6 –0.6 –2.7 –2.7

UI ....................................... –0.2 –0.2 –0.3 –0.3 –1.1 –1.2

IRS ..................................... –1.1 –2.3 –3.9 –5.7 –13.3 –16.6

Total Savings ................... –3.5 –5.6 –8.1 –11.0 –29.2 –48.5

Increased revenue due to IRS enforcement funding is shown as a negative for consistency. Numbers may not add to totals due to rounding.




results of the pilots will be reported to theCongress and used to inform administrativeand legislative policies for achieving program-matic savings in future years.

Budget Mechanism for Improving Program Integrity

The Administration proposes to protect the dol-lars requested for these activities in the appropri-ations process through allocation adjustments, amechanism that has been used by past adminis-trations and Congresses. Allocation adjustmentsare increases in the ceiling or allocation for annual

appropriations, but these increases are grantedonly if appropriations bills increase funding forthe specified programs integrity purposes abovespecified base levels. This budget mechanism will

ensure that this funding will not supplant otherFederal spending on these activities or be divertedto other purposes. The base level of funding as-sumed in each appropriations request and the al-location adjustment for each agency is listed in thetable.

Table 3.

Program Integrity Allocation Adjustment Requests (budget authority in millions of dollars)

2010 2011 2012 2013 2014 2010- 2014

SSA Program Integrity Base 273

Allocation adjustment 485 722 837 1,020 1,225 4,289

HHS Health Care Fraud and Abuse Control Program

Base (mandatory) 1,179

Allocation adjustment 311 327 343 361 381 1,723

DOL Unemployment Insurance Improper Payments

Base 10

Allocation adjustment 50 55 60 65 70 300

IRS Enforcement Base 7,100*

Allocation adjustment 890 1,115 1,357 1,724 2,105 7,191

Federal-State Partnership Allocation adjustment 175 175

Total Allocation Adjustment Request 1,911 2,219 2,597 3,170 3,781 13,678

* The IRS enforcement base total should be considered a placeholder pending final approval and will be updated in subsequent Budget documents.





43

At this moment of economic crisis and un-certainty, our country is being tested. We cancontinue the irresponsible ways of the past andpretend that our problems are not there. We canput off for tomorrow what must be done today.

And we can just concern ourselves with our-selves—pursuing profits without any regard forprinciples. Or we can take a new path, usher in

a new era of responsibility, and renew America’spromise. We can jumpstart our economy and cre-ate or save millions of jobs. We can invest nowto address the long-term drags on our economiccompetitiveness. And we can create a govern-ment that is open and responsive to the peopleit serves.

Especially now, this may seem like a difficultcourse to take. But it is precisely in these toughtimes that America has always come through.Through Depressions and disasters, world wars

and the Cold War, our Nation has turned mo-ments of adversity into opportunities of greatprogress. Once again, we face such a moment,and it is up to each of us to roll up our sleevesand show, once again, that we are equal to thetask at hand; that we are committed to the hardwork of getting America moving again.

This Budget lays out a plan for our Nation toget back on its feet and restore our competitive-ness in this new century. It details how we aregoing to steer the United States out of this deeprecession, and begins laying the groundwork forlong-term growth. It makes overdue investmentsin improving our schools and opening up oppor-tunities to learn for all our children. It explainshow we are going to build the infrastructureupon which our entrepreneurs and inventors willbuild the industries and create the jobs of tomor-row. The Budget includes a bold commitment to

improving our health care system and reformingit so that it no longer is a weight on our economy.Recognizing how critical it is to tackle climatechange as well as the immense opportunity thatinvestments in clean energy technology presentto our economy, the Budget invests in this prom-ising sector. Finally, the Budget reflects howimportant it is that we keep our people safe and

keep America leading in the world, with invest-ments in our armed services and internationalcapabilities.

This Budget also reflects the belief that Amer-icans deserve a government that is open, honest,and accountable. New transparency and programintegrity initiatives will be started that will openthe doors of the Government to the public andhelp make sure that taxpayer dollars are spentwisely and carefully. Moreover, the Budget it-self does not use budget gimmicks or accounting

sleights-of-hand to hide our plans or the statusof our economy. It is forthright in the challengeswe face and the sacrifices we must make. It ishonest in evaluating what programs work andwhich do not; shifting resources from the latterto the former.

Overcoming the problems we have inherit-ed will not be completed in one budget, in onemonth, or in one year. It will take months andyears of ingenuity and innovation, courage andcommitment. It will take all Americans, includ-ing those in Washington and beyond living upto the responsibilities we have to each other asneighbors and citizens. But if we come togetherand pull together, there is little doubt that Amer-ica will be growing, innovating, and creating jobsfor generations to come.

CONCLUSION





45

Funding Highlights:

1

1 This page corrects an amount erroneously included in the printed version of A New Era of Responsibility.

DEPARTMENT OF AGRICULTURE

The United States Department of Agriculture(USDA) provides leadership on food, agricul-ture, natural resources, and related issues basedon sound public policy, the best available sci-ence, and efficient management. USDA focuseson further developing alternative markets foragricultural products and activities, providing fi-

nancing needed to help expand job opportunitiesand improve housing, utilities and infrastructurein rural America, enhancing food safety by tak-ing steps to reduce the prevalence of foodbornehazards from farm to table, improving nutri-tion and health by providing food assistance andnutrition education and promotion, supporting




international agricultural and economic devel-opment, and managing and protecting America’spublic and private lands working cooperativelywith other levels of government and the pri-

vate sector. This Budget provides $26 billion indiscretionary budget authority to support thismission.

Supports Strong Farm and Rural Eco-

nomic Development. The President’s Budgettargets farm programs to family farmers andprovides the stability and predictability theyneed. The Budget will also provide Americanfarmers with protection from market disrup-tions and weather disasters. At the same time,program effectiveness will be improved throughrestrictions on commodity payments to wealthyfarmers. The President supports the imple-mentation of a $250,0001 commodity programpayment limit, which will help ensure that pay-ments are made only to those that most needthem. To spur the development of small businessand value-added agriculture in rural America,the President’s Budget provides $61 million forfive Rural Development programs: the ruralmicroentrepreneur assistance program, ruralcooperative development grants, value-addedproducer grants, grants to minority producers,and cooperative research agreements.

1 This page corrects an amount erroneously included in the printed

version of A New Era of Responsibility.

Develops Rural Broadband Services.Modern technology is critical to the expansionof business, education, and health care oppor-tunities in rural areas and the competitivenessof the Nation’s small towns and rural communi-ties. The Budget provides $1.3 billion in loansand grants to increase broadband capacity andimprove telecommunication service and educa-tion and health opportunities in rural areas.

Promotes Rural America’s Leadership inDeveloping Renewable Energy. America’sfarmers have been on the forefront of the renew-able fuels movement. The President has beena strong proponent for increasing the nationalsupply of home-grown American renewable fu-els. This Budget ensures that the Nation’s ruralareas continue their leadership in this arena bysupporting an additional $250 million in loansand grants. Rural America is poised to produceand refine more American biofuels; provide morewind power than ever before; and create millionsof new jobs across the country.

Supports Rural Revitalization, Educa-tion, and Land Grant Programs. The Budgetincludes an additional $70 million for rural ar-eas, for competitive research grants that provideincentives for teachers working in rural areas

2006 2007 2008 2009 20100

5

10

15

20

25

30

Actuals, including emergencies

Projections

Discretionary budget authority in billions of dollars

22.5

25.326.1

24.626.0

Department of Agriculture

In addition, the Recovery Act includes $6.9 billion.

Note: Includes international food aid.



DEPARTMENT OF AGRICULTURE 47

to pursue professional development, and to en-hance existing rural research and extensionprograms at land grant and minority-servinginstitutions.

Protects the Nation’s Forests. The Bud-get reflects the President’s commitment toprotecting and restoring our national forestsas a cornerstone of a healthy, sustainable en-

vironment. The Budget provides a $50 millionincrease (plus inflation) for national forest oper-ations to protect natural resources and maintainfacilities, including those that are restored with2009 American Recovery and Reinvestment Actinvestments.

Responsibly Budgets for Wildfires. The

Budget fully funds the 10-year average sup-pression costs, establishes a discretionaryfunding reserve, and ensures fire managementresources are used in a cost-effective mannerin high-priority areas. The $282 million discre-tionary contingent reserve provides funding forfirefighting when the $1.1 billion appropriated10-year average is exhausted. This proposal willensure that fire management resources are suf-ficient to allow for other critical Forest Serviceactivities.

Conserves New Lands. The Budget in-cludes $119 million, a $34 million increase, inForest Service funding through the Land andWater Conservation Fund to acquire easementson forested lands under significant developmentpressures. These conservation easements willprotect air and water quality, provide access tonational forests, and provide habitat for threat-ened or endangered wildlife and fish.

Supports Conservation. The Administra-tion fully supports partnering with landownersto conserve land, protect wetlands, improvewildlife habitat, expand hunting and fishingopportunities, and promote other conservationinitiatives. In this vein, the Administrationfunds several vital conservation programs in-cluding the Conservation Stewardship Program,the Conservation Reserve Program, and the En-

vironmental Quality Incentives Program and

conservation tax incentives that were providedin the 2008 Farm Bill.

Strengthens Nutrition Assistance. ThePresident’s Budget supports a strong Child Nu-

trition and WIC reauthorization package thatwill ensure that low-income children receive thenutrition assistance they need and help fulfillthe President’s pledge to end childhood hungerby 2015. The Budget provides an increase of $1 billion annually for program reforms aimedat improving program access, enhancing thenutritional quality of school meals, expandingnutrition research and evaluation, and improv-ing program oversight. Funding is also providedto support over 9.8 million participants in theWIC program, which is critical to the health of

pregnant women, new mothers, and their in-fants.

Responds to the Needs of Low-Income Americans. The President supports the nu-trition provisions incorporated in the AmericanRecovery and Reinvestment Act, including atemporary increase in the Supplemental Nutri-tion Assistance Program (SNAP), formerly FoodStamps, to help strengthen the food purchasingpower of low-income families during these tougheconomic times. The President also supports

additional resources for food banks and com-munity-based food providers, which help manyfamilies put food on the table. Additionally,the Budget provides funding for an innovativepilot initiative to increase participation amonglow-income seniors, who are among the most

vulnerable and hardest-to-reach populations inSNAP, to ensure they receive the benefits forwhich they qualify.

Enhances Food Safety. The President’sBudget takes steps to improve the safety of theNation’s supply of meat, poultry and processedegg products and to ensure that these productsare wholesome, and accurately labeled and pack-aged. The Budget provides additional resourcesto improve food safety inspection and assess-ment and the ability to determine food safetyrisks. This will lead to a reduction in foodborneillness and improve public health and safety.




Supports Independent Producers. Pro-tecting producers against unfair, deceptive, andfraudulent practices is essential to a fair and ef-ficient marketing system. Additional resourcesare provided to improve the enforcement of the

Packers and Stockyards Act to help accomplishthis. The Budget also proposes increased fund-ing to enhance the National Organic Programthrough additional education and outreach, aswell as enforcement to maintain labeling cred-ibility.

Pursues Fiscal Responsibility. Aspart of the President’s commitment to fiscalresponsibility, the Budget includes severalsignificant offsets. The proposals includeprogrammatic changes that:

Reduce Direct Payments. As part of aneffort to transition large farms from directpayments provided to owners of base acresto increased income from revenue derivedfrom emerging markets for environmentalservices, the President’s Budget phases outdirect payments over three years to farmerswith sales revenue of more than $500,000annually. Presently, direct payments aremade to even large producers regardlessof crop prices, losses, or whether the land

is still under production. The programwas introduced in the 1996 Farm Bill as atemporary payment scheduled to expire, butwas included in the 2002 and 2008 FarmBills. The President wants to maintaina strong safety net for farm families andbeginning farmers while encouraging fiscalresponsibility. Large farmers are wellpositioned to replace those payments withalternate sources of income from emergingmarkets for environmental services,such as carbon sequestration, renewableenergy production, and providing clean air,clean water, and wildlife habitat. USDAwill increase its research and analyticalcapabilities and conduct Government-widecoordination activities to encourage theestablishment of markets for these ecosystemservices.

Reduce Crop Insurance PremiumSubsidies and Underwriting Gains. Thisproposal would reduce the Federal subsidyto both insurance companies and farmers.Over the last several years, subsidies for

crop insurance companies have grownrapidly without improving program coverageor customer service for farmers. Currentsubsidy levels exceed what is necessary toencourage farmer participation and they donot constitute a sound value to taxpayers.

Eliminate Cotton Storage Credits. ThePresident’s Budget proposes to eliminate therequirement for the Government to pay thestorage costs of cotton that is put under loanwith USDA. Cotton is the only commodity for

which this assistance is provided. Storagecredits for cotton have been found to have anegative impact on the amount of cotton onthe market. Because cotton storage is coveredby the Government, producers may store theircotton for longer than necessary.

Eliminate the Resource Conservationand Development (RC&D) program. TheBudget eliminates funding for the RC&Dprogram. First begun in 1962, the programwas intended to build community leadership

skills through the establishment of RC&Dcouncils that would access Federal, Stateand local programs for the community’sbenefit. After 47 years, this goal has beenaccomplished. These councils have developedsufficiently strong State and local ties that the

Administration believes they are now able tosecure funding for their continued operationwithout Federal assistance.

Reform the Market Access Program(MAP). The Budget reforms MAP by reducingprogram funding for overseas brand promotionand minimizes the benefits that large for-profitentities indirectly gain as members of tradeassociations who also participate in MAP. Anannual funding reduction of 20 percent willreduce Federal spending and place a greateremphasis on promoting generic Americanproducts overseas.



DEPARTMENT OF AGRICULTURE 49

Support Economic Recovery. The Recovery Act provides USDA with a total of $27.6 billion,most of which will fund increased benefits tolow income families through the SupplementalNutrition Assistance Program ($20 billion). In

addition, the Act provides $6.9 billion in discre-tionary appropriations for rural development

activities such as construction and renovation of rural water and wastewater systems, low incomehousing loans, broadband infrastructure in ruralareas, rural business programs, and constructionof Forest Service facilities. Finally, the Act pro-

vides $700 million in mandatory farm disasterassistance.





