FY 2020 Budget Breakdown: A Final Analysis

1/13/2020

President Donald Trump signed, after Congress passed, two fiscal spending packages—defense-related (H.R.1158) and non-defense-related (H.R. 1865)—worth a total of $1.4 trillion just before the holidays avoiding another partial government shutdown and funding the government through Sept. 30, 2020. 

A $22 billion increase in defense spending over fiscal year (FY) 2019 levels, including a 3.1% pay raise for military personnel, and an overall 5% increase in discretionary spending were rolled into the two measures, which contained all regular agency spending bills.

The final compromise of the contentious border wall funding debate, which had hampered the already delayed appropriations process, allows for $1.375 billion—equal to FY 2019 funding and much less than the $9 billion requested by Trump—and leaves it to the courts to decide whether the administration can access military construction accounts for the remainder of resources. Democrats did not agree to backfill the $3.6 billion in accounts that the president redirected to wall construction.

The funding deal is consistent with the two-year budget plan enacted in July and contains funds for election security, gun violence research and substantial increases in biomedical research. In addition, many extra provisions that extend tax credits including those for biodiesel fuel, investments in low-income communities, and a repeal of the “Cadillac tax” on expensive health insurance plans were incorporated. 

Major agency highlights follow:

Agriculture

  • Provides a total of $23.5 billion to agriculture, rural development, Food and Drug Administration, and related agencies. Included in U.S. Department of Agriculture’s (USDA) package is an additional $1.5 billion in aid for farmers and ranchers who have been affected by extreme weather.
  • Of the funds appropriated, $3.2 billion is research, including a $10 million boost to the Agriculture and Food Research Initiative, for a total of $425 million. Congress rejected an administration proposal to close USDA research labs.
  • The Animal and Plant Health Inspection Service receives slightly over $1 billion, a slight increase from FY 2019, and the Food Safety and Inspection Service would receive an increase of just over $1 billion.
  • Provides the Natural Resources Conservation Service a $10 million increase to $829.6 million, which includes $175 million for the Watershed and Flood Prevention Operations program to support investments in rural communities.
  • Rural development programs receive $3.24 billion, an increase of $250 million more than FY 2019, which includes $550 million for the ReConnect Pilot program, $1.45 billion for rural water and waste program loans, $443 million for water and waste grants, and $6.94 billion for rural electric and telephone infrastructure.
  • Funds the U.S. Forest Service at $7.43 billion and includes a $10.3 million increase for hazardous fuels reduction to aid in preventing wildfires in the wild-and-urban interface. Also includes $5.53 billion to fight wildland fires—$1.6 billion over FY 2019 enacted levels—combines $1.39 billion in base wildland fire suppression funding, $2.25 billion in additional wildlife suppression funding from the wildland cap adjustment.

Commerce

  • Reauthorizes the Export-Import Bank for seven years and requires banks to increase small business exports from 25% of its overall portfolio to 30%, while having 5% in reservations to support loans in renewable energy, energy efficiency and energy storage.

Defense

  • Funds overall Department of Defense (DOD) programs at $738 billion, $20 billion over FY 2019 levels.
  • Includes $40 million for the newly-established Space Force, which is $32 million less than requested. 
  • Includes provisions allowing all government workers to receive 12 weeks of paid parental leave and gives the largest pay raise to service members at 3.1%, and gradually repeals the “widow’s tax”—a provision that prevented survivors from receiving benefits from both the DOD and the Department of Veterans affairs—over three years.

Education

  • The bill provides $72.8 billion in discretionary funding for the Department of Education, an increase of $1.3 billion from FY 2019.
  • Provides $10.6 billion for Head Start and $5.8 billion for Child Care and Development Block Grant, a combined increase of $1.1 billion from FY 2019.
  • Funds Elementary and Secondary Education Act formula grants including $16.3 billion for Title I grants to school districts, a $450 million increase from FY 2019; $13.6 billion for IDEA, a $410 million increase from FY 2019; $2.1 billion for Title II teacher professional development state grants, a $76 million increase from FY 2019; and $1.2 billion for Title IV Student Support and Academic Enrichment Grants, a $40 million increase from FY 2019.
  • Includes a $150 increase, for the maximum Pell grant award, from $6,195 to $6,345 for the 2020-2021 academic year, as well as increases for campus-based aid programs and other programs to help students get into and through college.
  • Provide $350 million to cancel loans for borrowers in the public service loan forgiveness program.

Energy

  • Overall Department of Energy programs receive an increase of $2.9 billion to $38.5 billion, $7 billion more than requested by the president.
  • Provides the Office of Energy Efficiency and Renewable Energy an increase of 20% to $2.8 billion; the Office of Cybersecurity, Energy Security and Emergency Response a 30% increase to $156 million; and the Office of Electricity $190 million, $34 million over FY 2019 enacted levels and $7 million more than requested.
  • The Office of Nuclear Energy is funded at $1.5 billion, $167 million above FY 2019 and $670 million above the president’s request, while the Office of Fossil Energy Research and Development will receive $750 million, $188 million above the president’s request.
  • DOE’s Science Office receives an increase of $415 million to $7 billion, $1.5 billion above the president’s request, while the Advance Research Projects Agency is funded at $425 million, $60 million more than FY 2019.
  • Provides DOE’s State Energy Program $62.5 million, a 15% increase from the enacted $55 million, while the Weatherization Assistance Program receives $305 million, an increase of nearly $50 million from FY 2019.
  • Funds the Office of Environmental Management, which is primarily used to fund cleanup efforts related to past research on nuclear technologies, at $7.46 billion, $280 million more than last year and $986 million more than the president requested.

