View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Budget
of the U. S. Government

Fiscal Year 2011

Office of Management and Budget
www.budget.gov

THE BUDGET DOCUMENTS
Budget of the United States Government, Fiscal
Year 2011 contains the Budget Message of the President,
information on the President’s priorities, budget overviews organized by agency, and summary tables.
Analytical Perspectives, Budget of the United
States Government, Fiscal Year 2011 contains analyses that are designed to highlight specified subject areas or provide other significant presentations of budget
data that place the budget in perspective. This volume
includes economic and accounting analyses; information
on Federal receipts and collections; analyses of Federal
spending; information on Federal borrowing and debt;
baseline or current services estimates; and other technical presentations.
The Analytical Perspectives volume also contains supplemental material with several detailed tables, including
tables showing the budget by agency and account and by
function, subfunction, and program, that is available on
the Internet and as a CD-ROM in the printed document.
Historical Tables, Budget of the United States
Government, Fiscal Year 2011 provides data on budget
receipts, outlays, surpluses or deficits, Federal debt, and
Federal employment over an extended time period, generally from 1940 or earlier to 2011 or 2015.
To the extent feasible, the data have been adjusted to
provide consistency with the 2011 Budget and to provide
comparability over time.
Appendix, Budget of the United States
Government, Fiscal Year 2011 contains detailed information on the various appropriations and funds that
constitute the budget and is designed primarily for the
use of the Appropriations Committees. The Appendix contains more detailed financial information on individual

programs and appropriation accounts than any of the
other budget documents. It includes for each agency: the
proposed text of appropriations language; budget schedules for each account; legislative proposals; explanations
of the work to be performed and the funds needed; and
proposed general provisions applicable to the appropriations of entire agencies or group of agencies. Information
is also provided on certain activities whose transactions
are not part of the budget totals.
AUTOMATED SOURCES OF
BUDGET INFORMATION
The information contained in these documents is available in electronic format from the following sources:
Internet. All budget documents, including documents
that are released at a future date, spreadsheets of many
of the budget tables, and a public use budget database
are available for downloading in several formats from the
Internet at www.budget.gov/budget. Links to documents
and materials from budgets of prior years are also provided.
Budget CD-ROM. The CD-ROM contains all of the
budget documents in fully indexed PDF format along with
the software required for viewing the documents. The
CD-ROM has many of the budget tables in spreadsheet
format and also contains the materials that are included
on the separate Analytical Perspectives CD-ROM.
For more information on access to electronic versions
of the budget documents (except CD-ROMs), call (202)
512-1530 in the D.C. area or toll-free (888) 293-6498. To
purchase the budget CD-ROM or printed documents call
(202) 512-1800.

GENERAL NOTES
1. All years referenced for budget data are fiscal years unless otherwise
noted. All years referenced for economic data are calendar years unless otherwise noted.
2. Detail in this document may not add to the totals due to rounding.

U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON 2010

6-084795-0

90000

For sale by the Superintendent of Documents, U.S. Government Printing Office
Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800
Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001
I S B N 978-0-16-084795-0

Table of Contents

Page

The Budget Message of the President �������������������������������������������������������������������������������������������������������1
Rescuing the Economy ��������������������������������������������������������������������������������������������������������������������������������7
Reviving Job Creation and Laying a New Foundation for Economic Growth ���������������������������������������19
Restoring Responsibility ���������������������������������������������������������������������������������������������������������������������������37
Department of Agriculture �����������������������������������������������������������������������������������������������������������������������45
Department of Commerce �������������������������������������������������������������������������������������������������������������������������51
Department of Defense �����������������������������������������������������������������������������������������������������������������������������55
National Intelligence Program �����������������������������������������������������������������������������������������������������������������61
Department of Education �������������������������������������������������������������������������������������������������������������������������63
Department of Energy ������������������������������������������������������������������������������������������������������������������������������69
Department of Health and Human Services �������������������������������������������������������������������������������������������73
Department of Homeland Security ����������������������������������������������������������������������������������������������������������81
Department of Housing and Urban Development ����������������������������������������������������������������������������������85
Department of the Interior �����������������������������������������������������������������������������������������������������������������������91
Department of Justice�������������������������������������������������������������������������������������������������������������������������������95
Department of Labor ��������������������������������������������������������������������������������������������������������������������������������99
Department of State and Other International Programs ���������������������������������������������������������������������105
Department of Transportation ���������������������������������������������������������������������������������������������������������������109
Department of the Treasury �������������������������������������������������������������������������������������������������������������������113
Department of Veterans Affairs �������������������������������������������������������������������������������������������������������������117
Corps of Engineers—Civil Works �����������������������������������������������������������������������������������������������������������121
Environmental Protection Agency ���������������������������������������������������������������������������������������������������������125
National Aeronautics and Space Administration ����������������������������������������������������������������������������������129
National Science Foundation������������������������������������������������������������������������������������������������������������������133
Small Business Administration��������������������������������������������������������������������������������������������������������������135
Social Security Administration ��������������������������������������������������������������������������������������������������������������139
Corporation for National and Community Service��������������������������������������������������������������������������������143
Summary Tables �������������������������������������������������������������������������������������������������������������������������������������145
OMB Contributors to the 2011 Budget ��������������������������������������������������������������������������������������������������181

THE BUDGET MESSAGE OF THE PRESIDENT
To the Congress of the United States:
We begin a new year at a moment of continuing challenge for the American people. Even as we
recover from crisis, millions of families are still feeling the pain of lost jobs and savings. Businesses are
still struggling to find affordable loans to expand and hire workers. Our Nation is still experiencing
the consequences of a deep and lasting recession, even as we have seen encouraging signs that
the turmoil of the past 2 years is waning. Moving from recession to recovery, and ultimately to
prosperity, remains at the heart of my Administration’s efforts. This Budget provides a blueprint for
the work ahead.
But in order to understand where we are going in the coming year, it is important to remember where we started just 1 year ago. Last January, the United States faced an economic crisis
­unlike any we had known in generations. Irresponsible risk-taking and debt-fueled speculation—
unchecked by sound oversight—led to the near-collapse of our financial system. Our Gross Domestic
Product (GDP) was falling at the fastest rate in a quarter-century. Five trillion dollars of Americans’
household wealth had evaporated in just 12 weeks as stocks, pensions, and home values plummeted.
We were losing an average of 700,000 jobs each month, equivalent to the population of the State of
Vermont. The capital and credit markets, integral to the normal functioning of our economy, were
virtually frozen. The fear among economists—from across the political spectrum—was that we
risked sinking into a second Great Depression.
Immediately, we undertook a series of difficult steps to prevent that outcome. We acted to get
lending flowing again so that businesses could get loans to buy equipment and ordinary Americans
could get financing to buy homes and cars, go to college, and start or run businesses. We enacted
measures to foster greater stability in the housing market, help responsible homeowners stay in
their homes, and help to stop the broader decline in home values. To achieve this, and to prevent an
economic collapse that would have affected millions of additional families, we had no choice but to
use authority enacted under the previous Administration to extend assistance to some of the very
banks and financial institutions whose actions had helped precipitate the turmoil. We also took
steps to prevent the rapid dissolution of the American auto industry—which faced a crisis partly of
its own making—to prevent the loss of hundreds of thousands of additional jobs during an already
fragile time. Many of these decisions were not popular, but we deemed them necessary to prevent
a deeper and longer recession.
Even as we worked to stop the economic freefall and address the crises in our banking sector, our
housing market, and our auto industry, we also began attacking the economic crisis on a broader
front. Less than 1 month after taking office, we enacted the most sweeping economic recovery
package in history: the American Recovery and Reinvestment Act. The Recovery Act not only
provided tax cuts to small businesses and 95 percent of working families and provided emergency
relief to those out of work or without health insurance; it also began to lay a new foundation for longterm economic growth and prosperity. With investments in health care, education, infrastructure,
and clean energy, the Recovery Act both saved and created millions of jobs and began the hard work
of transforming our economy to thrive in the modern, global marketplace and reverse the financial

1

2

THE BUDGET MESSAGE OF THE PRESIDENT

­ ecline working families experienced in the last decade. Because of these and other steps, we can
d
safely say we have avoided the depression many feared, and we are no longer facing the potential
­collapse of our financial system. But our work is far from complete.
First and foremost, there are still too many Americans without work. The steps we have taken
have helped stop the staggering job losses we were experiencing at the beginning of last year. But the
damage has been done. More than seven million jobs were lost since the recession began 2 years ago.
This represents not only a terrible human tragedy, but also a very deep hole from which we have to
climb out. Until our businesses are hiring again and jobs are being created to replace those we have
lost—until America is back at work—my Administration will not rest and this recovery will not be
finished.
That is why this Budget includes plans to encourage small businesses to hire as quickly and
e­ ffectively as possible, to make additional investments in infrastructure, and to jump-start clean
­energy investments that will help the private sector create good jobs in America.
Long before this crisis hit, middle-class families were under growing strain. For decades,
­ ashington failed to address fundamental weaknesses in the economy: rising health-care costs, a
W
growing ­dependence on foreign oil, and an education system unable to prepare our children for the
jobs of the future. In recent years, spending bills and tax cuts for the wealthy were approved without
paying for any of it, leaving behind a mountain of debt. And while Wall Street gambled without
­regard for the consequences, Washington looked the other way.
As a result, the economy may have been working very well for those at the very top, but it was not
working for the middle class. Year after year, Americans were forced to work longer hours and spend
more time away from their loved ones, while their incomes flat-lined and their sense of economic
security evaporated. Beneath the statistics are the stories of hardship I’ve heard all across America.
For too many, there has long been a sense that the American dream—a chance to make your own way,
to support your family, save for college and retirement, own a home—was slipping away. And this
sense of anxiety has been combined with a deep frustration that Washington either didn’t notice, or
didn’t care enough to act.
Those days are over. In the aftermath of this crisis, what is clear is that we cannot simply go back to
business as usual. We cannot go back to an economy that yielded cycle after cycle of speculative booms
and painful busts. We cannot continue to accept an education system in which our students trail their
peers in other countries, and a health-care system in which exploding costs put our businesses at a
competitive disadvantage and squeeze the incomes of our workers. We cannot continue to ignore the
clean energy challenge and stand still while other countries move forward in the emerging industries
of the 21st Century. And we cannot continue to borrow against our children’s future, or ­allow special
interests to determine how public dollars are spent. That is why, as we strive to meet the crisis of the
moment, we are continuing to lay a new foundation for the future.
Already, we have made historic strides to reform and improve our schools, to pass health insurance
reform, to build a new clean energy economy, to cut wasteful spending, and to limit the influence of
lobbyists and special interests so that we are better serving the national interest. However, there is
much left to do, and this Budget lays out the way ahead.

THE BUDGET FOR FISCAL YEAR 2011

3

Because an educated workforce is essential in a 21st Century global economy, we are undertaking a
reform of elementary and secondary school funding by setting high standards, encouraging innovation,
and rewarding success; making the successful Race to the Top fund permanent and opening it up to
innovative school districts; investing in educating the next generation of scientists and engineers; and
putting our Nation closer to meeting the goal of leading the world in new college graduates by 2020.
Moreover, since in today’s economy learning must last a lifetime, my Administration will reform the
job-training system, streamlining it and focusing it on the high-growth sectors of the economy.
Because even the best-trained workers in the world can’t compete if our businesses are saddled with
rapidly increasing health-care costs, we’re fighting to reform our Nation’s broken health insurance
system and relieve this unsustainable burden. My Budget includes funds to lay the groundwork
for these reforms—by investing in health information technology, patient-centered research, and
prevention and wellness—as well as to improve the health of the Nation by increasing the number
of primary care physicians, protecting the safety of our food and drugs, and investing in critical
biomedical research.
Because small businesses are critical creators of new jobs and economic growth, the Budget
eliminates capital gains taxes for investments in small firms and includes measures to increase these
firms’ access to the loans they need to meet payroll, expand their operations, and hire new workers.
Because we know the nation that leads in clean energy will be the nation that leads the world, the
Budget creates the incentives to build a new clean energy economy—from new loan guarantees that
will encourage a range of renewable energy efforts and new nuclear power plants to spurring the
development of clean energy on Federal lands. More broadly, the Budget makes critical investments
that will ensure that we continue to lead the world in new fields and industries: doubling research
and development funding in key physical sciences agencies; expanding broadband networks across
our country; and working to promote American exports abroad.
And because we know that our future is dependent on maintaining American leadership abroad and
ensuring our security at home, the Budget funds all the elements of our national power—including
our military—to achieve our goals of winding down the war in Iraq, executing our new strategy in
Afghanistan, and fighting al Qaeda all over the world. To honor the sacrifice of the men and women
who shoulder this burden and who have throughout our history, the Budget also provides significant
resources, including advanced appropriations, to care for our Nation’s veterans.
Rising to these challenges is the responsibility we bear for the future of our children, our
grandchildren, and our Nation. This is an obligation to change not just what we do in Washington,
but how we do it.
As we look to the future, we must recognize that the era of irresponsibility in Washington must end.
On the day my Administration took office, we faced an additional $7.5 trillion in national debt by the
end of this decade as a result of the failure to pay for two large tax cuts, primarily for the wealthiest
Americans, and a new entitlement program. We also inherited the worst recession since the Great
Depression—which, even before we took any action, added an additional $3 trillion to the national
debt. Our response to this recession, the Recovery Act, which has been critical to restoring economic
growth, will add an additional $1 trillion to the debt—only 10 percent of these costs. In total, the
surpluses we enjoyed at the start of the last decade have disappeared; instead, we are $12 trillion
deeper in debt. In the long term, we cannot have sustainable and durable economic growth without
getting our fiscal house in order.

4

THE BUDGET MESSAGE OF THE PRESIDENT

That is why even as we increased our short-term deficit to rescue the economy, we have refused to
go along with business as usual, taking responsibility for every dollar we spend, eliminating what we
don’t need, and making the programs we do need more efficient. We are taking on health care—the
single biggest threat to our Nation’s fiscal future—and doing so in a fiscally responsible way that will
not add a dime to our deficits and will lower the rate of health-care cost growth in the long run.
We are implementing the Recovery Act with an unprecedented degree of oversight and openness so
that anyone anywhere can see where their tax dollars are going. We’ve banned lobbyists from serving
on agency advisory boards and commissions, which had become dominated by special interests. We
are using new technology to make Government more accessible to the American people. And last
year, we combed the budget, cutting millions of dollars of waste and eliminating excess wherever we
could—including outdated weapons systems that even the Pentagon said it did not want or need.
We continued that process in this Budget as well, streamlining what does work and ending programs
that do not—all while making it more possible for Americans to judge our progress for themselves.
The Budget includes more than 120 programs for termination, reduction, or other savings for a total
of approximately $23 billion in 2011, as well as an aggressive effort to reduce the tens of billions of
dollars in improper Government payments made each year.
To help put our country on a fiscally sustainable path, we will freeze non-security discretionary
funding for 3 years. This freeze will require a level of discipline with Americans’ tax dollars and a
number of hard choices and painful tradeoffs not seen in Washington for many years. But it is what
needs to be done to restore fiscal responsibility as we begin to rebuild our economy.
In addition to closing loopholes that allow wealthy investment managers to not pay income taxes
on their earnings and ending subsidies for big oil, gas, and coal companies, the Budget eliminates
the Bush tax cuts for those making more than $250,000 a year and devotes those resources instead
to reducing the deficit. Our Nation could not afford these tax cuts when they passed, and it cannot
afford them now.
And the Budget calls for those in the financial sector—who benefited so greatly from the
extraordinary measures taken to rescue them from a crisis that was largely of their own making—
to finally recognize their obligation to taxpayers. The legislation establishing the Troubled Asset
Relief Program (TARP) included a provision requiring the Administration to devise a way for these
banks and firms to pay back the American taxpayer. That is why in this Budget we have included a
fee on the largest and most indebted financial firms to ensure that taxpayers are fully compensated
for the extraordinary support they provided, while providing a deterrent to the risky practices that
contributed to this crisis.
Yet even after taking these steps, our fiscal situation remains unacceptable. A decade of irresponsible
choices has created a fiscal hole that will not be solved by a typical Washington budget process that
puts partisanship and parochial interests above our shared national interest. That is why, working
with the Congress, we will establish a bipartisan fiscal commission charged with identifying additional
policies to put our country on a fiscally sustainable path—balancing the Budget, excluding interest
payments on the debt, by 2015.

THE BUDGET FOR FISCAL YEAR 2011

5

This past year, we have seen the consequences of those in power failing to live up to their
r­ esponsibilities to shareholders and constituents. We have seen how Main Street is as linked to
Wall Street as our economy is to those of other nations. And we have seen the results of building
an ­economy on a shaky foundation, rather than on the bedrock fundamentals of innovation, small
­business, good schools, smart investment, and long-term growth.
We have also witnessed the resilience of the American people—our unique ability to pick ourselves
up and forge ahead even when times are tough. All across our country, there are students ready to
learn, workers eager to work, scientists on the brink of discovery, entrepreneurs seeking the chance
to open a small business, and once-shuttered factories just waiting to whir back to life in burgeoning
industries.
This is a Nation ready to meet the challenges of this new age and to lead the world in this new
century. Americans are willing to work hard, and, in return, they expect to be able to find a good job,
afford a home, send their children to world-class schools, receive high-quality and affordable health
care, and enjoy retirement security in their later years. These are the building blocks of the middle
class that make America strong, and it is our duty to honor the drive, ingenuity, and fortitude of the
American people by laying the groundwork upon which they can pursue these dreams and realize the
promise of American life.
This Budget is our plan for how to start accomplishing this in the coming fiscal year. As we look
back on the progress of the past 12 months and look forward to the work ahead, I have every ­confidence
that we can—and will—rise to the challenge that our people and our history set for us.
These have been tough times, and there will be difficult months ahead. But the storms of the past
are receding; the skies are brightening; and the horizon is beckoning once more.

Barack Obama
The White House,
February 1, 2010.

RESCUING THE ECONOMY

When the President took office on January 20,
2009, the economy was on the brink of a potentially severe depression. Real GDP fell at a 5.4
percent annual rate in the fourth quarter of 2008
and at a 6.4 percent annual rate in the first quarter of 2009 (see Figure 1, Real GDP).

ticated financial engineering, these bad loans
made their way onto the books of some on Wall
Street, and were then sold to investors all over
the world. Once the real estate market cooled,
loans defaulted at alarming rates, and the credit
boom unraveled.

Employment, which had been falling by less
than 150,000 jobs per month before September
2008, declined by an average of 622,000 jobs per
month from October through March. Altogether,
in the fourth quarter of 2008, the country lost
1.7 million jobs—the largest quarterly decline
since the end of World War II and a number
only to be exceeded by the next quarter, when
2.1 million jobs were lost (see Figure 2, Nonfarm
Payroll Employment). By January 2009, the
underemployment rate, which measures all
those out of work or underemployed for economic
reasons, rose to 14 percent. Consumer confidence
plummeted. Housing starts hit a record low,
and the number of homes in foreclosure grew
significantly. As financial markets collapsed,
Americans lost their jobs, and the economy
shrank, household net worth fell from the third
quarter of 2007 to the first quarter of 2009 by
$17.5 trillion or 26.5 percent, which is the
equivalent to more than one year’s GDP.

The resulting collapse laid low some of the
most prominent financial institutions in the
American economy, wiped out trillions of ­dollars
in wealth and retirement savings, and created
a level of uncertainty that brought our financial system to the brink of collapse. A lack of
confidence in the economy and in the financial
system effectively froze the credit markets,
preventing businesses from expanding, and
families from financing a new home or college
education; and caused massive job loss and
­economic contraction.
The Administration, consequently, entered
office facing twin trillion-dollar deficits. The first
was the gap between what the economy could be
producing and what it was producing; this GDP
gap totaled $1 trillion for 2009, or approximately
7 percent of the economy. The second was the
budget deficit, estimated to be $1.3 trillion on the
day the President took office, or 9.2 percent of
GDP. And the budget deficit over the following
decade—driven by the previous Administration’s
decisions not to offset three large domestic
initiatives (the tax cuts of 2001 and 2003, as
well as the Medicare prescription drug benefit)
and the effects of the economic collapse and
the efforts needed to combat it—produced this
historically large 10-year deficit, totaling more
than ­$8 ­trillion.

This decline was not simply the result of a normal downturn in the business cycle; indeed, the
more fundamental cause was a meltdown in our
credit and capital markets precipitated by a perfect storm of excessive risk-taking, inadequate
disclosure, non-existent or myopic oversight,
market gatekeepers compromised by conflicts of
interest, and irresponsible lending to hundreds
of thousands of Americans. Through sophis-

7

8

RESCUING THE ECONOMY
after taking office, the American Recovery and Reinvestment Act (the
Recovery Act) to create and save
jobs, as well as transform the economy to compete in the 21st Century.

Figure 1. Real GDP
Percent change from preceding quarter (annual rate)
6

4

3.2

3.6

The Recovery Act contains three
parts. Approximately one-third—
or $288 billion—is dedicated to tax
0
cuts for small businesses and 95
-0.7
-0.7
percent of working families. An-2
-2.7
other third—or $224 billion—is for
-4
emergency relief for those who have
borne the brunt of the recession;
-5.4
-6
for example, more than 17 million
-6.4
Americans benefited from extended
-8
or increased unemployment benefits
07:Q1 Q2
Q3
Q4 08:Q1 Q2
Q3
Q4 09:Q1 Q2
Q3
and health insurance was made 65
Source: Bureau of Economic Analysis 12/22/2009.
percent less expensive for laid-off
workers and their families who rely
on COBRA. In addition, aid to State and local
Facing this economic crisis, the Administration governments helped them to close budget shortmoved swiftly to take a series of extraordinary, falls, saving the jobs of hundreds of thousands of
but necessary, steps to pull the economy back teachers, firefighters, and police officers. The final
from the brink. Because of these efforts, the im- third is for investments to create jobs, spur ecomediate crisis has passed, the economy is on the nomic activity, and lay the foundation for future
path toward recovery, and we are laying a new sustained growth.
foundation for long-term economic
growth.
2

2.2

2.1

1.2

1.5

Figure 2. Nonfarm Payroll Employment
Jumpstarting the Economy:
The American Recovery and
Reinvestment Act

Monthly change of jobs in thousands
400

When the Administration took
office, it became clear that there
was a substantial shortfall between
what the economy could produce
and what it was producing. Economists across the spectrum agreed
that substantial steps needed to be
taken to bolster macroeconomic demand, jumpstart economic activity,
and break a potentially vicious recessionary cycle. With traditional
monetary policy levers largely exhausted, the Administration moved
rapidly to sign into law, just 28 days

100

300
200
0
-100
-200
-300
-400
-500
-600
-700
-800
Nov-06

Nov-07

Nov-08

Nov-09

Source: CEA Notes on Employment and Unemployment, December 2009.

THE BUDGET FOR FISCAL YEAR 2011
The Administration committed itself to implementing the Recovery Act with unprecedented
accountability and transparency. In addition to
an independent Recovery Board to monitor the
program, the Act required recipients of Recovery
funds to report quarterly on the amount of monies spent, the status of each project, the number
of jobs created and/or saved, and other relevant
details. This information is available for public
scrutiny on the Recovery.gov website.
The effects of the Recovery Act on families,
businesses, and the economy as a whole have
been significant. In the 10 months since the
Recovery Act was signed into law, the Administration cut taxes for 95 percent of working families through the Making Work Pay Tax Credit,
which amounted to $37 billion in tax relief for
110 million working families over that time
period. To help prevent cuts to Medicaid programs across the country, more than $40 billion
was disbursed. Also, nearly $60 billion in funding for education was provided which helped
to create or save more than 300,000 education
jobs nationwide.
To create jobs now and build the infrastructure
needed to support the jobs of the 21st Century, the
Recovery Act already has funded more than 12,000
transportation construction projects nationwide,
ranging from highway construction to airport
improvement projects; begun or accelerated
work at more than 50 Superfund sites from the
Environmental Protection Agency’s National
Priority List; and started more than 2,000
construction and improvement projects at over 350
military facilities nationwide. To build America’s
competitiveness in the emerging industries of
tomorrow, the Administration has made multibillion dollar investments in innovation, science,
and technology including: $2.4 billion in grants
to companies and educational institutions in
over 20 States to fund 48 new advanced battery
manufacturing, transportation electrification,
and electric drive vehicle projects that will help
power the next generation of advanced vehicles;
$3.4 billion in grants to private companies,
utilities, manufacturers, and cities to fund smart
energy grid projects that will support tens of

9
thousands of jobs and benefit consumers in 49
States; and more than $5 billion in grants to fund
12,000 cutting-edge medical research projects at
research and educational institutions in every
State across the country.
It is worth noting that in several cases, the
Government Accountability Office has found
that Recovery Act projects are coming in under
budget, allowing funds to support more projects,
assist more communities, and help create more
jobs. For instance, the Federal Aviation Administration (FAA) initially committed $1.1 billion
to 300 airport improvement projects; since those
projects have come in $200 million below estimate, the FAA can now fund an additional 60
airport projects. Similarly, Department of Defense construction contracts are coming in about
12 percent under-budget, representing hundreds
of millions of dollars in savings that will fund
additional projects and further spur economic
growth.
All told, as of the end of November 2009, about
50 percent of Recovery Act funds—or $395 billion—has been either obligated or is providing
assistance directly to Americans in the form of
tax relief. By design, the bulk of the remaining 50 percent of Recovery Act funds will be deployed in the coming months of 2010 and during
the beginning of 2011 to support additional job
creation when our economy continues to need a
boost. Many of the programs slated to receive additional funding in the near future are those with
significant promise of job creation. These include
more than $7 billion in broadband expansion, approximately $8 billion in funds to lay the foundation for a high-speed rail network, and continued
funding for other transportation projects. All
told, the Recovery Act is on track to meet the goal
of disbursing 70 percent of its funds in the first 18
months of its life.
Taken together, the fiscal relief, tax cuts and
other direct assistance, and funding of critical
infrastructure projects have had a substantial
effect on the economy. Following implementation
of the Recovery Act, the trajectory of the economy
changed dramatically. Government and private-

10
sector estimates suggest that the Recovery Act
added two to three percentage points to real
GDP growth in the second quarter of 2009, and
three to four percentage points to growth in the
third quarter of that year. Considering that
real GDP growth for the third quarter of 2009
was 2.2 percent, many independent experts and
forecasters agree that all the economic growth in
that quarter was attributable—either directly or
indirectly—to the Recovery Act.
In addition, there is evidence that the Recovery Act helped prevent the unemployment rate
from climbing even higher over the past year.
The Council of Economic Advisers (CEA), Congressional Budget Office (CBO), and private
forecasters estimate that the Recovery Act increased employment relative to what would have
occurred without the Act by between 900,000
and 1.5 million jobs over the second and third
quarters of 2009.

Health Insurance Reform
As part of the Recovery Act, the Administration made a down payment on one of the most
important unmet challenges facing the Nation
and burdening the economy: the rising costs of
health care.
Health care is consuming an ever-increasing
amount of our Nation’s resources: in 1970, health
care expenditures were 7 percent of GDP; as of
2008, they exceeded 16 percent; and at this rate
are projected to hit 20 percent by 2017. For individuals with health insurance, there is a strain
on their family budgets. In fact, the past decade
saw dramatic increases in premiums that far outstripped gains in wages. Not only is this burden
felt directly when these bills are due, but it also is
felt indirectly as take-home pay is constrained by
these increasing health insurance costs. Moreover, many with insurance run the risk that when
they need care, their coverage could be dropped;
that if they leave their job, they will not be able
to find affordable coverage or any coverage at all
because of a pre-existing condition; or that they
will be forced into bankruptcy due to huge un-

RESCUING THE ECONOMY
paid medical bills. Finally, those without any
health insurance present both a moral burden
and real financial cost on us all as every time an
uninsured person walks into an emergency room
­because there is nowhere else to turn, a hidden
tax is ­imposed on other citizens as premiums go
up. For State governments, these rising costs
crowd out expenditures on other vital services
such as higher education and law ­enforcement.
While the United States spends more per capita
on health care than any other developed nation,
it is not always clear that we are receiving better care. On many metrics, other developed nations surpass us on health outcomes. In addition,
several academic studies suggest that we spend
as much as $700 billion a year on health care
that does little or nothing to improve patients’
health. Wide variation in health care practices
among regions, States, cities, and even among
health care providers within these localities generates significant differences in health outcomes
and costs—with the high-cost medical centers not
necessarily generating better outcomes than the
lower-cost ones.
Recognizing that the current situation is not
sustainable for families, businesses, and the
­Nation as a whole and that our long-term fiscal
and economic health depend on bringing down
the costs of health care, the President launched a
health insurance reform effort last year.
First, in the Recovery Act itself, the Administration included funding critical to transforming the health care system into one that delivers
­better care, not just more care. Specifically, it
­included a program to spur an effort to computerize Americans’ health records in five years, and
do so in a way that rigorously protects patient
privacy and helps to reduce health care costs in
the long run. Because in so many areas of medical care, providers lack basic data on which interventions work and which do not, the Act provided
$1.1 billion for patient-centered health research.
And since chronic diseases that are manageable
and preventable contribute disproportionately to
poor health and rising costs, the Administration

THE BUDGET FOR FISCAL YEAR 2011
made an unprecedented $1 billion investment in
­prevention and wellness interventions.­
Second, working with the Congress, the Administration has brought the Nation closer to
health insurance reform than ever before. The
bills passed by both chambers of Congress will
give Americans with health insurance the stability and security they need by protecting consumers from being denied coverage based on
pre-existing conditions or seeing it dropped or diluted once one falls ill. The legislation creates a
health insurance exchange to increase consumer
choice and provide affordable coverage for individuals and small businesses, and expands coverage to more than 30 million Americans. It will
reduce the growth of health care costs for American families, seniors, and businesses. The bills
also include important reforms that will end insurer abuses, hold insurance companies accountable, and enhance consumer rights. They include
overdue reforms of the health care delivery system that will strengthen Medicare and improve
quality of care for all Americans. And they put
in place mechanisms to keep the system dynamic
and responsive to changing market conditions.
Finally, the legislation meets the President’s
standard of changing the way Washington is doing business by paying for major new initiatives
so they do not add to our Nation’s debt. Indeed,
the legislation meets the President’s demand
that health care reform not add to budget deficits in the first 10 years (and, in fact, it reduces
them), and of reducing deficits thereafter. Deficit
neutrality is accomplished by relying on tangible,
accountable savings—as scored by the independent CBO—to pay for health insurance reform,
such as savings from Medicare and revenue measures. The legislation also includes potentially
more important cost-savings from transforming
the health care delivery system, which will undoubtedly help to improve our long-term fiscal
standing—even if it is challenging to quantify by
precisely how much.
Fiscally-responsible health insurance reform
is a critical part of the recovery of the Nation’s
economy. Our fiscal future is so dominated by

11
health care that if we can slow the rate of cost
growth by just 15 basis points per year (0.15 percentage points per year), the savings on Medicare and Medicaid alone would equal the impact
from eliminating Social Security’s entire 75-year
shortfall. Undertaking health insurance reform
at this moment is an important step toward putting the country on a more solid foundation for
economic growth.

Reviving the Financial System and
Critical Sectors of the Economy
Along with reviving macroeconomic demand,
the Administration was forced to take extraordinary, and sometimes understandably unpopular,
steps to help revive the credit and capital markets and restore trust in the financial system. At
the beginning of 2009, the financial system was
extremely fragile. The viability of major financial
institutions remained in doubt and vital aspects
of the financial system were deeply impaired—
preventing the flow of credit that small firms
need to grow and families need to buy a home or
car, attend college, or start a business. With the
risk that inaction could lead to an even deeper
downturn, the Administration implemented a
plan to restore financial stability that, in conjunction with fiscal stimulus, has helped to stabilize
financial markets and the economy and pull the
financial system back from the brink of systemic
collapse.

Financial Stabilization
Upon taking office, the Administration undertook a comprehensive, forceful, and sustained
commitment to stabilize the financial system, assist in the cleanup of legacy assets, jumpstart the
provision of new credit for households and businesses, and support distressed housing markets.
The Administration’s Financial Stability Plan
helped to shore up confidence in our financial institutions and markets, while mobilizing private
capital—especially in the wake of the “stress test”
conducted of major financial institutions. The
Administration also redirected the focus of the

12

RESCUING THE ECONOMY

Figure 3. TARP Investments in Banks
(In billions of dollars)
Commitments
Pre-Jan 20th

Jan 20Present 1

Total 2

Repayments

Existing Programs:
Large Banks 3 �����������������������������������������������������������������������

230

2

232

114

Small Banks 4 ������������������������������������������������������������������������

9

5

14

2

Total ����������������������������������������������������������������������������������������������

239

7

246

116

Common Equity and Other Regulatory Capital Raised by the Largest
Banks Since “Stress Test” Results Were Announced in May ��������������������������������������������������������������������������������������������� 114
Estimates as of December 9, 2009.
Estimates may not sum to total due to rounding.
3
CPP, AGP, TIP. Large banks are defined as banks with total assets of over $10 billion.
4
CPP.
1
2

Troubled Asset Relief Program (TARP) from large
financial institutions to households, small banks,
and small businesses (see Figure 3, TARP Investments in Banks). Indeed, since the ­President took
office, only $7 billion in TARP funds have been
provided to banks—much of it to smaller institutions—while major banks subject to the “stress
test” have raised more than $140 billion in highquality capital from the private sector.
As financial markets have stabilized and private capital has replaced Government capital,
many of the initial programs created under TARP
have become unnecessary, and institutions have
begun to repay Federal money deployed through
TARP programs. As of December 31, 2009, Treasury received $165 billion in TARP repayments,
and taxpayers also have received about $17 billion
in interest, dividends, and capital gains through
the sale of warrants.
At the height of the crisis, the Treasury guaranteed that Americans would get back at least what
they had invested in money market funds that
participated in its temporary guarantee ­program.
The program achieved its purpose, and it was
­terminated in September 2009. Not only did it
not cost the taxpayers a dime; it earned them $1.2
­billion in fees.
As we move from rescue to recovery and as
financial stabilization funds are being repaid,

Source: Department of the Treasury.

the Administration has developed a four-step
exit strategy for modifying TARP to assist in rebuilding of the economy. First, we will continue
winding down or terminating many of the Government programs put in place to address the
crisis—a process that already is well underway.
Second, we will limit future commitments to preserving home ownership, stimulating credit for
small businesses, and supporting securitization
markets which facilitate consumer and small
business loans that promote job creation and economic growth. Third, beyond these limited new
commitments, we will not use remaining stabilization funds unless necessary to respond to an
immediate and substantial threat to the economy
stemming from financial instability. Fourth, we
will continue to carefully manage the equity investments acquired during this extraordinary period in a cost-effective manner, while protecting
taxpayers and unwinding those investments as
soon as practicable.