51

Funding Highlights:

!"

!"

!"

!"

!"

!"

Conducts the Decennial Census. The Pres-

ident’s Budget ensures the Census Bureau willhave the resources it needs to complete the 2010Decennial Census effectively, efficiently, and on-time by providing over $4 billion of additionalfunding. These funds are in addition to the $1 bil-lion recently provided by the American Recoveryand Reinvestment Act. The decennial census isthe Nation’s largest peacetime mobilization, andwill entail the hiring of approximately half of amillion temporary workers, as well as extensiveadvertising and partnership activities to encour-age participation by hard-to-reach populationsand completion of an accurate count.

Improves Weather Forecasting, ClimateMonitoring, Fisheries Management andOcean Programs. The Budget helps ensurecontinuity of National Oceanic and Atmospher-ic Administration (NOAA) satellite coverageneeded for weather forecasting and climate

data records by providing over $1.3 billion to

fund the development and acquisition of vitalweather satellites and climate sensors. Fundingis also provided to advance climate and oceanresearch, including efforts to understand andmonitor ocean acidification. In addition, theBudget fully supports implementation of theMagnuson-Stevens Act and its requirement toeliminate overfishing by 2011. All of these activ-ities build upon the recently enacted Recovery

Act, which provides $600 million for the con-struction and maintenance of NOAA researchfacilities, vessels, and satellites, as well as $230million for habitat restoration, hydrographicservices, research, and management operations.

Invests in America’s Competitiveness.The Budget supports the Nation’s technology in-frastructure by funding advanced measurementand standards development at the National In-stitute of Standards and Technology (NIST).

DEPARTMENT OF COMMERCE




These activities will build upon the Recovery Act,which includes $240 million for NIST’s scientificresearch activities and lab equipment and $180million for construction of NIST facilities. The2010 Budget also provides $70 million for theTechnology Innovation Program, which investsin high-impact research that will address criticalnational needs and advance innovation. The Hol-lings Manufacturing Extension Partnership will

receive $125 million to enhance the competitive-ness of the Nation’s manufacturers by facilitatingthe adoption of more efficient manufacturingprocesses. In addition, Commerce’s National Tele-communications and Information Administrationwill be focused on administering the $4.7 billionprovided by the Recovery Act for programs to ex-pand broadband deployment, adoption, and datacollection.

Spurs Regional Economic Developmentand Creation of New Businesses. The Bud-get provides $50 million in regional planningand matching grants within the Economic De-

velopment Administration (EDA) to support thecreation of regional innovation clusters that le-

verage regions’ existing competitive strengths

to boost job creation and economic growth. TheBudget also launches a $50 million initiative inEDA that will create a nationwide network of public-private business incubators to encourageentrepreneurial activity in economically dis-tressed areas. The Recovery Act provides EDA$150 million to distribute as economic adjust-ment assistance and infrastructure funding, withpriority for areas experiencing severe job losses.

Promotes Opportunities for AmericanExporters in New Markets. The Budgetfully supports the International Trade Admin-istration’s efforts to promote exports from smallbusinesses and eliminate barriers to sales of U.S.products.

Promotes Innovation. The President’s Bud-get gives the U.S. Patent and Trademark Officefull access to its fee collections, which will pro-

vide resources to strengthen the Office’s ability toencourage innovation and safeguard the value of intellectual property through more efficient andhigher quality patent and trademark examina-tions.

2006 2007 2008 2009 20100

2

4

6

8

10

12

14 Actuals, including emergencies

Projections


6.6 6.6

7.9

9.3

13.8

Department of Commerce

Note: The increase in 2010 includes approximately $4 billion of additional funding, above the 2009 level,provided to conduct the 2010 Decennial Census.




53

Funding Highlights:

The U.S. military, the strongest and most ca-pable in the world, faces a host of external andinternal challenges. Meeting these challenges re-quires evaluating the country’s strategic priori-ties and aligning scarce resources to accomplishthe highest of those priorities efficiently and ef-fectively.

External challenges include undertaking aresponsible drawdown of troops from Iraq, andfocusing the appropriate resources on achievingU.S. objectives in Afghanistan. In addition, wemust leverage allied support to help strugglingstates such as Pakistan, which are the keystonefor regional stability. The military must also vigi-lantly anticipate and meet threats from asym-metrical and non-conventional attacks, such asthose posed by cyber, biological, radiological, andnuclear warfare, whether instigated by nation-states or non-state aggressors.

The military’s internal challenges focus onthree general areas: continuing to restructurethe Nation’s forces to better address long-termwarfare challenges; continuing to support, carefor, and compensate military professionals com-mensurate with their service while seeking re-forms that will improve service and protect abenefit package that is sustainable and afford-able; and reforming the costly and inefficientweapon development and acquisition process.

How the country should meet its strategicgoals will be addressed in an upcoming DefenseReview, which will identify and prioritize goalsand assess how best to achieve them withinavailable resources.

Finally, this Budget will transparently pres-ent the full costs of providing national security.The Budget will clearly show the costs of the

DEPARTMENT OF DEFENSE





DEPARTMENT OF DEFENSE 55

the offset is removed, disabled military retireeswould receive additional monthly compensation.

Reforms Acquisition. DOD’s new weaponsprograms are among the largest, most expensive

and technically difficult that the Department hasever tried to develop. As a consequence, they car-ry a high risk of performance failure, cost increas-es, and schedule delays. The Administration willset realistic requirements and stick to them andincorporate “best practices” by not allowing pro-grams to proceed from one stage of the acquisi-tion cycle to the next until they have achieved thematurity to clearly lower the risk of cost growthand schedule slippage.

Improves Facilities. The Administration

is committed to improving the quality of life for American Soldiers, Sailors, Airmen and Marines.Therefore, the Budget continues to sustain andmodernize barracks and dormitories housing ser-

vicemembers around the world and works to endall inadequate housing for military families. Inaddition, it builds or renovates base facilities at alevel sufficient for safe operation of all structureswhile meeting the needs of users.

The Administration will request sufficientfunding to enable the Department to continue its

efforts to meet the requirements of the Base Re-alignment and Closure 2005 Commission, whichwill help to align DOD’s domestic bases withmeeting operational needs.

Cares for Wounded, Ill, and Injured Ser-vicemembers (WII). The Department willcontinue its efforts to improve the medical careand housing for WII. DOD will complete addi-tional Army wounded warrior complexes at poststhroughout the continental United States, as wellas sites in Alaska, Hawaii, and Germany. DODand the Department of Veterans Affairs will ex-pand pilot programs to expedite processing of injured troops through the Disability Evaluation

System. The expedited system substantially re-duces the time required to determine disabilityrating and, more importantly, to alleviate frustra-tion caused by a needlessly complex process.

Addresses Mental Health Issues. The De-partment is also doing more to address mentalhealth needs. Post-traumatic stress disorder,traumatic brain injury (TBI) and associated ail-ments are, and will continue to be, the signaturemilitary medical challenges facing the Depart-ment for years to come. DOD will fully implementa comprehensive TBI registry including a singlepoint of responsibility to track incidents and re-covery. The Services will expand the number of integrated mental health professionals with theirdeployed units to better channel medical atten-

tion to those who need help quickly. The NationalIntrepid Center of Excellence for psychologicalhealth and traumatic brain injury will be dedi-cated in the late fall of 2009. This will serve as theclinical research and educational arm of DOD’sCenter of Excellence for psychological health andTBI.

Funding for Overseas ContingencyOperations

The President is working with his military com-

manders to increase the number of U.S. troops in Afghanistan while responsibly removing combatforces from Iraq. To address the costs of militaryoperations in Iraq and Afghanistan, the Adminis-tration requests $75.5 billion for the remainder of 2009 and $130.0 billion for 2010. The Administra-tion will provide the details of the 2009 supple-mental appropriations request to the Congress inthe next few weeks, and will transmit the detailed2010 request with the President’s 2010 Budget.

The Budget includes placeholder estimates of $50 billion per year for 2011 and beyond. Theseestimates do not reflect any policy decisions aboutspecific military or intelligence operations.





57

Funding Highlights:

The National Intelligence Program (NIP)funds intelligence activities in several Depart-ments and the Central Intelligence Agency (CIA).

NIP’s budget is classified, so the 2010 Bud-get does not publicly disclose funding requestsfor intelligence activities. However, since NIPsupports key elements of America’s national se-curity, this chapter highlights some NIP-fundedactivities without detailing funding information.

To protect America’s national security, theIntelligence Community (IC) provides effec-tive intelligence collection, the analysis of thatintelligence, and the production of finished intel-ligence products. IC is responsible for ensuringtimely and effective dissemination of intelligenceto those who need it, ranging from the President,to heads of Executive Departments, militaryforces, and law enforcement agencies. To meetthis country’s national security challenges, IC isstrengthening its components’ abilities to collectintelligence, increasing the security of Feder-al cyber networks, and protecting against the

threat of international terrorism in the UnitedStates.

The 2010 budget for NIP will support the Ad-ministration’s national security objectives. TheDirector of National Intelligence, the Director of the CIA, and Department Secretaries with intel-ligence organizations will use 2010 NIP fundsto defeat terrorist networks, prevent the spreadof weapons of mass destruction, penetrate andanalyze the most difficult targets of U.S. foreignpolicy, and anticipate developments of strategicconcern.

The Administration will request funding forIC for the remainder of 2009 and for 2010 to cov-er the costs of global intelligence operations. Thedetails of the 2009 supplemental appropriationsrequest will be provided to the Congress in thenext few weeks while the detailed 2010 requestwill be transmitted with the President’s 2010Budget request.

NATIONAL INTELLIGENCE PROGRAM




Increases Funding for Cybersecurity. Thethreat to Federal information technology net-works is real, serious, and growing. To addressthis threat, the President’s 2010 Budget includessubstantial funding for cybersecurity efforts;

such activities will take an integrated and ho-listic approach to address current cybersecuritythreats, anticipate future threats, and continueinnovative public-private partnerships. Theseefforts encompass the homeland security, intelli-gence, law enforcement, military and diplomaticmission areas of the U.S. Government.

Implements Counterterrorism Plan. TheNational Counterterrorism Center (NCTC) hasdeveloped a U.S. Government-wide counterterror-ism action plan. This plan lays out broad strategic

objectives aligned with policy objectives to guidethe overall implementation of this national strat-egy on counterterrorism. The Administration willwork with NCTC, IC, and relevant Departments

such as Defense, State, and Homeland Securityto direct resources in support of counterterrorismimplementation objectives.

Facilitates Information Sharing. The

President’s 2010 Budget will support initiativesto improve the sharing of intelligence, includingterrorist-related information, with Federal, State,local, tribal and foreign partners. These efforts in-clude advancing the National Suspicious ActivityReporting Initiative; establishing agency-based,outcome-oriented performance targets for infor-mation sharing; and institutionalizing the use of effective business practices.

Improves Collection and Analysis Capa-bilities. The 2010 Budget provides funding to

improve mission performance by increasing intel-ligence collection capabilities and continuing totransform intelligence analysis in IC.



59

Funding Highlights:

Expands Access to High-Quality EarlyChildhood Education. Decades of rigorous

research demonstrates that high-quality earlychildhood education programs help childrensucceed in school and throughout their lives.Building on strong investments in the Recov-ery Act, the President’s Budget also includesnew initiatives aimed at ensuring that earlychildhood programs yield strong results for chil-dren. The Budget invests additional resourcesto encourage State and local investment inearly childhood education; support coordina-tion among local, State, and Federal partnersand a seamless delivery of services; and providebetter information to parents about programoptions and quality.

Supports High Standards and Rigorous Assessments Aligned with the Demands of the Global Economy. Students must achieveto high standards in order to be successful inthe global economy. Assessments must accu-

rately measure students’ knowledge and skills,including critical thinking skills. Building on

the Recovery Act, the new Administration willhelp States increase the rigor of their standardsso they prepare students for success in collegeand a career. Resources will also be availableto improve the quality of assessments, includ-ing assessments for students with disabilitiesand English language learners. Such reformswill lay the groundwork for reauthorizing theElementary and Secondary Education Act.

Prepares and Rewards Effective Teach-ers and Principals. The Budget builds onthe investments funded under the Recovery

Act designed to significantly upgrade the skillsand effectiveness of the education workforce.The Administration will invest in efforts tostrengthen and increase transparency aroundresults for teacher and principal preparationprograms, including programs in schools of education, alternative certification programs,

DEPARTMENT OF EDUCATION




and teacher and principal residency programs.The Budget supports additional investmentsin State and local efforts, developed in consul-tation with teachers and other stakeholders, toimplement systems that reward strong teacherperformance and help less effective teachersimprove or, if they do not improve, exit the class-room. Resources are also included to developbetter systems and strategies for recruiting,

evaluating, and supporting teachers and othereducators to provide a better supply and distri-bution of well-prepared and effective educationworkforce.

Supports Innovative and Effective Strat-egies to Improve Achievement. Through theInnovation Fund, the Administration will investin school systems and non-profit organizationswith demonstrated track records of success inraising student achievement to expand theirwork or implement new innovative approaches.The President’s Budget also provides funds tosupport Promise Neighborhoods, a new effort totest innovative strategies to improve academicachievement and life outcomes in high-povertyareas. The program will be modeled after theHarlem Children’s Zone, which aims to improvecollege-going rates by combining a rigorousK-12 education with a full network of support-

ive services—from early childhood education toafter-school activities to college counseling—inan entire neighborhood from birth to college.

Funds Education Research to Ensurethat Teachers and School Leaders Havethe Tools and Information They Need toPrepare Students for the Global Economy.The Budget includes funds to carefully study,

improve, and scale up promising educationalinnovations that focus on improving studentlearning and achievement. The additional fundswill also be used to rigorously evaluate Federaleducation programs so that Federal investmentsare preparing students for success in college andthe workforce.