Environment

  • Overall, the Environmental Protection Agency receives slightly above $9 billion–an increase of $208 million above FY 2019, and $3 billion more than what the president proposed.
  • Provides $4.25 billion for State and Local Tribal Assistance Grants, a $115.3 million increase and $1.47 billion above the president’s request and $2.765 billion for The Clean Water and Drinking Water State Revolving Funds equal to FY 2019.
  • $44 million is provided for newly-authorized grant programs included in the America’s Water Infrastructure Act and $55 million to fund the Water Infrastructure Finance Act program. EPA received $26 million for lead contamination testing at schools and child care centers, $20 million for lead reduction projects in rural areas, and $25 million for water projects to bring communities in compliance with the Safe Drinking Water Act.
  • Provides $43 million to address per- and polyfluoroalkyl substances (PFAS); including $20 million for state-led remediation efforts of PFAS contamination.
  • State and local air pollution control agency grants would remain at $228 million, and tribal air quality management acts would remain the same at $12.8 million, while Targeted Airshed grants would be increased by $4 million to $56.3 million, and $87 million provided for Diesel Emissions Reduction grants.

Homeland Security

  • The spending package provides $1.38 billion to the Department of Homeland Security (DHS) for barriers along the U.S.-Mexico border, equal to FY 2019 and $3.62 billion less than the president’s request.
  • Provides $2 billion for the Cybersecurity and Infrastructure Security Agency, a $4 million increase from the president’s budget request.
  • Provides $1 billion to the National Institute of Standards and Technology, which establishes standards for industry and government technology; a moderate increase from FY 2019.
  • Provides $783 million to the Rural Utilities Service, a $130 million increase from FY 2019.
  • Provides $40 million to the National Telecommunications and Information Administration, a $1 million increase from FY 2019.
  • The Federal Emergency Management Agency is funded at $22.3 billion, an increase of $5.7 billion from FY 2019.
  • The Transportation Security Agency is funded at $5 billion, an increase of $100 million from FY 2019.
  • Immigration and Customs Enforcement is funded at $8.1 billion, an increase of $500 million from FY 2019.
  • The spending package also includes $17.4 billion in additional disaster relief funds, spread across multiple programs.

Health and Human Services

  • Domestic food programs would receive $98 billion overall, $5.18 billion less than FY 2019 including $67.9 billion for the Supplemental Nutrition Assistance Program, a decrease of $5.59 billion from FY 2019; $23.6 billion for child nutrition, an increase of $474.3 million from FY2 019; and $6 billion for the Women, Infants, and Children program, a decrease of $75 million from FY 2019.
  • A health extenders package is included, which extends funding through May 22, 2020 for a variety of Health and Humans Services (HHS)-related programs including: the Temporary Assistance for Needy Families Program, the Certified Community Behavioral Health Clinics demonstration program, and Health Profession Opportunity Grants among others.
  • Includes mandatory and advance funding for the Centers for Medicare & Medicaid Services, at $828.3 billion, $31.4 billion more than FY 2019.
  • Funds opioid treatment, prevention and research at several agencies within the Department of HHS including: $1.5 billion for state opioid response grants, $475.6 million for opioid overdose prevention and surveillance, at least $250 million for opioid misuse and addiction research and $89 million for medication-assisted treatment programs.

Housing and Urban Development

  • The Department of Housing and Urban Development receive a net appropriation of $56.5 billion under the measure, $4.88 billion more than FY 2019 and $12.4 billion more than requested.
  • Other programs are funded as follows:
    • $23.9 billion for tenant-based rental assistance, $1.3 million more than FY 2019.
    • $40 million for HUD-VASH vouchers, matching FY 2019 allocations.
    • $12.6 billion for project-based rental assistance, $853,000 more than FY 2019.
    • $4.55 billion for the Public Housing Operating Fund, a decrease of $153 million from FY 2019.
    • $3.4 billion for Community Development Block Grants, $35 million more than FY 2019.
    • $2.87 billion for the Public Housing Capital Fund, $95 million more than FY 2019. 
    • $2.78 billion for homeless assistance grants, $144 million more than FY 2019.
    • $1.35 billion for HOME Investment Partnerships, $100 million more than FY 2019.