Housing
The steps taken to stabilize housing markets
and help distressed homeowners represent another important element of the Administration’s
policy response. For the thousands of responsible
homeowners who are facing foreclosure or are
at risk of losing their homes, the Administration
undertook a number of efforts to help them. On

THE BUDGET FOR FISCAL YEAR 2011
­ ebruary 18, 2009, the AdminisF
tration announced the Homeowner
Affordability and Stability Plan, a
broad set of programs designed to
stabilize the U.S. housing ­market
and keep millions of homeowners
in their homes.

Percent
14

13

Figure 4. Conventional 30-Year
Mortgage Rate
Indicates Recession

13
12
11

First, the Administration took
10
action to stabilize the housing mar9
ket, in part by making mortgages
8
more affordable. Continued support for Fannie Mae and Freddie
7
Mac and the Treasury’s Mortgage
6
Backed Securities (MBS) purchase
5
program, along with $1.1 trillion
in MBS purchases by the Federal
4
­Reserve, have helped to keep inter1985
1988
est rates at historic lows (see Figure
4, Conventional 30-year Mortgage
Rate). More than 3 million Americans have taken advantage of these lower rates
in 2009 to save money through refinancing. In
­addition, the Federal Housing Administration
has ­increased its market presence significantly to
­enable many Americans to purchase homes.

1991

1994

1997

2000

2003

2006

2009

Source: Federal Reserve.

which is designed to rebuild value in areas hardest hit by foreclosures; this amount is on top of
the $4 billion provided for the program in the
Housing and Economic Recovery Act of 2008.
Third, the Administration initiated the Home
Affordable Modification Program (HAMP), which
provides eligible homeowners the opportunity to

Second, the Administration is working­to ­provide
increased access to financing for State
and local housing finance agencies,
Figure 5. HAMP Active Trial and
which provide sustainable homeownPermanent Modifications, 2009
ership and rental resources, for workCumulative, by month
ing Americans in all 50 States. In
800,000
728,408
addition, the $8,000 first-time home700,000
buyer tax credit has helped hundreds
650,994
of thousands of Americans purchase
600,000
homes. The Recovery Act also support487,081
500,000
ed the Low Income Housing Tax Credit
market by creating an innovative Trea386,865
400,000
sury Tax Credit Exchange Program
and providing gap financing through
300,000
253,673
the Department of Housing and Urban
200,000
Development’s Tax Credit Assistance
143,276
Program. In combination, these pro100,000
50,130
grams are estimated to provide over $5
0
billion in support for affordable rental
May and
June
July
August September October November
Prior
housing. In addition, the Recovery Act
Source: http://www.financialstability.gov/docs/MHA%20Public%20121009%20Final.pdf
provided $2 billion in support for the
Neighborhood ­Stabilization Program,

14
significantly reduce their monthly mortgage payment, remain in their homes, and prevent avoidable foreclosures (see Figure 5, HAMP ­Active
Trial and Permanent Modification). Through
November 2009, more than 725,000 borrowers
are in active modifications, saving an average of
more than $550 a month on their monthly mortgage payments. Servicers report that more than
1 million borrowers have received offers to begin
trial modifications. HAMP is designed to offer a
second chance to as many as 4 million borrowers by the end of 2012, averaging more than
20,000 trial modifications started per week. To
facilitate this and other efforts, the Administration is working to improve the application process, develop operational measurements to hold
servicers accountable for their performance, and
enhance borrower resources to provide direct access to tools and housing counselors. Finally, the
Administration is working with homeowners to
help them through the process of converting temporary modifications into permanent ones.
More work needs to be done, and there are still
market risks. But there are clear signs that our
efforts are having an impact. We will continue to
monitor this key component of the economy and
work to keep responsible homeowners in their
homes.

Automobile Industry
The freezing up of the credits markets in the
fall of 2008 made it hard for many households to
finance the purchase of motor vehicles. This difficulty, exacerbated by the rapid deterioration in the
broader economy, led to reduced demand for motor vehicles, causing considerable financial stress
to automobile companies, particularly General
Motors (GM) and Chrysler. Without Government
intervention, GM and Chrysler would have liquidated, causing widespread and devastating effects
throughout the auto industry. Importantly, the repercussions of such liquidations could have included immediate and long-term damage to the U.S.
manufacturing/industrial base, a significant increase in unemployment with direct harm to those
both directly and indirectly related to the auto sec-

RESCUING THE ECONOMY
tor, and further damage to our financial system,
since automobile financing constitutes a material
portion of overall financial activity. Facing what
risked becoming the last straw for an economy already severely weakened, the President made the
difficult decision to offer assistance to the auto industry in an effort to prevent a further economic
meltdown that could have hurt millions of ­families.
However, the President’s offer of financial assistance was coupled with a requirement that GM
and Chrysler develop serious restructuring plans
that would address prior business failings and
put the companies on a path to financial viability
without Government assistance. After rejecting
GM and Chrysler’s initial plans and requiring all
stakeholders to make additional sacrifices, the
Administration accepted new restructuring plans
from these two manufacturers.
In exchange for the assistance provided, the
Government obtained from GM $8.8 billion in debt
obligations and preferred stock along with a 60.8
percent share of the common equity in the new
GM. From Chrysler, the Government obtained
a $7.1 billion debt security note and 9.9 percent
of Chrysler’s common stock. In November 2009,
GM announced that it would begin repaying the
U.S. Treasury faster than anticipated, and made
its first $1 billion repayment in ­December 2009.
To further assist the auto industry as well
as the economy as a whole, the Administration
also launched the Car Allowance Rebate System
(CARS)—or “Cash for Clunkers”—program to accelerate demand for new automobiles. The program, signed into law by President Obama on June
24, provided bonuses of $3,500 to $4,500 to buyers
who traded in automobiles with mileage ratings
of 18 miles per gallon or below, if they purchased
a new car or truck with improved mileage ratings.
The Cash for Clunkers program boosted auto sales
by nearly 500,000 units between July and August
2009, adding about $3.5 billion to the GDP. The CEA
estimates that because of the program, employment in the second half of 2009 was about 70,000
job-years higher than it would otherwise have been.
As an additional benefit, the program accelerated
the replacement of high-polluting “clunker” motor

THE BUDGET FOR FISCAL YEAR 2011

15

vehicles with cleaner, higher-efficiency vehicles (see
Figure 6, U.S. Light Motor Vehicle Sales).

mitment to preserve the stability of the financial
system. Some Government programs will stay in
place to serve as a bulwark against unforeseen
events and to provide confidence
in our financial markets. Overall,
Figure 6. U.S. Light Motor Vehicle Sales however, the Administration believes that we are past the point of
Millions of units, seasonally adjusted annual rate
having to provide emergency relief,
22
and looks forward to recouping the
Monthly Sales
costs of these extraordinary efforts.
20
18

Rising to the Challenges
Ahead

16
14

Average Sales, 1998-2007

As a result of our steps to support
the financial system, confidence
12
has improved, credit is easing, and
10
the economy is growing. Moreover,
September
Employee Pricing,
the Government is exiting from its
CARS
2001
Summer 2005
8
emergency financial policies, and
taxpayers are being repaid. Indeed,
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Department of Commerce (Bureau of Economic Analysis) and CEA Report on Economic Impact of CARS.
the ultimate cost of those policies is
likely to be significantly lower than
previously expected. The AdminisWhile there is more to be done to assure finan- tration now estimates that TARP will cost about
cial stability, these steps have allowed us to move $117 billion—$224 billion less than was projectfrom the rescue phase to the next phase of reha- ed in the 2010 Mid-Session Review (see Figure 7,
bilitation and rebuilding. Even as we roll back Costs of Troubled Asset Relief Program Actions).
emergency measures that are no longer needed, For example, we now ­expect that there will be a
the Administration remains steadfast in its com- positive return on $248 billion of investments in
Figure 7. Costs of Troubled Asset Relief Program Actions (Excluding Debt Service) 1
(In billions of dollars)

2010 MSR
TARP Actions

TARP
Obligations

Change from 2010 MSR
to 2011 Budget

2011 Budget

Subsidy
Cost

TARP
Obligations

Subsidy
Cost

TARP
Obligations

Subsidy
Cost

Equity Purchases �������������������������������������������������������������������������������������
Structured & direct loans and asset-backed security purchases �������������
Guarantees of troubled asset purchases 2 ����������������������������������������������
Home Affordable Modification Program (HAMP) �������������������������������������

383.7
330.5
12.5
50.0

158.1
133.6
–0.8
50.0

344.1
148.6
5.0
48.8

55.9
25.0
–3.0
48.8

–39.6
–181.9
–7.5
–1.2

–102.2
–108.6
–2.2
–1.2

Total �������������������������������������������������������������������������������

776.7

340.9

546.4

126.7

–230.3

–214.2

Memorandum:
Deficit impact before administrative costs and interest effects 3 ��������������������

340.9

1 Total reflects estimated lifetime TARP obligations and costs through 2020.
2 The 2010 MSR reflected total face value of guarantees of $419 billion. The 2011 Budget reflects the actual face value of $301 billion.
3 The 2011 Budget total dficit impact includes interest on downward reestimates of $9.9 billion.

116.8

–224.1

16

RESCUING THE ECONOMY
As borrowing costs have come
down, businesses have raised
substantial capital from private
sources. Corporations have raised
more than $900 billion in investment-grade debt and in excess of
$100 billion in high-yield debt this
past year. While much of the new
issuance early this year was supported by Government guarantees,
in recent months private investors
have funded most new corporate
debt without public support: only
14 percent was guaranteed in October, whereas nearly 50 percent of
new issuance was guaranteed by
the Government in January 2009.
The U.S. banking system is much
better capitalized today than it was
Source: Bloomberg.
at the height of the crisis. Since
the announcement of the stress
test results, the largest banking institutions have
raised over $140 billion in high-quality capital
and over $60 billion in non-guaranteed unsecured
debt in the private markets. Banks have used
private capital to repay TARP preferred equity,
allowing TARP to fulfill its function as a bridge to
private capital.

Figure 8. Interbank Lending:
LIBOR-OIS Spread
Basis points
400

1-Month

Lehman

3-Month

FSP

350
300
250
200
150
100
50
0

2006

2007

2008

2009

banks, about two-thirds of which have already
been repaid over the past year.
Confidence in the stability of our financial
markets and institutions has improved dramatically over the past year. Interbank lending rates,
which reflect stress in the banking system, have
returned to levels associated with more stable
times. For example, the spread of
one-month LIBOR to the overnight
Figure
index swap—a measure of liquidity
in the banking system—has fallBasis points
500
en from a peak of about 340 basis
points in October 2008 to roughly
10 basis points today (see Figure
400
8, Interbank Lending:
LIBOROIS Spread). Credit-default swap
spreads for financial institutions,
300
which measure investor confidence
in their health, have also fallen sig200
nificantly. An aggregate measure of
credit-default swaps for the largest
U.S. banks reached over 450 basis
100
points in October 2008; it is roughly
100 basis points today (see Figure 9,
Credit-Default Swap Spreads for Fi0
2006
nancial Institutions).

9. Credit-Default Swap Spreads for
Financial Institutions
Lehman FSP

2007

2008

2009
Source: Bloomberg.

THE BUDGET FOR FISCAL YEAR 2011

17

Figure 10. Residential Mortgage
Delinquency Rates
Percent
Percent
28

7

26

Subprime (left)

24

Conforming (right)

6

22
20

5

estimates the Budget assumes
that the economy will grow by an
annual rate of 3.0 percent in 2010,
and accelerate to approximately
4.25 percent annually over 2011 to
2013.
While the economy has turned
a corner, there are still significant
challenges that must be ­addressed.

Home foreclosure and delinquency rates remain too high
16
(see Figure 10, Residential Mort14
gage Delinquency Rates), placing
3
enormous pressure on American
12
families and homeowners. Bank
10
2
lending continues to contract
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
overall, although the pace of conSource: Mortgage Bankers of America; NBER.
traction has moderated and some
categories of lending are growing
The market for municipal bonds is also recov- again. For example, commercial and industrial
ering from the financial crisis. The Recovery Act loans contracted at an annual rate of 27 percent
included an innovative new tool for municipal in the third quarter, but 16 percent since then.
financing, Build America Bonds, which are tax- Such loans are particularly important for small
able bonds for which Treasury pays a 35 percent businesses, which generally cannot raise money
direct subsidy to the issuer to offset borrowing by issuing debt in securities markets. Without
costs. Build America Bonds are now providing access to capital, business expansion and job
State and local governments with access to low- ­creation will be limited.
cost financing that is providing them with a much
Perhaps the biggest challenge facing the econneeded economic boost.
omy, as we move from rescue to recovery, is the
Housing markets likewise are showing some weak labor market. Far too many workers who
signs of stabilizing, and wealth is recovering; these would rather be earning a paycheck are on unreal improvements in individual-level finances employment, left worrying about how to pay their
should stimulate consumer spending, which is a mortgage or the rent, keep their health insurvital component to American economic growth. ance, and continue to provide for their families.
For example, household net worth increased by In November 2009, the unemployment rate fell to
$2 trillion in the second quarter of 2009, the first 10 percent and payrolls increased—for the first
time since 2007—by 4,000 jobs. In December the
increase since the second quarter of 2007.
unemployment rate remained constant at 10 perAs credit conditions have improved and with cent, with a loss of 85,000 jobs. The fact that a
the macroeconomic boost of the Recovery Act, the single month of job gains, followed by a steady
economy has started to grow again. The economy unemployment rate, is seen as progress points to
expanded at an annual rate of 2.2 percent in the the severe job loss the economy had experienced
third quarter of 2009, and the Blue Chip consen- over the course of the recession (see Figure 11,
sus is for 4 percent growth in the fourth quarter. Initial Claims for Unemployment Insurance).
Private economists generally expect moderate
growth over the next year, and in line with their
18

4

18

RESCUING THE ECONOMY

Figure 11. Initial Claims for Unemployment Insurance
4-week moving average, week end 01/02/2010
Thousands (s.a.)
720
660

Indicates Recession

600
540
480
420
360
300
Jan 90

Jan 94

Jan 98

Jan 02

Jan 06
Source: CEA Notes 12/17/2009.

The typical progression in a recovery is, first,
that worker productivity increases as firms try
to do more with their existing staff. Then, the
number of hours worked increases for already
employed workers as the economy picks up. Finally, as growth is sustained, companies begin
hiring again. There are signs that this process is
beginning to happen with this recovery as well.
In the third quarter of 2009, non-farm business
sector labor productivity increased by 8.1 percent
on an annualized basis, the largest gain in productivity since the third quarter of 2003. There
are signs that hours worked began to rebound in
the fourth quarter of 2009. And hiring of temporary workers—a reliable leading indicator of
full-time hiring—increased substantially in the
fourth quarter as well.

Unfortunately, the progression to consistent
and substantial job growth is not coming soon
enough. Sparking job creation in the private sector is an urgent priority, one reflected throughout the Budget and in the policies put forth by
the Administration. Americans are willing to
work hard, and in return, they expect to be able
to find a good job, afford a home, send their kids
to a good school, receive high-quality and affordable health care, and enjoy retirement security in
their later years. These are the building blocks
of the middle class that makes America strong,
and together they constitute the new foundation
we seek for our economy. Our challenge is to put
politics aside and take the steps now that will deliver on this promise for all Americans now and in
generations to come.

REVIVING JOB CREATION AND LAYING A NEW
FOUNDATION FOR ECONOMIC GROWTH

The economy has been rescued from disaster,
and is on the road to recovery. We are no longer
facing the potential collapse of our financial system, and the country has avoided the depression
many feared just a year ago. Our economy is
growing; our markets are returning to functionality; and some of the losses of the past year have
been restored. These indicators may be heartening to economists, but they are cold comfort to
the millions who are out of work, communities
that have seen industries downsized and factories shuttered, and the cities and towns who
are finding it hard to provide services to their
­residents.
There are 7 million fewer jobs today than
when the recession began in December 2007.
The immediate effects of being unemployed are
felt deeply by the unemployed and their families:
bills that are not paid, college tuition payments
that are not sent, and homes that are no longer
affordable. Moreover, there is growing evidence
that unemployment has a lasting effect on
these workers’ children too. A range of studies
have found that having a parent experience
unemployment is closely tied with whether you
graduate from high school, whether you go to
college, whether you get a job after college, and
how much you get paid in that job. And the
effect is persistent—with higher high school
dropout rates and lower college enrollment
rates evident even years later. For those in
college and graduating into a recession, studies
suggest that it leads to depressed wages in the
first year of employment and for years to come.
There is also evidence that unemployment has a
lasting negative effect on community and civic
engagement, not only among the jobless but
among their neighbors as well.

We cannot sit idly by and allow a generation
of Americans to be knocked off course just as
they are ready to come into their own. We cannot be content with a recovery that is felt on Wall
Street, but not on Main Street. And we cannot be
satisfied with business as usual, returning to an
economy of boom and bust, easy credit, and reckless actions that only works for the wealthiest
and the well-connected. We must lay a new foundation in which innovation and job creation are
nurtured, the middle class is strengthened, and
economic opportunity is available to all. ­Doing
that entails using this moment of economic recovery to rebuild our Nation and transform our
economy so that we can compete and thrive in
the decades ahead.

Investing in Job Creation
In the short-term, it is critical that we take
steps to jumpstart job creation so that the nascent economic recovery is one that lifts American workers and families. Looking to the future,
we know that in the high-tech, interdependent
economy of the 21st Century, two of the most precious resources for any nation are the know-how
and creativity of its people. Basic research across
the sciences leads to discoveries and technologies that create whole industries, thousands of
businesses, and millions of jobs. From bio-technology to information technology, we have seen
that happen in our own time. Yet this is not the
moment to rest on our past accomplishments; we
must support invention and innovation today so
that our scientists, engineers, and entrepreneurs
can grow these businesses of tomorrow.

19

20

LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

At the same time, we need to recognize that our
economy is strongest when we tap the potential
of all its participants. Small businesses, which
over the past 15 years have created roughly 65
percent of all new private sector jobs in America,
are critical to the future of our economy. We need
to create the conditions whereby if you have a
good idea and the drive to act on it, you can open
your own store or start your own company. Economic growth and job creation also must not be
limited to our cities and suburbs; rural America
too must be able to provide jobs and economic opportunities to its residents. Hard-working young
people in small towns across America should be
able to find good jobs and promising opportunities at home. Moreover, we need to recognize that
competitive, high-performing regional economies
are essential to a strong national economy. That’s
why the President announced a broad-based initiative to review how Federal policies impact local
communities and to better target and coordinate
resources across agencies to promote job creation,
environmental sustainability, and broad-based
economic growth. Finally, all Americans should
be able to balance the needs of their careers and
their families and retire with security. To foster
job growth across the economy, the Budget will:
Spur Job Creation. While we are no longer
hemorrhaging jobs at the rate we were last year,
unemployment is still unacceptably high. Looking to the future, the investments made in the
Budget in education, clean energy, infrastructure,
and in several other areas will lay a new foundation for economic growth and job creation. But in
the short term, it is clear that the some targeted
measures are required to spur private sector job
creation. The Administration will work with the
Congress to implement a jobs creation package
along the lines the President announced in December of 2009. It will include immediate steps to
help small businesses grow and hire, to upgrade
and build infrastructure, and create jobs through
energy efficiency and clean energy investments.
In addition, to help those most affected by the
recession, the Budget will extend emergency assistance to seniors and families with children,
Unemployment Insurance benefits, COBRA

tax credits, and relief to States and localities to
­prevent layoffs.
Provide Small Businesses Access to Credit. One of the biggest challenges facing the country as we recover from the economic crisis is giving
small businesses access to credit. That is why the
Budget provides funds to support $17.5 billion
in SBA 7(a) loan guarantees that will help small
businesses operate and expand. The Budget also
supports $7.5 billion in guaranteed lending for
commercial real estate development and heavy
machinery purchases; $3 billion in Small Business Investment Company debentures to support
new businesses and new jobs through early-stage
and mezzanine small business financing; and $25
million in direct microloans, for intermediaries to
provide small loans to emerging entrepreneurs
and other promising, but “un-bankable,” borrowers. In addition, the Budget proposes to significantly increase the maximum loan sizes on SBA
loans, including an increase from $2 million to $5
million for 7(a) business loans, to further improve
small business access to credit.
Refocus Troubled Asset Relief Program
(TARP) Funds to Assist Small Businesses.
As we move from rescue to recovery and financial
stabilization funds are being repaid, the Treasury is redirecting TARP to focus on preserving
homeownership and supporting small business
lending. The Treasury is working with the Small
Business Administration to refocus funds on a
special initiative that—with the support of new
legislation—is designed to encourage widespread
participation by small banks in increasing lending to small businesses in their communities.
The Administration has also announced a TARP
program to increase small business lending in
hard-hit areas by providing lower cost capital to
Community Development Financial Institutions.
Eliminate Capital Gains Tax on Investments in Small Businesses. Opening up one’s
own business is a critical part of the American
dream; it is a hallmark of our economy’s vitality and an important creator of jobs. To create
an incentive for long-term investments in the
small business sector, the Budget eliminates

THE BUDGET FOR FISCAL YEAR 2011
c­ apital gains taxes on long-term investments in
many small businesses. The American Recovery
and Reinvestment Act (Recovery Act) temporarily ­increased the exclusion to 75 percent. The
­Budget proposes to raise this exclusion to 100
percent, meaning that no income tax whatsoever
would be paid on these investments in our Nation’s small businesses.
Extend the Making Work Pay Tax Cut. The
Recovery Act created the Making Work Pay tax
credit, a refundable income tax credit, which offsets the Social Security payroll tax on up to the
first $6,450 of earnings for about 95 percent of
all American workers. This helps small business
owners struggling to meet expenses, and will put
needed money in the pockets of families struggling to make ends meet and cover their costs. As
part of its plan to restore health to the economy,
the Budget proposes to extend the Making Work
Pay tax cut for one year.
Promote American Exports to Fuel Economic Growth. A key component of stable,
long-term economic growth is opening up foreign
markets to American goods and services. The
Budget provides $534 million, a 20-percent increase, to the Commerce Department’s International Trade Administration, to promote exports
from small businesses, help enforce free trade
agreements with other nations, eliminate barriers to sales of U.S. products, and improve the
competitiveness of U.S. firms. The Budget also
provides funding to the Export-Import Bank to
expand U.S. small business use of the Bank’s financial export assistance. In addition, the Budget
supports expanded action by the Department of
Agriculture to overcome sanitary and phyto-sanitary public health and related technical barriers
to trade and to assist overseas market development activities, and provides funds to better protect U.S. intellectual property rights overseas.
Invest in Science Research and Development. Investment in science and basic research
is critical to long-term economic growth. That’s
why the Budget invests $61.6 billion in civilian
research and development, an increase of $3.7
billion, a 6.4 percent increase, and an amount

21
that continues the commitment to double funding for three key basic research agencies—the
National Science Foundation, the Department
of Energy’s Office of Science, and the National ­Institute of Standards and Technology. This
funding includes $1.8 billion for research in basic
energy sciences to discover novel ways to produce,
store, and use energy to address energy independence and ­climate change and $300 million for
the Advanced Research Projects Agency-Energy,
to accelerate game-changing energy technologies in need of rapid and flexible experimentation
or engineering. The Budget includes increased
funding for research to help create the foundation
for the industries and jobs of the future, such as
nano-manufacturing, advanced robotics, and new
tools for the design of biological systems.
Increase Funding for Biomedical Research. To accelerate progress in biomedical research, the Budget continues to support research
both on the campuses of the National Institutes
of Health (NIH) and for approximately 300,000
scientists and other research personnel at institutions across the country. Investments will focus
on priority areas including genomics, translational research, science to support health care reform,
global health, and reinvigorating the biomedical
research community. The Budget also includes
$6,036 million to continue to expand research related to cancer, and $143 million to expand research related to Autism Spectrum Disorders.
Finally, under the President’s Executive Order
and subsequent NIH Guidelines for Human Stem
Cell Research, NIH approved 40 responsibly-derived stem cell lines—nearly double the previous
number of lines available—for path-breaking research. Additionally, NIH will pursue the discovery, development, and pre-clinical testing of novel
compounds for the prevention and treatment of
symptoms associated with Alzheimer’s disease.
Reinvigorate Space Science and Exploration. Leaving the boundaries of our planet has
helped to spur innovation and push the boundaries of scientific knowledge across many fields.
Recognizing the importance of space science
and exploration, the Administration is proposing to cancel the National Aeronautics and Space

22

LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

­ dministration’s (NASA’s) Constellation proA
gram—which is based largely on existing technologies and was over budget, behind schedule,
and lacking in innovation—and replace it with
a bold, new approach to human space flight that
embraces commercial industry, forges international partnerships, and invests in the building
blocks of a more capable approach to space exploration. This includes: research and development
to support future cost-effective, heavy-lift rocket
systems; a vigorous new technology development
and test program that aims to increase the capabilities and reduce the cost of future exploration
activities; and the development of precursor robotic exploration missions to scout locations and
demonstrate technologies to increase the safety
and capability of future human missions and provide scientific dividends. To support this effort,
the Budget adds $6 billion to NASA’s budget over
the next five years.
Enhance Regional Economic Competitiveness. Competitive, high-performing regional economies are essential to national growth.
The Budget supports growth strategies based on
stronger regional clusters of economic activity
through funding across many agencies. The Budget provides $75 million in regional planning and
matching grants within the Commerce Department’s Economic Development Administration
to support the creation of regional innovation
clusters. The SBA will support enhanced small
business participation in clusters by awarding
competitive grants to promote greater coordination of resources. Recognizing that labor markets
are typically regional, yet the workforce system
is designed around State and local boundaries,
the Department of Labor’s Workforce Innovation Fund will support these efforts by facilitating regional collaboration and close linkages with
employers so that relevant training leads to good
jobs.
Foster Job Creation and Economic Growth
in Rural America. The country as a whole cannot prosper if we do not tap the potential of all
Americans—including those who call rural America home. That’s why the Budget includes several
investments to promote economic growth and job

creation in rural communities. First, to support
the Rural Innovation Initiative, the Department
of Agriculture (USDA) plans to set aside funding
to foster rural revitalization through a competitive grant program. Second, the Budget supports
local and regional food systems through many
USDA programs including the Business and Industry guaranteed loan program and the Federal
State Marketing Improvement Program. Third,
the Budget funds a variety of USDA renewable
energy programs including support for bio-refineries to utilize advanced biomass crops, research
designed to create cellulosic and other advanced
biofuels, and assistance to help transition fossil
fuel-dependent electric utilities to renewable energy—all of which can help a clean energy economy take root in rural America. In addition, the
Administration proposes more than $700 million
to restore ecosystems and manage public lands,
which will increase employment in rural areas,
produce new sources of renewable energy, and develop recreational opportunities, including fishing
and hunting, for local residents and tourists. Finally, the Budget fully funds the Voluntary Public
Access and Habitat Incentive Program, which encourages private landowners to voluntarily open
their land to the public for hunting and fishing.
Aid Working Adults in Caring for Their
Families. In today’s economy, working Americans struggle to find time and money to provide
their children and their own parents with the care
they deserve. That is why the Budget provides
tax relief of up to $2,100—an increase of $900 relative to current law—for middle-class families to
pay for the costs of caring for a child or a relative.
The Budget also provides a $1.6 billion increase
in child care funding for working families with
low incomes—not only extending the funding
provided in the Recovery Act, but also providing
new funding for new slots. In addition, the Budget includes $103 million for the Administration
on Aging’s Caregiver Initiative, which will help
family caregivers better manage their multiple
responsibilities and help seniors and people with
disabilities live in the community for as long as
possible.

THE BUDGET FOR FISCAL YEAR 2011
Help Americans Prepare for a Secure
Retirement. Too many families have seen their
IRAs and their 401(k)s lose value during the
recent downturn, and far too many lack retirement
savings at all. The Budget includes a series of
steps to shore up saving including enhancing
transparency and consumer protections, requiring
employers who do not offer a retirement plan to
give employees the option of making deposits
into retirement accounts, doubling the small
employer pension plan startup credit for firms
that establish a retirement plan, expanding the
­Saver’s Credit, and reducing barriers to saving
for recipients of means-tested programs.
Revitalize Distressed Urban Neighborhoods. The Budget reflects an integrated and
performance-driven approach to distressed urban
neighborhoods, where the challenges tied to jobs,
education, public safety, and other needs intersect
and compound each other. The Budget includes
$250 million for the Department of Housing and
Urban Development’s (HUD’s) Choice Neighborhoods program, which will target neighborhoods
anchored by distressed public or assisted housing
with physical and social revitalization grounded
in promising, measurable, and evidence-based
strategies. Choice Neighborhoods also will coordinate with the Department of Justice, which is
requesting $40 million for targeted, innovative
programs to assist neighborhoods and has a variety of other programs to prevent gang violence
and assist prisoners re-integrate into the job
market and community life. The Budget also includes $2.5 billion for health centers to provide
affordable high-quality primary and preventive
care to underserved populations, including the
­uninsured.
Promote Responsible and Affordable
Homeownership. The President’s Budget
proposes important reforms to the Federal
Housing Administration’s (FHA’s) core mortgage
finance programs, including its widely used
single-family mortgage insurance product. These
reforms will protect taxpayers by replenishing
the FHA’s capital reserves, while continuing to
promote affordable homeownership and support
the recovery of the housing market, which is

23
central to the broader economic recovery. At the
same time, these changes will better manage
credit risk to the Federal taxpayer. In addition,
the Budget supports increased funds for housing
counseling. To mitigate the threat of foreclosure
for responsible homeowners, the Administration
is continuing to implement the Home Affordable
Mortgage Program, which will commit up to $50
billion through the Department of the Treasury
along with approximately $25 billion through
the Government-Sponsored Enterprises. These
funds will offer relief to an estimated 3 to 4
million at-risk homeowners struggling to make
their mortgage payments, while preventing
communities from suffering the spillover effects
of foreclosures. Treasury is also implementing
the recently extended and expanded homebuyer
tax credit, which supports demand for home sales
in ­markets nationwide.

Building the Infrastructure for Job
Creation
For too long, our Nation avoided making the
necessary investments in the roads, bridges, levees, waterways, communications networks,
and transit systems needed to keep pace with
the times. Outdated infrastructure burdens our
communities in a number of ways: longer commutes, businesses choosing to locate elsewhere
including overseas, and growth and job creation
held back. Through the Recovery Act, we made
the largest investment in our Nation’s infrastructure since President Eisenhower called for the
creation of the national highway system half a
century ago. In just 10 months since it became
law, the Act funded—for example—more than
12,000 transportation projects, and more than
500 new or improved waste and water systems in
rural America. This year, funds from the Act will
help bring broadband Internet access to remote
corners of our country, lay the foundation for a
high-speed rail network, and jump-start innovative transportation projects through competitive
awards. In the 2011 Budget, the Administration
will:

24

LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

Create a National Infrastructure Innovation and Finance Fund. The Budget includes
$4 billion to create a National Infrastructure Innovation and Finance Fund to invest in projects
of regional or national significance. This marks
an important departure from the Federal Government’s traditional way of spending on infrastructure through grants to specific States and
localities. The Fund will allocate resources based
on demonstrable merit and analytical measures
of performance. The Fund will provide planning,
feasibility, and analytical capacity to help sponsors identify high-value projects from around the
country and then carefully select the most worthwhile projects.
Expand Access to Broadband. During
2011, the Department of Commerce and USDA
will focus on administering the $7.2 billion program to expand broadband deployment, as well
as programs to improve broadband adoption and
data collection, which were funded by the Recovery Act. In addition, the Budget expands access
to broadband services by offering $418 million in
USDA loans and grants to move rural communities into the modern information economy.
Invest in a Smart, Energy-Efficient, and
Reliable Electric Grid. The Budget continues
to support modernization of the Nation’s electric
grid by investing in the research, development,
and demonstration of smart-grid technologies
that will spur the Nation’s transition to a smarter, stronger, more efficient, and reliable electric
system. The end result will promote energyand cost-saving choices for consumers, increase
­efficiency, and foster the growth of renewable energy sources like wind and solar. In addition, the
Budget supports the Power Marketing Administrations’ ability to reliably operate, maintain,
and rehabilitate the Federal hydropower and
­transmission systems.
Support Clean Water Infrastructure Investments. The 2011 Budget requests $3.3
billion for the Clean Water and Drinking Water
State Revolving Funds (SRFs). The Federal SRF
funding provides grants to States for low-interest
loans to communities through a combination of

Federal capitalization, State matches, State leveraging, interest, and loan repayments. Since loan
interest and principal payments are returned to
the program, the SRFs continue to generate funding for new loans even without continued Federal
funding. For 2011, the Environmental Protection
Agency proposes a new approach to helping small
drinking water systems, as well as reforms to improve the long-term financial, managerial, and
environmental sustainability of the SRFs.
Reform Surface Transportation Programs
and Put the System on a Viable Financing
Path. Surface transportation programs are at
a crossroads. The current framework for financing and allocating surface transportation investments is not financially sustainable, nor does it
effectively allocate resources to meet our critical
national needs. The Administration recommends
extending the current authorization through
March 2011, during which time it will work with
the Congress to reform surface transportation
programs and put the system on a viable financing
path. Careful consideration is needed to design
a Federal surface transportation program that
leads to higher-performing investments, increases people’s transportation options, and makes our
economy more productive. Further, the Federal
program must generate the best investments to
reduce congestion and improve safety. To do so,
the Administration seeks to integrate economic
analysis and performance measurement in transportation planning so that taxpayer dollars are
better targeted and spent.
Establish a New Federal Transit Safety
Program. Unlike other mode of transportation, closed-system rail transit services (generally, metro area subways and light rail systems)
are not overseen by Federal safety regulators,
but rather are subject to review by a patchwork
of State safety organizations. Recent deadly accidents—including tragedies in Washington D.C.,
Boston, and San Francisco—underscore the
need for common nationwide safety standards
and for Federal enforcement of these standards.
The Budget includes $30 million for a new transit safety oversight program within the Federal
Transit Administration (FTA). This will enable

THE BUDGET FOR FISCAL YEAR 2011
FTA to implement a comprehensive safety oversight strategy, as proposed in legislation.
Modernize the Air Traffic Control System.
The Budget provides $1.14 billion, more than a
30-percent increase from 2010, for the Next Generation Air Transportation System, the Federal
Aviation Administration’s long-term effort to improve the efficiency, safety, and capacity of the
aviation system. The 2011 Budget will help move
from a national ground-based radar surveillance
system to a more accurate satellite-based surveillance system; aid in the development of more
efficient routes through the airspace; and fund
improvements in aviation weather information.
Sustain Multi-Year Support for HighSpeed Rail. Building on the historic $8 billion
down payment provided through the Recovery
Act, the President’s Budget includes $1 billion for
high-speed rail, which supports the ­President’s
five-year, $5 billion pledge from the 2010 ­Budget.
High-speed rail promises to give the traveling
public a practical alternative to ­flying or driving,
particularly where there is congestion in the skies
and on the roads. With trains efficiently connecting city and business centers, travelers would enjoy a new level of convenience not available in most
parts of the country today. The ­Administration
is dedicated to working with States and project
sponsors to identify high-speed rail projects that
will provide the greatest transportation, social,
and environmental benefits, while maximizing
the return on taxpayer dollars.
Invest in America’s Water Resources
Infrastructure.
It is critical that sound
investments be made in the Nation’s water
resources infrastructure to assure the safe
and reliable operation and maintenance of key
facilities of the Army Corps of Engineers and
Bureau of Reclamation. The Administration
will allocate funds to those ongoing commercial
navigation and flood and storm damage
reduction projects with the highest economic and
environmental returns while achieving public
safety objectives for communities. Resources
are also focused on the restoration of significant
ecosystems and initiatives that would allow

25
greater conservation of water in the West. The
Budget also emphasizes a new direction for water
infrastructure projects by updating the 25-yearold procedures for planning future Federal water
resources ­infrastructure projects to incorporate
modern planning procedures and methods, assure
adequate consideration of ecosystem values, and
promote non-structural ­solutions. In addition, the
Corps of Engineers is updating its estimates of
the benefits and costs of its ongoing construction
projects to help assure that funding decisions are
based on the most current information available
on the return to the Nation of these investments.
The Administration also intends to develop a
set of water resources ­reforms for the Corps of
­Engineers for ­consideration as part of the next
Water Resource Development Act legislation.