Promotes Successful Models for Turning Around Low-Achieving Schools. The Budgetbuilds on the Recovery Act’s focus on strategicinvestments in scaling up educational practic-es that show results and cultivating promisingnew practices. The President’s Budget commitsresources to turn around high-need, low-per-forming schools with strong supports, not justsanctions. The Administration’s new strategywill support State efforts to diagnose and ad-dress the root causes of schools’ low performance.In addition, the Budget increases funding for the

2006 2007 2008 2009 20100

10

20

30

40

50

60Actuals, including emergencies

Projections


43.5 43.845.0 46.2 46.7

Department of Education


Note: The discretionary budget authority amounts are adjusted for comparability to account for increases inadvance appropriations in prior years, and to exclude discretionary funding for Pell Grants inaccordance with the Budget’s policy to make the program mandatory. The Recovery Act total includes

$53.6 billion for State Stabilization Grants and excludes $15.6 billion for Pell Grants.



DEPARTMENT OF EDUCATION 61

Charter School program to support the expan-sion of successful charter school models, whileincreasing State oversight to monitor and shutdown low-performing charter schools.

Expands Pell Grants and Puts theProgram on Sure Footing. Because the Ad-ministration is committed to making collegeaffordable for all Americans, the 2010 Bud-get builds on the Recovery Act by supporting a$5,550 Pell Grant maximum award in the 2010-2011 school year. But it is not enough just tomake Pell Grants more generous and to put ona short-term patch. Fourteen times since 1973,the maximum Pell Grant has failed to increaseeven in nominal dollars. To make sure that wehave a highly-educated workforce and that the

opportunity to go to college is not determined byhow much money you have, we need to put thePell Grant program on sure footing. The Admin-istration will index Pell grants to the ConsumerPrice Index plus 1 percent in order to addressinflation. In addition, the Administrationproposes to make the Pell Grant program man-datory to ensure a regular stream of funding andeliminate the practice of “backfilling” billions of dollars in Pell shortfalls each year. Finally, whileexpanding student aid, the Administration willalso simplify the student aid application process.

Stabilizes the Student Loan Programfor Students and Saves Billions of Dol-lars for Taxpayers. Right now, the subsidiesin the Government-guaranteed student loan

program are set by the Congress through thepolitical process. That program has not onlyneedlessly cost taxpayers billions of dollars, buthas also subjected students to uncertainty be-cause of turmoil in the financial markets. The

President’s Budget asks the Congress to end theentitlements for financial institutions that lendto students. The Administration will insteadtake advantage of low-cost and stable sources of capital so students are ensured access to loans,while providing high-quality services for stu-dents by using competitive, private providersto service loans. The approach in the Budget,originating all new loans in the direct lendingprogram, saves more than $4 billion a year thatis reinvested in aid to students. The Budget alsomakes campus-based, low-interest loans more

widely available through a new modernized Per-kins Loan program, overhauling the inefficientand inequitable current Perkins program.

Focuses on College Completion. It is notenough for the Nation to enroll more students incollege; we also need to graduate more studentsfrom college. A few States and institutions havebegun to experiment with these approaches, butthere is much more they can do. The Budget in-cludes a new five-year, $2.5 billion Access andCompletion Incentive Fund to support innova-

tive State efforts to help low-income studentssucceed and complete their college education.The program will include a rigorous evaluationcomponent to ensure that we learn from whatworks.





63

Funding Highlights:

Invests in the Sciences. As part of thePresident’s plan to double Federal investment inthe basic sciences, the 2010 Budget, along withthe $1.6 billion provided in the Recovery Act forthe Department of Energy’s basic science pro-grams, provides substantially increased supportfor the Office of Science. The Budget increasesfunding for improving our understanding of cli-mate science and continues the United States’

commitment to international science and energyexperiments. The Budget also expands graduatefellowship programs that will train students incritical energy-related fields.

Encourages the Early Commercial Use of New, Innovative Energy Technologies thatWill Reduce Greenhouse Gas Emissions.The Budget supports loan guarantees for inno-

DEPARTMENT OF ENERGY




vative energy technologies including renewableenergy projects, transmission projects, and car-bon sequestration projects that avoid, reduce, orsequester air pollutants and greenhouse gaseswhile simultaneously creating green jobs andcontributing to long-term economic growth andinternational competitiveness.

Advances the Development of Low-Car-

bon Coal Technologies. The Budget supportsCarbon Capture and Storage technology, andalong with the $3.4 billion provided in the Recov-ery Act for low-carbon emission coal power andindustrial projects, these funds will help allowthe use of our extensive domestic coal resourcewhile reducing the impacts on climate change.

Invests in Smart, Energy Efficient, Reli-able Electricity Delivery Infrastructures.The Budget provides support for the Office of Elec-tricity Delivery and Energy Reliability as part of the President’s investment plan to modernize theNation’s electric grid. It includes: energy storage;cyber-security and investments in research, thedevelopment and demonstration of smart gridtechnologies that will accelerate the transfor-mation of the Nation’s energy transmission anddistribution system; enhancement of security and

reliability of energy infrastructure; and facilitat-ing recovery from disruptions to the energy supply.

Invests in Clean Energy Technologies toReduce Dependence on Foreign Oil and Ac-celerate the Transition to a Low-CarbonEconomy. The Budget provides support foraccelerating research, development, demon-stration, deployment, and commercialization of

clean energy technologies, including biofuels,renewable energy, and energy efficiency proj-ects. These investments will reduce dependenceon foreign oil and create long-term, sustainableeconomic growth in the green industries of thefuture.

Reduces Proliferation Risks and Ensuresthe Safety, Security, and Reliability of theNuclear Weapons Stockpile Without Nu-clear Testing. The Budget supports increasedefforts to secure and dispose of nuclear materialand invests in innovative science and technol-ogy to detect and deter nuclear smuggling andthe development of weapons of mass destructionprograms. Development work on the Reliable Re-placement Warhead will cease, while continuedwork to improve the nuclear stockpile’s safety,security, and reliability is enhanced with moreexpansive life extension programs.

2006 2007 2008 2009 20100

5

10

15

20

25

30

35


Projections


23.6 23.7 24.1

33.9

26.3

Department of Energy

Note: Included in 2009 is emergency funding for Advanced Technology Vehicles Manufacturing Loan Program,$7.5 billion, and $250 million for Weatherization.




DEPARTMENT OF ENERGY 65

Focuses on the Cleanup and Managementof Radioactive Waste and Nuclear Materials.The Budget focuses on improved performance andaccountability for the environmental legacy of theNation’s nuclear weapons program by addressing

health and safety risks across the country. The

Yucca Mountain program will be scaled back tothose costs necessary to answer inquiries fromthe Nuclear Regulatory Commission, while the

Administration devises a new strategy towardnuclear waste disposal.








strides have already been made in the AmericanRecovery and Reinvestment Act of 2009, includ-ing $19 billion for health information technology,$1 billion for comparative effectiveness research,and subsidies for the newly unemployed to main-tain their health insurance. These initiativesput the Nation on the path toward fundamentalhealth reform.

Begin the Doubling of Funding for Can-cer Research. The Budget includes over $6billion within the National Institutes of Health(NIH) to support cancer research. This funding iscentral to the President’s sustained, multi-yearplan to double cancer research. These resourceswill be committed strategically to have the great-est impact on developing innovative diagnostics,treatments, and cures for cancer. This initiativewill build upon the unprecedented $10 billionprovided in the Recovery Act, which will supportnew NIH research in 2009 and 2010.

Accelerates the Adoption of Health In-formation Technology (IT). Building on thehistoric $19 billion investment in the Recovery

Act, the Administration will continue effortsto further the adoption and implementation of health IT—an essential tool to modernize thehealth care system. The Recovery Act offers physi-

cians and hospitals participating in the Medicareprogram temporary incentive payments start-ing in 2011 for using a certified electronic healthrecord (EHR), followed by financial penaltiesstarting in 2015 for failure to use such a system.It also offers incentive payments to Medicaidproviders, including physicians and children’shospitals, to assist with the purchase, implemen-tation, and use of certified EHR technology. These

incentives, coupled with other activities autho-rized in the Recovery Act, are expected to resultin a dramatic increase in the percentage of healthcare providers using health IT within five years.Computerizing health records—while protectingthe privacy and security of personal health infor-mation—is expected to facilitate improvementsin the quality of health care, prevention of unnec-essary health care spending, and a reduction inmedical errors.

Lowers Drug Costs and Improves Foodand Medical Product Safety. The Budget sup-ports the Food and Drug Administration’s (FDA’s)new efforts to allow Americans to buy safe andeffective drugs from other countries and to estab-lish a new regulatory pathway to approve genericbiologics. The Budget also includes a substantialincrease to strengthen FDA’s efforts to make foodand medical products safer.

2006 2007 2008 2009 20100

10

20

30

40

50

60

70

80

90


Projections


73.169.1 70.5

78.4 76.8

Note: Amounts appropriated to the Social Security Administration (SSA) from the Hospital Insurance and

Supplementary Medical Insurance accounts are included in the corresponding table in the SSA chapter.

Department of Health and Human Services




DEPARTMENT OF HEALTH AND HUMAN SERVICES 69

Strengthens Program Integrity. Reduc-ing fraud, waste, and abuse is an important partof restraining spending growth and providingquality health care service delivery to beneficia-ries. The Budget proposes to dedicate additional

resources that will initially be targeted to improv-ing oversight and program integrity activities forthe Medicare Prescription Drug Program (PartD), Medicare Advantage, and the Medicaid Pro-gram. These resources will enable the Centersfor Medicare and Medicaid Services to morerapidly respond to emerging program integrity

vulnerabilities, identify excessive payments, andestablish new processes for correcting problems.

As a result, the Administration will be betterable to minimize inappropriate payments, closeloopholes, and provide greater value for program

expenditures to beneficiaries and taxpayers.

Improves Medicare’s Sustainability. The Administration is committed to strengtheningMedicare’s long-term sustainability so that ben-eficiaries can continue to rely on this criticalprogram. The Budget strengthens the Medicareprogram by encouraging high quality and efficientcare, and reducing excessive Medicare payments.

Expands the Medicare and MedicaidResearch Agenda. The Budget includes new

funding to broaden the Medicare and Medicaidresearch agenda. The expanded agenda will takeadvantage of the robust data available for theseprograms. New Medicare and Medicaid demon-stration and pilot projects will evaluate paymentreforms, ways to provide higher quality care atlower costs, improve beneficiary education andunderstanding of benefits offered, and betteralign provider payments with costs.

Provides Health Care Coverage toLow-Income Individuals. Medicaid is a means-tested health care entitlement program financedby States and the Federal Government. On aver-age, the Federal Government pays 57 percent of Medicaid costs. The Recovery Act protects healthcare coverage for millions of Americans duringthe recession by temporarily increasing FederalMedicaid funding to help States facing budgetshortfalls maintain their current programs.

In addition, the Children’s Health InsuranceProgram Reauthorization Act of 2009, signed bythe President on February 4, 2009, extends theprogram through 2013 by providing an additional$44 billion in allotments above baseline funding

levels of $25 billion. This funding provides accessto nearly four million newly insured children by2013.

Enhances HIV/AIDS Prevention andTreatment. The Budget increases resources todetect, prevent, and treat HIV/AIDS domestical-ly, especially in underserved populations.

Strengthens the Health Professions Work-force. The Budget invests $330 million to addressthe shortage of health care providers in certain

areas. The Budget expands loan repayment pro-grams for physicians, nurses, and dentists whoagree to practice in medically underserved areas.This funding will enhance the capacity of nursingschools to increase the number of nurses. It willalso allow States to increase access to oral healthcare through dental workforce developmentgrants. The Budget’s new resources will sustainthe expansion of the health care workforce fund-ed in the Recovery Act.

Expands Access to Health Care for Ameri-

can Indians and Alaska Natives (AI/ANs).The Budget includes over $4 billion for the IndianHealth Service (IHS) to support and expand theprovision of health care services and public healthprograms for AI/ANs. Investments in the Indianhealth system will focus on improving the healthoutcomes of AI/ANs and promoting healthy In-dian communities. The President’s Budget buildsupon resources provided in the Recovery Act forIHS.

Supports Americans with Autism Spec-trum Disorders (ASD). The President iscommitted to expanding support for individuals,families, and communities affected by ASD. TheBudget includes $211 million in HHS for researchinto the causes of and treatments for ASD, screen-ings, public awareness, and support services.




Improves Rural Health. The Budget in-cludes $73 million to improve both access to andquality of health care in rural areas. This fundingwill strengthen regional and local partnershipsamong rural health care providers, expand com-

munity-based prevention interventions, andpromote the modernization of the health care in-frastructure in rural areas.

Compares the Effectiveness of Treat-ments. Building on the unprecedented $1.1billion included in the Recovery Act for compara-tive effectiveness research, the Administrationwill continue efforts to produce state-of-the-sci-ence information on what medical treatmentswork best for a given condition. When coupledwith electronic health records, these findings can

form the basis for clinical decision support tools—distilling all available evidence on the outcomesof different treatment options into user-friendlypop-up alerts for physicians at the point of care.These findings can thereby enhance medical de-cision-making by patients and their physicians.

Makes a Down Payment on the President’s“Zero to Five” Plan. The Recovery Act makesa down payment on the President’s comprehen-sive Zero to Five plan, providing $1.1 billion todouble the number of children served by Early

Head Start over two years, an additional $1 bil-lion to expand and improve Head Start, and anadditional $2 billion in funding for the Child Careand Development Block Grant. The Budget sus-tains critical support for young children and theirfamilies by building on these investments.

The Budget also creates the Nurse Home Visitation program, which will provide funds toStates to provide home visits by trained nursesto first-time low-income mothers and mothers-to-be. The program has been rigorously evaluatedover time and proven to have long-term effectsincluding substantial reductions in child abuseand neglect, preterm births, and arrests for bothparents and adolescents who participated in the

program as children, putting estimates of itsreturn-on-investment between 3 to 6 dollars perdollar invested. This Budget builds the founda-tion for a program that could ultimately serve alleligible mothers who seek services.

