President Donald Trump officially released his $4.8 trillion budget request for FY 2021 last week, calling for a 5% or $590 billion reduction in domestic discretionary spending while investing heavily in defense spending at a level of $636.4 billion, to include the creation of the U.S. Space Force.
The agencies experiencing largest reductions include the Department of Commerce, Environmental Protection Agency, and the State Department. Veterans Affairs would receive the largest increase, with the National Aeronautics and Space Administration, Homeland Security and Treasury departments following suit.
Considered an aspirational budget that officially launches the FY 2021 appropriations process, the budget also includes $2 billion to fund a southern border wall, and $1 trillion in infrastructure funding. The proposal would ignore the spending cap level enacted last summer in the Bipartisan Budget Agreement and assumes the U.S. economy will grow 3% in the coming years, more than 1% higher than most analysts have predicted.
Finally, the proposal also assumes Congress will extend tax cuts enacted in the 2017 tax reform law, which are currently set to expire in 2025. The budget would increase deficit spending to almost $1 trillion in 2021.
An analysis of key items of interest in the proposal follows. NCSL will track, monitor, and advocate on behalf of states interests as the appropriations season progresses.