Educating a Workforce for the Jobs of
the 21st Century
From unlocking the cures of tomorrow to creating clean energy industries, from growing our
economy and creating jobs to securing our Nation
in the years to come, there is one constant in addressing these challenges: they all depend on having a highly-educated workforce. More than ever
before, success in the global economy and among
the nations of the world is rooted in providing a
world-class education to all our children. It is a
fundamental element of the new foundation we
must lay for our economy.
The Administration made a significant down
payment in our schools and schoolchildren
through the Recovery Act by including the largest
one-time investment in education in our Nation’s
history. The Recovery Act saved and created
hundreds of thousands of education-related jobs
during a time of acute State budget shortfalls. It
also included a $4 billion Race to the Top fund, a
competitive source of education funding and one
of the largest investments in reforming our Nation’s schools in history. At the same time, the
Recovery Act made significant investments in
expanding early childhood programs, addressed
college affordability by expanding Pell Grants
and the American Opportunity Tax Credit,

26

LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

and enhanced job training and referrals for the
­millions of workers coming through the doors of
the ­Nation’s one-stop career centers. Building on
these ­commitments, the Budget proposes to:
Reform Elementary and Secondary
School
Funding
by
Setting
High
Standards, Encouraging Innovation, and
Rewarding Success. The Budget supports the
Administration’s new vision for the Elementary
and Secondary Education Act (ESEA). The
reauthorized law would encourage States to adopt
higher, clearer standards that set the expectation
that every student will graduate from high school
ready for college and a career. The new law would
support dramatic improvements in the quality
of assessments to measure complex skills and
help teachers identify and respond to students’
strengths and needs. The reauthorization would
also recognize and reward schools for helping
students make important gains, even if they are
not yet at grade-level, and offer new flexibility
for ­successful States and districts to pursue new
solutions to help all students meet high standards.
At the same time, the law would require vigorous
­efforts to turn around persistently low-performing
schools, applying comprehensive strategies that
put children first. In support of these efforts, the
Budget provides a $3 billion increase in funding
for K-12 education programs authorized in the
ESEA and the Administration will request up to
$1 billion in additional funding if the Congress
successfully completes a fundamental overhaul
of the law. Together, these measures would
represent the largest funding increase for ESEA
­programs ever requested.
Expand the Race to the Top and Open the
Competition to School Districts. The $4 billion Race to the Top, created by the Recovery Act,
began a competition among States to spur systemic and innovative reform across four areas:
supporting high academic standards; improving
teacher effectiveness and distributing effective
teachers more equitably; using data to improve
achievement; and turning around low-performing
schools. Not all States will receive Race to the
Top grants, but the competition itself has galvanized key stakeholders across the Nation to

reform State laws and to develop new plans for
lifting student achievement. The Budget provides
$1.35 billion to continue the President’s Race to
the Top challenge and to expand the competition
from States to school districts that are ready for
­comprehensive reform.
Increase the Number of Effective Teachers and Principals. Great teachers are the
key to a high-quality education. Increasing the
number of great teachers, especially in disadvantaged schools, will require major new efforts to
help all teachers improve their skills; recognize
and reward excellence in the classroom; and help
struggling teachers improve or, if need be, exit
the classroom. Today, taxpayers invest nearly $3
billion a year in a teacher quality block grant that
heavily supports investments with little evidentiary support or impact on increasing learning.
As part of the overhaul of ESEA, the Administration will require States taking formula funds to
develop the preconditions for an effective human
capital system, beginning with strong evaluation
systems. At the same time, the Administration
will invest $950 million in a new competitive
fund for States and districts that supports bold
approaches to recruiting, developing, retaining, and rewarding more effective teachers and
principals, particularly in the lowest-performing
schools. The Administration is also investing
$405 million to support successful and innovative
pathways into teaching and school leadership.
Invest in Supports for Student Success,
Including Promise Neighborhoods.
Students need to be safe and healthy, and they need
a complete education that extends beyond the
traditional hours. As part of a $1.8 billion investment in the Supporting Student Success initiative, the Budget funds comprehensive supports
so that students are mentally and physically
healthy and ready to learn. The Budget provides
$210 million for Promise Neighborhoods, modeled after the Harlem Children’s Zone, that aim
to improve college enrollment rates by combining
vigorous school reform with strong family supports and effective community services across an
entire neighborhood. The initiative also reforms
the 21st Century Community Learning Centers

THE BUDGET FOR FISCAL YEAR 2011
program to focus funding on models that redesign
and extend the school day, week or year to provide additional time for students to engage in academic activities, additional time for enrichment
activities, and time for educators to collaborate
and improve instruction.
Grow High-Performing Charter Schools
and Other Innovative Public Schools. Effective charter schools have achieved impressive
results in closing achievement gaps. The Budget
will invest $490 million to grow these schools and
other autonomous public schools that achieve results, develop new approaches, and give parents
more choices. The Budget will support new options for students to transfer to high-performing
public schools, support successful magnet schools,
and require States and districts accepting these
funds to create the conditions for effective schools
to grow and ineffective schools to be restructured
or shut down.
Expand and Reform Early Childhood Education. Quality early education is an investment
that pays off for years by preparing the youngest
children for a lifetime of learning. To this end,
the Administration has provided the funds to
nearly double the number of children served by
Early Head Start and expand Head Start. The
Budget continues the Recovery Act expansions in
these programs while focusing their new funds in
2011 on improving program outcomes. And the
Budget provides a historic $1.6 billion increase in
child care funding that can support not only an
expansion in slots, but also an improvement in
quality, safety, and outcomes. Finally, the Budget
supports pending legislation that will establish
a new Early Learning Challenge Fund administered by the Department of Education and
the Department of Health and Human Services
(HHS), to help States improve the quality of early
childhood programs.
Increase Pell Grants and Put Them on
a Firm Financial Footing. Pell Grants have
helped millions of Americans afford college, yet in
recent decades, growth in their value has fallen
far behind the growth in college costs. The Recovery Act and 2009 appropriations bill increased

27
the maximum Pell Grant by more than $600 for
a total award of $5,350, and the maximum award
will increase to $5,550 in 2010. The Budget proposes to make that increase permanent and put
them on a path to grow faster than inflation every
year. The Budget also addresses a second concern: Pell Grants currently function much like
an entitlement, yet they are funded through an
annual appropriations process that can fall behind actual demand for the grants. The Budget
proposes to make Pell Grant funding mandatory
so that adequate Pell Grant funding is available
every year.
Expand Financial Aid for Students and
Reduce the Burden of Student Loans. The
Budget supports legislation that has passed the
House of Representatives and is pending in the
Senate that would reform student lending to
eliminate tens of billions of dollars in wasteful
subsidies to financial institutions, and instead
provide loans directly to students more efficiently and reliably by hiring private and non-profit
companies through competitive contracts. This
measure would then use the savings to make
historic investments in increasing college access
and success (as well as in early childhood education). In addition to expanded Pell Grants and
a simplified student aid system, the legislation
includes a new American Graduation Initiative
that will strengthen and support America’s community colleges, focus on college completion, and
help graduate 5 million more students by 2020.
Moreover, the Budget proposes an effort to assist
overburdened student loan borrowers by reducing monthly payments and shortening the repayment period so that these borrowers will pay only
10 percent of their discretionary income in loan
repayments and can have their remaining debt
forgiven after 20 years.
Reform the Job-Training System to Encourage Innovation and Empower Workers.
Our job-training system is critical to giving all
workers the opportunity to succeed in a changing economy, yet too often workers looking for
good training cannot find it. As a complement
to reauthorization of the Workforce Investment
Act (WIA), the Budget increases total funding for

28

LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

major funding streams, including a $101 million
increase targeted to youth. But because reform
is essential and the current system’s fragmentation must end, the Budget also sets aside $261
­million in the Department of Labor and $60 million in the Department of Education for innovation funds. They will support competitive grants
for the most promising, research-based strategies, including regional approaches and sectoral
partnerships for adults and the combination of
summer or year-round employment with education for youths. The Departments will cooperate
in the administration of the innovation grants
as a part of a Workforce Innovation Partnership
that will create new incentives for States to break
down silos, streamline service delivery, and eliminate duplication. The Partnership will be supported by new cross-program waivers, which will
be accompanied by new tools for measuring program performance and sharing information with
both policymakers and customers. Finally, the
Budget targets high-growth sectors of the economy and workers often left behind through $85
million for green job training and $40 million for
transitional jobs programs.
Restructure Narrow and Constrained
­ ducation Programs Into Broad and FlexE
ible Competitions that Fund What Works.
The Department of Education funds dozens of
programs that narrowly limit what States, districts, and schools can do with funds. Some of
these programs have little evidence of success,
while others are demonstrably failing to improve
student achievement. The President’s Budget
eliminates six discretionary programs and consolidates 38 K-12 programs into 11 new programs
that emphasize using competition to allocate
funds, giving communities more choices around
activities, and using rigorous evidence to fund
what works. The Administration will make sure
that, under these competitions, there is equitable geographic distribution of funds nationwide,
including to rural communities. Building on the
Recovery Act, the Administration proposes $500
million to expand the Investing in Innovation
Fund, which will expand proven models—and
fund and evaluate promising ones—for achieving
student success. Finally, the Budget dedicates

funds for the rigorous evaluation of education
programs so that we can scale up what works and
eliminate what does not.

Creating the Clean Energy Economy of
Tomorrow
From the consumer who sees the costs of
­ lling his gas tank or heating her home go up,
fi
to the scientists who track how climate change is
affecting our planet, we all know that we cannot
afford to maintain our reliance on oil and other
fossil fuels to power our economy. Failure to act
jeopardizes our Nation’s security, our economy,
and our ­future. That is why in the Recovery
Act, the Administration invested more than $90
billion in clean energy technologies to begin the
transformation of the economy. Building on this,
the President worked with foreign leaders at the
Copenhagen climate change talks in December
2009, where for the first time in history, all of
the leaders of the world’s major economies came
together to accept their responsibility to take
action to confront the threat of climate change.
The international ­negotiations made a strong step
towards the commitments and the transparency
necessary to work together to solve this global
challenge.
As we work to slow climate change internationally, we also must continue our efforts to build a
clean energy economy here at home. Doing so has
the potential to create millions of new jobs, which
cannot be shipped overseas, in the new industries
of the future. Around the globe, countries and
companies see the job-creating potential of clean
energy and are moving aggressively to lead the
way. Our challenge is to be at the head of that
pack. If we lead the way in developing clean energy, we will grow our economy, create new jobs,
and leave a stronger and more secure country to
our children. To bring about this transformation,
the Administration will:
Undertake a Comprehensive Approach
to Transform Our Energy Supply and Slow
Global Warming.
The Administration will
work to enact and implement a comprehensive

THE BUDGET FOR FISCAL YEAR 2011
­ arket-based policy that will reduce greenhouse
m
gas emissions in the range of 17 percent in 2020
and more than 80 percent by 2050. Businesses will
have the flexibility to seek out the most profitable
and least costly ways of achieving greenhouse gas
emission reductions, from making investments
in energy efficiency and low-carbon or zero-­
carbon fuels to offsetting their emissions through
­agricultural activities that remove ­carbon dioxide from the atmosphere, and developing export
markets for American clean energy technologies
through investments in emission offset activities abroad. The policy will address the needs of
­vulnerable families, communities, and businesses
to facilitate the transition to a clean energy economy. To prepare for the reduction in emissions,
the Government will invest in climate registries
to account for greenhouse gas emissions; implement regulations that improve energy efficiency,
lower energy bills, and reduce emissions; plan
for the effects of a changing ­climate in the stewardship of our natural resources; and undertake
the research and development of next-generation
­energy technologies that will promote our energy
and climate security.
Develop the Market for Clean Energy
Technologies. The Budget substantially expands support for construction of new nuclear
power plants by increasing the Department of
Energy loan guarantees authority for such projects by $36 billion, to a total of $54.5 billion, and
provides credit subsidy funding of $500 million
to support $3 to $5 billion of loan guarantees for
energy efficiency and renewable energy projects.
The loan guarantee program will encourage new
nuclear facilities and a range of renewable energy
projects that reduce greenhouse gases and pollutants, while simultaneously creating jobs and
contributing to long-term economic growth. The
Budget also supports research, development, and
demonstration activities to accelerate deployment
and commercialization of nuclear power, carbon
capture and storage, renewable energy, and energy efficiency technologies. To reduce greenhouse
gas emissions in developing countries, the United
States will help them adopt clean energy technologies and low-carbon development strategies.

29
Spur Investment in Domestic, Clean
Energy Manufacturing. The Section 48(c)
Advanced Energy Manufacturing Tax Credit
was created by the Recovery Act to spur private
­investment in ­facilities that manufacture
advanced energy technologies in fields like
renewable energy, ­energy storage, advanced
energy transmission, energy conservation, and
greenhouse gas ­emissions abatement.
The
program provides a 30 percent tax credit to
qualified investments in new, expanded, or
re-equipped advanced energy manufacturing
projects, allocating a total of $2.3 billion to clean
energy manufacturers. The ­Budget ­expands this
successful program, providing an additional $5
billion to provide this tax credit to many more
advanced energy manufacturing projects. This
will help spur private investment in clean energy
manufacturing and create jobs, helping to lay the
groundwork for American ­leadership in the new
clean energy economy.
Advance the Development of Carbon Capture and Storage Technologies. The Budget
supports a balanced research and development
portfolio of carbon capture and storage technologies. The $545 million in funding provided in
the 2011 Budget for fossil energy climate change
technology will help reduce greenhouse gas emissions by focusing resources to develop carbon
capture technologies with broad applications to
advanced power systems, existing power plants,
and industrial sources.
Eliminate Funding for Inefficient Fossil
Fuel Subsidies. As we work to create a clean
energy economy, it is counterproductive to spend
taxpayer dollars on incentives that run counter
to this national priority. To further this goal, the
Budget eliminates tax preferences and funding
for programs that provide inefficient fossil fuel
subsidies that impede investment in clean energy
sources and undermine efforts to deal with the
threat of climate change. We are eliminating 12
tax breaks for oil, gas, and coal companies, closing loopholes to raise nearly $39 billion over the
next decade.

30

LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

Boost Development of Clean Energy on
Federal and Tribal Land. Already, public
lands and offshore resources managed by the
Federal Government constitute about one-third of
the domestic supply of fossil fuel resources. The
Administration will promote the development
of clean, renewable energy on Federal lands. To
that end, the Budget adds $14 million—on top of
$50 ­million in 2010 increases—to build agency
capacity to review and permit renewable energy
projects on Federal lands. This includes conducting the environmental evaluations and technical
studies needed to spur development of renewable
energy projects, assessing available alternative
resources, and mitigating the impacts of development. In addition, the Administration is assisting Indian Tribes in overcoming the unique
hurdles in developing renewable resources on
Native American lands. Up to 15 percent of our
potential wind energy resources are on Native
American land, and the potential for solar energy
is even higher.
Invest in the Understanding of Climate
Change and Its Impacts. While climate policies are developed and investments in clean
energy technologies are made, investments to understand the impacts of climate change are also
crucial. Coastal areas, floodplains, and water systems will all be affected by the changing climate,
and it is vital that we understand the potential
effects of climate change so businesses, farmers, ranchers, and the entire Nation can prepare
for them now. That is why the Budget invests
$2.6 billion to deepen our understanding of climate change and its impact. The United States
also will take prompt, substantial action to help
the least developed and most vulnerable countries adapt and build resilience to the impacts of
­climate change.

Providing More Health Security and
Bringing Down Its Cost
One of the biggest drains on the future growth
of our economy is skyrocketing health care costs.
For families who have health insurance, years of
premiums that far and away out-paced income

gains have taken their toll on family budgets.
For businesses, rising health care costs hurt their
competitiveness. For the Federal Government,
there is no greater threat to our long-term fiscal future than the current rate of health care
cost growth. That is why the President laid out
a strategy in the 2010 Budget to reform health
care in a fiscally responsible way and has worked
closely with the Congress to bring about this long
overdue change. At this writing, we are closer to
health insurance reform than ever before. The
bill before Congress will empower Americans
who are insured with cost and quality information about doctors and hospitals and give them
the stability and security they deserve by ending many discriminatory and capricious insurance industry practices; expand coverage to more
than 30 million Americans who lack insurance,
improving health and in some cases saving lives;
cut waste and reform how medicine is practiced
so that we get better quality care; and do this all
without adding a dime to the deficit and while
reducing the rate of health care cost growth over
time. To lay the groundwork for these reforms
and to ­improve the health of the Nation, the
­Budget will:
Build on Health Information Technology (IT) Adoption Momentum. Digitizing the
health care sector is a critical part of creating
a health care system that is more effective and
efficient. The Budget includes $110 million for
continuing efforts to strengthen health IT policy,
coordination, and research activities. Combined
with the Recovery Act’s Federal grant and incentive programs designed to assist providers with
adoption and meaningful use of electronic health
records, these efforts will improve the quality of
health care while protecting privacy and security
of personal health information.
Increase Investment in Patient-Centered
Health Research. To get the best care, doctors and patients need to know what works and
what doesn’t. The Budget includes $286 million
for research that compares the effectiveness of
different medical options, building on the expansion of this research begun under the Recovery
Act. Disseminating the results of this research is

THE BUDGET FOR FISCAL YEAR 2011
e­ xpected to lead to higher quality, evidence-based
medicine, arming patients and physicians with
the best available information to allow them to
choose the medical option that will work the best
for them.
Bolster Prevention and Wellness Activities. The Budget bolsters core prevention activities by expanding community health activities,
strengthening the public health workforce, and
enhancing surveillance and health statistics to
improve detection and monitoring of chronic disease and health outcomes. The Budget funds a
new effort in as many as 10 of the largest cities in
the United States to reduce the rates of morbidity and disability due to chronic disease through
effective policy and environmental change strategies. The Budget also supports a new health prevention workforce to improve capacity of State
and local health departments, as well as investments to improve the health and wellness of the
Federal workforce.
Expand Affordable High-Quality Primary
and Preventive Care. The Budget includes
$2.5 billion for health centers to provide affordable high-quality primary and preventive care
to underserved populations, including the uninsured. This will allow health centers to continue
to provide care to the 2 million patients added
through Recovery Act funding and support approximately 25 new health center sites. The
Budget also includes funding to expand the integration of behavioral health with primary health
care, enhancing the availability and quality of
­addiction care.
Combat Childhood Obesity. Nearly onethird of children in America are now overweight
or obese, and our Nation now spends $150 billion
a year treating obesity-related diseases, or nearly
10 percent of all medical spending. To improve
children’s access to healthy meals and help to
reduce childhood obesity rates, the Budget proposes investing an additional $1 billion per year
as part of the reauthorization of the school meals
program and other child nutrition programs.
The Administration also will take steps to bring

31
­ rocery stores and other healthy food retailers to
g
“food desert” communities.
Fund Innovative Efforts to Improve Services for Seniors and People with Disabilities. The Budget includes new Medicare and
Medicaid demonstration projects that evaluate
reforms to provide higher quality care at lower
costs, improve beneficiary education and understanding of benefits offered, and better align provider payments with costs and outcomes. Special
emphasis will be placed on demonstrations that
improve care coordination for beneficiaries with
chronic conditions, that better integrate Medicare
and Medicaid benefits, and that provide higher
value for dollars spent. The Budget will also support the Year of Community Living Initiative to
promote collaboration between HHS and HUD
to expand access to housing and community supports to enable people with disabilities to live
in the community, as opposed to in institutional
­settings.
Fight Waste and Abuse in Medicare, Medicaid, and the Children’s Health Insurance
Program (CHIP). Reducing fraud, waste, and
abuse is an important part of restraining spending growth and providing quality service delivery
to beneficiaries. In November 2009, the President
signed an Executive Order to reduce improper
payments by boosting transparency, holding agencies accountable, and creating incentives for compliance. This Budget puts forward a robust set
of proposals to strengthen Medicare, Medicaid,
and CHIP program integrity efforts, including
proposals aimed at preventing fraud and abuse
before they occur, detecting it as early as possible
when it does occur, and vigorously enforcing all
penalties and recourses available when fraud is
identified. It proposes $250 million in additional
resources that, among other things, will help expand the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, a joint
effort by the Departments of Health and Human
Services and Justice. As a result, the Administration will be better able to minimize inappropriate
payments, close loopholes, and provide greater
value for beneficiaries and taxpayers.

32

LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

Improve the Access to, and Quality of,
Health Care in Rural Areas. The Budget includes $79 million for an initiative to strengthen regional and local partnerships among rural
health care providers, increase the number of
health care providers in rural areas, and improve
the performance and financial stability of rural
hospitals.
Increase the Number of Primary Health
Care Providers. The Budget invests $169 million in the National Health Service Corps (NHSC)
to place providers in medically underserved areas
to improve access to needed health care services.
Under the NHSC, primary health professionals—
such as physicians, nurse practitioners, and dentists—agree to serve in a medically underserved
community in exchange for having a portion of
their student loans paid off. In 2011, the requested increase will add nearly 400 NHSC clinicians
to the more than 8,100 that will be providing essential primary and preventive care services in
health care facilities across the country.
Expand and Focus HIV/AIDS Treatment,
Care, and Prevention Activities. The ­Budget
expands access to HIV/AIDS prevention and treatment activities consistent with the ­President’s
pledge to develop a National HIV/AIDS Strategy that will focus on reducing HIV incidence,
increasing access to care and optimizing health
outcomes, and reducing HIV-related health disparities. The Budget focuses HIV testing among
high-risk groups, and increases ­resources for the
Ryan White program to support the care and
treatment needs for persons living with HIV/
AIDS who are unable to afford health care and
related support services. The Budget aims to
­reduce HIV-related health disparities by expanding HIV/AIDS medical services within populations disproportionately affected by the epidemic.
The Budget also enhances funding for collaboration and integration activities to improve overall health outcomes for those with HIV/AIDS
and ­co-infections with tuberculosis, hepatitis, or
­sexually transmitted diseases.

Continue Efforts to Increase Access to
Health Care for American Indians and
­Alaska Natives (AI/ANs). The Budget includes
$4.4 billion for the Indian Health Service (IHS) to
expand investments initiated in 2010. Increases
for IHS will strengthen existing Federal, tribal,
and urban programs that serve 1.9 million AI/
ANs at approximately 600 facilities nationwide,
and will expand access to Contract Health Services to cover health care services provided outside of the Indian health system when services
are not available at IHS-funded facilities. The
Budget will also fund staff and operating costs
at new and expanded facilities to increase access
to health care services and enhance the Indian
health system. The efforts supported in the Budget to expand health services in Indian communities also include an analysis of how IHS can
improve distribution of resources throughout the
Indian health system.

Keeping America Safe and Maintaining
Our Global Leadership
Just as a strong economy bolsters our standing
in the world and enhances our national security,
strong global leadership helps protect the American people while allowing the United States to
thrive in an interdependent, global economy. The
economic and financial crises of the past year
demonstrated how market problems in one nation can affect businesses the world over and how
inextricably linked the world’s economies are.
That’s why we needed other major economies to
join with the United States in taking action to
stimulate economic demand. And that’s why the
President worked with G-20 nations to agree to
continue their cooperation as the global economy
recovers in order to reduce the likelihood of a future crisis, and to build a “Framework for Strong,
Sustainable and Balanced Growth.”
Over the past year, the President has worked
to repair our alliances and restore America’s
standing in the world. His effort has been
driven by the fact that we face a range of global
challenges that demand global action—from
disrupting, dismantling, and defeating al Qaeda

THE BUDGET FOR FISCAL YEAR 2011
to stopping the spread of nuclear weapons and
strengthening global health. In the last year,
the President ­has taken a number of steps to
meet these challenges while restoring American
leadership. He has built new partnerships, and
used all elements of American power to increase
the pressure on ­­al Qaeda worldwide. He laid out
a plan to responsibly end the war in Iraq. He
put forward a new strategy—with additional
resources—to succeed in Afghanistan, and rallied
NATO allies and partners to join us in committing
additional resources. He signed executive orders
that required the closure of the detention facilities
at Guantanamo Bay, established a special task
force to review detainee policy, and closed all
CIA detention facilities as well as required all
interrogations to follow the procedures of the
Army Field Manual. And the President put
forward a global agenda to stop the spread of
nuclear weapons, reduce nuclear stockpiles,
and to secure all loose nuclear materials from
terrorists within four years.

33
supplemental funding on top of the $129.6 billion
already provided, and a total of $159.3 billion for
DOD’s 2011 overseas contingency operations activities. The Budget also requests $4.5 billion in
2010 supplemental funding and $11.6 billion in
2011 for Department of State activities in these
countries. In particular, funding for Afghanistan
and Pakistan increases assistance and civilian
personnel, and provides additional resources for
governance, reconstruction, and other development activities to counter extremists’ influence.
The Budget also increases security assistance for
Pakistan and for the Afghan Security Forces. In
an effort to be as transparent as possible about
future costs, the Budget includes placeholder estimates of $50 billion per year for 2012 and beyond. These estimates do not reflect any policy
decisions about specific military or intelligence
operations, but are only intended to indicate that
some as yet unknown costs are anticipated.

Strengthen Homeland Security. As the
failed attack on Christmas Day 2009 reminded
Building on these efforts, the Budget invests us, al Qaeda and like-minded terrorists still
in all elements of our national power: diplomacy, seek to harm the American people. That is why
economic development and other foreign assis- the Budget continues important investments
tance, our Nation’s armed forces, and intelligence. in our homeland defenses that are targeted to
In addition, recognizing the extraordinary com- meet priority needs. The Budget, for example,
mitment and sacrifice of our men and women in increases funding for the Transportation Security
uniform, the Administration continues its ­efforts Administration by 9 percent: to fund checkpoint
to support servicemembers and their families and baggage screening equipment that will
and to provide our veterans with the support replace magnetometers with up to 1,000 new
and resources that they deserve. Specifically, the­ Advanced Imaging Technology screening systems
­Administration will:
for passengers; more accurate and efficient inline baggage screening; additional international
Support Missions in Afghanistan, Paki- Federal Air Marshals; and more than 2,000
stan, and Iraq. In the coming months, 30,000 Transportation Security Officers to operate new
additional troops will deploy to Afghanistan while screening equipment, employ enhanced screening
U.S. combat forces continue drawing down in Iraq, techniques, and handle canine teams. The
consistent with the U.S. commitment for all U.S. Administration also is requesting funds for 300
troops to withdraw from Iraq by the end of 2011. new Customs and Border Protection officers for
As U.S. forces leave Iraq, the Administration will passenger and cargo screening at ports of entry,
fund assistance to the Iraqi government and fund additional new intelligence officers, and expanded
security and logistic support for U.S. civilians de- pre-screening operations at foreign ports. Finally,
ployed around the country. To address the costs of the Budget will strengthen the early detection and
increasing military and intelligence operations in reporting of terrorists and other threats and will
Afghanistan and Pakistan while drawing down in continue the expansion of the Administration’s
Iraq, the Administration is requesting $33.0 bil- efforts to target and remove criminal aliens.
lion for the Department of Defense (DOD) in 2010

34

LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

Stand by Our Nation’s Troops and Their
Families. The strength of our troops relies on
the stability of the families that support them,
and the Budget supports these military families
as our servicemembers answer our country’s call
to service. First, the Budget includes funding
for a 1.4 percent basic pay raise that will keep
military pay increases in line with those in the
private sector. Second, the Budget also includes
an average housing allowance increase of 4.2 percent, as well as a variety of monthly special skillbased payments, enlistment and reenlistment
bonuses, and other benefits. Third, the Budget
invests in Coast Guard-owned family housing
to help alleviate housing shortages. Fourth, the
­Administration increases funding for family support programs by over 3 percent above the 2010
enacted level. This includes $1.3 billion (an increase of $87 million over the 2010 enacted level)
to expand availability for affordable, high-quality
child care services; $1.9 billion ($37 million over
the 2010 enacted level) for expanded counseling
and assistance services to help families meet the
challenges brought on by repeated deployments
and family separations; and $84 million (an increase of $12 million over the 2010 enacted level)
for enhanced career and educational opportunities for military spouses through tuition assistance and Federal internship programs.

fense Nuclear Nonproliferation program. Robust
funding is also requested for nonproliferation
efforts across the Government, and especially
in the ­Intelligence Community and the Departments of Defense, State, Homeland Security, and
Justice. These agencies will lead international
efforts to secure all vulnerable nuclear material around the world in four years; deter and
interdict the trafficking of nuclear material; and
strengthen international nonproliferation treaties, regulatory controls, and safeguards. As the
United States reduces the role of nuclear weapons in the national security strategy, this Budget
fully funds efforts to maintain a safe, secure, and
effective arsenal.

Increase Funding for the Department of
Defense. Giving our military the material and
support they need to accomplish their ­missions
is the least we can do, given the sacrifices they
make.
The Administration requests $548.9
­billion, an increase of $18.2 billion, or 3.4 percent,
over the 2010 enacted level of $530.8 billion. This
will provide our troops with the most effective
and modern equipment possible and the support
they need.

Increase Funding for the President’s
Global Health Initiative. The Administration
will build on its commitment to save millions of
lives while strengthening the public health infrastructure that can help disease from crossing borders—including our own. The Budget includes
increased funding to combat the HIV/AIDS crisis
by focusing on increasing treatment and expanding access to prevention; ramping up maternal
and child health programming to reduce mortality
of mothers and children under five and decrease
the prevalence of malnutrition; expanding investments in family planning activities, malaria, tuberculosis, and neglected tropical diseases; and
strengthening local health systems to enhance
capacity and long-run sustainability. Alongside
our multilateral partners, the United States will
continue to provide global leadership to fulfill our
shared responsibility and our ­common promise to

Prevent the Proliferation of Nuclear
Weapons. Following on the vision the ­President
outlined this past year, the Budget funds significant steps that will help stop the spread of
nuclear weapons and seek the goal of a world
without them. The Administration requests $2.7
billion—a 26-percent increase over the 2010 enacted level—for the Department of Energy’s De-

Care for Wounded, Ill, and Injured
­ ervicemembers. Last year, DOD added 18
S
more Warrior-in-Transition Complexes at posts
around the world as part of its efforts to care for
the health of the men and women who serve. The
Budget sustains ongoing efforts to provide highquality medical care to servicemembers, their
families, and retirees. This includes support for
wounded warrior transition units and centers of
excellence in vision, hearing, traumatic brain injury, and other areas to continuously improve the
care provided to wounded, ill, and injured servicemembers.

THE BUDGET FOR FISCAL YEAR 2011
improve the health of the world’s poorest populations.
Fight Global Hunger and Expand Food
Security Efforts. The Budget increases funding
for agricultural development as part of a multiyear plan to lift a significant number of people
out of poverty and reduce malnutrition for millions of children under five years old by 2015. The
Budget provides assistance to countries that commit to address their internal food security needs
and provides a significant contribution to a new
multi-donor ­facility administered by the World
Bank. The Budget also maintains strong support
for food aid and other humanitarian assistance.
Increase the Number of Peace Corps Volunteers. The Administration funds the second
year of the President’s initiative to significantly
increase the number of Peace Corps volunteers,
and puts the Peace Corps on track to grow by 50
percent so it reaches 11,000 volunteers by 2016.
Continue Advance Appropriations for Department of Veterans Affairs (VA) Medical
Care. The 2011 Budget requests $50.6 billion in
advance appropriations for the VA medical care
program so that care for the Nation’s veterans
is not hindered by budget delays. This funding
will enable the Department to have timely and
predictable funding from year to year, ultimately
making it easier for veterans to rely on accessible
VA care.
Enroll More than 500,000 Previously Ineligible Veterans into VA Health Care by
2013. Last year, for the first time since January
2003, non-disabled veterans with moderate income were made eligible for VA health care. The
President’s Budget allows for the continued enrollment of more than 500,000 moderate-income
veterans into the VA health care system by 2013
while maintaining high-quality and timely care
for the lower-income and disabled veterans who
also rely on VA.

35
Boost Compensation to Military Disability Retirees. For the first time, highly-disabled
veterans who are medically retired from service will be eligible for concurrent receipt of disability benefits from the VA in addition to DOD
­retirement benefits. Previously, these benefits
were offset. All medically retired servicemembers will be eligible for concurrent receipt of VA
and DOD benefits by 2015.
Respond to the Unique Needs of Today’s
Veterans. Today’s veterans have different needs
due to their experiences in service, the composition of the armed forces, and the unique challenges that many face. Recognizing that, the Budget
strengthens VA’s ability to provide veterans the
best possible care for Post-Traumatic Stress,
Traumatic Brain Injury, and other mental health
conditions by investing $5.2 billion in specialized
care, and increases collaboration between joint
DOD and VA programs that target psychological
health. To combat homelessness among veterans,
the Budget expands collaborative partnerships
with local governments, non-profit organizations,
and the Departments of Housing and Urban Development, Justice, and Labor. And responding to
the growing number of women veterans, the Budget provides funding for their unique needs, from
an appropriate environment of care to specialized
medical and counseling services.
Improve Quality of Health Care Through
Electronic Records for Our Troops and
­Veterans. Too often, important patient information is unavailable to VA health care providers,
yet that information was acquired by doctors and
hospitals that may have treated the veteran while
still in uniform. That is why the VA and DOD are
jointly implementing the Virtual Lifetime Electronic Record, which will enable VA to maintain
a complete health record for each veteran and
to deliver care and benefits to veterans with increased efficiency and improved accuracy. The
President’s Budget also invests over $200 million in automated processing to directly improve
the accuracy and timeliness of veterans benefits,
particularly disability compensation and the new
Post-9/11 GI Bill benefit.