Provides Energy Assistance to Low-In-come Families. The Budget provides $3.2 billionfor the Low-Income Home Energy Assistance Pro-gram (LIHEAP) to help low-income families withtheir home heating and cooling expenses. Thatis the highest level of LIHEAP funding for anyyear except for the most recent, when the Nationwas threatened with an unprecedented increasein energy costs. In addition, the Administrationproposes creating a new trigger mechanism toprovide automatic increases in energy assistance

whenever there is a spike in energy costs. Thenormal appropriations process cannot always re-spond to the volatile energy market on a timelybasis; the trigger will ensure a prompt and poten-tially significant increase in funds in response toa rapid future rise in costs.

Prevents Teen Pregnancy. The Budget sup-ports State, community-based, and faith-basedefforts to reduce teen pregnancy using evidence-based models. The program will fund models thatstress the importance of abstinence while pro-

viding medically-accurate and age-appropriateinformation to youth who have already becomesexually active.

Provides Support for Other PresidentialInitiatives. The Budget includes funding to re-duce domestic violence and enhance emergencycare systems. It also expands the treatment ca-pacity of drug courts including services to protectmethamphetamine’s youngest victims. Substanceaddiction is a preventable and treatable chroniccondition and this initiative helps address themost urgent needs. The Budget also provides re-sources to reduce health disparities, which thePresident has identified as an important goal of his Administration.



71

Funding Highlights:

Safeguards our Nation’s TransportationSystems. The Budget funds key investmentsto reinforce public transportation, enhance

maritime transportation, and accelerate airlinesecurity. Funding of $50 million will provide15 new Visual Intermodal Protection Responseteams at the Transportation Security Admin-istration to increase additional random forceprotection capability by deploying to transithubs unannounced. Another $25 million in newresources will support integrated planning atthe Department of Homeland Security and theDepartment of Transportation to inform devel-opment and modernization of intermodal freightinfrastructure linking coastal and inland portsto highway and rail networks. Additional fund-ing supports critical investments to strengthenthe security of U.S. airports and adds 55 Bomb

Appraisal Officers who specialize in explosivesand improvised explosive device recognition andresponse. The Budget also includes $64 millionto modernize the infrastructure used to vet trav-elers and workers. These funds will strengthen

screening in order to reduce the risk of poten-tial terrorism or other unlawful activities thatthreaten the Nation’s transportation system.

To minimize overall costs to taxpayers, theBudget proposes to increase the existing Avia-tion Passenger Security Fee beginning in 2012.Increasing this fee will offset costs associatedwith Transportation Security Administrationscreening of aviation passengers as the currentfee only captures 36 percent of the cost of avia-tion security. By increasing the fee, offsettingcollections from all aviation security fees wouldcover a majority of the estimated costs of passen-ger and baggage screening.

Enhances Cybersecurity and Technol-ogy Research and Development. Fundingof $355 million is targeted to make private andpublic sector cyber infrastructure more resil-ient and secure. These funds will support thebase operations of the National Cyber SecurityDivision, as well as initiatives under the Com-

DEPARTMENT OF HOMELAND SECURITY




prehensive National Cybersecurity Initiativeto protect our information networks. Fund-ing of $36 million will support ongoing projectsto improve surveillance technologies to detectenhanced, emerging and advanced biologicalthreats. Efforts to develop next-generation Bio-Watch sensors will continue in order to detectbio-attacks at the earliest possible instant. TheBudget also supports the termination of outdated

systems such as the terrestrial-based, long-rangeradionavigation (LORAN-C) operated by the U.S.Coast Guard resulting in an offset of $36 millionin 2010 and $190 million over five years.

Strengthens Border Security and Immi-gration Services. The Budget funds $45 millionfor the expansion of an exit pilot at key land portsof entry and other border security priorities.Funding of $368 million within existing Customsand Border Protection funds support 20,000 Bor-der Patrol agents protecting nearly 6,000 miles of U.S. borders. The Budget provides over $1.4 bil-lion for Immigration and Customs Enforcementprograms to ensure that illegal aliens who commitcrimes are expeditiously identified and removedfrom the United States. Funding of $110 millionis provided to continue expansion of E-Verify, an

electronic employment eligibility verification sys-tem. E-Verify helps U.S. employers comply withimmigration law and ensures that U.S. jobs areavailable to U.S. citizens and those authorized towork in the United States. The Budget also sup-ports strengthening the delivery of immigrationservices by streamlining and modernizing immi-gration application processes.

Supports State Homeland Security Activi-ties. Making the Federal Government a betterpartner to States and localities on key homelandsecurity initiatives is an Administration priority.

Additional funding is provided to improve coordi-nation between all levels of government, supportour first responders, and create more effectiveemergency response plans. Risk-based exerciseassistance grants will assist State, local, and trib-al partners in offsetting costs of critical homelandsecurity activities and will expand their MedicalSurge Capacity with the stockpiling and storingof essential supplies. Funding of $260 millionwithin the existing Homeland Security Grantprogram will fortify the Nation’s intelligencesystem by improving information sharing andanalysis by adding thousands more State and lo-cal level intelligence analysts.

2006 2007 2008 2009 20100

10

20

30

40

50

60 Actuals/Enacted, including emergencies/supplementals

Proposed


39.4

50.0

40.142.7

Department of Homeland Security

Note: 2006 excludes a -$15.8 billion supplemental rescission. 2008 includes $15.1 million in emergency andsupplemental funds appropriated under Public Laws 110-116, 110-161, 110-252, and 110-329.2009 excludes the one-time advance appropriation for Bioshield funding, $2.175 billion and includes a

$112 million transfer from DOD to Coast Guard.

30.7




73

Funding Highlights:

The Department of Housing and Urban Devel-opment (HUD) is committed to fulfilling its mis-sion of increasing homeownership, supportinginnovative and sustainable community develop-ment, and increasing access to affordable hous-ing free from discrimination. The President’sBudget restores and increases funding for many

HUD programs to achieve these important goalswhile reforming or eliminating duplicative andinefficient programs.

Provides Full Funding for the Communi-ty Development Block Grant (CDBG) Pro-gram. The President is fulfilling his pledge to

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT




fully fund CDBG. The Budget provides $4.5 bil-lion for 2010 to ensure that communities continueto invest in and expand economic opportunitiesfor low-income families. In addition to the signifi-cant funding increase, the Budget will modernizethe program through statutory reforms. Througha more effective formula, appropriate incentivesand accountability measures, and a new Sustain-able Communities Initiative, the Administration

will revamp the CDBG program to better targetfunds to distressed communities and promotesustainable and economically viable communi-ties.

Provides Funding for an Affordable Hous-ing Trust Fund for the First Time. The Hous-ing Trust Fund was originally authorized in theHousing and Economic Recovery Act of 2008, witha dedicated funding stream from assessments onFannie Mae and Freddie Mac. However, giventheir financial difficulties, the Federal HousingFinance Agency has indefinitely suspended theseassessments. The Budget restores funding forthe Housing Trust Fund by requesting $1 billionto finance the development, rehabilitation, andpreservation of affordable housing for very lowincome residents.

Increases Funding for the Housing Choice Voucher Program. A robust Housing Choice Voucher program will help more than two millionextremely low- to low-income families with rentalassistance to live in decent housing in neighbor-hoods of their choice. To address the program’scostly inefficiencies, the Administration will in-troduce legislative reforms to help fully utilizeavailable funding, alleviate the administrative

burdens on the Public Housing Authorities, andestablish a funding mechanism that is transpar-ent and predictable in order to serve more needyfamilies.

Increases Funding for the Project-BasedRental Assistance Program. The Project-Based Rental Assistance program will preserveapproximately 1.3 million affordable rental unitsthrough increased funding for contracts withowners of multifamily properties. This criticalinvestment will assist low- and very low-incomehouseholds in obtaining decent, safe and sanitaryhousing in private accommodations.

Combats Mortgage Fraud and Precau-tionary Practices. The Budget provides fundsfor HUD to combat mortgage fraud and predatorypractices and includes increased funding for fairhousing enforcement. These resources will allow

2006 2007 2008 2009 20100

10

20

30

40

50

60


Projections

Discretionary budget authority in billions of dollars, including emergency spending

51.1

37.0

47.1

40.1

47.5

Department of Housing andUrban Development

Note: Supplemental funding designated as emergency for disaster and/or housing crisis-related activities

is included in the totals -- $17.1 billion for 2006, $7 million for 2007, and $9.5 billion for 2008.

In addition, the Recovery Act

includes $13.6 billion.



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 75

HUD to increase enforcement of mortgage andhome purchase settlement requirements. Thisinvolves proper disclosure of mortgage terms andpermissible business practices and charges. En-hanced enforcement will create an environment

in which home-buyers will be served with mort-gage terms that are more easily understood andreliably honored by lenders.

Creates a New Energy Innovation Fund. The Budget includes funds for HUD to drivethe creation of an energy-efficient housing mar-ket—including “retrofitting” of older, inefficienthousing—and catalyze private sector lending forthis purpose in the residential sector. Partner-ing with the Department of Energy on this initia-tive, HUD will contribute to the Administration’s

broader effort to combat global warming, jump-start the creation of a green economy, and reduceutility bills.

Creates a New Choice Neighborhoods Ini-tiative. The Budget includes funds for HUD tosupport a range of transformative interventionsin neighborhoods of concentrated poverty. Thisnew initiative would challenge public, private

and nonprofit partners to identify neighborhoodinterventions that would have the largest returnon Federal investments.

Eliminates Funding for Ineffective andDuplicative Programs. The President’s Bud-get proposes to eliminate funding for two HUDprograms totaling $16 million. The Section 108Community Development Loan Guarantees Pro-gram and the American Dream DownpaymentInitiative are duplicative of larger programs thatachieve similar results. By eliminating separate

funding for these programs, HUD will streamlineits resources and focus its efforts on programsthat are more successful. Section 108 Commu-nity Development activities will continue to beeligible under CDBG.





77

Funding Highlights:

The President’s 2010 Budget includes $12 bil-lion for the Department of the Interior (DOI) toundertake initiatives to protect and preserve

America’s national parks and public lands, con-serve wetlands and wildlife habitat, strengthenNative American communities, enhance outdooropportunities for young people, and promote en-ergy security with a focus on clean renewablesources and strategies to address climate change.

Protects National Parks. The President iscommitted to preserving the Nation’s nationalparks, with a $100 million increase in park oper-

ations (plus inflation) to protect the investmentsmade through the American Recovery and Re-investment Act of 2009, and maintain facilitiesand natural resources. An additional $25 millionwill provide matching funds to leverage privatedonations in preparation for the 100th anniver-sary of the National Park Service.

Conserves New Lands. While Americanscan take great pride in our existing nationalparks and other public lands, there are manylandscapes and ecosystems that do not haveadequate protection. One way to protect these

DEPARTMENT OF THE INTERIOR





DEPARTMENT OF THE INTERIOR 79

enforcement and education. Additional funding isalso available through the Departments of Jus-tice and Education. These funds will strengthentribal courts, detention centers, and police pro-grams to help Native Americans protect their

communities. The Budget also increases fundingfor tribal colleges and scholarships and providesfunding earlier in the academic year, giving thecolleges greater financial security.

Establishes a Dedicated Fund to FightWildfires. The Budget establishes a dedicatedfund for catastrophic wildfires and fully funds the10-year average suppression costs, coupled withprogram reforms that ensure fire managementresources are focused where they will do the mostgood. This $75 million discretionary contingent

reserve provides funding that is only availablefor fighting catastrophic wildfires after the ap-propriated 10-year average is exhausted. Thisfunding and the associated reforms provided inthe Budget will improve wildfire operations andpromote safe, cost-effective and accountable re-sults from investments made in managing fire onlandscapes.

Invests in a Clean Energy Future. DOI willplay a central role in achieving the President’s

vision for a clean energy future advancing our

national security, environmental security, andeconomic opportunity. The Department will helplead the way when it comes to enhancing the Na-tion’s domestic energy supply and moving towarda clean energy economy. Our public lands, and theoffshore resources that we control already provideclose to one-third of our entire domestic supply of oil and gas resources. The Budget includes over$50 million in increases to conduct the environ-mental evaluations and technical studies neededto spur development of renewable energy proj-ects, assess available alternative resources, andmitigate the impacts of development.

Ensures Responsible Production of En-ergy on Federal Lands. DOI will take steps toensure that oil and gas companies diligently de-

velop their oil and gas leases or risk losing them(“use or lose”). One step is to charge a new fee onnon-producing leases in the Gulf of Mexico. This

provides an added incentive for oil companies toeither start producing or relinquish the leases sothat others may bid on them.

Provides a Better Return to Taxpay-

ers from Mineral Development. The publicreceives over $12 billion annually from fees, roy-alties, and other Federal payments related to oil,gas, coal, and other mineral development. Yet,that return could be improved by closing loop-holes, charging appropriate fees, and reforminghow royalties are set. The Budget proposes anumber of actions to ensure that Federal taxpay-ers receive their fair share, such as:

Using a new excise tax on offshore oil andgas production in the Gulf of Mexico to close

loopholes that have given oil companiesexcessive royalty relief. This new tax willbegin in 2011, after the economy has had timeto recover.

Terminating payments to coal-producingStates that no longer need funds to clean upabandoned coal mines.

Charging user fees to oil companies forprocessing oil and gas drilling permits onFederal lands.

Increasing the return from oil and gasproduction on Federal lands throughadministrative actions, such as reformingroyalties and adjusting rates.

Conserves Western Water. The Bureau of Reclamation and the Bureau of Indian Affairssupport the development, management and res-toration of water and related natural resources in17 Western States and tribal lands while balanc-ing competing uses of water. Consistent with thisobjective, the Budget provides funding in 2010 fora western water conservation initiative, whichincludes the Bureau of Reclamation’s water re-use and recycling (Title XVI) program. The goalof this effort is to assist local communities’ avail-ability of water by encouraging voluntary waterbanks, wastewater treatment, and other market-based conservation measures.

—





81

Funding Highlights:

The President’s Budget for the Department of

Justice (DOJ) is $26.5 billion. The Budget ad-dresses the key priorities of the President andthe Attorney General, including those for Na-tional Security and crime fighting programs inthe FBI and other DOJ components, to includeresources for combating financial fraud and pro-tecting the public interest. The Budget funds theCommunity Oriented Policing Services (COPS)hiring program, ensures that prison and deten-tion programs are adequately funded, to includeprisoner reentry programs, reinvigorates Feder-al civil rights enforcement, and increases bordersecurity.