Interior

  • Overall, the Department of Interior receives slightly over $13.8 billion in funding, a $900 million increase over FY 2019 levels.
  • The measure provides $495.1 million for projects supported by the Land and Water Conservation Fund, which is $56.8 million more than in FY 2019, $462.2 million more than requested, and is the highest funding level for the program since 2004. Funds will be split with $237 million for the federal program and $258 million for state programs.
  • Funds the Payment in Lieu of Taxes (PILT) program at the fully authorized level and would extend it to local governments through FY 2020. PILT requires the federal government to pay localities that have public lands within their boundaries to offset financial losses.
  • The Bureau of Land Management (BLM) is funded at $1.37 billion, an increase of $24 million above the FY 2019. Included in this figure is $101.4 million for BLM’s Wild Horse and Burro Program, $20 million more than FY 2019.
  • The National Park Service is funded at $3.37 billion, an increase of $154 million above FY 2019, and includes funding to address construction backlog, maintenance and new park units.
  • Funds the U.S. Fish and Wildlife Service at $1.64 billion, $65 million above FY 2019 and includes program increases for State and Tribal Wildlife Grants, and funding to address Asian carp in the nation’s waters.
  • The Office of Surface Mining receives $257.5 million of the overall funding, just slightly over FY 2019 levels.

Justice

  • Funds the Department of Justice at $32.6 billion, which is $1.7 billion above the enacted FY 2019 level.
  • The measure provides $3.28 billion in total budgetary resources for state and local law enforcement activities, including $3.16 billion in discretionary and mandatory funding and $435 million for the Crime Victim Fund transfers. This amount is $321 million more than FY 2019 and $886.3 million more than requested and includes the following:
    • $547 million for Byrne Memorial Justice Assistance Grants, an increase of 123 million over FY 2019 levels.
    • $502 million for the Office on Violence Against Women, an increase of 5 million over FY 2019 levels.
    • $343 million for Community Oriented Policing Services programs, an increase of 40 million over FY 2019 levels.
    • $125 million for STOP School Violence grants, an increase of 24 million over FY 2019 levels.
    • $85 million for Victims of Trafficking grants, level funding with FY 2019 levels.

Labor

  • Provides the Department of Labor $12.4 billion in discretionary funding, a $266 million increase from FY 2019.
  • Provides $311 million to the Veterans’ Employment and Training Programs, an increase of $11 million from FY 2019. The funding allocates for extensive employment services to veterans and eligible spouses, transitioning service members, wounded warriors and disabled veterans.
  • Provides $175 million to the appropriations for apprenticeship opportunities, an increase of $15 million from FY 2019.

Military Construction

  • Base funding for military construction includes $7.68 billion for construction within active components of the armed forces, and $550.9 million for reserve components; $1.32 billion for family housing; and $398.5 million for the Department of Defense’s base closure account.
  • The president’s request for $3.6 billion in cap-exempt emergency money to replace any military construction funds that were reprogrammed for southern border barriers, and another $3.6 billion in emergency funds for future border wall construction was rejected by House and Senate appropriators.

Transportation and Army Corps of Engineers

  • Funds the overall Department of Transportation at $86.2 billion, which includes $24.8 billion in discretionary resources as a large portion of federal transportation funding is provided via formulas to state and local governments. This is a reduction of $324.9 million compared to FY 2019 but $3.25 billion more than requested by the president.
  • The Federal Highway Administration is funded at just over $49.2 billion, a $12.6 million increase and more than $2 billion above the president’s request. A large majority of this funding is allocated to states via formulas from the Fixing America’s Surface Transportation Act.
  • The Federal Aviation Administration receives $17.6 billion, $165 million more than FY 2019 and $500 million more than the president’s request. This includes $1.4 billion for the agency’s aviation safety programs, $67 million above last year, while the Airport Improvement Program–a discretionary grant program–is funded at $400 million, $100 million below FY 2019.
  • The Federal Transit Administration is funded at $12.9 billion, $500 million less than FY 2019 but nearly $500 million more than the president’s request.
  • The Federal Railroad Administration will receive $2.8 billion, $80 million below the enacted FY 2019 level, but $700 million more than the president requested.  Amtrak receives $2 billion, nearly $60 million above last year, and more than $1 billion above the president’s request.
  • The National Highway and Traffic Safety Administration will see an increase of $23 million to $989 million, $60 million more than the president requested.
  • Relatedly, the BUILD/TIGER competitive grant program will receive $1 billion, $100 million more than FY 2019.
  • Overall, the Army Corps of Engineers will receive $7.65 billion, an increase of $652 million from FY 2019 and $2.69 billion above the president’s request. Of that, $2.68 billion is for construction, nearly $500 million above last year and $3.8 billion is for maintenance, $50 million above FY 2019. 

Veterans Programs

  • Provides $131 billion in advance mandatory funds for FY 2021 for benefits such as disability compensation, educational aid, and job training.
  • Funds the Veterans Benefits Administration at $3.13 billion in FY 2020 discretionary funds for general operating expenses.
  • The measure provides $8.91 billion in FY 2020 and $11.3 billion in FY2021 to implement the Community Care law. 
  • The package also contains $1.24 billion for major VA-related construction projects and $398.8 million for minor projects.

Additional Resources 

  • A separate analysis of the tax provisions in the spending package can be found HERE, and for a detailed agency break out of the chronological history of the FY 2020 funding process, please read the Federal Funds Information for State’s Jim Martin’s table HERE.