RESTORING RESPONSIBILITY

Laying a new foundation for economic growth
and prosperity for working families will take a
change in policies and programs to unleash the
creativity and hard work of the American people.
But to prevent our country from backsliding into
the irresponsibility of the past, we need to change
how Washington works. We have seen the consequences of fiscal recklessness, of tolerance for
programs that no longer work or are outdated,
and of a government that is most open to those
with access and influence. The deficits, wasted
resources, and special treatment squandered
funds that could have been used to help Americans gain or retain a foothold in the middle class
and enjoy what every family wants: a good job, a
roof over their heads, excellent schools for their
children, affordable and high-quality health
care, and a secure retirement.
Over the past year, the Administration has
begun the hard work of changing Washington.
On his first full day in office, the President issued an Executive Order that: prohibits executive branch employees from accepting gifts from
lobbyists; closes the revolving door between Government and the private sector that had given
the latter undue influence; requires that Government hiring be based on competence and qualifications and not political connections; and orders
every one of his appointees to sign a pledge abiding by these tough new rules. As the Administration undertook its efforts to rescue the economy,
it issued restrictions on lobbying for financial
stabilization and American Recovery and Reinvestment Act (Recovery Act) funds. In addition,
the President also banned lobbyists from serving on agency advisory boards and commissions,
bodies which had become dominated by special
­interests.

Believing that sunlight is the best disinfectant, the Administration opened up the doors
of Government to the scrutiny of the American
people. The President signed an Executive Order expanding public access to presidential records, decided voluntarily to disclose the names
of visitors to the White House, and used new
media technologies—from video feeds at previously closed-door meetings to web chats with
high-ranking officials—to let the American
people monitor the Government at work and
interact with its leaders. In implementing the
Recovery Act, the Administration continues to
insist on an unprecedented level of transparency
so that Americans can see where Recovery dollars are going as they are spent and the effect
they are having. In addition, the Administration
launched a comprehensive Open Government
Initiative that is breaking down long-standing
barriers between the American people and their
Government. This drive to a more open government is speeding information to citizens, saving
taxpayers’ dollars, and erasing frustrating red
tape.
While the economic crisis forced the President
to add temporarily to an already record-setting
deficit, he laid out a commitment to cut in half
the deficit he inherited upon taking office. Moreover, he did so while being open and honest about
our fiscal situation. The Administration’s first
Budget eliminated previous budget gimmicks
that would have made the 10-year deficit number $2.6 trillion smaller. Instead, the President
insisted on presenting an honest budget to the
American people. Thus, the 2010 Budget—for
example—accounted for the costs of wars in Iraq
and Afghanistan and provided a 10-year look
into the future rather than a five-year one and

37

38
acknowledged the full costs associated with preventing the Alternative Minimum Tax from taxing more middle-class families. This same desire
to evaluate Government performance accurately
also motivated the Administration’s line-by-line
review of the Federal budget for programs that
were ineffective, duplicative, or obsolete. Working with the military leadership and Secretary of
Defense Gates, the President identified billions of
dollars in defense savings for this year, canceling
the new presidential helicopter and additional
F-22 fighter jets.
The Administration also undertook a comprehensive effort to reform Government contracting—ending unjustified sole-source and
cost-reimbursement contracts and pursuing other
steps that will save $40 billion a year by 2011—
and the President issued an Executive ­Order
cracking down on the $100 billion in improper
payments that go out from the Government.
The President also made a major change in
the way Washington has done business in recent
years by demanding that all entitlement and tax
legislation be fully paid for (with the exception of
temporary measures to address the economic crisis). He put this into practice, for instance, by insisting on fiscally-responsible health reform that
not only did not add a dime to our deficits, but also
reduced the rate of health care cost growth—the
main driver of our long-term fiscal future. Finally, the President has championed Pay-As-You-Go
legislation, which would require the Congress to
fully offset the costs of any entitlement increases
or tax cuts by finding savings elsewhere—­helping
to make this change in ­practice the law of the
land.
Taken together, these steps to streamline what
works and eliminate what doesn’t, to open government to the American people, and to end special interest access are critical to instilling a new
sense of responsibility for taxpayer dollars, rebuilding the connection between Americans and
their Government, and putting the Nation back
on a fiscally responsible path.

RESTORING RESPONSIBILITY

Restoring Fiscal Discipline
When the President took office he faced a
deficit of $1.3 trillion for that first fiscal year, a
far cry from the budget surpluses predicted at
the start of the previous administration. Since
the 2010 Budget was released in February of
2009, unfavorable economic conditions and
technical re-estimates have worsened the
deficit outlook by $2 trillion through 2019—the
equivalent of ­­­1 percent of GDP per year—with
a deterioration of about $200 billion in 2015
alone.
Looking out over the next decade, we are $12
trillion deeper in debt than we were in 2001
­because of three specific developments. The national debt is $7.5 trillion larger by the end of this
decade because of the failure to pay for two large
tax cuts, primarily for the wealthiest Americans,
and a new entitlement program. An additional
$3 trillion in debt is the result of inheriting the
worst recession since the Great Depression. Our
response to this recession, the Recovery Act, which
has been critical to restoring economic growth,
added an additional $1 trillion to the debt—only
10 percent of the total.
Now, as we turn the corner from rescuing the
economy to rebuilding it, it’s time to once again
take responsibility for our fiscal future. While it’s
essential that we do not stifle the momentum of
our recovery from the current recession, we also
cannot adequately grow the economy and spur
job creation in the long term if we allow these
deficits to persist. That is why, as the economy
recovers, the Administration will take the steps
necessary to restore discipline to our Nation’s finances to put our country on firm fiscal footing.
The Administration will:
Freeze Non-Security Discretionary Spending for the Next Three Years. Over the past
year, an extraordinary surge in tax cuts and
­Federal spending helped stimulate macroeconomic demand and bring the economy back from
the brink of a second Great Depression. Expanding the short-term deficit during a moment of
­economic crisis is widely recognized as necessary

THE BUDGET FOR FISCAL YEAR 2011
by ­economists from across the ideological spectrum. Nonetheless, the ramifications of the large
deficits we inherited and the response that was
­required to stop the economic freefall has repercussions both in the near term and in years to come
in the form of higher debt and interest payments.
As the economy recovers, we need to rebalance our
spending priorities. That is why the President
is proposing a three-year freeze in non-security
­discretionary funding in this year’s Budget.
Establish a Bipartisan Fiscal Commission. To help put our Nation on a sustainable
­fiscal path, the Administration will work to create a fiscal commission charged with identifying policies to improve the fiscal situation in the
medium term and to achieve fiscal sustainability
over the long run. Specifically, the Commission
is charged with balancing the budget excluding
interest payments on the debt by 2015. The result is projected to stabilize the debt-to-GDP
ratio at an acceptable level once the economy
recovers. The magnitude and timing of the policy measures necessary to achieve this goal are
subject to considerable uncertainty and will depend on the evolution of the economy. In addition, the Commission will ­examine policies to
meaningfully improve the long-run fiscal outlook,
including changes to ­address the growth of entitlement spending and the gap ­between the projected ­revenues and ­expenditures of the Federal
­Government.
Require the Financial Services Industry
to Pay Back Taxpayers. The assistance given
the financial services industry to weather the
­crisis of the past year represented an extraordinary step that no one wanted to take, but that
was necessary to prevent deeper pain to the economy. Yet the largest Wall Street firms have been
both the source of extraordinary costs throughout
the economy due to their excessive risk-taking,
and the beneficiaries of the extraordinary measures taken to prevent a deeper financial crisis.
While the expected cost of the TARP program has
fallen by $224 billion since the 2010 Mid-Session
­Review to about $117 billion, shared responsibility requires that the largest financial firms pay
back the taxpayer as a result of the ­extraordinary

39
action taken. Congress recognized that when
it wrote the legislation authorizing TARP by
­requiring the President to propose a way for the
financial sector to pay back taxpayers so that not
one penny of TARP-related debt is passed on
to the next generation. The ­Administration is
therefore calling for a Financial Crisis Responsibility Fee on the largest Wall Street and financial
firms that will last at least 10 years, but longer
if necessary, to compensate taxpayers fully for
the extraordinary support they provided. This
fee would be limited to financial firms with over
$50 billion in assets. As it would be based on an
institution’s size and exposure to debt, it would
also further the ­Administration’s financial ­reform
goals by providing a check against the risky
­behavior that contributed to this crisis.
Close the Carried Interest Loophole for
Wealthy Investment Managers. The Administration supports reforming our tax code to ensure
that the income earned by investment managers
is treated the same way as income earned by middle-class families. Currently, a loophole in our tax
system allows some investment managers to cut
their tax bills by more than half by treating their
earned income as capital gains—which is taxed at
a 15 percent rate, far less than the marginal tax
rate that would otherwise apply. By closing this
loophole, we will recognize the “carried interest”
earned by these investment managers for what it
is—ordinary income that should be taxed at ordinary income tax rates. This measure would raise
$24 billion over the next 10 years.
Allow the Bush Tax Cuts for Households
Earning More Than $250,000 to Expire. In
the last Administration, those at the very top enjoyed large tax breaks and income gains while
almost everyone else struggled and real income
for the middle class declined. Our Nation cannot
afford to continue these tax cuts, which is why
the President supports allowing those tax cuts
that affect families earning more than $250,000 a
year to expire and committing these resources to
reducing the deficit instead. This step will have
no effect on the 98 percent of all households who
make less than $250,000.

40
Reduce the Itemized Deduction Write-off
for Families with Incomes over $250,000.
Currently, if a middle-class family donates a dollar to its favorite charity or spends a dollar on
mortgage interest, it gets a 15-cent tax deduction,
but a millionaire who does the same enjoys a deduction that is more than twice as generous. By
reducing this disparity and returning the highincome deduction to the same rates that were in
place at the end of the Reagan Administration,
we will raise $291 billion over the next decade.
Reform the Taxation of International
Income and Eliminate Other Corporate
Loopholes. The American corporate tax code is
riddled with inefficiencies and loopholes, including the fact that it allows companies to indefinitely defer the payment of U.S. taxes on foreign
income while immediately benefiting from the
tax deductions associated with these activities.
It also allows many companies to take advantage
of transfer pricing to shift income earned in the
United States to lower-tax countries. The Budget
will reform and end these practices.
Eliminate Funding for Inefficient Fossil
Fuel Subsidies. As we work to create a clean
energy economy, it is counterproductive to spend
taxpayer dollars on incentives that run counter
to this national priority. To further this goal and
reduce the deficit, the Budget eliminates tax preferences and funding for programs that provide
inefficient fossil fuel subsidies that impede investment in clean energy sources and undermine
efforts to deal with the threat of climate change.
We are eliminating 12 tax breaks for oil, gas, and
coal companies, closing loopholes to raise nearly
$39 billion over the next decade.
Recommit to Cutting the Deficit in Half
by the End of the President’s First Term.
Even though he entered office facing an historic
economic and financial crisis, the President committed his Administration to cutting the deficit
he inherited upon taking office in half by the end
of his first term. Since then, it has become clear
that the recession was worse than anyone thought

RESTORING RESPONSIBILITY
at the beginning of 2009, costing the Government even more in assistance and lost revenue.
Nonetheless, the President remains committed
to ­cutting in half by the end of his first term the
deficit he inherited on January 20, 2009.

Streamlining What Works, Eliminating
What Doesn’t
Now more than ever, it’s critical that taxpayer
dollars are not wasted on programs that do not
work, are duplicative, or are out-of-date. Allowing taxpayer dollars to be wasted in this way is an
irresponsible use of funds and an irresponsible
abuse of the trust the American people put in its
elected leaders. Instead of accepting business as
usual, we need to streamline programs that work
and fix or eliminate those that do not. We need to
instill a new responsibility for taxpayer dollars,
and modernize government to deliver better services to the American people for less. To accomplish this, the Administration will:
Terminate or Consolidate Outdated or
I­ neffective Programs. Too often programs
and practices persist because of inertia. The
­President sought to change this mentality by
having his ­Administration conduct a line-by-line
review of the Federal budget. In his first Cabinet
meeting, he challenged the assembled agency
heads to find at least $100 million in collective
cuts to their administrative budgets, separate
and apart from those identified in the 2010
Budget. They responded by identifying 77 costsaving measures—amounting to $243 million
in savings through 2010. In addition, as part of
the 2010 Budget, the ­President identified 121
programs for reduction, termination, and other
savings amounting to $17 billion in savings.
While recent administrations have seen between
15 to 20 percent of their proposed cuts approved
by the Congress, this year we were able to see
60 percent become law. Building on that, the
President is proposing more than 120 savings
proposals totaling approximately $23 billion.

THE BUDGET FOR FISCAL YEAR 2011
Freeze Pay and Eliminate Bonuses
for Senior Political Appointees.
The
Administration values the essential work of our
talented Federal employees, but at a time when
millions of Americans are without work and
millions more are going without bonuses and
raises, the Federal Government too must cut
back. Last year, the President ordered a freeze of
White House senior staff pay. And for 2011, the
Administration proposes to ­extend this pay freeze
to all ­senior political appointees throughout the
Federal ­Government and continue the policy of
no bonuses for all political appointees.
Reduce Improper Payments. Each year,
taxpayers lose billions of dollars in wasteful, improper payments by the Federal Government to
individuals, organizations, and contractors who
inadvertently or deliberately overbill the Government. In 2009, the Administration was able
to identify improper payments totaling $100 billion—a figure driven by improved detection and
the significant increase in Federal outlays associated with the economic downturn and recovery.
In response, agencies will be implementing an
Executive Order the President signed at the end
of 2009 to rein in improper payments. First, we
will bring more transparency to these errors by
creating an online dashboard of key indicators
and statistics so that the public can access information on improper payments, view payment error rates by agency and program, and see a list
of the most egregious actors. Second, we will
hold agencies accountable for reducing improper
payments while maintaining program access,
through—among other steps—designating one
Senate-confirmed appointee to be accountable to
the President for meeting improper payment reduction targets and consolidating program integrity activities. Third, we will provide incentives
for States, agencies, and recipients to report and
reduce payment errors by using rewards—such
as allowing States that reduce improper payments—to recoup more Federal grant dollars to
cover administrative expenses, and use punishments, such as financial penalties on contractors
who do not timely disclose an improper payment
Lastly, the Administration is launching the Partnership Fund for Program Integrity Innovation,

41
an initiative which focuses on improving service
delivery, payment accuracy, and administrative
efficiency in Federal assistance programs while
reducing access barriers for beneficiaries.
Cut Waste in Contracting. Since 2002,
Federal spending on contracts has more than
doubled to more than $500 billion. From 2002 to
2008, the value of contracts awarded without full
and open competition increased by 129 percent—
from $82 billion to $188 billion. The President
has charged Federal departments and agencies
with saving $40 billion annually by 2011 through
terminating unnecessary contracts, strengthening
acquisition management, ending the overreliance
on contractors, and reducing the use of high-risk
contracts. In the first year of this effort, agencies
have identified more than $19 billion of savings
in 2010—on track to meet the $40 billion target.
In 2011, the Administration will work with
agencies on furthering their contracting reform
efforts so that the $40 billion target is met. In
addition, we will explore ways to gain additional
savings through leveraging the purchasing power
of the Federal Government. We are also making
significant investments in the acquisition
workforce to make sure agencies have adequate
capacity to oversee and manage contracts—and
ultimately to save money and provide better
services to the American people. The Department
of Defense also will further reduce its use of highrisk contracts by 9 percent and take steps to
ensure that military requirements for weapons
are reasonable, program costs and schedules are
realistic, and acquisition funding is stable.
Increase Accountability in, and Reduce
the Number of, Earmarks. For too many years,
the use of earmarks went virtually unchecked.
Projects were inserted into legislation without
any scrutiny or identifiable sponsor. Billions of
taxpayer dollars were spent without examination
by any committee or either branch of Congress.
In 2007 and 2008, the Congress worked to end
these abusive practices. Anonymous earmarks
were eliminated and replaced with transparency
measures so people can see who is spending their
tax dollars and why. Yet, even with the changes,
earmark overuse and abuse have continued. The

42
President has put forward core principles for significant earmark reform: earmarks must have a
legitimate public purpose and be subject to public
scrutiny; members of Congress must disclose publicly their earmark requests; and any earmark for
a for-profit private company should be subject to
the same competitive bidding requirements as
other Federal contracts. The 2010 appropriations
bills showed progress, with earmarks reduced in
cost by more than 23 percent or more than $3
­billion. The Administration will continue to work
with the Congress to reduce earmark overuse
and abuse.
Rigorously Evaluate Program Performance. In order to drive evidence-based decisions about what works and what doesn’t, the
Administration is aggressively expanding its
­program evaluation efforts. In response to the
Office of Management and Budget (OMB) guidance, 17 agencies submitted a total of 61 specific
proposals ranging from new efforts to evaluate
the efficacy of new investments in early childhood education to a proposal to determine which
approaches to foreign assistance are most effective in reducing poverty in poor countries. In the
Budget, the ­Administration will fund 23 of the
most promising new program evaluations and
strengthen evaluation capacity in other agencies.
All major evaluations planned or underway will
be posted online from the time they are started,
so that agencies cannot hide negative findings.
Close the Technology Gap. Twenty years
ago, when people came to work for the Government, they had access to the world’s best technology. Today, Government employees often have
better technology at home than at work. The
Federal Government spends tens of billions of
dollars on information technology (IT), but fragmentation, poor project execution, and the drag
of legacy technology has not delivered the productivity and performance gains to government
that are found when IT is deployed effectively in
the private sector. Under the leadership of the
Federal Chief Information Officer, the Administration is continuing its efforts to close the gap in
effective technology use between the private and
public sectors. Specifically, the Administration

RESTORING RESPONSIBILITY
will continue to roll out less intensive and less
expensive cloud-computing technologies; reduce
the number and cost of Federal data centers; and
work with agencies to reduce the time and effort
required to acquire IT, improve the alignment of
technology acquisitions with agency needs, and
hold providers of IT goods and services accountable for their performance.
Centralize Provision of Information Technology Services for Non-Military Agencies.
As technology and IT management practices
continue to evolve rapidly, it is critical that the
Government is able to adapt to these changes
to achieve greater efficiency and effectiveness.
Following examples set by the Department of
­Defense (DOD), several State governments, and
best practices in private industry, the Administration will establish one or more efficient, centralized IT service providers for non-military
agencies. Centralizing Federal IT services will
reduce duplicative and wasteful spending; reduce
facility space usage; increase security; improve
service delivery; and reduce energy consumption.
It is projected that this approach could prevent
billions in increased costs across the Federal
­Government over the next few years.
Hold Agency Leaders Accountable for
Specific Goals.
Government leaders must
make hard choices about the priorities that matter most to the American people and then do
what it takes to deliver on those objectives. This
has historically been difficult, however, because
senior political leaders tend to focus on policy
development rather than on management and
implementation. To encourage senior leaders
to deliver ­results against the most important
­priorities, the ­Administration launched the HighPriority ­Performance Goal initiative. Building on
this effort in the 2011 Budget, the ­Administration
is requiring agency heads to commit to a limited
number of priority goals that matter to the public. The goals must have ­ambitious targets to
be achieved within 24 months without the need
for new ­resources or legislation, and have welldefined, outcomes-based measures of progress.
OMB will work with agencies to help them to

THE BUDGET FOR FISCAL YEAR 2011

43

achieve their goals and spread this ­management
approach throughout their organizations.

Opening Government Up to the
American People

Revamp the Federal Hiring Process. Highperforming companies and other forward-looking
employers view their people as their key asset
and are constantly re-evaluating and improving
their approaches to attracting, motivating, and
developing the best talent. However, the Federal
hiring process currently takes over 150 days on
average and requires far too many steps involving
many different people. Often, government loses
top talent to faster moving competitors. In the
past year, most agencies have ended the “black
box” of the Federal hiring process by notifying applicants of their status online at four steps in the
process. To fix the hiring process, OMB and the
Office of Personnel Management have initiated
an effort to streamline hiring to achieve major reductions in the hiring times by the end of 2010.
Going forward, we plan to increase the quality of
applicants through innovative recruitment strategies, improved assessments of applicants, and
proposing necessary regulatory and legislative
changes to further streamline hiring processes
while continuing to rely on the merit-based ­hiring
system that has served the country so well.

The President has been clear from day one in
office: the Federal Government must break down
the barriers between it and the people it is supposed to serve. Through an unprecedented Open
Government Directive, he put transparency, participation, and collaboration at the center of the
Government’s operations. In response, every
Cabinet agency, along with the White House, has
taken a range of steps to open government up to
the American people. These include the release of
information, such as the White House visitor logs;
efforts to get citizen input and comment on executive orders; and the use of online technologies so
the public can ask questions of their Government
leaders. In addition, the Administration has
moved affirmatively to reduce special interest influence on the Federal Government through, for
example, restrictions on lobbying related to the
Recovery Act and financial stabilization efforts
and a ban on lobbyists serving on agency advisory boards and commissions, bodies which had
become dominated by special interests.

Eliminate Unneeded Federal Real Estate
from the Government Books. The Government Accountability Office in January 2003 identified Federal real property as a high-risk area of
concern because of long-standing problems with
excess and underutilized property, deteriorating
facilities, unreliable real property data, over-reliance on costly leasing, and building security challenges. While the Government has made some
progress to address these chronic challenges, the
changes have been slow primarily because the
Federal real property portfolio is based on an
outmoded, outdated business model. Across the
Government, billions of dollars in physical assets
are not needed but remain on the Government’s
hands. The Administration will pursue expanding the authority of agencies to retain sales proceeds while also proposing a five-year pilot to
expedite the sale of real property by streamlining
the process for select asset sales.

Transparency not only strengthens the bond
between citizens and their Government, it also
boosts performance by strengthening accountability, supporting the identification of effective
practices, stimulating idea flow, and motivating
better performance. Online posting of performance data—including agency goals, performance
trends, improper payments and IT projects—represents an important step toward creating a culture of accountability in government. Openness
also can improve the quality of the services delivered to citizens. Transparent processes allow citizens to offer feedback on service quality to make
government better, improving satisfaction levels.
To further open up the government to the American people, the Administration will:
Publish More Government Information
Online. To increase accountability, promote
­informed participation by the public, and create
economic opportunity, each Cabinet-level and
­independent agency is working to make openness
standard. Timely publication of information is an

44
essential component of transparency. Through
the Data.gov portal—launched in May 2009 with
just 47 sets of data—the public now can identify, examine, download, and cross-analyze more
than 118,000 Government data sets. In 2011,
the ­Government will expand Data.gov with previously unpublished, high-priority information,
offered in open formats. Federal departments
and agencies also will create open Government
websites to serve as a gateway for access to their
­transparency activities.
Update Regulations to Allow the Use of
New Technologies. Improvements in technology, in many places, have outpaced the regulations
put in place to govern its use. In some cases, those
regulations never anticipated the advances made.
In response, OMB, in consultation with the Chief
Technology Officer, will ­review ­Government-wide
information policies, such as the ­Paperwork
­Reduction Act and the Federal cookies policy,
which may need updating or ­clarifying to allow
agencies to utilize new technologies that fully
promote open government.
Launch New Tools to Track Regulations.
The Federal regulatory process is opaque, yet
critically important to the economy and lives of
Americans. Greater transparency will help to
break down barriers to participation in the government and understanding of its actions. The
Administration will launch a new regulation
tracking portal to make it easier to track specific
regulations under review—where they are in the
process, what the key deadlines are, and when
the review will be completed. The public also will
be able to track rules in the aggregate by agency,
to see which have been identified as economically
significant, and to link to sites where comments
can be offered to help shape the final rule.

RESTORING RESPONSIBILITY
Make It Easier to Track How Taxpayer
Dollars Are Spent. For too long, Americans
have been in the dark about how their tax dollars are spent. They pay their taxes, but have
no clear, concise way to track how and where the
money is spent and what it accomplishes. The
Administration is committed to pulling back the
curtain on Government spending and will launch
a new tracking tool with daily updates that will
provide citizens with the ability to see aggregate
spending by agency and also by geographic area.
A new search engine will allow the public to customize their information by location, by agency,
or by timeframe. This innovative development
will allow people to have a greater understanding
of how their Government works, and hold officials
accountable for responsible spending decisions.
Create an Online Citizen Engagement
Platform. With the growing number of social
media tools available, citizens are demanding
more engagement with their Government in
new, innovative ways. The Citizen Engagement
­Platform (CEP), a joint collaboration between the
General Service Administration and OMB, will
increase the Government’s ability to interact and
collaborate with citizens and provide a simple,
cost-effective vehicle for agencies to access tools
and guidance to be successful in those endeavors.
The CEP will build on pilots launched last year
by continuing to identify new technology applications to enable intra-agency and interagency
collaboration and create a coordinated process for
identifying tools and eliminating the redundant
work presently carried out by agencies implementing new social media tools.

DEPARTMENT OF AGRICULTURE

Funding Highlights:
•

Promotes economic and job creation opportunities for rural America by focusing on five core
areas: access to broadband services, innovative local and regional food systems, renewable
energy programs, climate change, and rural recreation.

•

Provides $7.6 billion for the Special Supplemental Nutrition Program for Women, Infants, and
Children (WIC) to serve all eligible individuals.

•

Provides $10 billion over 10 years for a strong Child Nutrition and WIC reauthorization.

•

Provides $50 million for a new “Healthy Food Financing Initiative” to bring grocery stores and
other healthy food retailers to underserved communities.

•

Provides $429 million, the highest funding level ever, for competitive grants through the
Agriculture and Food Research Initiative.

•

Refocuses Forest Service resources to support watershed and ecosystem improvement
efforts.

•

Supports the Department’s effort to reduce foodborne illnesses from products inspected by
USDA.

•

Funds several important conservation efforts such as improving water quality, restoring and
protecting almost 200,000 additional acres of wetlands, and reducing nutrient loading in the
Chesapeake Bay.

•

Enhances the Department’s efforts to promote U.S. agricultural exports by increasing
assistance to develop and maintain overseas markets and reduce foreign trade barriers and
other practices that hinder agricultural exports.

•

Targets farm payments to those who need—and can most benefit from—assistance, and
reforms the crop insurance program by renegotiating the Government’s agreement with crop
insurance companies.

The U.S. Department of Agriculture (USDA)
provides leadership on issues related to food,
agriculture, rural development, and natural resources based on sound public policy, the best
available science, and efficient management.
USDA focuses on further developing alternative

markets for agricultural products and activities, providing financing needed to help expand
job opportunities and improve housing, utilities,
and infrastructure in rural America. The Department also works to enhance food safety by
taking steps to reduce the prevalence of food-

45

46
borne ­hazards, improve nutrition and health by
providing food assistance and nutrition education and promotion, support international agricultural and economic development, and manage and protect America’s public and private
lands by working cooperatively with other levels
of government and the private sector. The President’s Budget provides $26 billion in discretionary budget authority to support this important
mission.
Supports Growth and Job Creation in
­Rural America. The President’s Budget supports USDA’s Rural Innovation Initiative, which
is designed to promote economic opportunity
and job creation in rural communities. To support this innovative approach, USDA plans to
set-aside roughly 5 percent of the funding from
approximately 20 existing programs and allocate
these funds competitively among regional pilot
projects tailored to local needs and opportunities.
This targeting effort will allow USDA to prioritize areas with the greatest need and potential
by encouraging comprehensive and innovative
approaches to foster rural revitalization.
The Budget also helps lay the foundation for
job creation and expanded economic ­opportunities
throughout rural America by:
• Expanding access to broadband services by
offering $418 million in loans and grants to
transition rural communities into the modern information economy.
• Nurturing local and regional food systems
and expanding access to healthy foods for
low-income Americans in rural and urban
food deserts.
• Funding a variety of renewable energy programs across the Department, including
support for biorefineries to utilize advanced
biomass crops, research designed to create
cellulosic and advanced biofuels, and assistance to help transition fossil ­fuel-dependent
electric utilities to renewable energy. Taken
together, these programs support the ­USDA’s
effort to help America in achieving energy
independence and reducing greenhouse gas
emissions.

DEPARTMENT OF AGRICULTURE
• Supporting the President’s climate change
policy by promoting activities including carbon sequestration, renewable energy, and
water conservation. In addition, the Budget
supports a science-based, risk-management
approach to mitigate the effects of climate
change by stressing forest and watershed
resiliency designed to minimize the loss of
large carbon sinks.
• Developing rural recreation and employment opportunities, including fishing and
hunting for local residents and tourists by
proposing more than $700 million to restore and manage public lands. The Budget also fully funds the Voluntary Public
Access and Habitat Incentive Program,
which encourages private landowners to
voluntarily open their land to the public
for hunting and fishing.
Strengthens Nutrition Assistance and
­ romotes Healthy Eating. At a time of
P
­continued need, the President’s Budget provides
$8.1 ­billion for discretionary nutrition program
­supports, which is a $400 million increase over the
2010 enacted level. Funding supports 10 million
participants in the WIC program, which is critical to the health of pregnant women, new mothers, and their infants. The Budget also supports a
strong Child Nutrition and WIC ­reauthorization
package so that schoolchildren have access to
healthy meals and to help fulfill the President’s
pledge to end childhood hunger. The Budget provides $10 billion over 10 years for program reforms aimed at improving program access, establishing high standards for the nutritional quality
of food available in school, ­exploring new strategies for reducing hunger and improving children’s food choices, and strengthening program
management.
Responds to the Needs of Low-Income
Americans. The President continues to support the nutrition provisions incorporated in
the American Recovery and Reinvestment Act
(ARRA). Participants in the Supplemental Nutrition Assistance Program (SNAP) will continue to
receive enhanced benefits at an average value of
about $20 per person per month. The Budget also

THE BUDGET FOR FISCAL YEAR 2011
proposes to extend the ARRA provision in SNAP
that temporarily eliminates the time limits for
certain working-age, low-income adults without
dependents for an additional fiscal year. This
extension helps remove access barriers to SNAP
and increase food purchasing power among some
of the hardest-to-reach populations.
Increases Funding for the Agriculture and
Food Research Initiative. The Budget provides $429 million, the largest funding level ever,
for competitive peer-reviewed research grants
through the Agriculture and Food ­Research Initiative. This increase is designed to foster a more
robust research program within USDA with
­special emphasis related to the ­following five
core areas: climate change, bioenergy, childhood
­obesity, world hunger, and food safety.
Focuses Forest Restoration Resources.
The President’s Budget focuses Forest Service
resources to support more watershed and ecosystem improvement efforts based upon a variety of
management actions, including mechanical removal of timber, road decommissioning, and wildlife habitat improvement. The Budget adopts an
ecosystem-based approach to forest management
that focuses on enhancing forest and watershed
resiliency, preventing the loss of large carbon
sinks, and maintains jobs. To address the need
to protect forest resources and wildlife habitat
in an era of global climate change, the Budget
establishes a pilot program for long-term, landscape scale restoration activities that emphasize resiliency, health, and sustainable economic
­development.
Budgets Responsibly for Wildfires. The
Budget fully funds the 10-year average cost of
fire suppression and includes a $282 million discretionary funding reserve to be used only when
the $1.2 billion in appropriated 10-year average
funding is exhausted. The Budget also prioritizes hazardous fuels reduction activities in the
wildland-urban interface where they are most effective—particularly in communities that are on
track to meet Firewise standards, have identified
acres to be treated in Community Wildfire Protection Plans (or the equivalent), and have made

47
an investment in implementing local solutions to
protection against wildland fire.
Enhances Food Safety. The President’s
­Budget takes important steps to improve the
safety of the Nation’s supply of meat, poultry, and
processed egg products and works to make certain that these products are wholesome and accurately labeled and packaged. Consistent with the
recommendations of the President’s Food Safety
Working Group, the Budget supports increasing regulatory testing and baseline studies and
strengthening USDA’s Public Health Epidemiology Program to support the inter-agency Federal-State Foodborne Disease Outbreak Response
Team. These efforts will contribute toward a
­reduction in foodborne illness and improvements
in public health and safety.
Supports Conservation on Private Lands.
The Budget will accelerate the protection of our
natural resources by strategically targeting funding to high priority program areas. This includes
funding the Wetlands Reserve Program at a level
to enable the restoration and protection of almost
200,000 additional acres of wetlands, providing
over $1.2 billion for the Environmental Quality
Incentives Program to help farmers comply with
regulatory requirements and protect natural resources, providing a 67 percent increase in funding over the 2010 enacted level to reduce nutrient
loading in the Chesapeake Bay, and enrolling 12
million acres into the Conservation Stewardship
Program to improve water quality and enhance
energy efficiency. The Budget also provides funding to support the installation of high-impact targeted conservation practices on 1.5 million acres
in priority landscapes, including the Bay-Delta
region in California and the Upper Mississippi.
Promotes Agricultural Exports. The ­Bud­‑
get includes $54 million in discretionary funding
to enhance USDA’s efforts to promote the export
of U.S. agricultural products. This funding will
double the Department’s cost-share assistance
to agricultural trade associations in support of
overseas market development activities, such as
technical assistance and market research ($35
million); increase exporter assistance, in-country

48

DEPARTMENT OF AGRICULTURE

market promotions, and trade enforcement activities to remove non-tariff trade barriers, such as
unwarranted sanitary and phytosanitary standards placed on U.S. commodities by other countries ($10 million); and double a grant program to
assist U.S. specialty crop producers in overcoming sanitary, phytosanitary, and other technical
­barriers to trade ($9 million).
Reforms Farm Payments and Delivery of
Crop Insurance. The Budget proposes to limit
farm subsidy payments to wealthy farmers by reducing the cap on direct payments by 25 percent
and reducing the Adjusted Gross Income (AGI)
payment eligibility limits for farm and non-farm
income by $250,000 over three years. The Farm
Bill currently precludes an individual or an entity
from receiving any benefit in a year where their
non-farm AGI exceeds $500,000 and precludes
receipt of any direct payments when their farm

AGI exceeds $750,000. This proposal would allow
USDA to target payments to those who need and
can benefit from them most, while at the same
time preserving the safety net that protects farmers against low prices and natural disasters. The
Budget also includes a proposal that will save
billions of dollars by reforming how the Federal
Government administers the crop insurance program. Crop insurance companies currently benefit from huge windfall profits due to the structure and terms of the Government’s contract with
the companies, called the Standard Reinsurance
Agreement (SRA). Through the SRA renegotiation process, which will occur in 2010, USDA will
pursue reforms to the financial terms in the SRA
that will allow the Department to offer the same
program benefits to farmers and ranchers with
significantly reduced costs—saving $8 billion
over 10 years.