Counters the Threat of Terrorism andStrengthens National Security. The Budgetprovides $8 billion for the FBI, including $425million in enhancements, and $88 million for theNational Security Division to address the Presi-dent’s highest priority to protect the American

people from terrorist acts. Funding supports

the detection and disruption of terrorists, coun-terintelligence, cyber security, and other threatsagainst our National Security.

Provides Funding to Begin to Put 50,000More Cops on the Beat. Expanding COPSHiring Grants, the Budget includes funding tobegin hiring 50,000 additional police officers.Supporting the hiring of police nationwide willhelp States and communities prevent the growthof crime during the economic downturn.

Combats Financial Fraud. The Budgetprovides resources for additional FBI agentsto investigate mortgage fraud and white collarcrime and for additional Federal prosecutors, civ-il litigators and bankruptcy attorneys to protectinvestors, the market, the Federal Government’sinvestment of resources in the financial crisis,and the American public.

DEPARTMENT OF JUSTICE




Reinvigorates Federal Civil Rights En-forcement. The Budget includes $145 millionfor the Civil Rights Division to strengthen civilrights enforcement against racial, ethnic, sexualpreference, religious and gender discrimination.

Strengthens Immigration Enforcementand Border Security. The Budget includes ad-ditional funding for a comprehensive approach

to enforcement along the Nation’s borders thatcombines law enforcement and prosecutorial com-ponent efforts to investigate, arrest, detain, andprosecute illegal immigrants and other criminals.The initiative also enhances the Department’sability to track fugitives from justice and combatgunrunners and illegal drug traffickers.

Supports Federal Detention and Incar-ceration Programs. The Budget provides $6billion for the Bureau of Prisons and $1.4 billionfor the Office of the Detention Trustee to en-sure that sentenced criminals and detainees arehoused in facilities that are safe, humane, cost-efficient, and appropriately secure.

Expands Prisoner Reentry Programs. The

Budget includes $109 million for prisoner reentryprograms, including an additional $75 million forthe Office of Justice Programs to expand grantprograms authorized by the Second Chance Actthat provide counseling, job training, drug treat-ment, and other transitional assistance to formerprisoners.

2006 2007 2008 2009 20100

5

10

15

20

25

30


Projections


21.423.0 23.6

26.525.5

Department of Justice


Note: Agency totals do not include enacted or proposed rescissions from the Asset Forfeiture

or Crime Victims Funds.



83

Funding Highlights:

Reforms the Unemployment InsuranceSystem. The Administration seeks to funda-mentally reform the Nation’s unemployment

insurance (UI) system to better address the chal-lenges and realities of the 21st Century workforce.Building on modernization reforms included inthe American Recovery and Reinvestment Act of 2009, the 2010 Budget will focus on making theUI program more accessible to unemployed work-ers, especially in recessions, and ensuring thefinancial integrity of the system so that employ-ers’ taxes are well used. It will:

Improve UI as an automatic stabilizer. The 2010 Budget will propose changes tomake the UI program a more responsiveand effective social safety net and economicstabilizer. While the regular State-fundedUI program responds readily to risingunemployment, the same cannot be saidof the permanent Extended Benefits (EB)program, which provides additional weeksof benefits when unemployment in a State

is high and rising. The Budget will proposelegislation to make the EB program moreresponsive to changing economic conditions.

These changes will make benefits availablemore quickly to long-term unemployedworkers and avoid the delays associatedwith enactment of legislation to createspecial, temporary extended unemploymentprograms.

Improve UI financial integrity. Despitethe efforts of States to reduce improperbenefit payments, over $3.9 billion in UIbenefits were erroneously paid in 2008. The

Administration will tackle this problem byincreasing funding for program integrityand proposing legislative changes thatwould reduce UI improper payments by $3.9billion and employer tax evasion by almost$300 million over 10 years. The proposalwould, among other things, collect benefitoverpayments through garnishment of Federal income tax refunds and boost States’

DEPARTMENT OF LABOR





DEPARTMENT OF LABOR 85

employer-based retirement plans. The President’s2010 Budget lays the groundwork for future es-tablishment of a system of automatic workplacepensions, to operate along side Social Security,that is expected to dramatically increase both the

number of Americans who save for retirementand the overall amount of personal savings forindividuals. Under this proposal, employees willbe automatically enrolled in workplace pensionplans. Employers who do not currently offer aretirement plan will be required to enroll theiremployees in a direct-deposit IRA account thatis compatible with existing direct-deposit payrollsystems. Employees may opt-out if they choose.

Experts estimate that this program will increasethe savings participation rate for low and middle-income workers from its current 15 percent levelto around 80 percent.

In addition, the Budget proposes to expandretirement savings incentives for working fami-lies by modifying the existing Saver’s Credit toprovide a 50-percent match on the first $1,000of retirement savings for families that earn lessthan $65,000. The credit would be fully refund-able to ensure that savings incentives are fair toall workers.








Puts the United States on a Path to Dou-ble Foreign Assistance. By increasing foreignassistance, the United States will reach out to theglobal community and renew its role as a leaderin global development and diplomacy. Throughincreased foreign assistance funding, the UnitedStates will embark on several new initiativesthat will give children in the poorest countriesaccess to education ensuring they can participate

in the global marketplace; foster global food se-curity through sustainable agriculture; expandgoodwill and inspire service by increasing thesize of the Peace Corps; and stabilize post-conflictstates, creating room for them to plant the seedsof democracy.

Increases Funding for Global Health Pro-grams. The Administration will continue tobuild on its commitment to save lives through in-creasing investments in global health programs,including areas such as maternal and childhealth, family planning and other core healthprograms, while also emphasizing a commitmentto HIV/AIDS, malaria, and tuberculosis throughsuccessful programs, such as the President’sEmergency Plan for AIDS Relief and the MalariaInitiative. Together with our multilateral part-ners, the United States will continue to provide

global leadership to improve the health status of the world’s poorest populations.

Reinvigorates Counter-Proliferation, Anti-Terrorism, and Transnational Crime-FightingEfforts. The Budget will fund reinvigorated effortsto counter proliferation, terrorism, and transna-tional crime. By fostering opportunity and securityworldwide, this initiative will make the American

people safer at home. This Budget includes first-year funding for a multi-year counterterrorism andlaw enforcement assistance program that strength-ens the capabilities of our international partners inthe Western Hemisphere and other critical regionsaround the world. The Budget also provides ad-ditional nonproliferation and counter-proliferationfunding that will be used to help secure nuclearmaterials and promote safe civilian uses of nuclearenergy.

Expands Diplomatic and DevelopmentOperations. This initiative will strengthen theU.S. Government’s diplomatic and developmentoperations to support our national security. The2010 Budget includes funding for the first yearof a multi-year effort to significantly increase thesize of the Foreign Service at both the Departmentof State and the U.S. Agency for International De-

velopment (USAID). An increased cadre of State

2006 2007 2008 2009 2010

0

10

20

30

40

50

60


Projections


34.337.0

40.9

47.2

51.7

Department of State andOther International Programs



Note: Excludes food aid and the Office of the U.S. Trade Representative.



DEPARTMENT OF STATE AND OTHER INTERNATIONAL PROGRAMS 89

and USAID Foreign Service officers will helpadvance our critical foreign policy goals anddeliver on our expanding U.S. foreign assistancecommitments.

Refocuses Resources to Priorities in Afghanistan, Pakistan, and Iraq. The 2010Budget refocuses U.S. resources toward ad-dressing the resurgence of al Qaeda and theTaliban in Afghanistan and Pakistan. TheBudget increases non-military assistance toboth countries, providing additional fundingfor governance, reconstruction, counter-narcot-ics, and other development activities that willhelp counter extremists. The Budget expandsthe number of civilian personnel in Afghani-stan and Pakistan in an effort to stabilize

these countries, build government capacity,and successfully manage expanded assistance

programs. The Budget strengthens our assis-tance to Iraqis who have been displaced fromtheir homes because of the war. The Budget alsorealigns our assistance efforts in Iraq to ensurethat Iraqis can assume more responsibility for

their own political and economic future.

Imposes Transparency on the Budget.The Budget reduces reliance on emergencysupplemental appropriations by increasingkey accounts and programs for which fund-ing is predictable and recurring. For example,the Budget includes increased funding forhumanitarian assistance accounts and U.N.Peacekeeping Missions that reflect ongoingcosts. While emergency supplementals maybe required in the future, they should focus on

truly unanticipated events and not be used tofund regular programs.





91

Funding Highlights:

!"

!"

!"

!"

Commits to Developing Sustainable Solu-tions for Surface Transportation Programs

and to Improving Program Performance. Surface transportation programs are at a cross-roads. The current framework for financing andallocating surface transportation investments isnot financially sustainable; nor does it effectivelyallocate resources to meet our critical nationalneeds. The Administration intends to work withthe Congress to reform surface transportationprograms both to put the system on a sustain-able financing path and to make investments ina more sustainable future, enhancing transit op-tions and making our economy more productiveand our communities more livable. Further, theNation’s surface transportation system must gen-erate the best investments to reduce congestionand improve safety. To do so, the Administrationwill emphasize the use of economic analysis andperformance measurement in transportationplanning. This will ensure that taxpayer dollarsare better targeted and spent.

Initiates a New Federal Commitment toHigh Speed Rail . To provide Americans a 21st

Century transportation system, the Administra-tion proposes a five-year $5 billion high-speedrail State grant program. Building on the $8 bil-lion down payment in the American Recoveryand Reinvestment Act of 2009, the President’sproposal marks a new Federal commitment togive the traveling public a practical and envi-ronmentally sustainable alternative to flying ordriving. Directed by the States, this investmentwill lead to the creation of several high-speedrail corridors across the country linking regionalpopulation centers.

Modernizes the Air Traffic Control Sys-tem . The Budget provides approximately $800million for the Next Generation Air Transporta-tion System, a long-term effort to improve theefficiency, safety, and capacity of the air trafficcontrol system. The 2010 Budget supports mov-ing from a ground-based radar surveillance

DEPARTMENT OF TRANSPORTATION

U N I T E D

S T AT ES O FA M E R I C

A

D E P A R T M E N

T O F T R AN S P

O R

T A T

I O N




system to a more accurate satellite-based surveillance system; development of more efficientroutes through the airspace; and improvementsin aviation weather information.

Improves Rural Access to the AviationSystem . The Administration is committed tomaintaining small communities’ access to theNational Airspace System. The Budget provides

a $55 million increase over the 2009 level tothe Department of Transportation (DOT) to ful-fill current program requirements as demandfor subsidized commercial air service increases.However, the program that delivers this subsidyis not efficiently designed. Through the budgetprocess, the Administration intends to work withthe Congress to develop a more sustainable pro-gram model that will fulfill its commitment whileenhancing convenience for travelers and improv-ing cost effectiveness.

Makes Budgetary Treatment of Transpor-tation Programs More Transparent. Budget

authority for highway, transit, highway safety,and airport improvement programs usually hasbeen defined as mandatory contract authorityprovided in authorizing legislation. However, thelevels of contract authority have been, for themost part, controlled by obligation limitations inappropriations acts. Outlays from the obligationlimitations have always been scored as discre-tionary. To more transparently display program

resources, the Administration proposes changingthe budgetary treatment of transportation pro-grams to show both budget authority and outlaysas discretionary. For 2009, the discretionary bud-get authority top line would be increased by ap-proximately $53 billion, increasing DOT budgetauthority total from $17 billion under the typi-cal presentation to $70 billion. Similar budgetauthority adjustments would be made for eachoutyear. The change would not affect outlays orthe deficit or surplus—just more transparentlyconvey to the taxpayer the real costs of support-ing the transportation infrastructure our Nationneeds.

2006 2007 2008 2009 20100

10

20

30

40

50

60

70

80


Projections

Discretionary budgetary resources in billions of dollars

65.3 66.870.6 72.570.5

Department of Transportation


Note: In 2010, and outyear estimates, surface transportation programs grow by baselineinflation factors. See above for a more detailed explanation of the administration’sposition regarding surface transportation reauthorization.



93

Funding Highlights:

The Department of the Treasury promotesthe economic prosperity and financial security

of the United States. Treasury operates 13 bu-reaus with a vast array of activities that arecritical to the core functions of government,including collecting revenue and disbursingpayments, managing Federal finances, andprotecting the financial system from threats.Treasury also plays a key role in modernizingthe American financial regulatory system andensuring effective, transparent administrationof programs designed to revive and strengthenthe economy.

Supports the New Financial Stabil-ity Plan and the Administration of theTroubled Assets Relief Program (TARP).The Budget supports the Administration’snew Financial Stability Plan as well as themanagement of the TARP, emphasizing effec-tive, transparent, and accountable programmanagement.

In addition, as discussed in the main text of this document, the President’s Budget includes

a $250 billion contingent reserve for furtherefforts to stabilize the financial system. (Thereserve, which reflects a net cost to the Gov-ernment, would support $750 billion in assetpurchases.) The existence of this reserve in theBudget does not represent a specific request.Rather as events warrant, the Administrationwill work with the Congress to determine theappropriate size and shape of such efforts, andas more information becomes available the

Administration will define an estimate of po-tential costs.

Collects Taxes Owed Here and Abroad.The scope, complexity, and sheer magnitudeof the international financial system pose sig-nificant enforcement challenges for the IRSin carrying out its tax administration respon-sibilities. The 2010 Budget includes fundingfor a robust portfolio of IRS international tax

DEPARTMENT OF THE TREASURY




compliance initiatives, and sustains and im-proves IRS efforts to narrow the annual tax gapof over $300 billion.

Enhances IRS Services to Taxpayers.The Administration will pursue plans to im-prove the quality of taxpayers’ experience whenthey interact with the IRS. This strategy in-cludes improving relationships with critical

third-party stakeholders, such as tax preparers, volunteers and practitioners, as well as enhanc-ing electronic filing capabilities. The end goalenvisions an IRS that correctly answers a tax-

payer’s question the first time asked, throughthe most efficient and taxpayer-friendly means.

Expands Lending in DisadvantagedCommunities. The Budget expands lend-ing in underserved neighborhoods by doublingfunding for the Community Development Fi-nancial Institutions (CDFI) Fund. Throughmerit-based grant programs, the CDFI Fund

helps locally based financial institutions offersmall business, consumer and home loans incommunities and populations that lack accessto affordable credit.

2006 2007 2008 2009 20100

2

4

6

8

10

12

14

16


Projections


11.4 11.512.2

13.312.7

Department of the Treasury




95

Funding Highlights:

!"

!"

!"

!"

!"

!"

!"

!"

Increases Funding for the Departmentof Veterans Affairs (VA) by $25 Billion Above Baseline Over the Next Five Years. The President’s Budget takes the first step to-ward increasing funding for VA by $25 billionover the next five years in order to honor ourNation’s veterans and expand the services theyreceive.

Dramatically Increases Funding for VAHealth Care.This increase will provide adequateresources to give 5.5 million veteran patientstimely and high quality care. This funding alsoenables VA to create Centers of Excellence andprovides additional veteran-oriented specialtycare in areas including prosthetics, vision andspinal cord injury, aging, and women’s health.

Restores Health Care Eligibility forModest-Income Veterans. For the first timesince January 2003, the President’s Budgetexpands eligibility for VA health care to non-disabled veterans earning modest incomes.This expansion will bring over 500,000 eli-gible veterans into the VA health care systemby 2013 while maintaining high quality andtimely care for the lower-income and disabled

veterans who currently rely on VA medicalcare.

Enhances Outreach and Services Relatedto Mental Health Care and CognitiveInjuries with a Focus on Access for Veteransin Rural Areas. Conditions such as post-trau-matic stress disorder and traumatic brain injury

DEPARTMENT OF VETERANS AFFAIRS




present challenges in caring for veterans of cur-rent conflicts. The President’s Budget expands themental health screening and treatment servicesoffered by VA and focuses on reaching veteransin rural areas. VA will increase the number of VetCenters and mobile health clinics to expand ac-cess to mental health screening and treatmentin rural areas. In addition, new funding will help

veterans and their families stay informed of these

resources and encourage them to pursue neededcare.

Invests in Better Technology to DeliverServices and Benefits to Veterans with theQuality and Efficiency They Deserve. Totransform VA into a 21st Century organization,the President’s Budget invests in informationtechnology that directly benefits veterans in theareas of both health care and benefits. Throughimproved electronic medical records, VA willmore efficiently retrieve active duty health re-cords from the Department of Defense andenable all VA care sites to access the records of

veterans needing care. VA will also invest in thedevelopment of rules-based electronic processesto increase accuracy, consistency, and timelinessin veterans’ receipt of benefits.

Provides Greater Benefits for VeteransWho Are Medically Retired from Service.For the first time, highly disabled veterans whoare medically retired from service will be eligiblefor concurrent receipt of disability benefits from

VA in addition to Department of Defense retire-ment benefits.

Combats Homelessness by Safeguarding

Vulnerable Veterans. The President’s Budgetexpands VA’s current services to homeless veter-ans through a collaborative pilot program withnon-profit organizations. This pilot will helpmaintain stable housing for veterans who are atrisk of falling into homelessness while helping

VA to continue providing them with supportiveservices.

Facilitates Timely Implementation of the Comprehensive Education Benefits Veterans Earn Through Their DedicatedService. The Budget provides the resourcesfor effective implementation of the post-9/11 GIBill—providing unprecedented levels of educa-tional support to the men and women who haveserved our country through active military duty.

2006 2007 2008 2009 20100

10

20

30

40

50

60

70 Actuals/Enacted, including emergencies

Proposed


36.1

40.4

46.1

55.950.4

Department of Veterans Affairs

Note: All totals include resources from medical care collections.




97

The Budget proposes $5.1 billion in discre-tionary budget authority in 2010 for the ArmyCorps of Engineers civil works (Corps) program.

The Budget will be transparent and based onperformance information for projects and ac-tivities. The funding for the Corps in the 2010Budget, together with the $4.6 billion providedfor Corps programs in the American Recoveryand Reinvestment Act of 2009, will significantlyimprove and strengthen the Nation’s water re-sources infrastructure.

Focuses Construction on High-ReturnInvestments. The construction program sup-ports high-return investments in the threemain mission areas of the Corps: 1) facilitatingcommercial navigation; 2) reducing the risk of damage from floods and storms; and 3) restor-ing significant aquatic ecosystems. To assurethat investments in these missions provide theNation with both high economic and environ-mental benefits, the Budget supports activitiesthat complement multiple-project purposes and

integrate environmental principles into tradi-tional infrastructure efforts.

The Budget also will propose to phase outthe current excise tax on diesel fuel for theinland waterways and replace it with a lockusage fee, designed to improve economic effi-ciency and preserve the landmark cost-sharingreform established by the Congress in 1986,while supporting investments in construction,expansion, replacement, and rehabilitationwork.

Maintains Key Infrastructure. TheBudget will emphasize funding to supportmaintenance and safe and reliable operation of those facilities that are of central importance tothe Nation, and will address deferred mainte-nance to maintain or improve the performanceof aging Corps infrastructure. The Corps willcontinue to develop and implement an objectiverisk-based decision-making system for allocat-ing resources to these activities.

CORPS OF ENGINEERS—CIVIL WORKS

Funding Highlights:

!"

!"

!"

!"




Honors the President’s Commitments tothe Gulf Coast. The Budget will fund contin-ued work to restore coastal Louisiana wetlands,including a study to identify the best ways to re-store wetlands affected by the Mississippi RiverGulf Outlet, and the science needed to supportthese efforts. The Budget will also fund continuedwork on planning sustainable methods to reducethe risk of damage from hurricane storm surges

to Gulf coastal areas.

Improves Program Performance. TheCorps will focus efforts on developing new strat-

egies, along with other Federal agencies andnon-Federal project partners, to better manage,protect, and restore the Nation’s water and re-lated land resources, including floodplain andflood-prone coastal areas. The Corps will alsopursue management reforms that improve proj-ect cost and schedule performance to ensure thegreatest value from invested resources, whilestrengthening the accountability and transpar-

ency of the way in which taxpayer dollars arebeing spent.

2006 2007 2008 2009 20100

2

4

6

8

10

12

14


Projections


11.9

7.0

9.0

11.1

5.1

Corps of Engineers -- Civil Works

Note: Supplemental funding designated as emergency is included in the totals -- $6.6 billion for 2006,$1.6 billion for 2007, $3.4 billion for 2008, and $5.8 billion for 2009.




99

Funding Highlights:

The Environmental Protection Agency(EPA) is responsible for the abatement and

control of pollution, which involves the properintegration of research, monitoring, standardsetting, and enforcement. The 2010 Budget re-quests a substantial increase over the budgetrequests of the last eight years—$10.5 billion,a 34-percent increase over the 2009 likely en-acted budget. This includes $3.9 billion forEPA’s operating budget, which is the heart of EPA’s environmental protection function andincludes funds for research, regulation, andenforcement. EPA’s budget also provides Stateprogram implementation grants, capitalizationgrants to State revolving funds to help munici-palities pay for the cost of pollution controls,and the clean up of contaminated sites.

Invests in Clean Water. The 2010 Bud-get requests $3.9 billion for the Clean WaterState Revolving Fund and the Drinking Wa-ter State Revolving Fund (SRFs). With this

historic increase, the program will fund over1,000 Clean Water and nearly 700 Drinking

Water projects annually in the Nation’s States,Tribes, and territories, based on average proj-ect costs. The SRF programs provide grantsto States to capitalize their own revolvingfunds, which finance wastewater and drink-ing water treatment systems. The SRFs usethe Federal capitalization, State matches (20percent), State leveraging, interest, and loanrepayments to make low-interest loans to com-munities. Because repayments and interestare recycled back into the program, SRFs gen-erate funding for loans (revolve) even withoutFederal capitalization. EPA estimates that forevery Federal dollar invested, at least two dol-lars in financing is provided to municipalities.In conjunction with the dramatic increase inFederal funding for local water infrastructureneeds, the Administration will pursue programreforms that will put resources for these on-going needs on a firmer foundation. EPA will

ENVIRONMENTAL PROTECTION AGENCY




work with State and local partners to developa sustainability policy including managementand pricing for future infrastructure fundedthrough SRFs to encourage conservation and toprovide adequate long-term funding for futurecapital needs. The 2010 Budget also proposes towork with State and local governments to ad-dress Federal drinking water policy in order toprovide equitable consideration of small system

customers.

Accelerates the Restoration of the GreatLakes. The 2010 Budget includes a new $475million inter-agency initiative to address re-gional issues that affect the Great Lakes, suchas invasive species, non-point source pollution,and contaminated sediment. This initiativewill use outcome-oriented performance goalsand measures to target the most significantproblems and track progress in addressingthem. EPA and its Federal partners will coor-dinate State, tribal, local, and industry actionsto protect, maintain, and restore the chemical,biological, and physical integrity of the GreatLakes.

Begins a Comprehensive Approach toTransform Our Energy Supply and SlowGlobal Warming. The Administration is de-

veloping a comprehensive energy and climatechange plan to invest in clean energy, end ouraddiction to oil, address the global climate cri-sis, and create new American jobs that cannotbe outsourced. After enactment of the Budget,the Administration will work expeditiouslywith key stakeholders and Congress to developan economy-wide emissions reduction programto reduce greenhouse gas emissions approxi-

mately 14 percent below 2005 levels by 2020,and approximately 83 percent below 2005 lev-els by 2050. This program will be implementedthrough a cap-and-trade system, a policy ap-proach that dramatically reduced acid rain atmuch lower costs than the traditional Govern-ment regulations and mandates of the past.Through a 100 percent auction to ensure thatthe biggest polluters do not enjoy windfall prof-its, this program will fund vital investments ina clean energy future totaling $150 billion over10 years, starting in fiscal year 2012. The bal-ance of the auction revenues will be returned tothe people, especially vulnerable families, com-munities, and businesses to help the transitionto a clean energy economy. The Budget in-cludes a $19 million increase for EPA work on aGreenhouse Gas (GHG) emission inventory andto work with affected industry sectors to reporthigh-quality GHG emission data. This will also

2006 2007 2008 2009 20100

2

4

6

8

10


Projections


7.6 7.7 7.57.8

10.5

Environmental Protection Agency




ENVIRONMENTAL PROTECTION AGENCY 101

allow for work on the necessary steps towardimplementing a comprehensive climate bill.

Secures the Nation’s Water Supply. The2010 Budget provides $24 million to fully fund

all five Water Security Initiative (WSI) pilotcooperative agreements and Water Alliance forThreat Reduction activities begun in responseto the Bioterrorism Act of 2002. EPA launchedits WSI in 2006 to demonstrate, test, and eval-uate a design for a contamination warningsystem at drinking water utilities. Following

completion of these pilots, EPA will issue guid-ance and promote adoption of effective drinkingwater contamination warning systems.

Strengthens Superfund. The 2010 Budget

proposes to reinstate excise taxes that expiredin 1995 and will collect over $1 billion to cleanup the Nation’s most toxic, contaminated siteswithin the Superfund program. The reinstatedtaxes will not begin until 2011 after the econo-my recovers.





103

Funding Highlights:

!"

!"

!"

!"

!"

!"

!"

Advances Global Climate ChangeResearch and Monitoring. The National Aero-nautics and Space Administration’s (NASA’s)investment in Earth science research satellites,airborne sensors, computer models, and analysishas revolutionized scientific knowledge and pre-diction of climate change and its effects. Usingthe National Research Council’s recommendedpriorities for space-based Earth science researchas its guide, NASA will develop new space-basedresearch sensors in support of the Administra-tion’s goal to deploy a global climate researchand monitoring system. NASA will work todeploy these new sensors expeditiously while co-

ordinating with other Federal agencies to ensurecontinuity of measurements that have long-termresearch and applications benefits.

Funds a Robust Program of Space Ex-ploration Involving Humans and Robots. NASA’s astronauts and robotic spacecraft havebeen exploring our solar system and the uni-

verse for more than 50 years. The Agency willcreate a new chapter of this legacy as it works toreturn Americans to the Moon by 2020 as partof a robust human and robotic space explorationprogram. NASA also will send a broad suite of robotic missions to destinations throughout the

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION




solar system and develop a bold new set of astro-nomical observatories to probe the mysteries of the universe, increasing investment in research,data analysis, and technology development insupport of these goals.

Completes the International Space Sta-tion and Advances the Development of NewSpace Transportation Systems. NASA will fly

the Space Shuttle to complete the Internation-al Space Station and then retire the Shuttle in2010; an additional flight may be conducted if itcan safely and affordably be flown by the end of 2010. Funds freed from the Shuttle’s retirementwill enable the Agency to support developmentof systems to deliver people and cargo to the In-ternational Space Station and the Moon. As partof this effort, NASA will stimulate private-sectordevelopment and demonstration of vehicles thatmay support the Agency’s human crew and cargospace flight requirements.

Continues Support of the InternationalSpace Station. NASA will continue to assem-

ble and utilize the International Space Station,the permanently crewed facility orbiting Earththat enables the Agency to develop, test, and

validate critical space exploration technologiesand processes. NASA also will continue to coor-dinate with international partners to make thisplatform available for other government entities,commercial industry, and academic institutionsto conduct research.

Renews NASA’s Commitment to Aero-nautics Research. A strong national programof aeronautics research and technology contrib-utes to the economic well-being and quality of life of American citizens. NASA will renew itscommitment to cutting-edge, fundamental re-search in traditional and emerging disciplinesto help transform the Nation’s air transpor-tation system and to support future aircraft.NASA research will increase airspace capac-ity and mobility, enhance aviation safety, andimprove aircraft performance while reducingnoise, emissions, and fuel consumption.

2006 2007 2008 2009 2010

0

5

10

15

20

25


Projections


16.7 16.317.2

18.717.8

National Aeronautics andSpace Administration





105

Funding Highlights:

Invests in the Sciences. Investments inscience and technology foster economic growth,create millions of high-tech, high-wage jobs thatallow American workers to lead the global econo-

my, improve the quality of life for all Americans,and strengthen our national security. For thesereasons, the Budget doubles funding for basic re-search over 10 years, beginning with $3 billionfor the National Science Foundation (NSF) in the

American Recovery and Reinvestment Act of 2009and a 2010 Budget that increases NSF funding by$950 million over 2008.