Department of Agriculture
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Spending
Discretionary Budget Authority:
Commodities and International �����������������������������������������������������������������
Rural Development �����������������������������������������������������������������������������������
Forest Service �������������������������������������������������������������������������������������������
Conservation ���������������������������������������������������������������������������������������������
Food and Nutrition Service �����������������������������������������������������������������������
Research ���������������������������������������������������������������������������������������������������
Marketing and Regulatory Programs ��������������������������������������������������������
Central Administration �������������������������������������������������������������������������������
Subtotal, excluding items below ����������������������������������������������������������������
Receipts ����������������������������������������������������������������������������������������������������
Legislative proposal, Rural Housing receipts �������������������������������������������
Mandatory savings proposals �������������������������������������������������������������������
Total, Discretionary budget authority ��������������������������������������������������������������

3,240
2,597
4,757
968
7,300
2,648
2,012
510
24,032
–58
—
—
23,974

4,253
2,983
5,316
1,009
7,880
2,846
2,095
636
27,018
–70
—
—
26,948

4,099
2,646
5,377
964
8,132
2,723
2,057
663
26,661
–71
–7
–812
25,771

Memorandum:
Budget authority from American Recovery and Reinvestment Act �����������������
Budget authority from supplementals �������������������������������������������������������������

6,892
1,366

—
400

—
—

49

THE BUDGET FOR FISCAL YEAR 2011

Department of Agriculture—Continued
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Total, Discretionary outlays �����������������������������������������������������������������������������

25,063

28,402

27,143

Memorandum: Outlays from American Recovery and Reinvestment Act �������

507

1,831

1,499

Mandatory Outlays:
Food and Nutrition Service �����������������������������������������������������������������������
Commodity Credit Corporation �����������������������������������������������������������������
Crop Insurance �����������������������������������������������������������������������������������������
Natural Resources Conservation Service �������������������������������������������������
Agricultural Marketing Service ������������������������������������������������������������������
Forest Service �������������������������������������������������������������������������������������������
Rural Development including liquidating accounts ������������������������������������
Receipts, reestimates and all other programs ������������������������������������������
Total, Mandatory outlays ���������������������������������������������������������������������������������

66,210
11,411
7,889
1,584
1,106
816
–152
–4,615
84,249

78,406
14,224
6,954
2,124
1,276
874
–933
–1,980
100,945

82,393
12,664
7,555
2,772
1,270
757
–2,133
–132
105,146

Memorandum: Outlays from American Recovery and Reinvestment Act �������

4,626

10,843

11,966

Total, Outlays ��������������������������������������������������������������������������������������������������

109,312

129,347

132,289

Direct Loan Disbursements:
Farm Loans �����������������������������������������������������������������������������������������������
Commodity Credit Corporation �����������������������������������������������������������������
Rural Utilities Service ��������������������������������������������������������������������������������
Rural Housing Service ������������������������������������������������������������������������������
Rural Business Service �����������������������������������������������������������������������������
P.L. 480 �����������������������������������������������������������������������������������������������������
All other programs��������������������������������������������������������������������������������������
Total, Direct loan disbursements ���������������������������������������������������������������������

1,825
8,291
6,005
2,042
—
32
60
18,255

2,280
8,593
8,820
4,300
1
62
84
24,140

1,745
8,346
10,836
4,116
17
—
80
25,140

Guaranteed Loan Commitments:
Farm Loans �����������������������������������������������������������������������������������������������
Commodity Credit Corporation������������������������������������������������������������������
Rural Utilities Service ��������������������������������������������������������������������������������
Rural Housing Service ������������������������������������������������������������������������������
Rural Business Service �����������������������������������������������������������������������������
Total, Guaranteed loan commitments �������������������������������������������������������������

2,594
5,357
5
14,166
1,110
23,232

2,759
5,448
22
14,200
2,158
24,587

2,439
5,500
32
13,627
2,275
23,873

Credit activity

DEPARTMENT OF COMMERCE

Funding Highlights:
•

Invests in American economic competitiveness and job creation by promoting innovation in
manufacturing, advancing standards research and technology, protecting intellectual property
rights, and deploying broadband.

•

Promotes opportunities for American exporters in new markets and reduces barriers to sales
abroad.

•

Invests in smarter economic development through the promotion of regional innovation
clusters.

•

Advances climate science and services and supports critical satellite programs to monitor the
Earth’s weather and climate as well as global sea-level change.

•

Implements the President’s National Ocean Policy by supporting coastal zone management
and marine spatial planning, expanding catch-share based fisheries management, and
accelerating research on ocean acidification.

•

Invests additional resources to improve economic and household statistics to analyze our
economic health more accurately and target Government funds more precisely.

The Department of Commerce (DOC) has a
broad mandate to advance economic growth,
jobs and opportunities for the American people.
It has cross-cutting responsibilities in the areas
of trade, technology, entrepreneurship, economic
development, environmental stewardship, and
statistical research and analysis. To support this
important work, the 2011 Budget allocates $8.9
billion to DOC.
Invests in America’s Innovation and
Competitiveness. The Budget includes $712
million for National Institute of Standards and
Technology (NIST) laboratories as part of the
President’s Plan for Science and Innovation. This
funding will support advanced measurement and
standards development at NIST that will facilitate

the economy-wide development and adoption of a
wide ­variety of new technologies, ranging from
nanotechnology and computer security advances
to energy conservation systems. The Budget also
provides $80 million for the Technology ­Innovation
Program, which invests in high-impact ­research
that will address critical national needs and
advance innovation. The Hollings Manufacturing
Extension Partnership will receive $130 million
to ­enhance the competitiveness of the Nation’s
manufacturers by facilitating the adoption of
more efficient manufacturing processes.
In
addition, the President’s Budget gives the U.S.
­Patent and Trademark Office (USPTO) full access
to its fee collections and will strengthen USPTO’s
­efforts to improve the speed and quality of patent
examinations through a fee surcharge.    

51

52
Promotes American Exports. The Budget
provides $534 million, a 20-percent increase, to
the International Trade Administration (ITA), so
it can help launch the National Export Initiative,
a broader Federal strategy to increase American
exports. ITA will strengthen its efforts to promote exports from small businesses, help enforce
free trade agreements with other nations, fight to
eliminate barriers to sales of U.S. products, and
improve the competitiveness of U.S. firms.    
Expands Access to Broadband. Broadband
is a central part of the infrastructure necessary
for the economy to create jobs and thrive in this
century. During 2011, Commerce’s National Telecommunications and Information Administration
will focus on administering the $4.7 billion program to expand broadband deployment, as well
as programs to improve broadband adoption and
data collection, which were funded by the American Recovery and Reinvestment Act. The ­Budget
will also achieve savings by eliminating the
­Public Telecommunications Facilities Program,
consolidating support for public broadcasters into
the Corporation for Public Broadcasting.
Enhances Regional Economic Competitiveness. Competitive, high-performing regional
economies are essential to national growth. The
Budget supports growth strategies based on stronger regional clusters of economic activity through
funding in the Department’s Economic Development Administration (EDA), the Small Business
Administration (SBA), as well as the Department
of Labor with other agencies in key support roles.
As part of the Administration’s place-based initiative, the Budget provides $75 million in regional planning and matching grants within EDA to
support the creation of ­Regional ­Innovation Clusters that leverage regions’ competitive strengths
to boost job creation and ­economic growth.

DEPARTMENT OF COMMERCE
Supports Improvements in Weather Forecasting, Climate Monitoring, Fisheries Management, and Ocean Programs. The Budget
maintains continuity of National Oceanic and
­Atmospheric Administration (NOAA) satellite
coverage needed for monitoring weather and
climate by providing over $2 billion to fund the
­development and acquisition of NOAA’s ­polar
orbiting and geo-stationary weather satellite
systems, satellite-borne measurements of sea
level and other climate variables, and other
space-based observations. The Budget supports
enhancements to climate science and services, including improved modeling and assessments at
global and regional levels. The Budget advances
the President’s National Ocean Policy with funding for coastal zone management and planning,
competitive grants in support of regional ocean
partnerships, integrated ecosystem assessments,
catch-share based fisheries management, and
­research on ocean acidification.
Strengthens Key Statistical Programs.
The Budget provides $1.3 billion to the Census
Bureau to process, tabulate, and release 2010
Census data, conduct extensive evaluations of
the census, improve the data collection methods
of the American Community Survey, and begin a
continuous update process of the Census Bureau’s
geospatial and address data, which is expected to
produce long-run cost savings. These initiatives
will provide more accurate data for decision-makers at all levels of government and in the private
sector. Funds are also provided to prepare for the
2012 Economic and Government Censuses and to
improve an important measure of poverty. Finally, the Budget provides additional funding for the
Bureau of Economic Analysis to develop new data
series on key economic sectors (such as manufacturing and retail trade) and household consumption, income, and expenses. These measures
will provide policymakers more timely, detailed,
and robust data on the state of the business and
household sectors of the economy.

53

THE BUDGET FOR FISCAL YEAR 2011

Department of Commerce
(In millions of dollars)

Estimate

Actual
2009
Spending
Discretionary Budget Authority:
Departmental Management:
Salaries and Expenses ������������������������������������������������������������������������
Steel Loan Program �����������������������������������������������������������������������������
Herbert C. Hoover Building Renovation �����������������������������������������������
Office of the Inspector General ������������������������������������������������������������
Subtotal, Departmental Management �������������������������������������������������������
Economic Development Administration:
Salaries and Expenses ������������������������������������������������������������������������
Economic Development Assistance Programs ������������������������������������
Regional Innovation Cluster Initiative (non-add) ����������������������������������
Subtotal, Economic Development Administration �������������������������������������
Bureau of the Census:
Salaries and Expenses ������������������������������������������������������������������������
Periodic Censuses and Programs ��������������������������������������������������������
Decennial Census (non-add) ���������������������������������������������������������������
Subtotal, Bureau of the Census ����������������������������������������������������������������
Economics and Statistics Administration ��������������������������������������������������
International Trade Administration �������������������������������������������������������������
Bureau of Industry and Security ���������������������������������������������������������������
Minority Business Development Agency ���������������������������������������������������
National Oceanic and Atmospheric Administration:
Operations, Research, and Facilities ���������������������������������������������������
Procurement, Acquisition and Construction �����������������������������������������
Other Accounts ������������������������������������������������������������������������������������
Subtotal, National Oceanic and Atmospheric Administration ��������������������
Patent and Trademark Office:
Program Level ��������������������������������������������������������������������������������������
Fees �����������������������������������������������������������������������������������������������������
Subtotal, Patent and Trademark Office �����������������������������������������������������
National Institute of Standards and Technology:
Scientific and Technical Research Services �����������������������������������������
Industrial Technology Services �������������������������������������������������������������
Technology Innovation Program (non-add) ������������������������������������������
Manufacturing Extension Partnership (non-add) ����������������������������������
Construction of Research Facilities ������������������������������������������������������
Subtotal, National Institute of Standards and Technology �������������������������

2010

2011

53
—
5
28
86

58
—
22
27
107

66
–43
17
29
69

37
221
—
258

38
255
50
293

40
246
75
286

234
2,905
2,689
3,139
91
420
84
30

259
6,966
6,751
7,225
97
446
100
32

280
987
740
1,267
113
534
113
32

3,130
1,242
82
4,454

3,413
1,358
82
4,853

3,408
2,184
–38
5,554

1,899
–1,901
–2

1,887
–2,003
–116

2,322
–2,322
—

478
170
60
110
172
820

520
195
70
125
147
862

587
210
80
130
125
922

54

DEPARTMENT OF COMMERCE

Department of Commerce—Continued
(In millions of dollars)

Estimate

Actual
2009

2010

2011

National Telecommunications and Information Administration:
Salaries and Expenses ������������������������������������������������������������������������
Broadband Technology Opportunities Program Administration ������������
Public Telecomm. and Facilities Planning and Construction ����������������
Subtotal, National Telecommunications and Information Administration ��
All other ������������������������������������������������������������������������������������������������
Total, Discretionary budget authority ��������������������������������������������������������

16
—
18
34
–2
9,412

20
—
20
40
–7
13,932

22
24
—
46
–8
8,928

Memorandum:
Budget authority from American Recovery and Reinvestment Act �����������
Budget authority from supplementals �������������������������������������������������������

7,845
40

–128
—

—
—

Total, Discretionary outlays �����������������������������������������������������������������������

8,967

13,535

8,953

Memorandum: Outlays from American Recovery and Reinvestment Act ����

566

2,473

2,249

Mandatory Outlays:
Digital Television Transition and Public Safety Fund ����������������������������
Grants to Manufacturers of Worsted Wool Fabrics:
Existing law �������������������������������������������������������������������������������������
Legislative proposal �������������������������������������������������������������������������
All other ������������������������������������������������������������������������������������������������
Total, Mandatory outlays ���������������������������������������������������������������������������

1,296

506

125

1
—
–101
1,196

10
—
191
707

5
–5
176
301

Total, Outlays ��������������������������������������������������������������������������������������������

10,163

14,242

9,254

Credit activity
Direct Loan Disbursements:
Fisheries Finance Direct Loan Financing account ������������������������������������
Total, Direct loan disbursements ���������������������������������������������������������������������

23
23

23
23

23
23

DEPARTMENT OF DEFENSE

Funding Highlights:
•

Provides $548.9 billion for the Department of Defense base budget in 2011, a 3.4 percent
increase over the 2010 enacted level.

•

Includes $33.0 billion for a 2010 supplemental request and $159.3 billion for 2011 to support
ongoing overseas contingency operations, including funds to execute the President’s new
strategy in Afghanistan and Pakistan.

•

Maintains ready forces and continues efforts to rebalance military forces to focus more on
today’s wars, and provides capabilities to deter or if necessary engage in future conflicts.

•

Continues strong support for our men and women in uniform through a robust benefits
package including pay increases that keep pace with the private sector.

•

Supports access to medical care to the more than 9.5 million beneficiaries: active military
members and their families, military retirees and their families, dependent survivors, and
eligible Reserve Component members and families.

•

Supports wounded warrior transition units and centers of excellence in vision, hearing,
traumatic brain injury, and other areas to continuously improve the care provided to wounded,
ill, and injured servicemembers.

•

Continues to reform defense acquisition, reducing its use of high-risk contracts related to
time-and-materials and labor-hours by 17 percent through the end of 2011, while modernizing
key weapons systems to provide our troops with the best technology to meet battlefield
needs, and eliminating or reconfiguring lower-priority acquisitions.

•

Prioritizes resources by ending or reducing several programs, including the C-17 aircraft, the
Joint Strike Fighter Alternate Engine program, the Third Generation Infrared Surveillance
program, and the Net-Enabled Command Capability program.

•

Supports a reconfigured ballistic missile defense strategy, in line with the President’s policy, to
better address current threats.

While the U.S. military is addressing ongoing
challenges—such as drawing down responsibly
in Iraq and carrying out the President’s strategy
in Afghanistan and Pakistan—the Department
of Defense (DOD) is identifying long-term stra-

tegic needs and targeting resources toward its
highest priorities. These priorities, developed
in concert with DOD’s Quadrennial Defense Review, include taking care of our men and women
in uniform, rebalancing our forces to address

55

56
both current and future conflicts, and ­reforming
business practices, such as developing and purchasing weapons.
The 2011 Budget for DOD requests an increase of $18.2 billion, or 3.4 percent, from the
2010 enacted level of $530.8 billion. This funding increase allows DOD to address its highest
priorities, such as the President’s commitment
to reform defense acquisition, develop a ballistic missile defense system that addresses modern threats, and continue to provide high quality
healthcare to wounded servicemembers. In addition, the Budget will continue to incorporate into
the base those items previously funded in emergency supplemental appropriations that should
be considered enduring activities that are not
driven by specific conflicts.
Supports Missions in Iraq, Afghanistan,
and Pakistan (OCO). The President has ­ordered
his military commanders to send an additional
30,000 troops to Afghanistan, which will bring
the total number of U.S. forces in Afghanistan to
almost 100,000 by 2011. Meanwhile, DOD will
continue drawing down its combat forces from
Iraq, and all U.S. forces will be withdrawn from
Iraq by the end of 2011. To address the costs of
increasing military and intelligence operations in
Afghanistan and Pakistan and drawing down in
Iraq and leaving Iraq’s security forces with the
minimum essential capabilities to operate after
U.S. forces depart, the Administration is requesting $33.0 billion in 2010 supplemental funding on
top of the $129.6 billion already provided, and a
total of $159.3 billion for its 2011 overseas contingency operations (OCO) activities. In addition
to this DOD funding, the supplemental request
will also include funding for Department of State
­activities in 2010. The Budget includes placeholder estimates of $50 billion per year for 2012 and
beyond. These estimates do not reflect any policy
decisions about specific military or intelligence
operations, but are only intended to indicate that
some as-yet unknown costs are anticipated.
Maintains Readiness for Today’s Challenges. The Administration is committed to
providing its service members with the resources

DEPARTMENT OF DEFENSE
needed to be ready to respond to the multiple,
complex, and sometimes unconventional threats
posed by today’s security environment. The
­Budget includes robust funding for operations
and maintenance, covering such crucial activities
as training and operations, pay for a high quality ­civilian workforce, upkeep of equipment and
facilities, repair parts, fuel, and supplies.
Supports Our Nation’s Troops and Their
Families. The Budget continues the Administration’s commitment to caring for our Nation’s
men and women in uniform and promoting the
well-being of the families who support them. To
meet this objective, the Budget includes funding
for a 1.4 percent basic pay raise that will keep
military pay increases in line with those in the
private sector. In addition to this pay raise, the
Budget also includes an average housing increase
of 4.2 percent, as well as a variety of monthly
­special skill-based payments, enlistment and
­reenlistment bonuses, and other benefits.
The strength of our troops relies on the strength
and stability of the families that support them,
and the Budget supports these military families as our servicemembers answer our country’s
call to service. Overall, family support programs
grow over 3 percent above the 2010 enacted level.
Examples include:
•

$1.3 billion, an increase of $87 million
over the 2010 enacted level, to expand
availability for affordable, high-quality
child care services at over 800 child development centers both in the United States
and overseas.

•

$1.9 billion, $37 million over the 2010 enacted level, for expanded counseling and
assistance services, from financial counseling to transition and relocation assistance, to help families meet the challenges
brought on by repeated deployments and
family separations.

•

$84 million, an increase of $12 million
over the 2010 enacted level, for enhanced
career and educational opportunities for
military spouses through tuition assistance and Federal internship programs.

THE BUDGET FOR FISCAL YEAR 2011
Cares for Wounded, Ill, and Injured
­ ervicemembers. The 2011 Budget sustains
S
ongoing efforts to provide high quality medical care to the over 9.5 million servicemembers
as well as military family and retiree beneficiaries. This includes support for wounded warrior
transition units and centers of excellence in vision, hearing, traumatic brain injury, and other
areas to continuously improve the care provided
to wounded, ill, and injured servicemembers, including:
•

$30.9 billion overall for medical care,
an increase of 5.8 percent over the 2010
­enacted level.

•

$669 million to provide care for traumatic
brain injury and psychological health.

•

$250 million for continued support of
mental health and traumatic brain injury
research, such as the development of tools
to detect and treat post-traumatic stress,
and enhancements to suicide prevention
measures.

•

Support for DOD’s efforts to update its
health information technology infrastructure, while partnering with the Department of Veterans Affairs and the private
sector to pursue the Administration’s
goal of building a Virtual Lifetime Electronic Record to deliver care and benefits
to ­servicemembers and veterans with
­efficiency and accuracy.

Reforms Acquisition. DOD contracts account for approximately 70 percent of all Federal
procurement spending, so DOD reform initiatives are critical to the Administration’s efforts
to improve Government acquisition. The 2010
Budget took important first steps to reform this
process; in 2011, DOD will continue these efforts
by terminating or delaying programs that are inadequately justified or not performing well. For

57
example, the Budget ends the C-17 aircraft program because additional aircraft are not needed,
saving $2.5 billion. It also eliminates the Joint
Strike Fighter Alternate Engine program, saving $465 million, because this program raises
logistical, management, and cost concerns. The
Budget saves an additional $73 million by terminating the Third Generation Infrared Surveillance program, and instead procuring upgraded
Space Based Infrared System Satellites in the
future; it saves $8.5 million more by eliminating
the Net-Enabled Command Capability program,
which has been unable to meet its requirements
on schedule. The Department will also further
reduce its use of high-risk contracts in areas that
relate to time-and-materials and ­labor hours by
17 percent through the end of 2011, and take
steps so that military ­requirements for weapons
are reasonable, ­program costs and schedules are
realistic, and acquisition funding is stable.
Provides Ballistic Missile Defense to
­ ddress Modern Threats. The Administration
A
is committed to a robust defense against emerging missile threats by deploying technology that
is proven, cost-effective, and adaptable for countering an evolving security environment. Starting in 2011, the new Phased Adaptive Approach
will guide missile defense architecture. It will
feature incremental deployments of ­increasingly
capable sea- and land-based missile interceptors and a range of sensors in ­Europe to defend
against growing ballistic missile dangers. This
phased ­approach will offer more ­effective ­defenses
against near-term ballistic missile threats and
augment the current defense of the U.S. homeland
against long-range ballistic ­missile threats. It
will provide for the defense of U.S. deployed forces, their families, and our ­Allies in Europe sooner and more comprehensively than the ­previous
program, while reaffirming the U.S. commitment
to strengthening NATO and ­integrating U.S.
­systems with Allied capabilities and networks.

58

DEPARTMENT OF DEFENSE

Modernizes Weapon Systems. A major goal
of the Administration is to provide the troops
with the most effective and modern equipment
­possible. To accomplish this, the 2011 Budget
continues to develop and procure many advanced
weapons systems that support both today’s wars
and future conflicts. These include: the F-35
Joint Strike Fighter, a new family of ground vehi-

cles, new ships such as the next generation ballistic missile submarine, and the P-8 aircraft. The
­Budget also bolsters capabilities in Unmanned
Aerial Vehicles, helicopters, and cyber capabilities and electronic warfare, which are key components in the ongoing task of rebalancing the
military to focus on current and emerging threats.

Department of Defense
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Spending
Discretionary Base budget authority:
Military Personnel �������������������������������������������������������������������������������������
Operation and Maintenance ����������������������������������������������������������������������
Procurement ���������������������������������������������������������������������������������������������
Research, Development, Test and Evaluation ������������������������������������������
Military Construction ���������������������������������������������������������������������������������
Family Housing �����������������������������������������������������������������������������������������
Revolving and Management Funds ����������������������������������������������������������
Subtotal, Discretionary Base budget authority ������������������������������������������������

125,625
179,103
100,886
79,392
21,898
3,163
3,155
513,222

134,968
184,488
104,803
80,097
21,022
2,259
3,118
530,755

138,541
200,248
112,873
76,131
16,924
1,822
2,380
548,919

Discretionary Overseas Contingency Operations (OCO) budget authority:
Enacted �����������������������������������������������������������������������������������������������������
Requested (2011 includes $254 million in U.S. Coast Guard funding) �����
Subtotal, Discretionary OCO budget authority ������������������������������������������������

145,741
—
145,741

129,648
33,014
162,662

—
159,336
159,336

Total, Discretionary budget authority (Base and OCO) �����������������������������������

658,963

693,417

708,255

Memorandum: Budget authority from American Recovery and Reinvestment Act �����

7,435

—

—

Total, Discretionary Outlays (Base and OCO) ������������������������������������������������

633,797

684,436

714,428

Memorandum: Outlays from American Recovery and Reinvestment Act ����������������������

238

3,991

2,491

Mandatory Outlays:
Existing law ��������������������������������������������������������������������������������������������������

2,740

3,605

3,959

Legislative proposal �������������������������������������������������������������������������������������
Total, Mandatory outlays ��������������������������������������������������������������������������������

—
2,740

—
3,605

408
4,367

Total, Outlays �������������������������������������������������������������������������������������������������

636,537

688,041

718,795

59

THE BUDGET FOR FISCAL YEAR 2011

Department of Defense—Continued
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Credit activity
Total, Direct loan disbursements ���������������������������������������������������������������������

172

195

200

NATIONAL INTELLIGENCE PROGRAM

Funding Highlights:
•

Strengthens the capabilities of the Nation’s intelligence agencies to furnish timely, accurate,
and insightful intelligence on the capabilities and intentions of foreign powers, including
international terrorist groups.

•

Supports the President’s strategy in Afghanistan and Pakistan.

•

Enhances Federal cybersecurity capabilities to protect a central part of our Nation’s and
economy’s infrastructure.

•

Allocates resources in support of a U.S. Government-wide counterterrorism action plan.

The National Intelligence Program (NIP)
funds intelligence activities in several Federal departments and the Central Intelligence
Agency (CIA). NIP’s budget is classified, so the
2011 Budget does not publicly disclose funding
requests for intelligence activities. This chapter highlights key NIP-funded activities without
­detailing funding information.
Strengthens Capabilities of our Nation’s
Intelligence Agencies. To protect America’s
national security, the Intelligence Community
(IC) provides effective intelligence collection,
the analysis of that intelligence, and the production of finished intelligence products. The IC is
­responsible for timely and effective dissemination of intelligence to those who need it, ranging from the President, to heads of Executive
Departments, military forces, and law enforcement agencies. To meet this country’s national
security challenges, the IC is: strengthening
its ­component agencies’ ability to collect intelligence; maintaining the security of Federal ­cyber
networks; and protecting against the threat of in-

ternational terrorism in the United States. The
2011 Budget for NIP supports the Administration’s national security objectives and the new
National Intelligence Strategy. The Director of
National Intelligence, the Director of the CIA,
and Department Secretaries with intelligence
organizations will use 2011 funds to defeat terrorist networks, prevent the spread of weapons
of mass destruction, penetrate and analyze the
most difficult targets of interest to U.S. foreign
policymakers, and anticipate ​ ­geopolitical and
economic developments of strategic concern.
Supports the President’s Strategy in
­ fghanistan and Pakistan. The AdministraA
tion will request 2011 funding and supplemental
funding for 2010 to cover the costs of global intelligence operations. In particular, the Budget will
support the President’s strategy in Afghanistan
and Pakistan and the additional U.S. forces ­being
deployed there. IC collection and analysis play
a key role in informing decision-makers at the
strategic level and supporting the war fighter at
a tactical level.

61

62
Enhances Federal Cybersecurity Capabilities. The U.S. information infrastructure—
including telecommunications and computer
networks and systems, and the data that reside
on them—is critical to virtually every aspect of
modern life. Threats to our information technology infrastructure endanger our national and
economic security and our citizens’ privacy and,
therefore, are an important policy focus of the
Government. In 2009, President Obama directed
a comprehensive review to assess U.S. policies
and structures for cybersecurity. The 2011 Budget supports actions detailed in the Cyberspace
Policy Review and continues activities begun as
part of the Comprehensive National Cybersecurity Initiative.

NATIONAL INTELLIGENCE PROGRAM
Allocates Resources to Support a Counterterrorism Plan. The National Counterterrorism Center (NCTC) has developed a U.S. Government-wide counterterrorism action plan. This
plan lays out broad strategic objectives aligned
with policy objectives to guide the overall implementation of this national strategy on counterterrorism. The Administration is committed to
integrating mission-based budgeting in the counterterrorism area with the annual budget process
and will work with NCTC, IC, and relevant Departments, such as Defense, State, and Homeland
Security, to direct resources in support of counterterrorism implementation objectives.

DEPARTMENT OF EDUCATION
Funding Highlights:
•

Provides a $3 billion increase in K-12 education programs, plus up to $1 billion in additional
funding if Congress successfully completes a fundamental overhaul of the Elementary and
Secondary Education Act (ESEA). Together, these measures would represent the largest
funding increase for ESEA programs ever requested.

•

Supports needed reforms of Federal K-12 programs to promote college- and careerreadiness, enhance teacher and principal effectiveness, deliver a rigorous and complete
education, improve educational options, and prepare our children for the jobs of the future.

•

Provides $1.35 billion to expand Race to the Top for school districts as well as States to carry
out systemic reform, and $500 million to continue the Investing in Innovation program to test,
validate, and scales up effective approaches to student learning.

•

Increases the number, and improves the distribution of, effective teachers and principals,
by investing $950 million in competitive grants to States and school districts that build
comprehensive systems to recruit, prepare, retain, and reward effective teachers and
principals.

•

Invests $210 million in Promise Neighborhoods, an initiative that integrates school reform with
strong family supports and effective community services across an entire neighborhood, so
that youth successfully complete high school and continue on to college.

•

Expands educational options and increases access to high-quality schools by investing $490
million to grow effective charter schools and other effective, autonomous public schools that
achieve results, develop new approaches, and give parents more choices.

•

Consolidates 38 K-12 programs into 11 new programs that emphasize competitive funding,
accountability for outcomes and flexibility in approaches, and use of evidence to get results.

•

Supports the next generation of scientists and engineers by helping States develop and
implement math and science instructional practices that are aligned to rigorous college- and
career-ready standards and by supporting districts and nonprofit organizations that develop,
implement, and evaluate promising and effective programs.

•

Increases aid for needy students, reforms Federal student aid programs, and simplifies the
financial aid application process.

•

Funds new reforms across the Nation’s early learning programs for children birth through age
five, so they’re prepared to enter kindergarten ready for success.

•

Creates a Workforce Innovation Partnership with the Department of Labor to test and validate
effective strategies to improve services under the Workforce Investment Act.

63

64
The President’s Budget proposes a bold strategy to achieve the Department of Education’s
mission of fostering educational excellence,
­advancing­ ­equity and opportunity, improving student achievement, rewarding successful­
­outcomes, ­investing in innovation, and preparing
our ­Nation’s children for global competitiveness.
Reform Elementary and Secondary
School Funding by Setting High Standards,
Encouraging Innovation, and Rewarding
Success. The Budget supports the Administration’s new vision for the Elementary and Secondary Education Act (ESEA). The reauthorized law
would encourage States to adopt higher, clearer
standards that set the expectation that every
student will graduate from high school ready for
college and a career. The new law would support
dramatic improvements in the quality of assessments to measure complex skills and help teachers identify and respond to students’ strengths
and needs. The reauthorization would also recognize and reward schools for helping students
make important gains, even if they are not yet
at grade-level, and offer new flexibility for successful States and districts to pursue new solutions to help all students meet high standards.
At the same time, the law would require vigorous
efforts to turn around persistently low-performing schools, applying comprehensive strategies
that put children first. In support of these efforts, the Budget provides a $3 billion increase in
funding for K-12 education programs authorized
in the ESEA, including $900 million for School
Turnaround Grants, and the Administration will
request up to $1 billion in additional funding if
Congress successfully completes a fundamental
overhaul of the law. ­Together, these measures
would represent the largest funding increase for
ESEA programs ever requested.
Expand the Race to the Top, and Open
the Competition to School Districts. The $4
billion Race to the Top, created by the American
Recovery and Reinvestment Act (Recovery Act),
began a competition among States to spur systemic and innovative reform across four areas:
supporting high academic standards; improving
teacher effectiveness and distributing effective

DEPARTMENT OF EDUCATION
teachers more equitably; using data to improve
achievement; and turning around low-performing
schools. Not all States will receive Race to the
Top grants, but the competition itself has galvanized key stakeholders across the Nation to reform State laws and to develop new plans for lifting student achievement. The Budget provides
$1.35 billion to continue the President’s Race to
the Top challenge and to expand the competition
from States to school districts that are ready for
comprehensive reform.
Increase the Number of Effective Teachers and Principals. Great teachers are the
key to a high-quality education. Increasing the
number of great teachers, especially in disadvantaged schools, will require major new efforts to
help all teachers improve their skills; recognize
and reward excellence in the classroom; and help
struggling teachers improve or, if need be, exit
the classroom. Today, taxpayers invest nearly $3
billion a year in a teacher quality block grant that
heavily supports investments with little evidence
of or impact on increasing learning. As part of
the overhaul of ESEA, the Administration will
require States taking formula funds to develop
the preconditions for an effective human capital
system, beginning with strong evaluation systems. At the same time, the Administration will
invest $950 million in a new competitive fund
for States and districts that supports bold approaches to recruiting, developing, retaining, and
rewarding more effective teachers, particularly in
the lowest-performing schools. The Administration is also investing $405 million in supporting
successful and innovative pathways into teaching
and school leadership.
Invest in Supports for Student Success.
While an isolated schoolhouse with limited hours
was adequate in an earlier time, today’s competitive global marketplace requires more. Students
need to be safe and healthy, and they need a complete education that extends beyond the traditional hours. As part of a $1.8 billion investment
in the Supporting Student Success initiative, the
Budget funds comprehensive supports so that
students are mentally and physically healthy
and ready to learn. The initiative also reforms

THE BUDGET FOR FISCAL YEAR 2011
the 21st Century Community Learning Centers
program to focus funding on models that redesign
and extend the school day, week, or year to provide additional time for students to engage in academic activities, additional time for enrichment
activities, and time for educators to collaborate
and improve instruction.
Provides Expanded Support for Promise
Neighborhoods. As part of a $1.8 billion investment in the Supporting Student Success initiative, the Budget includes dedicated support for
Promise Neighborhoods, modeled ­after the Harlem Children’s Zone, which aims to improve college going rates by combining a rigorous K-12 education with a full network of ­supportive services
in an entire neighborhood. This initiative would
support comprehensive programs that address
the needs of children and youth in a ­targeted
area from before the time they are born to their
attendance in college. The core principle behind
this initiative is that combining both effective
academic programs and strong health and socialservice systems can combat the effects of poverty
and improve the education and life outcomes of
children.
Grow High-Performing Charter Schools
and Other Innovative Public Schools. Effective charter schools have achieved impressive
results in closing achievement gaps. The Budget
will invest $490 million to grow these schools and
other autonomous public schools that achieve results, develop new approaches, and give parents
more choices. The Budget will support new options for students to transfer to high-performing
public schools, support successful magnet schools,
and require States and districts accepting these
funds to create the conditions for effective schools
to grow and ineffective schools to be restructured
or shut down.
Restructure Narrow and Constrained Education Programs Into Broad and Flexible
Competitions that Fund What Works. The
Department of Education funds dozens of programs that narrowly limit what States, districts,
and schools can do with funds. Some of these programs have little evidence of success, while oth-

65
ers are demonstrably failing to improve student
achievement. The President’s Budget eliminates
six discretionary programs and consolidates 38
K-12 programs into 11 new programs that emphasize using competition to allocate funds, giving communities more choices around activities,
and using rigorous evidence to fund what works.
The Administration will make sure that, under
these competitions, there is an equitable geographic distribution of funds nationwide, including to rural communities. Building on the Recovery Act, the Administration proposes $500 million
to expand the Investing in Innovation Fund,
which will expand proven models—and fund and
evaluate promising ones—for achieving student
success. Finally, the Budget dedicates funds for
the rigorous evaluation of education programs so
that we can scale up what works and eliminate
what does not.
Expand and Reform Early Childhood
­ ducation.
E
Quality early education is an
­investment that pays off for years to come by
preparing the youngest children for a lifetime of
learning. The 2011 Budget enables the Administration to build on the expansion to early learning programs made through the Recovery Act,
and realize the President’s plan to reform early
childhood education, promote high standards of
quality, and focus on results for children from
birth through preschool. In the 2011 Budget, the
Administration supports pending legislation that
will ­establish a new Early Learning Challenge
Fund administered by the Department of Education and the Department of Health and Human
Services to help States improve the quality of
early childhood programs to help children enter
school ready to succeed.
Invest in the Next Generation of Scientists and Engineers. Our Nation’s eighth graders are scoring below their peers from many Asian
and European countries, and we are neither adequately closing the achievement gaps in math
and science nor providing adequate opportunities
for many students from diverse backgrounds. The
Budget reflects the Administration’s investment
in improving science, technology, engineering,
and mathematics (STEM) outcomes and creating

66

DEPARTMENT OF EDUCATION

the next generation of scientists and engineers
who can help drive economic growth in the coming decades. The Budget provides $300 million in
new grants to States to develop and implement
instructional practices and improve teaching and
learning in science and math aligned to new high
standards. The Budget also dedicates $150 million within the Investing in Innovation Fund to
competitive grants for school districts, nonprofits, and other organizations to test, validate, and
scale promising strategies to improve teaching
and accelerate student learning in STEM subjects. The Department of Education will work
with the National Science Foundation and other
Federal agencies to identify the most effective
interventions that can help States, schools, and
teachers improve STEM outcomes.

would then use savings to make historic investments to increase college access and success, and
would lay a foundation for success for America’s
youngest children. In addition to expanded Pell
Grants and a simplified student aid system, these
investments include a new American Graduation
Initiative that will strengthen and support America’s community colleges, focus on college completion, and graduate 5 million more students by
2020. Finally, to help graduates overburdened
with student loan debt, the Administration will
strengthen income-based repayment plans for
student loans by reducing monthly payments and
shortening the repayment period so that overburdened borrowers will pay only 10 percent of their
discretionary income in loan repayments and can
have their remaining debt forgiven after 20 years.