Supports Researchers at the Beginningof Their Careers. Ensuring America’s econom-ic competitiveness requires that we develop thefuture scientific and technical workforce for ouruniversities, national labs, and companies. To helpaccomplish these goals, the Budget provides sub-stantial increases for NSF’s prestigious GraduateResearch Fellowship and Faculty Early Career De-

velopment programs.

Strengthens the Education of Techniciansin High-Technology Fields. The Budget in-creases support for the Advanced TechnologicalEducation program, which focuses on two-year col-

leges and supports partnerships between academicinstitutions and employers to promote improve-ment in the education of science and engineeringtechnicians.

Encourages Promising High-Risk Re-search. The Budget increases support forpromising, but exploratory and high-risk researchproposals that could fundamentally alter ourunderstanding of nature, revolutionize fields of sci-ence, and lead to radically new technologies.

Makes Climate Change Research and Edu-cation a Priority. The Budget supports researchto improve our ability to predict future environ-mental conditions and to develop strategies forresponding to global environmental change. TheBudget establishes a climate change educationprogram to help develop the next generation of en-

vironmentally engaged scientists and engineers.

NATIONAL SCIENCE FOUNDATION




2006 2007 2008 2009 20100

2

4

6

8


Projections


5.65.9 6.1

7.06.9

National Science Foundation




107

Funding Highlights:

Helps Small Businesses Weather theCredit Crisis . The Budget supports: $17.5billion in guarantees under the Section 7(a)Guaranteed Loan program, an important sourceof credit for small businesses; $7.5 billion inguaranteed debentures in the Section 504

Guaranteed Loan Program, providing CertifiedDevelopment Companies financing to supportcommercial real estate development; $3 billionin authority for the Small Business InvestmentCompany debenture program; and $25 millionin Microloan volume, allowing intermediaries toprovide small loans and technical assistance toentrepreneurs and other start-up businesses. Inaddition, the Administration’s Small Businessand Community Bank Lending Initiative willexpand small business credit availability andaffordability by unfreezing the secondarymarkets for small business loans—as part of the larger plan to revive the flow of credit in theNation’s economy.

Strengthens Tools to Make GovernmentMore Effective as a Partner for America’sSmall Businesses. SBA will leverage existingnetworks to reinvigorate small business lending

by deploying capital through guaranteedloans and investment products. This includestechnological improvements to SBA’s coreoperations, as outlined below, so that SBAbecomes more transparent, accountable and intouch with entrepreneurs and other partners on

“Main Street.”

These activities will build on the substantialfunding for small business credit programsrecently provided by the American Recoveryand Reinvestment Act. The Recovery Actprovides SBA authority to increase guaranteepercentages on new 7(a) loans to 90 percent, tohelp encourage lenders to make these loans. TheRecovery Act also provides funding to enableSBA to temporarily lower fees on both 7(a) and504 loans, expand funding for the Microloanprogram, and increase the size of bonds availableunder SBA’s surety bond program. In addition,the Recovery Act includes a variety of otherprovisions intended to promote credit availabilityto small businesses.

Prepares for Disaster Assistance. TheBudget supports $1.1 billion in direct disaster

SMALL BUSINESS ADMINISTRATION




loans, the normalized 10-year average. In addition,$101 million in new budget authority for disasterlending administrative expenses is provided; anddisaster loan subsidy funding is available throughestimated unobligated balances. Furthermore, in2010 the Agency will implement a pilot programto test the Guaranteed Disaster Loan programsoutlined in Public Law 110–234, the Food,Conservation, and Energy Act of 2008.

Improves Technical and Contracting Assistance Capabilities to Advise SmallBusinesses. The Budget supports resourcesfor non-credit technical assistance programs,providing entrepreneurs access to counseling andbusiness development expertise. This includesimprovements to existing programs such as

Small Business Development Centers, Women’sBusiness Centers, SCORE, and microloantechnical assistance, as well as incorporatingnew strategies. The Budget also supports smallbusiness access to Federal prime and sub-contracting opportunities, improvements tosmall business procurement data, and continuedreviews of small business size standards.

Modernizes the Agency for BetterPerformance. The Budget provides increasedfunding for core Agency systems and humancapital improvements. This includes continuedprocurement of a more effective loan accountingsystem, and a focus on streamlining andautomating lender and contracting systems.

2006 2007 2008 2009 20100

0.5

1.0

1.5

2.0

2.5Actuals, including emergencies

Projections


2.2

0.6

1.6

0.7 0.7

Small Business Administration

Note: 2006 and 2008 include $1.7 billion and $1.1 billion, respectively, in emergency supplemental

appropriations for the Disaster Loan program.




109

Funding Highlights:

Protects Social Security. The Presidentrecognizes that Social Security is indispensableto workers, the disabled, seniors, and survivorsand is probably the most important and mostsuccessful program that our country has ever

established. Social Security can pay full ben-efits until 2041. The President is committedto ensuring that Social Security is solvent and

viable for the American people, now and in thefuture. He is strongly opposed to privatizingSocial Security and looks forward to workingin a bipartisan way to preserve it for futuregenerations.

Provides a 10 Percent Funding Increaseto Target Crucial Workloads and Processa Rising Number of Claims for Disabilityand Retirement Benefits. The Social Secu-rity Administration (SSA) is responsible forpaying benefits to more than 55 million peopleeach month. Each year, SSA processes morethan 4.2 million retirement, survivor, andMedicare claims; 2.6 million disability claims;and over 300,000 Supplemental Security In-come (SSI) claims. The Budget proposes $11.6

billion for SSA, an increase of $1.1 billion, or10 percent, above the 2009 likely enacted levelof $10.5 billion. This amount includes resourc-es to ensure increased staffing in 2010 andwill allow SSA to increase the level of work

processed in key service delivery areas to the American public, such as processing initial re-tirement and disability claims, and disabilityappeals. In addition, this amount includes re-sources to enable SSA to more effectively andefficiently verify hundreds of millions of SocialSecurity Numbers and issue about 18 millionSocial Security cards.

Significantly Increases Program Integ-rity Efforts. The President’s 2010 Budgetprovides $759 million for SSA program in-tegrity that will reverse a decline in theseactivities. SSA’s program integrity efforts willbe part of a strong framework for making sureGovernment is spending tax dollars efficientlyand that benefits are paid only to those ben-eficiaries who are eligible and are paid in thecorrect amounts. Continuing Disability Re-

views ensure that Disability Insurance and

SOCIAL SECURITY ADMINISTRATION




SSI recipients continue to meet the medicalcriteria. SSI redeterminations ensure that SSIrecipients continue to meet the non-medicalfactors of eligibility.

Restructures the Federal Wage Report-ing Process. The President’s 2010 Budgetproposes to restructure the Federal wage re-porting process to increase the frequency with

which wages are reported to SSA. Currently,

wages are reported to the Federal Governmentonce a year. Increasing the timeliness of wagereporting would enhance tax administra-tion, improve program integrity for a rangeof programs, and facilitate implementation of automatic workplace pensions. The Adminis-tration will work with the States so that theoverall reporting burden on employers is notincreased.

2006 2007 2008 2009 20100

2

4

6

8

10

12

14


Projections


9.2 9.49.9

10.5

11.6

Social Security Administration


Note: Amounts include funding from the Medicare trust funds for administrative expenses incurred by SSA.



111

Funding Highlights:

The Corporation for National and Commu-nity Service (CNCS) provides opportunities for

Americans to serve their community and coun-

try while meeting the Nation’s greatest nationalchallenges. Through CNCS programs, Ameri-cans of all ages can help strengthen our countryin different ways, from tutoring at-risk youth toresponding to natural disasters to building thecapacity of community organizations. The Presi-dent’s Budget proposes $1.13 billion for CNCS,an increase of $261 million from the 2009 likelyenacted level, to give more Americans the oppor-tunity to serve and to build the capacity of thenonprofit sector to find innovative solutions tosocial problems.

Expands National Service. The Presi-dent’s Budget makes a substantial investmentin National Service, giving more individuals theopportunity to make an intensive commitmentto giving back to their communities. The Bud-get would set AmeriCorps on a path to expandfrom its current 75,000 funded slots to 250,000,

and would ensure the availability of service op-portunities to achieve demonstrable results. TheBudget would also increase the amount of the Eli

Segal Education Award, which has not been adjusted since the program’s inception in 1993.

Creates a New Social Innovation Fund.Innovators often come up with great ideas foraddressing critical national challenges, but toooften lack the capital to develop, evaluate, andscale up successful ideas. The Budget would cre-ate a new social innovation fund, charged withtesting promising new approaches to major chal-lenges, leveraging private and foundation capitalto meet these needs, and scaling up research-proven programs.

Engages Retiring Americans in Service.Older Americans have a wide range of skills andknowledge to contribute to the Nation’s commu-nities. New efforts are needed to tap the idealismand experience of this “Baby Boomer” generation– the largest and healthiest generation to enter

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE




retirement in history. The President’s Budgetwould expand and improve Senior Corps pro-grams, which connect individuals over the age of 55 to local volunteer opportunities, allowing moreretirees to help meet the needs and challenges intheir communities.

Expands Service-Learning in the Nation’sSchools. Service learning is an approach that

connects classroom lessons with meaningfulcommunity service opportunities. The Budget in-cludes additional resources for Learn and Serve

America, which supports programs in schools,

higher education institutions and community-based organizations that engage students, theirteachers, and others in service-learning.

Strengthens the Management Capacity of the Corporation. The Budget provides neededresources to strengthen the capacity of CNCS tomanage its programs, measure performance, andconduct rigorous evaluations of the impact of

CNCS programs. Coupled with a strong Admin-istration commitment to management reform,the Budget will ensure that CNCS can supportboth growth and excellence in service.

2006 2007 2008 2009 2010

0

0.2

0.4

0.6

0.8

1.0

1.2

1.4Actuals, including emergencies

Projections


0.9 0.9 0.9

1.1

Corporation for National andCommunity Service

0.9




113

SUMMARY TABLES




T a b l e

S – 1 . B u d g e t T o t a l s

( I n b i l l i o n s o f d o l l a r s a n d a s a p e r c e n t o f G D P )

T

o t a l s

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 1 0 - 2 0 1

4 2 0 1 0 - 2 0 1 9

B u d g e t T o t a l s i n B i l l i o n s o f D o l l a r s :

R e c e i p t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 , 5 2 4

2 , 1

8 6

2 , 3

8 1

2 , 7 1

3

3 , 0 8 1

3 , 3 2 3

3 , 5 0 0

3 , 6

7 5

3 , 8

5 6

4 , 0 4

2

4 , 2 3 4

4 , 4 4 6

1 4 , 9

9 7

3 5 , 2

5 0

O u t l a y s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 , 9

8 3

3 , 9

3 8

3 , 5

5 2

3 , 6 2

5

3 , 6 6 2

3 , 8 5 6

4 , 0

6 9

4 , 2

5 8

4 , 4 9

3

4 , 6 7 8

4 , 8 6 8

5 , 1

5 8

1 8 , 7

6 4

4 2 , 2

1 9

D e fi c i t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 5 9

1 , 7

5 2

1 , 1 7

1

9 1 2

5 8 1

5 3 3

5 7 0

5 8 3

6 3 7

6 3 6

6 3 4

7 1 2

3 , 7

6 7

6 , 9 6

9

D e b t h e l d b y t h e p u b l i c . . . . . . . . . . . . . . . . . . . . . . . . . .

5 , 8

0 3

8 , 3 6

4

9 , 5 0 9 1

0 , 4 3 6

1 0 , 9

8 5

1 1 , 5

0 5

1 2 , 0 7

0

1 2 , 6 5 9

1 3 , 2 9 7

1 3 , 9

3 2

1 4 , 5

5 7

1 5 , 3 7

0

D e b t n e t o f fi n a n c i a l a s s e t s

. . . . . . . . . . . . . . . . . . .

5 , 2 9

7

6 , 9 4 3

8 , 0 7 2

8 , 9

6 0

9 , 5

4 1

1 0 , 0 7

3

1 0 , 6 4 2

1 1 , 2 2 4

1 1 , 8

6 0

1 2 , 4

9 5

1 3 , 1 2

9

1 3 , 8 4 0

G r o s s d o m e s t i c p r o d u c t ( G D P )

. . . . . . . . . . . . . . . . . .

1 4 , 2 2 2

1 4 , 2 4 0

1 4 , 7

2 9 1

5 , 5

0 0

1 6 , 4 7

0

1 7 , 4 9 8

1 8 , 3 8 6

1 9 , 2

0 5

2 0 , 0

6 0

2 0 , 9 5

2

2 1 , 8 8 4

2 2 , 8 5 8

B u d g e t T o t a l s a s a P e r c e n t

o f G D P :

R e c e i p t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 7 . 7 %

1 5 . 4 %

1 6 . 2

%

1 7 . 5

%

1 8 . 7

%

1 9 . 0 %

1 9 . 0 %

1 9 . 1 %

1 9 . 2

%

1 9 . 3

%

1 9 . 3 %

1 9 . 5 %

1 8 . 1 %

1 8 . 7 %

O u t l a y s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 1 . 0 %

2 7 . 7

%

2 4 . 1

%

2 3 . 4

%

2 2 . 2 %

2 2 . 0 %

2 2 . 1 %

2 2 . 2

%

2 2 . 4

%

2 2 . 3 %

2 2 . 2 %

2 2 . 6 %

2 2 . 8 %

2 2 . 6

%

D e fi c i t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 . 2 %

1 2 . 3

%

8 . 0

%

5 . 9 %

3 . 5 %

3 . 0 %

3 . 1

%

3 . 0

%

3 . 2 %

3 . 0 %

2 . 9 %

3 . 1

%

4 . 7 %

3 . 9

%

D e b t h e l d b y t h e p u b l i c . . . . . . . . . . . . . . . . . . . . . . . . . .