Increase Pell Grants and Put Them on
a Firm Financial Footing. Pell Grants have
helped millions of Americans afford college, yet in
recent decades, growth in their value has fallen far
behind the growth in college costs. The ­Recovery
Act and 2009 appropriations bill ­increased the
maximum Pell Grant by more than $600 for a
­total award of $5,350, and the maximum award
will increase to $5,550 in 2010. The Budget proposes to make that increase permanent and put
them on a path to grow faster than inflation every
year. The Budget also addresses a second problem: Pell Grants currently function much like
an e­ntitlement, yet they are funded through an
annual ­appropriations process that can fall behind actual demand for the grants. The Budget
proposes to make Pell Grant funding mandatory
so that adequate Pell Grant funding is available
every year.

Spur Partnership and Innovation in Vocational Rehabilitation and Adult Education.
The Budget seeks $60 million in innovation funds
to support seamless delivery of services and improved outcomes for people with disabilities and
adults seeking basic skills. Under a new Partnership for Workforce Innovation, the Departments of Education and Labor will coordinate
their innovation grants and work with other Federal agencies to break down program silos and to
build and share evidence of what works.

Expand Financial Aid for Students and
Make Historic Investments in Improving
Education, from Cradle Through College.
The Budget supports legislation that has passed
the House and is pending in the Senate that
would reform student lending to eliminate tens of
billions of dollars in wasteful subsidies to banks,
and instead, provide loans directly to students on
an efficient basis that uses private and nonprofit companies to deliver services. This measure

Evaluate Rigorously Federal Education
Programs. The Budget reflects the Administration’s commitment to rigorous evaluations that
distinguish between what works and what doesn’t
so we do not waste taxpayer dollars. Compared
to two years ago, the current request represents
a nearly 20 percent increase in the investment in
the development, evaluation, and dissemination
of education interventions that increase student
learning and achievement through the Institute
of Education Sciences. Additional funds will be
used to evaluate Federal education programs rigorously, particularly investments launched under
the Recovery Act. The increase in education research and evaluation will provide practitioners
and policy makers with effective tools for preparing students for success in college and the workforce.

67

THE BUDGET FOR FISCAL YEAR 2011

Department of Education
(In millions of dollars)

Actual
2009
Spending
Discretionary Budget Authority:
Legislative proposal, Elementary and Secondary Education Act:
College and Career Ready Students 1 �������������������������������������������������������
School Turnaround Grants �������������������������������������������������������������������������
Race to the Top ������������������������������������������������������������������������������������������
Investing in Innovation �������������������������������������������������������������������������������
English Learner Education �������������������������������������������������������������������������
Effective Teaching and Learning for a Complete Education �����������������������
College Pathways and Accelerated Learning ���������������������������������������������
Excellent Instructional Teams ��������������������������������������������������������������������
Expanding Educational Options �����������������������������������������������������������������
Supporting Student Success ����������������������������������������������������������������������
Special Education State Grants 2 ��������������������������������������������������������������������
Career and Technical Education Programs �����������������������������������������������������
Adult Education State Grants ��������������������������������������������������������������������������
Workforce Innovation Fund �����������������������������������������������������������������������������
Federal Student Aid:
Supplemental Educational Opportunity Grants ��������������������������������������������
Federal Work Study ������������������������������������������������������������������������������������
Higher Education:
Minority Serving Institutions—Disretionary funding ������������������������������������
Minority Serving Institutions—Mandatory funding (non-add) ����������������������
TRIO programs—Discretionary funding ������������������������������������������������������
TRIO programs—Mandatory funding (non-add) �����������������������������������������
GEAR UP ����������������������������������������������������������������������������������������������������
Student Aid Administration ������������������������������������������������������������������������������
Institute of Education Sciences �����������������������������������������������������������������������
All other �����������������������������������������������������������������������������������������������������������
Total, Discretionary budget authority 3 �����������������������������������������������������������������

Estimate
2010

2011

14,492
546
—
—
730
979
51
3,181
369
1,795
12,319
1,272
554
—

14,492
546
—
—
750
920
103
3,505
409
1,541
12,319
1,272
628
—

14,492
900
1,350
500
800
1,015
100
3,855
490
1,786
12,569
1,272
612
60

757
980

757
980

757
980

516
278
848
57
313
753
617
5,173
46,245

613
278
853
57
323
870
659
5,241
46,781

642
278
853
57
323
1,170
739
4,432
49,697

Memorandum:
Budget authority from American Recovery and Reinvestment Act �����������������������

81,124

—

—

Total, Discretionary outlays �����������������������������������������������������������������������������������

44,971

46,743

46,740

Memorandum: Outlays from American Recovery and Reinvestment Act �������������

14,154

44,054

20,304

Mandatory Outlays:
Legislative proposal, Federal Direct Student Loans ����������������������������������������
Legislative proposal, Federal Family Education Loans �����������������������������������
Legislative proposal, Perkins Loan Program ���������������������������������������������������

–4,263
–26,175
—

–6,389
–12,649
—

–9,244
–106
–736

68

DEPARTMENT OF EDUCATION

Department of Education—Continued
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Legislative proposal, Federal Pell Grants �����������������������������������������������������
Academic Competitive/SMART Grants ��������������������������������������������������������
Vocational Rehabilitation (VR) State Grants ������������������������������������������������
All other �����������������������������������������������������������������������������������������������������������
Total, Mandatory outlays ���������������������������������������������������������������������������������������

14,432
607
2,766
71
–12,562

24,076
836
2,986
421
9,281

28,928
824
3,080
1,993
24,739

Memorandum: Outlays from American Recovery and Reinvestment Act �������������

6,849

6,886

2,498

Total, Outlays ��������������������������������������������������������������������������������������������������������

32,409

56,024

71,479

Credit activity
Direct Loan Disbursements:
Historically Black College and University Capital Financing ���������������������������
Federal Direct Student Loans �������������������������������������������������������������������������
TEACH Grants ������������������������������������������������������������������������������������������������
Temporary Student Loan Purchase Authority �������������������������������������������������
Federal Perkins Loans ������������������������������������������������������������������������������������
Total, Direct loan disbursements ���������������������������������������������������������������������������

120
37,770
49
62,796
—
100,735

160
67,754
52
28,456
—
96,422

186
132,427
65
972
1,355
135,005

Guaranteed Loan Disbursements:
Federal Family Education Loans ���������������������������������������������������������������������
Total, Guaranteed loan disbursements �����������������������������������������������������������������

65,346
65,346

53,082
53,082

—
—

Program level. Budget authority is $2,906 million less than program level in 2009 and $841 million less than program level in 2011.
Program level. Budget authority is $1,736 million less than program level in 2009 and $841 million less than program level in 2011.
3
Program level. The Budget authority is $4,889 million less than program level in 2009. The 2009 and 2010 discretionary totals do not include mandatory
changes enacted in the appropriation bills for those years. The 2011 discretionary total is net of a $597 million rescission of Academic Competitiveness/
SMART Grant balances and a $56 million increase over the VR State Grants baseline.
1
2

DEPARTMENT OF ENERGY

Funding Highlights:
•

Supports high-risk, high-payoff transformational research and development projects with $300
million for the recently established Advanced Research Projects Agency–Energy (ARPA-E).

•

Supports and encourages the early commercial deployment of innovative energy technologies
with an additional $36 billion in guaranteed loan volume authority for advanced nuclear power
plants and an additional $500 million in credit subsidy to support $3 to $5 billion in loan
guarantees for innovative energy efficiency and renewable energy projects.

•

Provides a 4.6 percent, or $226 million, increase in funding at the Office of Science for basic
research and world-leading laboratories to support transformational scientific discoveries and
accelerate solutions to our Nation’s most pressing challenges.

•

Invests $2.3 billion in applied energy research and development to position the United States
as the world leader in energy technology that will address climate change, develop new
industries, and create new jobs.

•

Accelerates the transition to a low-carbon economy through support of development and
deployment of clean energy technologies such as solar, biomass, geothermal, wind, nuclear,
and low-carbon emission coal power.

•

Reduces security risks through major increases in funding for the detection, elimination, and
securing of nuclear material and radiological sources worldwide and the maintenance of a
safe, secure, and effective nuclear weapons stockpile.

•

Continues the Nation’s efforts to reduce environmental risks and safely manage nuclear
materials.

The President’s 2011 Budget provides $28.4
billion for the Department of Energy (DOE) to
support scientific innovation, develop clean and
secure energy technologies, maintain national
security, and reduce environmental risk.
Invests in the Sciences. The 2011 Budget
continues the President’s Plan for Science and
Innovation. The Budget provides $5.1 billion for
the Office of Science, including $1.8 billion for

basic energy sciences to discover novel ways to
produce, store, and use energy. The Budget also
expands graduate research fellowship programs
that will train students in critical energy-related
fields. The 2011 Budget includes $300 million for
the Advanced Research Projects Agency-Energy,
to accelerate game-changing energy technologies
in need of rapid and flexible ­experimentation or
engineering.

69

70
Encourages the Early Commercial Use of
New, Innovative Energy Technologies that
Will Reduce Greenhouse Gas Emissions.
The Budget substantially expands support for
DOE loan guarantees for innovative energy
technologies, by adding $36 billion in new loan
authority (for a total of $54.5 billion) for nuclear
power facilities and an additional $500 million
in credit subsidy to support $3 to $5 billion in
loan guarantees for innovative energy efficiency
and renewable energy projects. The loan guarantee program also will continue to support a
range of commercial renewable energy programs
and other facilities that help reduce pollutants
and greenhouse gases while simultaneously
creating clean energy jobs and contributing to
long-term economic growth and international
competitiveness.
Invests in Smart, Energy Efficient, and
Reliable Electricity Delivery Infrastructure. The Budget continues to support the modernization of the Nation’s electric grid, by investing in research, development and demonstration
of smart-grid technologies that will spur the transition to a smarter, more efficient, secure and reliable electric system. The end result will promote
energy- and cost-saving choices for consumers,
reduce emissions, and foster the growth of renewable energy sources like wind and solar. In addition, the Budget supports the Power Marketing
Administration to reliably operate, maintain, and
rehabilitate the Federal hydropower and transmission systems.
Advances the Development of Carbon
Capture and Storage Technologies. The Budget supports a balanced research and development (R&D) portfolio of carbon capture and storage technologies. The $545 million for climate
change technology funding provided for Fossil
Energy R&D in the 2011 Budget will help reduce
greenhouse gas emissions by focusing resources
to develop carbon capture technologies with broad
applications to advanced power systems, existing
power plants, and industrial sources.

DEPARTMENT OF ENERGY
Invests in Clean Energy Technologies to
Reduce Dependence on Oil and Accelerate
the Transition to a Low-Carbon Economy.
The Budget provides support for accelerating research, development, demonstration of nuclear
technologies, and the commercialization of new
nuclear power facilities and various clean energy technologies. Nearly $2.4 billion is provided
for energy efficiency and renewable energy programs, an increase of $113 million over the 2010
appropriation, including $302 million for solar
energy, $220 million for biofuels and biomass
R&D, $325 million for advanced vehicle technologies, and $231 million for energy efficient building
technologies. These investments will help reduce
dependence on oil and create long-term, sustainable economic growth in the low-carbon industries of the future, helping to foster long-term job
creation. The Budget also eliminates funding for
programs that provide inefficient fossil fuel subsidies that impede investment in clean energy
sources and undermine efforts to deal with the
threat of climate change.
Reduces Proliferation Risks and Promotes the Safety, Security, and Reliability
of the Nuclear Weapons Stockpile Without
­Nuclear Testing. The Budget provides $2.7 billion, an ­increase of $550 million over the 2010 appropriation, to prevent the proliferation of nuclear weapons. This increase supports the strategy
to move toward a world without nuclear weapons
that the President announced in his April 2009,
speech in Prague. This investment fully funds efforts to: secure ­nuclear material; develop technology to detect and deter nuclear testing and smuggling; and support international nonproliferation
treaties, regulatory controls, and safeguards.
Development work on the reliable replacement
­warhead has ceased. The 2011 Budget funds
$8.1 billion, $750 million over the 2010 Budget,
to improve the nuclear stockpile’s safety, security,
and effectiveness with more extensive life extension ­programs, upgrades to the infrastructure
supporting the life extension programs, and new
initiatives in naval reactors work. Funding for
the stockpile and ­naval reactors work increases
by about 10 percent over 2010 funding.

71

THE BUDGET FOR FISCAL YEAR 2011
Protects the Public from Harmful Exposure to Radioactive Waste and Nuclear
­Materials. The Environmental Management
program continues to clean up the legacy of
waste and contamination at sites used to produce
nuclear weapons and conduct energy research.
The Administration has determined that Yucca
Mountain, Nevada, is not a workable option for

a nuclear waste repository and will discontinue its program to construct a repository at the
mountain in 2010. The Department will carry
out its ­responsibilities under the Nuclear Waste
Policy Act within the Office of Nuclear Energy
as it ­develops a new nuclear waste management
­strategy.

Department of Energy
(In millions of dollars)

Estimate

Actual
2009

2010

2011

Spending
Discretionary Budget Authority:
National Defense:
National Nuclear Security Administration �������������������������������
Other Defense Activities ���������������������������������������������������������
Energy Resources ����������������������������������������������������������������������
Science ���������������������������������������������������������������������������������������
Environmental Management �������������������������������������������������������
Radioactive Waste Management ������������������������������������������������
Corporate Management ��������������������������������������������������������������
Power Marketing Administration �������������������������������������������������
Offsetting receipts �����������������������������������������������������������������������
Total, Discretionary budget authority ������������������������������������������������

9,121
1,314
4,131
4,773
5,992
288
207
234
–23
26,037

9,877
847
4,292
4,895
6,008
197
220
99
–27
26,406

11,215
878
5,065
5,121
6,000
—
212
95
–230
28,354

Memorandum:
Budget authority from American Recovery and Reinvestment Act ���
Budget authority from supplementals �����������������������������������������������

36,729
7,867

—
—

—
—

Total, Discretionary outlays ���������������������������������������������������������������

25,154

29,667

31,609

Memorandum: Outlays from American Recovery and Reinvestment Act ��

954

10,703

14,646

–1,206

–752

–474

—
–1,206

—
–752

30
–444

Memorandum: Outlays from American Recovery and Reinvestment Act ��

33

109

131

Total, Outlays ������������������������������������������������������������������������������������

23,948

28,915

31,165

Mandatory Outlays:
Existing law ���������������������������������������������������������������������������������
Legislative proposal, Ultradeep Water, Oil, and Gas Research
and Development ��������������������������������������������������������������������
Total, Mandatory outlays �������������������������������������������������������������������

72

DEPARTMENT OF ENERGY

Department of Energy—Continued
(In millions of dollars)

Estimate

Actual
2009

2010

2011

Credit activity
Direct Loan Disbursements:
Title 17 Innovative Technology Direct Loan Financing Account �����
Advanced Technology Vehicles Manufacturing Direct Loan
Financing Account��������������������������������������������������������������������
Total, Direct loan disbursements �������������������������������������������������������

21

7,284

18,114

886
907

5,304
12,588

11,352
29,466

Guaranteed Loan Commitments:
Title 17 Innovative Technology Loan Guarantee Program 1���������
Total, Guaranteed loan commitments �����������������������������������������������

—
—

3,054
3,054

9,016
9,016

Commitments reflect the full face value of debt obligations, any part of which is guaranteed, supported by Title 17. These figures represent loan guarantee
obligations of the Government at closing, and do not include “conditional commitments,” which are legally contingent on the satisfaction of various conditions
precedent.
1

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Funding Highlights:
•

Supports health insurance reform by expanding patient-centered health research to give
patients and physicians the best available information on what treatments will work the best
for them; supporting investments in health information technology; expanding prevention and
wellness activities; and launching payment reform demonstration programs in Medicare.

•

Adds $290 million for health centers to expand health care access to the medically
underserved.

•

Expands support for biomedical research, by providing an increase of $1 billion for the
National Institutes of Health.

•

Invests approximately $1.4 billion to strengthen food safety efforts and implement core
principles of the President’s Food Safety Working Group.

•

Supports over 8,500 health care professionals in medically underserved areas through the
National Health Service Corps.

•

Continues a commitment to invest in the Indian health system to eliminate health disparities
by increasing access to health care services among American Indians and Alaska Natives.

•

Invests in our Nation’s prevention and wellness activities to improve health outcomes and
lower costs, through the Federal workforce, community-based and State and local efforts.

•

Invests more than $3 billion for HIV/AIDS prevention and treatment activities to expand
access to affordable health care and prevention services.

•

Includes $25.5 billion for a six-month extension of the American Recovery and Reinvestment
Act (AARA) temporary increase in the Federal Medicaid match.

•

Improves preparedness by increasing funding for biodefense medical countermeasure
development.

•

Places a renewed emphasis on preventing, detecting, and recouping fraudulent, wasteful, and
abusive payments in Medicare, Medicaid, and the Children’s Health Insurance Program.

•

Expands and strengthens early education and child care programs by extending the ARRA
expansion of Head Start and Early Head Start, providing an increase of $1.6 billion for
child care to serve 235,000 more children than could be served without the additional funds
in 2011, and supporting work with the Congress to improve quality in the Child Care and
Development Fund.

•

Increases help for families caring for aging relatives at home.

73

74

DEPARTMENT OF HEALTH AND HUMAN SERVICES

The Department of Health and Human Services (HHS) is the principal Federal agency charged
with protecting the health of all Americans and
providing essential human services. This Budget
includes $81.3 billion to support HHS’s mission.
Builds on Health Information Technology
(IT) Adoption Momentum. The Administration continues to prioritize adoption and use of
health IT. The Budget includes $110 million for
continuing efforts to strengthen health IT policy,
coordination, and research activities. Combined
with the ARRA Federal grant and incentives programs designed to assist providers with adoption
and meaningful use of electronic health records,
these efforts will positively affect and improve
the quality of health care while protecting privacy and security of personal health information.
Increases Investment in Patient-Centered
Health Research. The Budget includes $286
million in the Agency for Healthcare Research
and Quality for research that compares the effectiveness of different medical options, building
on the expansion of this research begun under
ARRA. The dissemination of this research is expected to lead to higher quality, evidence-based
medicine, arming patients and physicians with
the best available information to allow them to
choose the medical option that will work the best
for them.
Expands Affordable High-Quality Primary and Preventive Care. The Budget includes $2.5 billion for health centers to provide
affordable high quality primary and preventive
care to underserved populations, including the
uninsured. This will allow health centers to continue to provide care to the 2 million additional
patients they served under ARRA and support
approximately 25 new health center sites. In
2008, health centers provided direct health care
services to 17 million people. In 2011, the Health
Center program will expand its partnerships with
other Federal agencies as part of the Administration’s place-based initiative to revitalize neighborhoods. The Budget also includes funding to
expand the integration of behavioral health into

existing primary health care systems, enhancing
the availability and quality of addiction care.
Funds Innovative Efforts to Improve Services for Seniors and People with Disabilities. The Budget includes new Medicare and
Medicaid demonstration projects that evaluate
reforms to provide higher quality care at lower
costs, improve beneficiary education and understanding of benefits offered, and better align provider payments with costs and outcomes. Special
emphasis will be placed on demonstrations that
improve care coordination for beneficiaries with
chronic conditions, that better integrate Medicare
and Medicaid benefits, and that provide higher
value for dollars spent. The Budget will also support the Year of Community Living Initiative to
promote collaboration between HHS and the Department of Housing and Urban Development to
expand access to housing and community supports to enable people with disabilities to live
in the community, as opposed to in institutional
­settings.
Supports Biomedical Research at the
National Institutes of Health (NIH). To
­accelerate progress in biomedical research, NIH
investments will focus on priority areas including genomics, translational research, science to
support health care reform, global health, and
­reinvigorating the biomedical research community. The Budget includes $6,036 million to support a range of bold and innovative cancer efforts,
including the initiation of 30 new drug trials in
2011, and a doubling of the number of novel compounds in Phase 1–3 clinical trials by 2016. In
addition, the Budget will support the completion
of a comprehensive catalog of cancer mutations
for the 20 most common malignancies, setting
the stage for complete genomic characterization
of every cancer as part of medical care within 10
years.
Supports Americans with Autism Spectrum Disorders (ASD). The Budget includes
$222 million across HHS to expand research, detection, treatment, and other activities related to
improving the lives of individuals and families affected by ASD. NIH will pursue comprehensive

THE BUDGET FOR FISCAL YEAR 2011
and ­innovative approaches to defining the genetic
and environmental factors that contribute to ASD,
investigate epigenomic changes in the brain, and
accelerate clinical trials of novel pharmacological
and behavioral interventions by 2016.
Improves Access to and the Quality of
Health Care in Rural Areas. The Budget includes $79 million for an initiative to strengthen regional and local partnerships among rural
health care providers, increase the number of
health care providers in rural areas, and improve
the performance and financial stability of rural
hospitals.
Increases Number of Primary Health Care
Providers. The Budget invests $169 million in
the National Health Service Corps (NHSC) to
place providers in medically underserved areas
to improve access to needed health care services. Under NHSC, primary health professionals
such as physicians, nurse practitioners, and dentists agree to serve in a medically underserved
community in exchange for receiving a portion of
their student loans paid off. In 2011, the requested increase will add 400 NHSC clinicians to the
more than 8,100 that will be providing essential
primary and preventative care services in health
care facilities across the country.
Continues Efforts to Increase Access to
Health Care for American Indians and Alaska Natives (AI/ANs). The Budget includes $4.4
billion for the Indian Health Service (IHS) to expand investments initiated in 2010. Increases
for IHS will strengthen existing Federal, tribal,
and urban programs that serve 1.9 million AI/
ANs at approximately 600 facilities nationwide,
and will expand access to Contract Health Services to cover health care services provided outside of the Indian health system when services
are not available at IHS-funded facilities. The
Budget will also fund staff and operating costs
at new and expanded facilities to increase access
to health care services and enhance the Indian
health system. The efforts supported in the Budget to expand health services in Indian communities also include an analysis of how IHS can

75
improve distribution of resources throughout the
Indian health system.
Expands and Strengthens Prevention and
Wellness Activities. The Budget bolsters core
prevention activities by expanding community
health activities, strengthening the public health
workforce, and enhancing surveillance and
health statistics to improve detection and monitoring of chronic disease and health outcomes.
The Budget funds a new effort in up to 10 of the
largest cities in the United States to reduce the
rates of morbidity and disability due to chronic
disease through effective policy and environmental change strategies. The Budget also supports
a new health prevention workforce to improve capacity of State and local health departments.
Invests in Wellness Initiatives for the
Federal Workplace to Improve Health and
Lower Costs. The Budget invests $10 million
for the Federal employee workplace wellness initiative. This initiative will implement prototype
wellness programs in select locations that will be
rigorously evaluated for their ability to produce a
healthier workforce and lower healthcare costs.
By encouraging the adoption of these programs,
we can improve the productivity of our workforce, delay or avoid many of the complications
of chronic disease, and slow medical cost growth.
Expands and Focuses HIV/AIDS Treatment, Care, and Prevention Activities. The
Budget expands access to HIV/AIDS prevention and treatment activities consistent with the
President’s pledge to develop a National HIV/
AIDS Strategy that will focus on reducing HIV
incidence, increasing access to care and optimizing health outcomes, and reducing HIV-related
health disparities. The Budget focuses HIV testing among high-risk groups, including men who
have sex with men, African Americans, and Hispanics. The Budget increases resources for the
Ryan White program to support the care and
treatment needs for persons living with HIV/
AIDS who are unable to afford health care and
related support services. The Budget directs resources to reduce HIV-related health disparities
by expanding HIV/AIDS medical services within

76

DEPARTMENT OF HEALTH AND HUMAN SERVICES

populations disproportionately impacted by the
epidemic. The Budget also enhances funding
for collaboration and integration activities to
improve overall health outcomes for those with
HIV/AIDS and co-infections with tuberculosis,
hepatitis, and sexually transmitted diseases.
Expands Substance Abuse Prevention
and Treatment Activities. The Budget expands substance abuse treatment services at IHS
facilities and federally qualified health centers,
and provides $23 million for comprehensive substance abuse prevention services targeting early
risk factors that can improve health outcomes for
children and young adults. To assist in recovery
to reduce recidivism, the Budget provides $56
million to expand the treatment capacity at drug
courts and $23 million for re-entry programs.
These activities are a part of over $150 million
in new funding for the Departments of Health
and Human Services and Justice (DOJ) to reduce
the Nation’s demand for drugs by strengthening efforts to detect and prevent illicit drug use
in our communities, expanding early drug abuse
intervention in the primary health care system,
enhancing specialty addiction treatment services,
and breaking the cycle of illicit drug use, crime,
and incarceration.
Bolsters the Safety of our Food and Medicines. The Budget provides $2.5 billion in budget authority and $4.0 billion in total program
resources for the Food and Drug Administration
(FDA). The Budget enables FDA to implement
the core principles recommended by the President’s Food Safety Working Group: prioritizing
prevention; strengthening surveillance and enforcement; and improving response and recovery.
The Budget also includes increases to bring more
safe, effective, and lower cost generic drugs and
generic biologics to market, expand postmarket
safety surveillance of medical products, and support FDA’s efforts to make such safety data more
comprehensive and accessible to patients, providers, and scientists in a way that also protects
­privacy.

Strengthens the Nation’s Preparedness
Against Naturally Occurring Threats and
Intentional Attacks. The Budget increases
support to over $400 million to enhance the Advanced Development of next generation medical
countermeasures against chemical, biological, radiological and nuclear threats. The Department
has invested $5.6 billion since 2005 to enhance
the Nation’s ability to rapidly respond to an influenza pandemic. In April 2009, the President
requested resources from the Congress to enable
additional efforts to respond to the 2009 H1N1
virus that had recently emerged and in June, the
Congress provided $7.65 billion in the Supplemental Appropriations Act 2009. By the end of
2009, more than $3.6 billion had been spent as
the Federal Government procured H1N1 vaccines, mounted a mass vaccination campaign,
provided resources to the States to enhance public health response efforts, and provided critical
anti-viral medications and personal protective
equipment. In 2010, HHS will continue to use
these resources to build the U.S.-based influenza
vaccine production capacity and shift to non-egg
based production technologies and invest in the
development of improved diagnostics. Approximately $330 million of these resources is expected to be spent in 2011. These ongoing activities to
reduce the impact of influenza pandemics will be
funded from resources in the 2009 Supplemental
for pandemic influenza.
Fights Waste and Abuse in Medicare, Medicaid, and the Children’s Health Insurance
Program (CHIP). Reducing fraud, waste, and
abuse is an important part of restraining spending growth and providing quality service delivery
to beneficiaries. In November 2009, the President
signed an Executive Order to reduce improper
payments by boosting transparency, holding
agencies accountable, and creating incentives for
compliance. This Budget puts forward a robust
set of proposals to strengthen Medicare, Medicaid
and CHIP program integrity actions, including
proposals aimed at preventing fraud and abuse
before they occur, detecting it as early as possible
when it does occur, and vigorously enforcing all
penalties and recourses available when fraud is
identified. It proposes $250 million in addition-

77

THE BUDGET FOR FISCAL YEAR 2011
al resources that, among other things, will help
expand the Health Care Fraud Prevention and
Enforcement Action Team (HEAT) initiative, a
joint effort by HHS and DOJ. As a result, the Administration will be better able to minimize inappropriate payments, close loopholes, and provide
greater value for program expenditures to beneficiaries and taxpayers. Also, to improve quality
and safety, the Administration will strengthen its
Medicare requirements to assure that air ambulance operators comply with aviation safety
­standards.
Supports Young Children and Their Families. The Budget provides critical support for
young children and their families by building on
historic increases provided in ARRA. The Budget provides an additional $989 million for Head
Start and Early Head Start to continue to serve
64,000 additional children and families funded
in ARRA. The Budget also provides an additional $1.6 billion for the Child Care and Development Fund in preparation for reauthorization
to expand child care opportunities, and improve
health, safety, and outcomes for children. This request will allow States to provide child care subsidies to 1.6 million children, 235,000 more than
could be served without the increase.
Helps Families Care for Aging Relatives.
The Budget includes $103 million for the Administration on Aging’s Caregiver Initiative, an ­effort
to expand help to families and seniors so that
caregivers can better manage their multiple responsibilities and seniors can live in the commu-

nity for as long as possible. Without creating new
programs, this initiative provides new resources
to support the network of agencies in local communities across the country that already provide
critical help to seniors and caregivers.
Provides Energy Assistance to Low-Income Families. The Budget includes $3.3 billion for the Low Income Home Energy Assistance
Program to help low-income families with their
home heating and cooling expenses. In addition,
the Administration proposes a new trigger mechanism to provide automatic increases in energy
assistance whenever there is a spike in energy
costs or large numbers of families in poverty. The
trigger allows the program to be more responsive
to volatile energy markets and to increased demand for energy assistance during times of economic hardship. Using probabilistic scoring, we
expect the trigger to provide roughly $2 billion
in additional assistance in 2011 and $6.5 billion
over 10 years.
Help States Provide Health Care Coverage to Low-Income Individuals. The Budget
includes $25.5 billion to support State Medicaid programs by temporarily increasing Federal
Medicaid funding for six months through June
2011. The Federal Medical Assistance Percentage (FMAP) increase has been an effective way
to help States maintain their Medicaid programs
during a period of high enrollment growth and reduced State revenue, and provide immediate and
ongoing State fiscal relief.

Department of Health and Human Services
(In millions of dollars)

Actual
2009
Spending
Discretionary Budget Authority:
Food and Drug Administration 1 ����������������������������������������������������������������
Program Level (non-add) ���������������������������������������������������������������������
Health Resources and Services Administration ����������������������������������������
Indian Health Service ��������������������������������������������������������������������������������

2,061
2,691
7,243
3,581

Estimate
2010

2,362
3,284
7,484
4,053

2011

2,508
4,031
7,512
4,406

78

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Department of Health and Human Services—Continued
(In millions of dollars)

Actual
2009
Centers for Disease Control and Prevention ���������������������������������������������
National Institutes of Health ����������������������������������������������������������������������
Substance Abuse and Mental Health Services Administration �����������������
Agency for Healthcare Research and Quality �������������������������������������������
Program Level (non-add) ���������������������������������������������������������������������
Centers for Medicare & Medicaid Services (CMS) 2 ��������������������������������
Discretionary Health Care Fraud and Abuse Control ��������������������������������
Administration for Children and Families ��������������������������������������������������
Administration on Aging ����������������������������������������������������������������������������
General Departmental Management ��������������������������������������������������������
Office of Civil Rights ����������������������������������������������������������������������������������
Office of the National Coordinator for Health Information Technology�������
Program Level (non-add) ���������������������������������������������������������������������
Office of Medicare Hearings and Appeals ������������������������������������������������
Public Health and Social Services Emergency Fund ��������������������������������
Office of Inspector General �����������������������������������������������������������������������
All other �����������������������������������������������������������������������������������������������������
Subtotal, Discretionary budget authority����������������������������������������������������������
Unallocated Bioshield Balances Transferred from Department of
Homeland Security 3�������������������������������������������������������������������������������
Total, Discretionary budget authority ��������������������������������������������������������������

Estimate
2010

2011

6,357
30,096
3,335
—
372
3,522
198
17,225
1,488
395
40
44
61
65
1,399
45
58
77,152

6,467
31,089
3,432
—
397
3,415
311
17,336
1,513
500
41
42
61
71
1,347
50
61
79,574

6,342
32,089
3,541
—
611
3,601
561
17,480
1,625
544
44
78
78
78
735
52
61
81,257

—
77,152

2,424
81,998

—
81,257

Memorandum:
Budget authority from American Recovery and Reinvestment Act �����������������
Budget authority from supplementals �������������������������������������������������������������

22,397
9,119

—
—

—
—

Total, Discretionary outlays 2 ���������������������������������������������������������������������������

74,921

82,266

82,803

Memorandum: Outlays from American Recovery and Reinvestment Act �������

682

8,437

10,100

424,828
—

450,664
—

489,305
-722

226,885
—

245,118
15

264,498
25,280

34,503
—
686,216

34,872
—
730,669

35,915
3,774
818,050

Mandatory Outlays:
Medicare
Existing law 4 ����������������������������������������������������������������������������������������
Legislative proposal �����������������������������������������������������������������������������
Medicaid 5
Existing law ������������������������������������������������������������������������������������������
Legislative proposal �����������������������������������������������������������������������������
All other
Existing law ������������������������������������������������������������������������������������������
Legislative proposal �����������������������������������������������������������������������������
Total, Mandatory outlays ���������������������������������������������������������������������������������

79

THE BUDGET FOR FISCAL YEAR 2011

Department of Health and Human Services—Continued
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Memorandum: Outlays from American Recovery and Reinvestment Act �������

32,673

45,674

21,520

Total, Outlays ��������������������������������������������������������������������������������������������������

761,137

812,935

900,853

1

FDA 2009 budget authority increased by $6 million due to timing and availability of user fees.