4 0 . 8

%

5 8 . 7

%

6 4 . 6 %

6 7 . 3 %

6 6 . 7 %

6 5 . 8

%

6 5 . 6

%

6 5 . 9 %

6 6 . 3 %

6 6 . 5 %

6 6 . 5

%

6 7 . 2

%

D e b t n e t o f fi n a n c i a l a s s e t s

. . . . . . . . . . . . . . . . . . .

3 7 . 2

%

4 8 . 8 %

5 4 . 8 %

5 7 . 8 %

5 7 . 9

%

5 7 . 6

%

5 7 . 9 %

5 8 . 4 %

5 9 . 1 %

5 9 . 6

%

6 0 . 0

%

6 0 . 5 %






T a

b l e S – 2 . E f f e c t o f B u d g e t P r o p o s a l s o n P r o j e c t e d

D e fi c i t s — C o n t i n u e d

( D e fi c i t i n c r e a s e s ( + ) o r d e c r e a s e s ( – ) i n b i l l i o n s o f d o l l a r s )

T o t a l s

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 1 0 – 2 0 1 4 2 0 1 0 – 2 0 1 9

M e m o r a n d u m , p r o p o s e d c h a n g e s i n a p p r o p r i a t e d

( “ d i s c r e t i o n a r y ” ) b u d g e t a

u t h o r i t y :

F u n d i n g f o r o v e r s e a s c o n t i n

g e n c y o p e r a t i o n s . . . . . . . . . . . . . . . . . .

– 5 0 . 3

– 6 4 . 6

– 1 4 8 . 3

– 1 5 2 . 6

– 1 5 7 . 2

– 1 6 1 . 9 –

1 6 6 . 7

– 1 7 1 . 6

– 1 7 6 . 6

– 1 8 1 . 8

– 1 8 7 . 1

– 6 8 4 . 6

– 1 , 5

6 8 . 4

D e p a r t m e n t o f D e f e n s e ( 0 5 1 ) e x c l u d i n g o v e r s e a s

c o n t i n g e n c y o p e r a t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . .

1 0 . 3

6 . 9

3 . 1

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

2 0 . 3

2 0 . 3

O t h e r a p p r o p r i a t e d p r o g r a m

s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 . 1

3 1 . 3

2 9 . 5

4 7 . 5

4 9 . 7

5 3 . 9

5 3 . 3

5 4 . 2

5 3 . 6

5 3 . 6

5 5 . 6

2 1 2 . 0

4 8 2 . 2

T o t a l , a p p r o p r i a t e d f u n

d i n g ( b u d g e t a u t h o r i t y ) . . . . . . . .

– 4 3 . 2

– 2 3 . 0

– 1 1 1 . 9

– 1 0 2 . 0

– 1 0 7 . 4

– 1 0 7 . 9 –

1 1 3 . 3

– 1 1 7 . 4

– 1 2 3 . 0

– 1 2 8 . 2

– 1 3 1 . 6

– 4 5 2 . 3

– 1 , 0

6 5 . 9

1 S

e e T a b l e s S –

3 a n d S –

5 f o r i n f o r m a t i o n o n t h e b a s e l i n e p r o j e c t i o n o f c u r r e n t p o l i c y .

2 N

o n – a d d i t i v e .

3 S

h o w n h e r e a r e t h o s e p r o c

e e d s f r o m a u c t i o n i n g e m i s s i o n a l l o w a n c e s

t h a t a r e r e s e r v e d f o r c l e a n e n e r g y t e c h n o l o g y i n i t i a t i v e s a n d t o c o m p e n s a t e f a m i l i e s t h r o u g h t h e

M a k i n g W o r k P a y t a x c u t

. T h e s e p r o c e e d s a r e i n c l u d e d i n t h e g r a n

d t o t a l s a s r e c e i p t s , t h o u g h t h e y c o u l d a l t

e r n a t i v e l y b e c o n s i d e r e d o f f s e t s t o o u t l a y s . A l l a d d i t i o n a l n e t

p r o c e e d s w i l l b e u s e d t o f u r t h e r c o m p e n s a t e t h e p u b l i c .

4 I n c l u d e s r e f u n d a b l e t a x c r e

d i t s .






T a b

l e S – 3 . B a s e l i n e P r o j e c t i o n o f C u r r e n t P o l i c y b y C a t e g o r y 1 — C o n t i n u e d

( I n b i l l i o n s o f d o l l a r s )

T o t a l s

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9 2 0

1 0 – 2 0 1 4 2 0 1 0 – 2 0 1 9

M e m o r a n d u m , f u n d i n g ( b u d g e t a u t h o r i t y ) f o r a p p r o p r i a t e d

p r o g r a m s :

D e p a r t m e n t o f D e f e n s e

( 0 5 1 ) i n c l u d i n g f u n d i n g f o r

o v e r s e a s c o n t i n g e n c y

o p e r a t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 6 6

7 1 2

7 1 8

7 3 3

7 5 0

7 6 8

7

8 6

8 0 5

8 2 5

8 4 5

8 6 5

8 8 7

3 , 7

5 6

7 , 9 8

3

O t h e r a p p r o p r i a t e d p r o

g r a m s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 5 4

8 2 6

5 6 8

5 7 9

5 9 2

6 0 6

6

2 0

6 3 4

6 4 9

6 6 4

6 8 0

6 9 6

2 , 9

6 5

6 , 2 8

8

T o t a l , a p p r o p r i a t e d f u n d i n g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 , 2 1 9

1 , 5

3 8

1 , 2

8 6

1 , 3 1 2

1 , 3 4

2

1 , 3

7 4

1 , 4

0 6

1 , 4 4 0

1 , 4 7

4

1 , 5

0 9

1 , 5 4 5

1 , 5 8 3

6 , 7

2 1

1 4 , 2 7

1

1 S e e T a b l e S - 5

f o r i n f o r m a t i o n o n a d j u s t m e n t s t o t h e B u d g e t E n f o r c e m e n t A c t ( B E A ) b a s e l i n e .

2 T

h e s e a m o u n t s r e p r e s e n t t h e s t a t i s t i c a l p r o b a b i l i t y o f a m a j o r d i s a s t e r r e q u i r i n g f e d e r a l a s s i s t a n c e f o r r e l i e f a n d r e c o n s t r u c t i o n .

S u c h a s s i s t a n c e m i g h

t b e p r o v i d e d i n t h e

f o r m o f d i s c r e t i o n a r y o r m

a n d a t o r y o u t l a y s o r t a x r e l i e f . T h e s e a m o u n t s a r e i n c l u d e d a s o u t l a y s f o r c o n v e n i e

n c e .






T a b l e S – 4 . P r o p o s e d B u d g e t b y C a t e g o r y —

C o n t i n u e d

( I n b i l l i o n s o f d o l l a r s )

T o t a l s

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4 2

0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9 2 0 1 0 – 2 0 1 4 2 0 1 0 – 2 0 1 9

O n - b u d g e t d e fi c i t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 4 2

1 , 8

9 0

1 , 3 1 2

1 , 0 7

3

7 6 2

7 3 4

7 7 7

7 8 9

8 4 8

8 4 0

8 3 1

8 9 9

4 , 6

5 8

8 , 8 6 5

O f f - b u d g e t s u r p l u s ( – ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

– 1 8 3

– 1 3 8

– 1 4 0

– 1 6 1

– 1 8 0

– 2 0 2

– 2 0 8

– 2 0 6

– 2 1 1

– 2 0 3

– 1 9 7

– 1 8 7

– 8 9 1

– 1 , 8

9 6

M e m o r a n d u m , f u n d i n g ( b u d g e t a u t h o r i t y ) f o r

a p p r o p r i a t e d p r o g r a m s :

D e p a r t m e n t o f D e f e n s e

( 0 5 1 ) i n c l u d i n g

f u n d i n g f o r o v e r s e a s

c o n t i n g e n c y

o p e r a t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 6 6

6 6 2

6 6 4

5 9 2

6 0 1

6 1 1

6 2 5

6 3 9

6 5 3

6 6 8

6 8 4

6 9 9

3 , 0

9 2

6 , 4 3 5

O t h e r a p p r o p r i a t e d p r o

g r a m s . . . . . . . . . . . . . . . . . . . . . .

5 5 4

8 3 3

5 9 9

6 0 9

6 4 0

6 5 6

6 7 4

6 8 8

7 0 3

7 1 8

7 3 4

7 5 2

3 , 1

7 6

6 , 7 7 0

T o t a l , a p p r o p r i a t e d f u n d i n g . . . . . . . . . . . . . . . . . . .

1 , 2

1 9

1 , 4 9 5

1 , 2

6 3

1 , 2 0 0

1 , 2

4 0

1 , 2 6 7

1 , 2

9 8

1 , 3 2 6

1 , 3 5

7

1 , 3

8 6

1 , 4 1 7

1 , 4

5 1

6 , 2 6

8

1 3 , 2

0 5

1 T

h e s e a m o u n t s r e p r e s e n t t h e s t a t i s t i c a l p r o b a b i l i t y o f a m a j o r d i s a s t e r r e q u i r i n g f e d e r a l a s s i s t a n c e f o r r e l i e f a n d r e c o n s t r u c t i o n . S u c h a s s i s t a n c e m i g h t b e p r o v i d e d i n t h e

f o r m o f d i s c r e t i o n a r y o r m

a n d a t o r y o u t l a y s o r t a x r e l i e f . T h e s e a m o u n t s a r e i n c l u d e d a s o u t l a y s f o r c o n v e n i e

n c e .


















T o t a l s

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 1 0 – 2

0 1 4

2 0 1 0 – 2 0 1 9

T o t a l , p r o m o t i n g

e f fi c i e n c y a n d

a c c o u n t a b i l i t y

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . –

1 , 8 0 0

– 4 , 3 1 0 –

1 6 , 1

6 0 –

2 2 , 1

5 0 –

3 1 , 4

6 0 –

3 6 , 5 5

5 –

4 3 , 3

1 0 – 4

5 , 3 6

5 – 4

0 , 3 1

0 – 4

5 , 9 3 5

– 7 5

, 8 8 0

– 2 8 7 , 3

5 5

E n c o u r a g i n g S h a r e d

R e s p o n s i b i l i t y :

R e q u i r e c e r t a i n h i g h

e r - i n c o m e b e n e fi c i a r i e s

e n r o l l e d i n t h e M e

d i c a r e d r u g b e n e fi t t o p a y

h i g h e r p r e m i u m s ,

a s i s c u r r e n t l y r e q u i r e d

f o r p h y s i c i a n a n d

o u t p a t i e n t s e r v i c e s . . . . . . . . .

. . . . . .

. . . . . .

– 4 0 0

– 5 9 0

– 6 8 0

– 7 7 0

– 8 7

0

– 9 9 0

– 1 , 1 2 0

– 1 , 2

7 0

– 1 , 4

4 0

– 2 , 4 4 0

– 8 , 1 3 0

T o t a l , M e d i c a r e / M e d i c a i d s a v i n g s ( – ) a . . . . . . . . . . . .

. . . . . . – 1 , 8 0

0

– 5 , 1 1 0 – 1 8 , 0 0 0 – 2 4 , 5 1 0 – 3 4 , 3 2 0

– 3 9 , 9 8

5 – 4 7 , 1 1 0 – 4 9 , 5 1 5 – 4 4 , 8 2 0 – 5 0 , 8 3 5

– 8 3 , 7 4 0

– 3 1 6 , 0 0 5

L i m i t t h e t a x r a t e a t w h

i c h i t e m i z e d d e d u c t i o n s

r e d u c e t a x l i a b i l i t y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . .

. . . . . . – 1 1 ,

0 8 1 – 3 0 ,

8 0 8 – 3 3 ,

4 6 4 – 3 5 ,

4 7 8

– 3 7 , 3 2

2 – 3 9 ,

2 6 9 – 4 1 ,

3 6 6 – 4 3 ,

4 0 2 – 4 5 ,

5 6 4

– 1 1 0 , 8

3 1

– 3 1 7 , 7 5 4

T o t a l , s p e c i fi e d s a v i n g s ( – ) . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . – 1 , 8 0

0 – 1 6 , 1 9 1 – 4 8 , 8 0 8 – 5 7 , 9 7 4 – 6 9 , 7 9 8 – 7 7 , 3 0

7 – 8 6 , 3 7 9 – 9 0 , 8 8 1 – 8 8 , 2 2 2 – 9 6 , 3 9 9

– 1 9 4 , 5 7 1

– 6 3 3 , 7 5 9

A d d i t i o n a l s a v i n g s n o t y e t d e t e r m i n e d . . .

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

B e n e fi t s n o t y e t d e

t e r m i n e d . . . . . . . . . . . . . . . . . . . . . . .

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

T B D

N e t t o t a l o f h e a l t h r e f o r m

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

a E s t i m a t e s e x c l u d e e f f e c t

s o f M e d i c a r e a n d M e d i c a i d p r o v i s i o n s i n c l u d e d i n t h e A m e r i c a n R e c o v e r y a n d R e i n v e s t m e n t A c t o f 2 0 0 9 .

* S a v i n g s n e g l i g i b l e o r u n

d e t e r m i n e d a t t h i s t i m e .

T a b l e S – 6 . M a n d a

t o r y a n d R e c e i p t P r o p o s a l s — C o n t i n u e d

( D e fi c i t i n

c r e a s e s ( + ) o r d e c r e a s e s ( – ) i n m i l l i o n s o f d o l l a r s )















Order Processing Code:

3538

Easy Secure Internet:

bookstore.gpo.gov

Toll Free: 866 512–1800

DC Area: 202 512–1800

Fax: 202 512–2104

Mail: US Government Printing Oce

P.O. Box 979050

St. Louis, MO 63197–9000

Qty Stock Number Publication Title Unit Price Total Price

!"Check payable to Superintendent of Documents

!"SOD Deposit Account

!"VISA !"MasterCard !"Discover / NOVUS !"American Express

(expiration date)

Total Order

AUTHORIZING SIGNATURE 02 / 0

Personal name (Please type or print)

Company name

Street address

City, State, Zip code

Daytime phone including area code

A New Era of Responsibility: Renewing America’s Promise $26.00

Thank you for your order!

041-001-00660-5



NOTES



NOTES



NOTES



NOTES