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.
2

In 2010, $3,033 million from the Bioshield Special Reserve Fund (SRF) was transferred from the Department of Homeland Security to the Department of
Health and Human Services. Of this amount, $609 million was redirected to support Advanced Development and NIH, and $2,424 million remains as
balances in the SRF. In 2011, $476 million from the SRF will be used to support the Biomedical Advanced Research and Development Authority.
3

Includes $44 million in 2009, $36 million in 2010, and $3 million in 2011 of CMS Program Management mandatory funding. Social Security Medicare
Improvements for Patients and Providers Act (MIPPA) funding is included in the corresponding table of the SSA chapter.
4

5

Totals include Medicaid, CHIP, and CHIP Child Enrollment Contingency Fund outlays.

DEPARTMENT OF HOMELAND SECURITY

Funding Highlights:
•

Supports aviation security by deploying up to 1,000 Advanced Imaging Technology screening
machines that can identify anomalies such as firearms and explosives on passengers, and by
increasing the number of international flights on which Federal Air Marshals are present.

•

Protects against threats to the homeland by procuring and deploying next-generation
BioWatch sensors nationwide and supporting the Comprehensive National Cybersecurity
Initiative.

•

Strengthens border security and immigration enforcement by supporting 20,000 Border Patrol
agents, adding 300 new officers at ports of entry, completing the first segment of the virtual
border fence, and by enhancing and expanding immigration verification systems.

•

Supports State homeland security activities through funding provided to States and localities
to protect Americans from terrorist attacks and natural disasters. Specifically, provides $4
billion in State and local programs funding for risk-informed grants and additional assistance
to our Nation’s first responders as well as $1.95 billion for disaster assistance.

•

Continues recapitalization of key Coast Guard assets, including $538 million to construct the
fifth National Security Cutter and $240 million to construct four more Fast Response Cutters.

The Department of Homeland Security (DHS)
is the principal Federal agency charged with
such vital missions as aviation and border security, preparedness and emergency response,
maritime safety and security, and protecting our
Nation’s leaders. The Budget includes $44 billion
to support these missions.
Safeguards Our Nation’s Transportation
Systems. The Budget provides $734 million
to support the deployment of up to 1,000 new
Advanced Imaging Technology (AIT) screening
machines at airport checkpoints and new explosive detection equipment for baggage screening
in 2011. AIT machines allow security officers to
detect both metallic and non-metallic anomalies,

such as weapons and explosives on persons entering an airport’s sterile area. Additional funding
is also included for the Federal Air Marshal Service (FAMS). This funding will allow the FAMS
to increase the number of international flights
covered by FAMS to defend against attempted
attacks on aviation. The Budget provides $54
million for the continued modernization and
streamlining of transportation security vetting
and credentialing, which will reduce ­duplicative
Transportation Security Administration processes and systems. This modernization will eliminate redundancies for those applying for multiple credentials as all vetting will be performed
centrally, allowing for multiple credentials to be
issued with a single vetting process.

81

82
Prevents Biological, Radiological, and
Nuclear Attacks. The Budget funds activities
to prevent attacks to our Nation. Procurement
and nationwide deployment of next-generation
BioWatch sensors is funded at $89 million. These
sensors will detect bio-attacks at the earliest
possible instant. As part of the ongoing effort to
­protect against radiological or nuclear threats,
the Budget funds $61 million for radiation detection equipment to enhance the Department of
Homeland Security’s detection capabilities at sea
ports, land border crossings, and airports.
Strengthens Border Security and Immigration Verification Programs. The Budget includes funding to support 20,000 Border
­Patrol agents and complete the first segment of
Customs and Border Protection’s (CBP’s) virtual
border fence. The Budget also includes funding
for 300 new CBP officers for passenger and cargo
screening at ports of entry, as well as expansion of
pre-screening operations at foreign airports and
land ports of entry. The Budget provides more
than $1.6 billion for Immigration and Customs
­Enforcement programs to expeditiously identify
and remove from the United States illegal aliens
who commit crimes. Included in this total is
continued support for the Secure Communities
­program.
To enhance and expand immigration related
verification programs, the Budget provides $137
million to the U.S. Citizenship and Immigration Services. Through E-Verify, U.S. employers
can maintain a legal workforce by verifying the
employment eligibility of their workers, while
Systematic Alien Verification for Entitlements
(SAVE) assists Federal, State, and local benefit-granting agencies with determining eligibility for benefits by verifying immigration status. These programs promote compliance with
­immigration laws and prevent individuals from
­obtaining benefits for which they are not eligible.
Protects Critical Information Networks.
Data networks are central to the functioning of
our economy and Nation. The Budget provides
$364 million to support the operations of the

DEPARTMENT OF HOMELAND SECURITY
­ ational Cyber Security Division, which protects
N
Federal systems as well as continuing efforts under the Comprehensive National Cybersecurity
Initiative to protect our information networks
from the threat of attacks or disruptions.
Promotes Citizenship and Integration.
The Budget increases support for integration
of new immigrants with $18 million identified
to promote citizenship through education and
­preparation programs, replication of promising
practices in integration for use by communities
across the Nation, and expansion of innovative
English learning tools.
Invests Significantly in Upgrading the
Coast Guard Fleet. The Budget funds $538
million to construct the fifth Coast Guard
­National Security Cutter and $240 million to
produce four new Fast Response Cutters. Funding of $45 million enables Coast Guard to move
ahead with selection of a design for the Offshore
Patrol Cutter. These new assets replace an
­aging fleet of cutters and patrol boats and provide stronger command and control platforms
for more effective and efficient execution of all
Coast Guard missions.
Supports First Responders, National
Preparedness, and ­Response Capabilities.
The Budget funds $4 billion in State and local programs, including Firefighter Assistance
Grants, for equipping, training, exercising, and
hiring first responders. Of this amount, funding of $1.1 billion for the Urban Area Security
Initiative will direct resources to the metropolitan vicinities with the highest threat—based on
a risk management methodology. Funding of
$600 million provides essential support to the
transportation sector through the Transit and
Port Security Grant Programs. The Budget also
supports disaster response and resilience efforts
by funding the Disaster Relief Fund (DRF) at
$1.95 billion. The DRF is used in the instance of
a presidentially-declared disaster or emergency
by the Federal Emergency Management Agency to assist State and local governments in the

83

THE BUDGET FOR FISCAL YEAR 2011
r­ esponse, recovery, and mitigation against emergency and disaster events.
Cuts Waste and Improves Performance by
Integrating and Unifying the Department.
The Budget funds a number of activities to im-

prove ongoing operations at DHS, including $288
million for the consolidation of DHS into one
major complex in the National Capital Region.
Funding is also provided to enhance the capability and capacity of the DHS acquisition workforce.

Department of Homeland Security
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Spending
Discretionary Budget Authority:
Departmental Management and Operations ��������������������������������������������
Office of the Inspector General ����������������������������������������������������������������
U.S. Citizenship and Immigration Services ����������������������������������������������
United States Secret Service �������������������������������������������������������������������
Transportation Security Administration ����������������������������������������������������
Federal Law Enforcement Training Center �����������������������������������������������
Immigration and Customs Enforcement ���������������������������������������������������
Customs and Border Protection ���������������������������������������������������������������
U.S. Coast Guard �������������������������������������������������������������������������������������
National Protection and Programs Directorate ����������������������������������������
Federal Emergency Management Agency �����������������������������������������������
Science and Technology ��������������������������������������������������������������������������
Domestic Nuclear Detection Office ����������������������������������������������������������
Total, Gross �����������������������������������������������������������������������������������������������������
Less fee-funded activities ������������������������������������������������������������������������
Total, Discretionary budget authority (net) ������������������������������������������������������
Bioshield (non-add) ����������������������������������������������������������������������������������

963
123
149
1,412
4,741
333
4,992
9,686
8,112
3,108
7,001
933
514
44,591
2,526
42,065
1,763

1,131
130
224
1,483
5,126
282
5,437
10,134
8,595
–1,584
7,108
1,000
376
41,732
2,290
39,442
–3,033

1,618
130
382
1,572
5,724
278
5,524
9,817
8,466
1,460
7,294
1,018
306
45,922
2,333
43,589
—

Memorandum:
Budget authority from American Recovery and Reinvestment Act �����������������
Budget authority from supplementals �������������������������������������������������������������

2,755
500

—
3,842

—
254

Total, Discretionary outlays �����������������������������������������������������������������������������

48,967

51,404

53,248

Memorandum: Outlays from American Recovery and Reinvestment Act �������

107

1,313

1,077

Mandatory Outlays:
U.S. Citizenship and Immigration Services ����������������������������������������������
Federal Emergency Management Agency �����������������������������������������������

2,390
2,116

2,314
–158

2,568
–9

84

DEPARTMENT OF HOMELAND SECURITY

Department of Homeland Security—Continued
(In millions of dollars)

Estimate

Actual
2009

2010

2011

Customs and Border Protection
Existing law �����������������������������������������������������������������������������������������
Legislative proposal ����������������������������������������������������������������������������
U.S. Coast Guard �������������������������������������������������������������������������������������
Transportation Security Administration ����������������������������������������������������
All other ����������������������������������������������������������������������������������������������������
Total, Mandatory outlays ���������������������������������������������������������������������������������

1,055
—
1,512
290
–4,694
2,669

1,327
—
1,500
369
–5,154
198

1,373
5
1,604
407
–5,538
410

Total, Outlays ��������������������������������������������������������������������������������������������������

51,636

51,602

53,658

Credit activity
Direct Loan Disbursements:
Disaster Assistance ���������������������������������������������������������������������������������
Total, Direct loan disbursements ���������������������������������������������������������������������

89
89

160
160

160
160

DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
Funding Highlights:
•

Provides $4.4 billion for the Community Development Fund, including full funding of
Community Development Block Grant formula funds and $150 million for Catalytic Investment
Competition Grants to implement economic development activities in targeted distressed
communities.

•

Provides a $2.1 billion increase over the 2010 Budget for rental assistance to extremely
low- and low-income families through Housing Choice Vouchers and Project-Based Rental
Assistance. Rental assistance helps prevent homelessness and other hardships.

•

Begins a new multi-year initiative to combine the Department’s multiple rental assistance
programs into a single funding stream and encourage entities that administer Housing
Choice Vouchers to operate on a regional basis. This initiative will more effectively preserve
the public housing stock, provide assisted families greater housing mobility, and streamline
Department operations.

•

Strengthens communities and regions through place-based initiatives. The 2011 Budget
requests an additional $250 million for Choice Neighborhoods; and includes $150 million for
the Department’s role in developing and supporting the Sustainable Communities initiative in
partnership with the Department of Transportation and the Environmental Protection Agency.

•

Provides an unprecedented $2.1 billion for the Department’s Homeless Assistance Grants
Program to implement the Homeless Emergency Assistance Rapid Transition to Housing
(HEARTH) Act; the budget for homeless programs reflects the Administration’s commitment
and goal to make visible, sustained progress toward ending homelessness.

•

Reforms Federal Housing Administration (FHA) mortgage insurance, increases funding
for FHA information technology and risk management, and provides additional funds for
combating mortgage fraud.

The Department of Housing and Urban
Development (HUD) is committed to fulfilling
its mission of supporting home ownership,
increasing access to affordable housing free
from discrimination, and supporting innovative
and sustainable community development.
The President’s Budget provides $48.5 billion
in program funding to support HUD’s core

programs and new initiatives to achieve these
important goals while protecting taxpayer
dollars and reducing costs through stronger risk
management and reform of inefficient programs.
This funding will be offset by estimated
collections of $6.9 billion from responsible credit
premiums charged for HUD mortgage insurance
and other credit enhancements.

85

86

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Fully Funds the Community Development
Block Grant Program. The Budget provides
$4.4 billion for the Community Development
Fund, including $3.99 billion for the Community Development Block Grant (CDBG) formula
program, and $150 million for the creation of a
Catalytic Investment Competition Grants program. The new Catalytic Competition Grants
program uses the authorities of CDBG, but will
provide capital to bring innovative economic development projects to scale to make a measurable
impact. The competitive grants will fund applicants with targeted economic investments while
leveraging other federal neighborhood revitalization programs, including mainstream CDBG
funding. Unlike CDBG, consortia including high
capacity non-governmental entities that have developed an innovative plan may apply, along with
governmental entities, and the grants will target
areas experiencing significant economic distress.
The program will create a well-targeted funding
stream that is responsive to changes in market
conditions and that enhances the economic competitiveness of distressed communities.
Increases Funding for the Housing Choice
Voucher Program. The President’s Budget
requests $19.6 billion for the Housing Choice
Voucher program to help more than two million
extremely low- to low-income families with rental
assistance to live in decent housing in neighborhoods of their choice. The Budget continues funding for all existing mainstream vouchers and provides flexibility to support new vouchers leased in
2009 and 2010 and $85 million in special purpose
vouchers for homeless families with children,
families at risk of homelessness, and persons
with disabilities. The Administration remains
committed to working with the Congress to focus
the goals and objectives of the program, as well as
address the program’s costly inefficiencies, and to
fully utilize available funding by alleviating the
administrative burdens on the Public Housing
Authorities that implement HUD voucher and
other programs, and establish a funding mechanism that is transparent and predictable in order
to serve more needy families.
Preserves 1.3 Million Affordable Rental
Units through Project-Based Rental Assistance Program. The President’s Budget pro-

vides $9.4 billion for the Project-Based Rental Assistance program to preserve approximately 1.3
million affordable rental units through increased
funding for contracts with private owners of multifamily properties. This critical investment will
help extremely low- to low-income households to
obtain or retain decent, safe and sanitary ­housing.
Launches the Conversion of Public
­ ousing to Project-based Vouchers Through
H
the Transforming Rental Assistance Initiative. The Administration requests $350 million
to fund the first phase of this multi-year initiative to regionalize the Housing Choice Voucher
program and convert Public Housing to projectbased vouchers. The primary goals of this initiative are to improve the physical condition and
management of the public housing stock, increase
the mobility of assisted families, and streamline
HUD oversight of its rental assistance programs.
Combats Mortgage Fraud. The Budget provides $20 million for HUD to combat mortgage
fraud and predatory lending practices. These
resources will allow HUD to increase enforcement of mortgage and home purchase settlement
­requirements.
Provides Funding for Choice Neighborhoods. By providing $250 million in 2011, the
Budget continues HUD’s effort to make a range
of transformative investments in high-poverty
neighborhoods where public and assisted housing
is concentrated. A central element of the Administration’s place-based agenda, this initiative will
invest in public, private and nonprofit partners
that have transformative neighborhood interventions and provide the greatest returns on Federal
investment.
Implements the Homeless Emergency
Assistance Rapid Transition to ­Housing
(HEARTH) Act. The President’s Budget ­provides
$2.1 billion for HUD’s Homeless ­Assistance
­Programs to effectively implement the HEARTH
Act. Enacted in May 2009 to fundamentally
transform the Federal response to homelessness,
HEARTH streamlined three current homeless
programs into one, placed greater emphasis on
homelessness prevention, and ­provided ­increased
funds for renewal costs and permanent housing

THE BUDGET FOR FISCAL YEAR 2011
beds. The Budget will support the key ­priorities
reflected in HEARTH, including $200 million for
Emergency Solutions Grant, funding for about
10,000 new permanent housing beds, and a competitive rural program. HUD is also working
in partnership with the Department of ­Veteran
Affairs to substantially lower the number of
­homeless veterans.
Helps
Communities
Become
More
­ ustainable and Livable. As part of the PresiS
dent’s Partnership for Sustainable Communities,
the Budget includes $150 million to help stimulate
comprehensive regional and community planning
efforts that integrate transportation and housing
investments that result in more regional and local
sustainable development patterns, ­reduce greenhouse gases, and increase more transit accessible
housing choices for residents. HUD’s Sustainable
Communities Initiative also expands and better
coordinates Federal efforts to create incentives
for State and local governments to plan for and
implement pre-disaster mitigation strategies.
Coordinating hazard mitigation efforts with related sustainability goals and activities will reduce risks while protecting life, property, and the
environment. Combined with the Department of
Transportation’s funding for strengthening the
capacity of States and local governments to make
smarter infrastructure investments and the Environmental Protection Agency’s technical assistance, this interagency Partnership, which is one
of the pillars of the Administration’s place-based
agenda, aims to lower the cost of living while improving the quality of life in local communities.
It will do so by providing more coordinated housing and transportation options, improving environmental quality, and better leveraging Federal
investments.

87
Enhances FHA’s Risk Management and
Housing Counseling. The Budget provides
an additional $18 million for FHA to enhance
its monitoring and management of its insurance
portfolio’s financial risk. In addition, the Budget
includes programmatic changes to single-family mortgages insured by FHA. These changes,
which include raising the minimum credit score
for high-risk borrowers and restructuring of insurance premiums, will reduce risk and replenish
FHA’s capital reserves while allowing it to meet
its mission of providing sound access to home
financing for underserved populations. In addition, the Budget proposes $338 million for housing counseling, including a greater than 7 percent
increase for the Neighborhood Reinvestment Corporation (NeighborWorks), which will fund vital
foreclosure counseling services in communities
across the Nation.
Expands Funding for High-Priority
­ esearch and Program Evaluations. The
R
Budget provides increased funding for housing research, fully funds the American Housing Survey,
and funds three new impact evaluations as part
of the Government-wide evaluation initiative—a
Family Self-Sufficiency Demonstration, Rent Reform Demonstration, and Choice Neighborhoods
Demonstration. This increased investment in research will allow HUD to determine whether programs are achieving their intended outcomes and
provide new evidence on how to efficiently and effectively provide rental assistance. The Budget
also includes $25 million to support research and
development (R&D) tied to the President’s national goals of energy, health and sustainability.
Partnering with other agencies, HUD will invest
in R&D focused on the linkages between the built
environment and health, hazard risk reduction
and resilience, and the development of innovative
building technologies and building processes.

88

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Department of Housing and Urban Development
(In millions of dollars)

Actual
2009
Spending
Discretionary Budget Authority:
Community Development Fund �����������������������������������������������������������������
Catalytic Investment Grants (non-add) �������������������������������������������������
Sustainable Communities (non-add) ����������������������������������������������������
HOME Investment Partnerships Program �������������������������������������������������
Homeless Assistance Grants ��������������������������������������������������������������������
Housing Opportunities for Persons with AIDS ������������������������������������������
Tenant-based Rental Assistance ��������������������������������������������������������������
Project-based Rental Assistance ��������������������������������������������������������������
Public Housing Operating Fund ����������������������������������������������������������������
Public Housing Capital Fund ���������������������������������������������������������������������
Transforming Rental Assistance ���������������������������������������������������������������
Choice Neighborhoods/HOPE VI ��������������������������������������������������������������
Native American Housing Block Grant ������������������������������������������������������
Housing for the Elderly ������������������������������������������������������������������������������
Housing for Persons with Disabilities ��������������������������������������������������������
Federal Housing Administration (FHA)
Existing Law �����������������������������������������������������������������������������������������
Legislative proposal �����������������������������������������������������������������������������
Government National Mortgage Association (GNMA)�������������������������������
Salaries and Expenses �����������������������������������������������������������������������������
Policy Development and Research �����������������������������������������������������������
All other �����������������������������������������������������������������������������������������������������
Total, Discretionary budget authority ��������������������������������������������������������������

Estimate
2010

2011

3,900
—
—
1,825
1,677
310
16,225
7,100
4,455
2,450
—
120
645
765
250

4,450
—
150
1,825
1,865
335
18,184
8,558
4,775
2,500
—
200
700
825
300

4,380
150
150
1,650
2,055
340
19,551
9,376
4,829
2,044
350
250
580
274
90

–874

–2,215

–888
1,303
58
722
40,043

–914
1,346
48
799
43,581

–1,628
–4,099
–679
1,379
87
761
41,590

Memorandum:
Budget authority from American Recovery and Reinvestment Act �����������������
Budget authority from supplementals �������������������������������������������������������������

13,626
30

—
—

—
—

Total, Discretionary outlays �����������������������������������������������������������������������������

44,240

46,208

46,127

Memorandum: Outlays from American Recovery and Reinvestment Act........

1,520

3,628

5,545

Mandatory Outlays:
FHA �����������������������������������������������������������������������������������������������������������
Community Planning and Development ����������������������������������������������������
Housing Trust Fund (non-add) ��������������������������������������������������������������
All other �����������������������������������������������������������������������������������������������������
Total, Mandatory outlays ���������������������������������������������������������������������������������

15,938
119
—
–798
15,259

12,228
1,263
—
–807
12,684

1,016
1,128
20
–732
1,412

Total, Outlays ��������������������������������������������������������������������������������������������������

59,499

58,892

47,539

89

THE BUDGET FOR FISCAL YEAR 2011

Department of Housing and Urban Development—Continued
(In millions of dollars)

Estimate

Actual
2009

2010

2011

Credit activity
Direct Loan Disbursements:
FHA �����������������������������������������������������������������������������������������������������������
GNMA �������������������������������������������������������������������������������������������������������
Green Retrofit Program for Multifamily Housing ���������������������������������������
Total, Direct loan disbursements ���������������������������������������������������������������������
Guaranteed Loan Commitments:
FHA �����������������������������������������������������������������������������������������������������������
GNMA��������������������������������������������������������������������������������������������������������
All other �����������������������������������������������������������������������������������������������������

—
10
—
10

50
27
143
220

50
25
—
75

355,723
418,938
608

340,080
380,942
1,126

265,705
283,042
1,220

Total, Guaranteed loan commitments �������������������������������������������������������������

775,269

722,148

549,967

DEPARTMENT OF THE INTERIOR
Funding Highlights:
•

Promotes renewable energy development on Federal lands and waters with the goal of
permitting at least 9,000 megawatts of energy capacity on Department of the Interior lands by
the end of 2011.

•

Stays on track to fully fund Land and Water Conservation Fund programs by 2014 by
providing nearly $620 million to acquire new lands for national parks, forests and refuges,
protect endangered species habitat, and promote outdoor recreation.

•

Helps Federal land managers address the impact of climate change by expanding the
Department’s science capability to develop vital decision support tools.

•

Improves the return to taxpayers from U.S. mineral production through royalty reforms and
industry fees.

•

Strengthens Native American communities with funds to enhance the management
capacity of tribal governments and improve coordination between Federal agencies on law
enforcement.

•

Prepares responsibly for wildfires with full funding for suppression and a contingency reserve
fund.

•

Promotes water conservation and science while balancing competing water resource needs.

The Department of the Interior (DOI) is committed to fulfilling its mission to protect and
manage the Nation’s natural resources and cultural heritage; provide scientific and other information about those resources; and honor its
trust responsibilities or special commitments to
American Indians, Alaska Natives, and affiliated
Island Communities. The President’s 2011 Budget provides $12 billion to DOI to achieve these
goals, while reforming inefficient programs and
generating mandatory savings of about $2.7
­billion over 10 years.

Invests in a Clean Energy Future. DOI
plays a key role in supporting the President’s
plan to create a clean energy future that holds
the promise of an improved environment, enhanced energy security, and green jobs in new industries. DOI already manages public lands and
offshore resources that provide about one-third
of the domestic supply of fossil fuel resources.
The Department is now expanding on that role
to become a leader in promoting clean, renewable energy on Federal lands. The 2011 Budget
adds $14 million—on top of $50 million in 2010
increases—to build agency capacity to review
and permit renewable energy projects on Federal

91

92
lands. This includes conducting the environmental evaluations and technical studies needed to
spur development of renewable energy projects,
assess available alternative resources, and mitigate the impacts of development. DOI has set a
goal to permit at least 9,000 megawatts of new
solar, wind, and geothermal electricity generation capacity on DOI-managed lands by the end
of 2011.
Conserves Landscapes and Ecosystems.
The Administration continues its commitment to
acquire and conserve landscapes and ecosystems
that lack adequate protection with increased
funding from the Land and Water Conservation Fund (LWCF). The Budget provides an increase of $106 million, or 31 percent, for LWCF
programs in DOI that protect Federal lands for
wildlife and public enjoyment and provide State
grants for park and recreational improvements.
Total LWCF funding for the Departments of
­Agriculture and the Interior is nearly $620 million, keeping the Administration on track to fully
fund LWCF programs at $900 million by 2014. In
addition, the Budget proposes to reauthorize and
expand DOI’s authority under the Federal Land
Transaction Facilitation Act, so that the proceeds
from the sale of low-conservation value lands
may be used to acquire additional high-priority
conservation lands.
Establishes Climate Science Centers.
Managing ecosystems and wildlife habitat that
are facing the impact of climate change requires
reliable data on changes, supporting science, and
tools to bring these together to inform land management decisions. DOI is establishing a framework, which includes Climate Science Centers
that will focus on the impact of climate change
on a broad array of Departmental resources.
The Budget includes an increase of $14 million
for these Centers to provide land managers with
vital decision support tools based on the latest
­science.
Provides a Better Return to Taxpayers
from Mineral Development. The public received about $10 billion in 2009 from fees, royalties, and other Federal payments related to oil,

DEPARTMENT OF THE INTERIOR
gas, coal, and other mineral development. Yet a
number of recent studies by the Government Accountability Office and DOI’s Inspector General
have found that this return could be improved
through more rigorous oversight and policy
changes, such as charging appropriate fees and
reforming how royalties are set. The Budget proposes a number of actions to ensure that Federal
taxpayers receive a fair return from the development of U.S. mineral resources:
•

Terminating payments to coal-producing
States and Tribes that no longer need
funds to clean up abandoned coal mines.

•

Extending the practice of having States
with mineral revenue payments help to
defray the Federal costs in managing the
mineral leases that generate the revenue.

•

Charging user fees to oil companies for
processing oil and gas drilling permits and
inspecting operations on Federal lands
and waters.

•

Establishing fees for new non-producing
oil and gas leases (both onshore and offshore) to encourage more timely production.

•

Making administrative changes to Federal oil and gas royalties, such as adjusting
royalty rates and terminating the royaltyin-kind program.

Empowers Tribal Nations. The Administration supports tribal self-determination and
will assist tribal governments in enhancing their
management capacity. The Budget provides increased funding to better compensate Tribes for
the work they perform in managing Federal programs under self-determination contracts and
self-governance compacts. In addition, the Budget includes proposals to foster better coordination between the Departments of the Interior and
Justice on Indian law enforcement issues.
Prepares Responsibly for Wildfires. The
Budget continues the long-standing practice of
fully funding the 10-year average cost of wildland fire suppression operations. To reduce the
need for emergency appropriations, the Budget

93

THE BUDGET FOR FISCAL YEAR 2011
for DOI includes an additional $75 million funding reserve to be used only as a contingency when
regular suppression funding is exhausted. The
Budget also targets hazardous fuels reduction
funding for activities in the wildland-urban interface where they are most effective. Priority
is given to projects in communities that have
met “Firewise” standards, identified acres to be
treated, and invested in local solutions to protect
against wildland fire.
Invests in Water Resources Infrastructure
and Science. The Budget continues to focus resources on the Department’s Water Conservation
initiative, which assists local communities in increasing water availability by encouraging voluntary water banks, reuse of treated wastewater,

and other market-based conservation measures.
The initiative also includes the Bureau of Reclamation’s water reuse and recycling (Title XVI)
program and invests an additional $9 million in a
multi-year, nationwide study of water availability
and use by the U.S. Geological Survey. Moreover,
in coordination with other Federal agencies and
the State of California, the Department is also
participating in activities and dedicating resources to foster continued progress in the restoration
of a number of sensitive ecosystems, including the
California Bay-Delta. The Department will work
with Federal interagency working groups to develop performance measures and tools to identify
those restoration activities that yield the highest
returns to taxpayers.

Department of the Interior
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Spending
Discretionary Budget Authority:
Bureau of Land Management �������������������������������������������������������������������
Minerals Management Service �����������������������������������������������������������������
Office of Surface Mining ����������������������������������������������������������������������������
Bureau of Reclamation/CUPCA ����������������������������������������������������������������
U.S. Geological Survey �����������������������������������������������������������������������������
Fish and Wildlife Service ���������������������������������������������������������������������������
National Park Service �������������������������������������������������������������������������������
Bureau of Indian Affairs ����������������������������������������������������������������������������
Office of the Special Trustee ���������������������������������������������������������������������
All other �����������������������������������������������������������������������������������������������������
Wildland Fire (non-add) ����������������������������������������������������������������������������
Subtotal, Gross discretionary budget authority �����������������������������������������������
Mandatory Savings Proposals ������������������������������������������������������������������
Total, Discretionary budget authority ��������������������������������������������������������������

1,062
163
164
1,124
1,044
1,443
2,558
2,379
182

1,143
181
163
1,129
1,112
1,647
2,791
2,619
186

1,151
190
146
1,108
1,133
1,642
2,759
2,566

1,133

1,183

1,250

859
11,252
—
11,252

856
12,154
—
12,154

934
12,105
–70
12,035

Memorandum: ������������������������������������������������������������������������������������������������
Budget authority from American Recovery and Reinvestment Act �����������������
Budget authority from supplementals �������������������������������������������������������������

3,005
50

—
—

—
—

Total, Discretionary outlays �����������������������������������������������������������������������������

11,298

12,387

12,439

160

94

DEPARTMENT OF THE INTERIOR

Department of the Interior—Continued
(In millions of dollars)

Estimate

Actual
2009
Memorandum: Outlays from American Recovery and Reinvestment Act �������
Mandatory Outlays:
Cobell Settlement
Legislative proposal, Payments from the Judgment Fund ��������������������
Legislative proposal, Payments for Trust Land Purchasing ������������������
All other
Existing law ������������������������������������������������������������������������������������������
Legislative proposals ����������������������������������������������������������������������������
Total, Mandatory outlays ���������������������������������������������������������������������������������
Total, Outlays ��������������������������������������������������������������������������������������������������

2010

2011

168

1,255

1,128

—
—

–2,000
100

—
400

485
—
485

420
—
–1,480

334
–96
638

11,783

10,907

13,077

Credit activity
Guaranteed Loan Commitments:
Indian Guaranteed Loan Program ������������������������������������������������������������
Total, Guaranteed loan commitments �������������������������������������������������������������

78
78

134
134

132
132

DEPARTMENT OF JUSTICE
Funding Highlights:
•

Continues to strengthen and expand local law enforcement agencies by providing $600 million
as part of the President’s multi-year commitment to fund the hiring of 50,000 additional police
officers nationwide.

•

Steps up the effort to combat financial fraud and protect public investments in our Nation’s
financial stability.

•

Expands targeted, place-based efforts to combat violent crime.

•

Strengthens efforts to combat violence against women by providing $538 million, an increase
of 29 percent.

•

Reinvigorates Federal Civil Rights Enforcement.

•

Promotes public safety and economic opportunity by providing re-entry programming for
prisoners who need support to successfully reintegrate into their communities.

•

Strengthens the Department’s capacity to target violent criminal activity and makes sure the
Nation’s borders are secure.

•

Addresses the national security and intelligence challenges confronting the FBI and other
Department of Justice components.

•

Increases efforts to target and combat violent drug trafficking cartels and organized criminal
enterprise operations.

•

Expands law enforcement, prosecutorial and grant assistance, and improves their
coordination in Indian Country.

The President’s Budget for the Department of
Justice (DOJ) is $29.2 billion. The Budget addresses key priorities in national security and
crime-fighting programs in the FBI and other
DOJ components; addresses needs in Indian
Country, and combats financial fraud. The Budget also puts more police officers on the beat by
funding the Community Oriented Policing Services (COPS) hiring program; provides other
vital support for innovative State and local law

enforcement efforts; and secures the Nation’s
borders.
Increases Funding to Support the Hiring of Additional Police Officers Across the
Country. The Budget includes $600 million,
an increase of $302 million, to support the hiring or retention of police officers in communities across the country. Supporting the hiring of

95

96
police ­officers will help States and communities
prevent the growth of crime in our communities.
Combats Financial Fraud. To combat financial and other sophisticated crime problems, DOJ
has developed a strategy of using intelligencebased and prosecutor-led task forces to leverage
the resources and expertise of the complete law
enforcement spectrum. For example, the Department has established an interagency task force
to combat financial crime. The Attorney General
and the Secretary of the Department of Health
and Human Services have also established a
Health Care Fraud Prevention and Enforcement
Teams (HEAT) task force initiative to combat
medical fraud. The task forces establish and coordinate investigative and enforcement priorities
across multiple agencies. The Budget supports
these efforts by providing resources for additional
FBI agents and DOJ attorneys to investigate and
prosecute major white collar crime, as well as
mortgage and healthcare fraud cases.

DEPARTMENT OF JUSTICE
cent of female homicide victims were murdered
by a family member or intimate partner. Many
other women were harmed by people they did not
know.
Reinvigorates Federal Civil Rights
­ nforcement. To strengthen civil rights enE
forcement against racial, ethnic, sexual orientation, religious, and gender discrimination, the
Budget includes an 11 percent increase in funding for DOJ’s Civil Rights Division. This investment will help the Division handle implementation of a historic new hate crimes law.

Expands Targeted, Place-Based Efforts
to Curb Violent Crime. The Budget provides
$112 million for place-based, evidence-supported,
initiatives to combat violence in local communities, including $25 million for the CommunityBased Violence Prevention Initiatives that aim
to reduce gun and other violence among youth
gangs in cities and towns across the country, and
$37 million for the Attorney General’s Children
Exposed to Violence Initiative, which targets the
youth most affected by violence and most susceptible to propagating it as they grow up. A new
initiative, the Byrne Criminal Justice Innovation Program, for which the Budget requests $40
million, is a central component of the Administration’s interagency initiative on Neighborhood
Revitalization.

Combats Drug-trafficking and Organized
Criminal Enterprises. ­­The Budget includes an
increase of $37 million for a comprehensive approach to combating drugs and crime through
enhancing the Organized Crime Drug Enforcement Task Forces (OCDETF) and provides an
additional $54 million to expand the Drug Enforcement Administration’s El Paso Intelligence
Center (EPIC). The OCDETF task forces utilize
the full capabilities of DOJ, including both agents
and attorneys, to target major drug-trafficking
and criminal organizations. EPIC enables Federal, State and local law enforcement partners to
share real-time intelligence and unique capabilities of participating members to target, disrupt,
and dismantle major drug trafficking cartels and
criminal enterprise operations. The initiative
also enhances the ­Department’s ability to combat
gunrunners along the U.S. Southwest Border. Additionally, the Budget includes additional funding
for enforcement along the Nation’s borders, combining the efforts of law enforcement and prosecutorial units to investigate arrest, ­detain, and
prosecute criminal illegal aliens, as well as those
who enter or stay in the country without proper
documentation.

Strengthens Efforts to Combat Violence
Against Women. The Budget includes $538 million, an increase of $120 million, to support women victims of violence, including domestic abuse
and sexual assault victims. The numbers are
staggering: last year, over a half million non-fatal violent victimizations were committed against
women by an intimate partner. In 2007, 64 per-

Counters the Threat of Terrorism and
Strengthens National Security. The Budget
includes $145 million in enhancements for the
FBI’s national security programs, and $100 million, including $8 million in program enhancements, for the National Security Division to
protect the American people from terrorist acts.
Funding supports counterterrorism, counter-

97

THE BUDGET FOR FISCAL YEAR 2011
intelligence, cyber-security and other threats
against our National Security. The Budget also
provides $73 million for the transfer, prosecution,
and incarceration of Guantanamo Bay detainees.
The Administration further anticipates working
with the Congress to identify additional funding
and other resources that may be needed in 2010
to address extraordinary Federal, State, and local
security requirements associated with terrorism
trials that may begin in 2010 and continue into
2011.

aliens. The Budget also provides $144 million for
prisoner re-entry programs, including $100 million for the Office of Justice Programs to administer grant programs authorized by the Second
Chance Act and $30 million for residential substance abuse treatment programs in State and
local prisons and jails. These programs reduce
recidivism by providing counseling, job training,
drug treatment, and other transitional assistance
so that former prisoners can reintegrate into the
job market and community life.

Supports Detention and Incarceration
Programs and Expands Prisoner Re-entry
Programs. The Budget provides $6.8 billion for
the Bureau of Prisons to activate new prisons and
increase correctional staff, and $1.5 billion for the
Office of the Detention Trustee so that sentenced
criminals and detainees are housed in facilities
that are safe, humane, cost-efficient, and appropriately secure. The Budget also provides $330
million for the State Criminal Alien Assistance
Program to assist States and localities in the
identification, status determination and conduct
of removal proceedings of incarcerated illegal

Enhances Capacity to Address Needs in
Indian Country. The Budget includes $19 million to support 45 additional FBI agents for Indian country, and $256 million in grants and technical assistance to increase public safety efforts
in tribal areas. The funding for additional FBI
agents will be provided on a reimbursable basis
through the Department of the Interior. The Departments of Justice and the Interior will coordinate the deployment of Federal public safety
resources to best address the public safety needs
in Indian Country.

Department of Justice
(In millions of dollars)

Actual
2009
Spending
Discretionary Budget Authority:
Federal Bureau of Investigation �������������������������������������������������������������������
Drug Enforcement Administration ����������������������������������������������������������������
Federal Prison System ���������������������������������������������������������������������������������
United States Marshals Service �������������������������������������������������������������������
Bureau of Alcohol, Tobacco, Firearms, and Explosives �������������������������������
Detention Trustee �����������������������������������������������������������������������������������������
United States Attorneys �������������������������������������������������������������������������������
General Legal Activities �������������������������������������������������������������������������������
National Security Division ����������������������������������������������������������������������������
Office of Justice Programs, Office of Community Oriented Policing
Services, Office on Violence Against Women ������������������������������������������

Estimate
2010

2011

7,340
2,045
6,172
956
1,054
1,289
1,837
806
84

7,736
2,028
6,188
1,145
1,119
1,439
1,934
875
88

8,165
2,130
6,804
1,207
1,163
1,534
2,041
976
100

2,915

3,540

3,364

98

DEPARTMENT OF JUSTICE

Department of Justice—Continued
(In millions of dollars)

Estimate

Actual
2009

2010

2011

Organized Crime and Drug Enforcement Task Force ����������������������������������
All other ��������������������������������������������������������������������������������������������������������
Subtotal, Discretionary budget authority ������������������������������������������������������������
Less Crime Victims’ Fund cancellation ���������������������������������������������������������
Less Assets Forfeiture Fund cancellation ����������������������������������������������������
Total, Discretionary budget authority �����������������������������������������������������������������

515
940
25,953
—
—
25,953

528
925
27,545
—
—
27,545

579
1,127
29,190
-4,552
-495
24,143

Memorandum:
Budget authority from American Recovery and Reinvestment Act ��������������������
Budget authority from supplementals ����������������������������������������������������������������
FBI Overseas Contingency Operations �������������������������������������������������������������
Total, Discretionary outlays ��������������������������������������������������������������������������������

4,012
245
—
24,509

—
—
101
26,709

—
—
—
26,075

Memorandum: Outlays from American Recovery and Reinvestment Act ����������

1,160

1,843

664

Mandatory Outlays:
Existing law ��������������������������������������������������������������������������������������������������
Legislative proposal �������������������������������������������������������������������������������������

2,060
—

1,868
—

5,232
—

Total, Mandatory outlays ������������������������������������������������������������������������������������

2,060

1,868

5,232

Memorandum: Outlays from American Recovery and Reinvestment Act ����������

—

—

—

Total, Outlays �����������������������������������������������������������������������������������������������������

26,569

28,577

31,307

DEPARTMENT OF LABOR
Funding Highlights:
•

Supports reform of the Workforce Investment Act (WIA), which authorizes $10 billion for job
training and employment services.

•

Creates a Workforce Innovation Partnership with the Department of Education and
establishes two innovation funds that will support and test promising approaches to job
training as well as encourage States and localities to work across programmatic silos to
improve services.

•

Starts a joint Labor-Treasury initiative to stop the inappropriate misclassification of employees
as independent contractors.

•

Rebuilds worker protection programs to strengthen enforcement of labor standards.

•

Expands families’ access to paid leave by creating a new fund to help States launch paid
leave programs.

•

Boosts funding for unemployment insurance integrity efforts and proposes legislative changes
that would reduce improper payments by over $4 billion and employer tax evasion by $300
million over 10 years.

•

Initiates a multi-agency legislative proposal to establishes automatic workplace pensions
and expand access to the saver’s credit, and proposes regulatory reforms to give all workers
access to retirement savings opportunities, provide Americans with incentives to save
throughout their working careers, and protect pension plans.

The President’s Budget provides $14 billion for
the Department of Labor (DOL) to prepare workers for good jobs that will allow them to support
their families; guarantee fair, safe and healthy
workplaces and secure retirements for America’s
workers; and fulfill its other core responsibilities.
Reforming the Job Training System.
Whether they want to find a job, build basic or
occupational skills, earn a postsecondary certificate, credential, or degree, or get guidance on
charting a career path, all Americans deserve ac-

cess to high-quality job training throughout their
careers. That is why the Budget calls for reform
of the Workforce Investment Act (WIA), which
supports almost 3,000 One-Stop Career Centers
nationwide and a range of other services. With
$6 billion for WIA at DOL—and an additional
$4 billion in the Department of Education—the
Budget calls for reforms to improve WIA by:

99

• Creating a Workforce Innovation Partnership to Streamline Service ­Delivery
and Invest in What Works. Over 30 Federal programs provide job training and

100

DEPARTMENT OF LABOR
r­ elated services. Yet today, workers and
young people looking for effective training
must navigate a maze of programs with
little information about how well these programs work. Leveraging funding from the
WIA formula programs, the 2011 Budget
sets aside $261 million to establish two innovation funds that will support and test
promising approaches to training, breaking down program silos, building evidence
about effective practices, and investing in
what works. With a $101 million increase
in the Youth funding stream, the Budget redirects 15 percent of total Youth funding to
a Youth Innovation Fund to pilot innovative
models for delivering summer and yearround work experiences and comprehensive
services to disconnected youth. The Workforce Innovation Fund pulls 5 percent from
the Adult and Dislocated Worker streams
to support and test “learn and earn” strategies like apprenticeships and on-the-job
training; promote regional and sectoral collaborations; and support other innovations.
In addition, DOL will work closely with the
Department of Education to administer the
innovation grants, and use them as a mechanism for encouraging States and localities
to work across programs to improve service
delivery and ­participant outcomes.

• Meeting the Needs of Regional Economies and Employers. Labor markets are
typically regional, yet the workforce system
is designed around State and local boundaries. The system also does not do a good
enough job matching training with employer demand. Through new innovation funds
and WIA reauthorization, the Administration will facilitate regional collaboration and
close linkages with employers so that training leads to good jobs.
• Establishing a Transparent Accountability System that Encourages Success. The current accountability system
dissuades States and localities from serving
the populations that most need their assistance, like low-skilled adults, individuals
with disabilities, and others needing more
specialized and intensive services. The Bud-

get supports efforts to overhaul performance
measures and incentives to discourage
“cream-skimming,” more accurately capture
the value added by different services, and
encourage better outcomes for individuals
at every level of the workforce system. Performance data should be widely available to
policymakers, program managers, and the
participants themselves, so they can make
informed choices about training.
• Focusing on High-Growth Sectors and
Workers Often Left Behind. The Budget
makes strategic investments in competitive
programs to target high-growth sectors and
serve populations often left behind, including $85 million for green job training and
$40 million for transitional jobs programs.
The Budget also supports an initiative to
reform and improve Job Corps, by setting
high standards for Job Corps centers and
taking quick and decisive action to address
problems.
Protecting Benefits for Employees by Ensuring Proper Classification. When employees are misclassified as independent contractors,
they are deprived of benefits and protections to
which they are legally entitled. For example, independent contractors do not receive overtime
and are ineligible to receive unemployment benefits. Misclassification also has a budgetary impact, reducing receipts in Treasury and the Social
Security, Medicare and Unemployment Insurance
Trust Funds. As part of the 2011 Budget, the
Departments of Labor and Treasury are pursuing a joint proposal that eliminates incentives in
law for employers to misclassify their employees;
enhances the ability of both agencies to penalize
employers who misclassify; and restores protections to employees who have been denied them
because of their improper classification. This proposal would increase Treasury receipts by more
than $7 billion over 10 years. The 2011 Budget
for DOL includes an additional $25 million to target misclassification with 100 additional enforcement personnel and competitive grants to boost
States’ incentives and capacity to address this
problem.

THE BUDGET FOR FISCAL YEAR 2011
Rebuilding Worker Protection Programs.
The Budget includes a $67 million (4 percent)
increase for the Department’s worker protection agencies to ensure they have the ­resources
to meet their responsibilities to protect the
health, safety, wages and working conditions,
and ­retirement security of the nation’s workforce.
The 2011 Budget builds on the 2010 Budget policy of ­returning worker protection programs to
the 2001 staffing levels, after years of decline. In
­addition, the ­Budget provides additional resources for the regulatory and enforcement activities
of these ­agencies.
Helping States Provide Paid Family Leave
to Workers. Too many families must make the
painful choice between the care of their families and a paycheck they desperately need. The
Family and Medical Leave Act allows workers to
take job-protected time off unpaid, but millions
of families cannot afford to use unpaid leave. A
handful of States have enacted policies to offer
paid family leave, but more States should have
the chance. The Budget establishes a $50 million
State Paid Leave Fund within DOL that will provide competitive grants to help States that choose
to launch paid-leave programs cover their startup costs. The Budget also provides resources to
allow DOL to explore ways to improve the collection of data related to intersection of work and
family responsibilities.
Strengthening Access to, and Accuracy
of, Unemployment Benefits. Working with the
Congress, the Administration has already extended and expanded unemployment insurance (UI)
benefits to historic levels and offered powerful incentives for States to make permanent changes
to modernize their UI programs. In response to
these incentives, 26 States have changed their
laws so that up to 20 weeks of additional benefits are available to workers who have exhausted
their regular and Emergency Unemployment
Compensation benefits; and 32 States now offer
benefits to recent entrants to the workforce who
lose their jobs. States have also granted benefits
to part-time workers, those who must leave their
jobs because of domestic violence or other compel-

101
ling family reasons, and those seeking to retool
for another career.
At the same time, the Administration believes
UI benefits should go to the right workers in the
right amounts. When States have to finance
high levels of UI improper payments, employers
face higher taxes and workers may see cuts in
their benefit levels. Despite the efforts of States
to reduce improper payments, over $11.4 billion
in UI benefits were erroneously paid in 2009—
an overpayment rate of almost 10 percent. The
­Administration will tackle this problem by boosting funding for UI integrity efforts and proposing
legislative changes that together would reduce
improper payments by over $4 billion and employer tax evasion by $300 million over 10 years.
Improving Retirement Security. After a
lifetime of employment, American workers deserve to know that their efforts have resulted in
a secure retirement. The Administration is committed to giving Americans more and better choices to save for retirement while also strengthening
the existing private pension system. The Budget
proposes a multi-agency effort to expand and improve employment-based retirement security by:
• Establishing
Automatic
Workplace
Pensions. Currently, 78 million working
Americans—roughly half the workforce—
lack employer-based retirement plans. The
2011 Budget proposes a system of automatic
workplace pensions that will expand access
to tens of millions of workers who currently
lack pensions. Under the proposal, employers who do not currently offer a retirement
plan will be required to enroll their employees in a direct-deposit IRA account that is
compatible with existing direct-deposit payroll systems. Employees may opt-out if they
choose. The smallest firms would be exempt.
• Doubling the Small Employer Pension
Plan Startup Credit. Under current law,
small employers are eligible for a tax credit equal to 50 percent (up to a maximum of
$500 a year for three years) of the start-up
expenses of establishing or administering
a new retirement plan. To encourage small

102

DEPARTMENT OF LABOR
employers to offer pensions to their workers in connection with the automatic IRA
proposal, the Budget will increase the maximum ­credit from $500 a year to $1,000 per
year.

• Reforming and Expanding the Saver’s
Credit. The Budget proposes to expand
retirement savings incentives for working
families by modifying the existing Saver’s
Credit to provide a 50 percent match on the
retirement savings of families that earn less
than $85,000 (up to $1,000 of savings would
be matched). The credit would be fully refundable to create savings incentives fair to
all workers. Studies indicate that automatic
enrollment combined with a savings match
significantly increases the savings participation rate for low and middle income workers.
This proposal is expected to increase significantly both the number of Americans who
save for retirement and the overall amount
of amount of retirement wealth they accumulate.
• Improving the Defined-Contribution
Savings System. A majority of American
workers rely on 401(k)-style plans to finance
their retirements. The Budget proposes a

number of initiatives to improve the transparency and adequacy of 401(k) retirement
savings. Specifically, DOL will undertake
regulatory efforts to reduce barriers to annuitization of 401(k) plan assets; increase
the transparency of pension fees; improve
transparency of target date and other default retirement investments; and reduce
conflicts of interest between pension advisers and fiduciaries.
• Expanding Opportunities for Automatic Enrollment in 401(K) and Other
Retirement Savings Plans. Automatic
enrollment typically boosts participation in
401(k) retirement plans from about 70 percent to more than 90 percent, and it is particularly effective in increasing the participation of low-income and minority workers.
But while nearly half of larger companies
with 401(k) plans have adopted automatic
enrollment, fewer medium-sized or small
businesses have done so. The Administration will streamline the process for 401(k)
plans to adopt automatic enrollment; make
it easier to increase saving over time; and allow automatic enrollment in SIMPLE-IRAs.

Department of Labor
(In millions of dollars)

Actual
2009
Spending
Discretionary Budget Authority:
Training and Employment Service �������������������������������������������������������������������
Unemployment Insurance Administration ��������������������������������������������������������
Employment Service/One-Stop Career Centers ����������������������������������������������
Office of Job Corps ������������������������������������������������������������������������������������������
Community Service Employment for Older Americans ������������������������������������
Bureau of Labor Statistics ��������������������������������������������������������������������������������
Occupational Safety and Health Administration �����������������������������������������������
Mine Safety and Health Administration ������������������������������������������������������������
Wage and Hour Division 1���������������������������������������������������������������������������������
Office of Federal Contract Compliance Programs �������������������������������������������

3,626
3,511
793
1,684
572
597
513
347
193
82

Estimate
2010

3,829
3,990
788
1,708
825
611
559
357
224
103

2011

3,925
3,581
788
1,707
600
645
573
361
244
113

103

THE BUDGET FOR FISCAL YEAR 2011

Department of Labor—Continued
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Office of Labor-Management Standards ����������������������������������������������������������
Office of Workers’ Compensation Programs ����������������������������������������������������
Employee Benefits Security Administration �����������������������������������������������������
Veterans Employment and Training ������������������������������������������������������������������
Departmental Management:
Bureau of International Labor Affairs (non-add) ������������������������������������������
Solicitor of Labor (non-add) �������������������������������������������������������������������������
Foreign Labor Certification �������������������������������������������������������������������������������
Office of Disability Employment Policy �������������������������������������������������������������
State Paid Leave Fund �������������������������������������������������������������������������������������
All other ������������������������������������������������������������������������������������������������������������
Total, Discretionary budget authority ���������������������������������������������������������������������

45
103
143
239
314
86
101
68
27
—
36
12,893

41
108
155
256
356
93
117
68
39
—
241
14,266

45
127
162
262
429
115
123
66
39
50
251
13,967

Memorandum: Budget authority from American Recovery and Reinvestment Act ����

4,805

—

—

Total, Discretionary outlays �������������������������������������������������������������������������������������

12,125

14,674

13,936

Memorandum: Outlays from American Recovery and Reinvestment Act ��������������

882

2,941

565

93,783
—

126,787
31,000

82,385
17,912

416
—
194
3,060

810
—
-86
524

1,497
145
-1,073
512

1,246
—
1,168
-2,146
97,721

184
—
1,080
-2,534
157,765

180
-10
960
271
102,779

Memorandum: Outlays from American Recovery and Reinvestment Act ��������������

27,434

33,896

1,533

Total, Outlays ����������������������������������������������������������������������������������������������������������

109,846

172,439

116,715

Mandatory Outlays:
Unemployment Insurance Benefits
Existing law �������������������������������������������������������������������������������������������������
Legislative proposal ������������������������������������������������������������������������������������
Trade Adjustment Assistance
Existing law �������������������������������������������������������������������������������������������������
Legislative proposal ������������������������������������������������������������������������������������
Pension Benefit Guaranty Corporation ������������������������������������������������������������
Black Lung Benefits Program ��������������������������������������������������������������������������
Federal Employees’ Compensation Act 2
Existing law �������������������������������������������������������������������������������������������������
Legislative proposal ������������������������������������������������������������������������������������
Energy Employees Occupational Illness Compensation Program Act �������������
All other ������������������������������������������������������������������������������������������������������������
Total, Mandatory outlays ����������������������������������������������������������������������������������������

In the 2011 Budget, funding previously requested for the component agencies and offices under the heading “Employment Standards Administration
Salaries and Expenses” is requested separately for the Office of Workers’ Compensation Programs, Wage and Hour Division, Office of Federal Contract
Compliance Programs, and Office of Labor-Management Standards.
1

2

2009 outlays are lower due to delayed reimbursements from the Postal Service.

DEPARTMENT OF STATE AND OTHER
INTERNATIONAL PROGRAMS
Funding Highlights:
•

Increases funding for the President’s Global Health Initiative, including increased efforts to
reduce mortality of mothers and children under five, avoid unintended pregnancies, and work
towards the elimination of some neglected tropical diseases. As part of this effort, the Budget
also expands support for the President’s Emergency Plan for AIDS Relief to prevent new HIV
infections while providing care and treatment to millions of people, and for the President’s
Malaria Initiative to dramatically reduce the prevalence of this disease.

•

Increases funding for the President’s Global Hunger and Food Security Initiative to help poor
countries improve the nutritional and income status of millions of people living in extreme
poverty and suffering from hunger by 2015.

•

Increases aid to Afghanistan and Pakistan to revitalize economic development and confront
the resurgence of the Taliban.

•

Supports continued progress toward a sovereign, stable, and self-reliant Iraq and prepares
the Department of State to assume responsibility for security, logistics, and police training
programs as part of the military-to-civilian transition in Iraq.

•

Helps developing nations adapt to climate change and pursue low-carbon development.

•

Recognizes that diplomacy and development activities are instrumental in promoting U.S.
National Security interests and provides critical funding necessary to support greater civilian
capacity to meet expanded roles.

•

Maintains path to achieve goal of 11,000 Peace Corps volunteers by 2016.

•

Supports President Obama’s vision of Global Engagement through activities to expand
economic opportunity, foster scientific and technological innovation, and strengthen people-topeople connections.

•

Promotes sustainable economic growth to help reduce global poverty with support for new
Millennium Challenge Corporation compacts.

•

Supports the poorest populations globally through U.S. contributions to the Multilateral
Development Banks.

105

106

DEPARTMENT OF STATE AND OTHER INTERNATIONAL PROGRAMS

The Department of State, the U.S. Agency for
International Development (USAID), and other
international programs advance the interests
of the United States through engagement, partnership, and the promotion of universal values.
Through the power of example and the empowerment of people, using diplomatic and development tools, the Administration is working to
forge the global consensus required to defeat
the threats, manage the challenges, and seize
the opportunities of the 21st century.
Increases Funding for the President’s
Global Health Initiative. The Administration
will build on its commitment to save millions of
lives through increased investments in global
health activities. The Budget includes increased
funding to combat the HIV/AIDS crisis by: focusing on increasing treatment and prevention;
ramping up maternal and child health programming to reduce mortality of mothers and children
under five and decrease the prevalence of malnutrition; expanding investments in family planning
activities, malaria, tuberculosis, and ­neglected
tropical diseases; and strengthening local health
systems to enhance capacity and long-run sustainability of each health program. Alongside
our multilateral partners, the United States will
continue to provide global leadership in fulfilling
our shared responsibility and our common promise to improve the health of the world’s poorest
populations.
Promotes U.S. Strategy in Afghanistan
and Pakistan. The 2011 Budget increases U.S.
resources in support of the President’s strategy
to disrupt, dismantle, and defeat al Qaeda in Afghanistan and Pakistan. The Budget increases
assistance to both countries, providing additional funding for governance, reconstruction,
and other development activities that will counter extremists. For Pakistan, the Budget also
increases security assistance and funds a new
signature energy project. The Budget expands
the number of civilian personnel in Afghanistan
and Pakistan in an effort to build government
capacity, increase diplomatic engagement, manage expanded assistance programs, and reduce

the potential for fraud and misuse of American
funding.
Supports Strategic Realignments in Iraq.
The 2011 Budget aligns U.S. assistance efforts
in Iraq with the U.S.-Iraq Strategic Framework
Agreement and provides support for continued
progress toward a sovereign, stable, and self-reliant Iraq. The Budget provides the Department
of State with the resources to prepare to assume
responsibility for key programs that have been
funded and led by the Department of Defense,
including police capacity building, and provides
security and logistic support for U.S. civilians
deployed around the country. The Budget also
continues to provide support for Iraqis who have
been displaced from their homes.
Fights Hunger and Expands Food Security
Efforts. The 2011 Budget increases funding for
agriculture development and nutrition programs
as part of a multi-year plan to lift a significant
number of people out of poverty and reduce underfive malnutrition for millions of children by 2015.
The Budget provides assistance through bilateral
assistance and a new multi-donor facility administered by the World Bank to poor countries that
make policy and financial commitments to address
their internal food security needs. Additional assistance will help targeted countries increase agricultural productivity, improve agricultural research and development, and expand markets and
trade while monitoring and evaluating program
performance. The Budget also maintains strong
support for food aid and other humanitarian assistance.
Helps Developing Nations to Adapt to
Climate Change and Pursue Low-Carbon
Development. To reduce greenhouse gas emissions worldwide, the United States will spur the
development and dissemination of clean energy
technologies and increase the sequestration of
carbon stored in soils, plants, and trees. The
United States will take prompt, substantial action to help vulnerable countries adapt and build
resilience to the effects of climate change. The
top priority is to support the development of
low-carbon development strategies that contain

107

THE BUDGET FOR FISCAL YEAR 2011
­ easureable, reportable, and verifiable actions,
m
laying the groundwork for meaningful reductions
in national emissions trajectories.

our programs focusing on the “3P” paradigm of
prosecuting traffickers, protecting victims, and
­preventing trafficking in persons.

Maintains Path to Increase Peace Corps
Volunteers. The 2011 Budget funds the second
year of the President’s initiative to significantly
increase the number of Peace Corps volunteers,
and puts the Peace Corps on track to grow by 50
percent so that it reaches 11,000 volunteers by
2016.

Supports
the
Poorest
Populations
Globally. The Multilateral Development Banks
(MDBs) provide concessional financing to meet
the needs of the poorest populations globally, including in fragile and post-conflict countries and
in countries that have disproportionally felt the
effects of the global financial crisis. The MDBs
play a particularly important role in regions of
high need like Sub-Saharan Africa, while working
throughout the developing world to help countries
achieve sustained economic growth and poverty
reduction. U.S. contributions to the MDBs leverage other donor resources and increase the U.S.’s
influence, credibility, and effectiveness globally.
The Budget also provides funding for new Millennium Challenge Corporation compacts in eligible
countries, such as Indonesia and Zambia, to reduce poverty and stimulate economic growth.

Aligns Resources with Global Engagement Priorities. The 2011 Budget supports
President Obama’s vision of global engagement
that is based on mutual respect, the pursuit of
sustainable partnerships in areas of mutual interest, and a commitment to listening to and
working with local stakeholders, with an emphasis on women and youth. The Budget supports activities designed to expand economic opportunity
including job creation and employment-focused
education efforts; foster scientific and technological innovation; and strengthen people-to-people
connections through exchange programs.
Combats Trafficking in Persons Worldwide. The 2011 Budget supports the Administration’s efforts to combat trafficking in persons
and assist in the coordination of anti-trafficking
efforts both worldwide and domestically. It will
allow the United States to lead in advancing
public awareness and advocacy in concert with
non-governmental organizations, international
organizations, Congress and the media; with

Realigns Non-Military Contingency and
Stabilization Activities of the Department
of Defense and the Department of State. The
Budget proposes a Complex Crises Fund within
the Department of State that would replace current authorities of the Department of Defense to
provide non-military reconstruction, security, and
stabilization assistance funding. The account
would provide a source of flexible contingency
funding to meet unforeseen reconstruction and
stabilization needs.

Department of State and Other International Programs
(In millions of dollars)

Actual
2009
Spending
Discretionary Budget Authority:
Administration of Foreign Affairs ���������������������������������������������������������������
International Organizations and Peacekeeping ����������������������������������������
Economic Support Fund ���������������������������������������������������������������������������
Global Health and Child Survival ��������������������������������������������������������������

9,974
3,993
7,122
7,289

Estimate
2010 1

13,320
3,808
8,164
7,829

2011

12,377
3,778
7,812
8,513

108

DEPARTMENT OF STATE AND OTHER INTERNATIONAL PROGRAMS

Department of State and Other International Programs—Continued
(In millions of dollars)

Estimate

Actual
2009

2010 1

2011

International Narcotics and Law Enforcement (includes ACP) �����������������
Migration and Refugee Assistance �����������������������������������������������������������
Non-proliferation, Anti-terrorism, Demining Programs ������������������������������
Foreign Military Financing �������������������������������������������������������������������������
Pakistan Counterinsurgency Capability Fund �������������������������������������������
Assistance for Europe, Eurasia, and Central Asia ������������������������������������
Development Assistance ���������������������������������������������������������������������������
USAID Operating Expenses ���������������������������������������������������������������������
Broadcasting Board of Governors �������������������������������������������������������������
Millennium Challenge Corporation ������������������������������������������������������������
Export-Import Bank �����������������������������������������������������������������������������������
Overseas Private Investment Corporation ������������������������������������������������
Peace Corps ���������������������������������������������������������������������������������������������
Multilateral Development Banks ����������������������������������������������������������������
Other State and International Programs ���������������������������������������������������
Food for Peace, USDA P.L. 480 Title II (non-add) ���������������������������������
Total, Discretionary budget authority (including supplementals) ���������������������

1,844
1,675
632
5,007
700
918
2,004
1,059
725
875
–177
–173
340
1,493
3,595
2,321
48,895

2,448
1,693
754
5,480
—
742
2,495
1,389
746
1,105
3
–172
400
2,044
2,924
1,690
55,172

2,136
1,605
758
5,473
1,200
716
2,946
1,476
769
1,280
–9
–189
446
2,957
2,726
1,690
56,770

Memorandum:
Budget authority from American Recovery and Reinvestment Act �����������������
Budget authority from enacted supplementals ����������������������������������������������
Budget authority from requested supplementals ��������������������������������������������

600
11,946
—

—
1,841
4,461

—
—
—

Total, Discretionary outlays �����������������������������������������������������������������������������

41,044

49,906

54,662

Memorandum: Outlays from American Recovery and Reinvestment Act �������

29

356

135

Total, Mandatory outlays ���������������������������������������������������������������������������������

–3,941

1,087

–853

Total, Outlays ��������������������������������������������������������������������������������������������������

37,103

50,993

53,809

Credit activity
Direct Loan Disbursements:
Export-Import Bank �����������������������������������������������������������������������������������
All other programs �������������������������������������������������������������������������������������
Total, Direct loan disbursements ���������������������������������������������������������������������

1,481
360
1,841

50
7,435
7,485

25
5,909
5,934

Guaranteed Loan Commitments:
Export-Import Bank �����������������������������������������������������������������������������������
All other programs �������������������������������������������������������������������������������������
Total, Guaranteed loan commitments �������������������������������������������������������������

14,599
692
15,291

13,500
2,226
15,726

14,425
2,394
16,819

1

The 2010 Estimate includes $1.8 billion of the 2010 President’s Request that was forward funded in the 2009 supplemental.

IT

E

D

ST

ER

UN

IC A

DEPAR
TM

TRAN
SP

ION
TAT
OR

T OF
EN

M
A T ES O F A

DEPARTMENT OF TRANSPORTATION
Funding Highlights:
•

Provides $4 billion for a new National Infrastructure Innovation and Finance Fund, which will
invest in high-value projects of regional or national significance.

•

Establishes a new $30 million Federal transit safety program to address critical needs.

•

Invests in modernizing the air traffic control system by increasing funding for NextGen by
more than 30 percent.

•

Commits to developing long-run solutions for surface transportation finance and for improving
program performance.

•

Helps communities to become more livable and sustainable by allocating $527 million for the
Department’s investments as part of the President’s multi-agency Partnership for Sustainable
Communities.

•

Sustains large-scale, multi-year support for high-speed rail, with $1 billion to fund promising
and transformative projects.

The Department of Transportation (DOT) is
focused on its core mission of promoting safety
and increasing mobility, and supporting the development of infrastructure that will underpin
job creation for years to come. For 2011, DOT
has several major initiatives in these areas, in
addition to plans to deliver transportation funds
based on greater use of analysis and consideration of program performance.
Creates­a National Infrastructure ­­­Innovation
and Finance Fund. The Budget includes $4
billion to create a National Infrastructure Innovation and Finance Fund to invest in projects
of regional or national significance. This marks
an important departure from the Federal Government’s traditional way of spending on infrastructure through grants to specific States and

localities. Established as a new operational
unit within DOT, the Fund will directly provide
­resources for projects through grants, loans, or
a blend of both, and will effectively leverage
non-Federal resources, including private capital. The Fund will allocate resources based on
demonstrable merit and analytical measures of
performance. The Fund will provide planning,
feasibility, and analytical capacity to help sponsors identify projects from around the country
and then carefully select the most worthwhile.
Establishes a New Federal Transit Safety
Program. Unlike other modes of transportation, closed system rail transit services (generally, metro area subways and light rail systems)
are not overseen by Federal safety regulators,
but rather are subject to review by a patchwork

109

110
of State safety organizations. Recent deadly accidents in Washington D.C., Boston, and San Francisco underscore the need for common nationwide
safety standards and for Federal enforcement of
these standards. The Budget includes $30 million
for a new transit safety oversight program within
the Federal Transit Administration (FTA). This
will enable FTA to hire new staff and to implement a comprehensive safety oversight strategy,
as proposed in legislation.
Invests in Modernizing the Air Traffic
Control System. The Budget provides $1.14
billion, more than a 30 percent increase from
2010 for the Next Generation Air Transportation
­System. NextGen is the Federal Aviation Administration’s long-term effort to improve the efficiency, safety, and capacity of the aviation ­system.
The 2011 Budget supports the transformation
from a national ground-based radar surveillance
system to a more accurate satellite-based surveillance system; the development of more ­efficient
routes through the airspace; and the improvement of ­aviation weather ­information.
Commits to Developing Long-Run Solutions for Surface Transportation Finance
and for Improving Program Performance.
Surface transportation programs are at a crossroads. The current framework for financing and
allocating surface transportation investments is
not financially sustainable, nor does it effectively
allocate resources to meet our critical national
needs. The Administration recommends extending the current authorization through March
2011, during which time it will work with the
Congress to reform surface transportation programs and put the system on a viable financing
path. Careful consideration is needed to design
a Federal surface transportation program that
leads to higher performing investments, increases
people’s transportation options, promotes a sustainable environment, and makes our economy
more productive. Further, the Federal program
must generate the best investments to reduce
congestion and improve safety. To do so, the Administration seeks to integrate economic analysis
and performance measurement in transportation

DEPARTMENT OF TRANSPORTATION
planning to ensure that taxpayer dollars are better targeted and spent.
Helps Communities to Become More
­Livable and Sustainable. As part of the President’s Partnership for Sustainable Communities
initiative, the Budget includes $527 million in
DOT to help State and local governments invest
smarter in transportation infrastructure and leverage that investment to advance sustainable
development. The Federal Government will help
stimulate comprehensive regional and community planning efforts that integrate transportation,
housing, and other critical investments. This approach aims to reduce greenhouse gases, improve
mobility and transportation access to economic
opportunity, and improve housing choices. Combined with $150 million in Department of Housing and Urban Development planning grants, and
$10 million in Environmental Protection Agency
technical assistance, DOT will dedicate $527 million, focused on capacity building and transportation projects, to this multi-agency effort. Because
improving local quality of life is a universal challenge, this place-based interagency initiative will
help communities across the Nation make better
coordinated, higher-performing infrastructure
­investments.   
Sustains Multi-Year Support for HighSpeed Rail. Building on the historic $8 billion
down payment provided through the American
Recovery and Reinvestment Act, the President’s
Budget includes $1 billion for high-speed rail.
The 2011 request supports the President’s fiveyear, $5 billion pledge in the 2010 Budget. Highspeed rail promises to give the traveling public a
practical alternative to flying or driving, particularly where there is congestion in the skies and
on the roads. With trains efficiently connecting
city and business centers, travelers would enjoy
a new level of convenience not available in most
parts of the country today. The Administration
is dedicated to working with States and project
sponsors to identify high-speed rail projects that
will provide the greatest transportation, social,
and environmental benefits, while maximizing
the return on taxpayer dollars.

111

THE BUDGET FOR FISCAL YEAR 2011

Department of Transportation
(In millions of dollars)

Actual
2009
Spending
Discretionary Budgetary Resources:
Federal Aviation Administration ������������������������������������������������������������������
Obligation Limitation �������������������������������������������������������������������������������
Federal Highway Administration �����������������������������������������������������������������
Obligation Limitation ������������������������������������������������������������������������������
Federal Motor Carrier Safety Administration Obligation Limitation ������������
National Highway Traffic Safety Administration �������������������������������������������
Obligation Limitation ������������������������������������������������������������������������������
Federal Railroad Administration ������������������������������������������������������������������
Federal Transit Administration ���������������������������������������������������������������������
Obligation Limitation ������������������������������������������������������������������������������
Federal Maritime Administration �����������������������������������������������������������������
St. Lawrence Seaway Development Corporation ����������������������������������������
Pipeline and Hazardous Materials Safety Administration ���������������������������
Research and Innovative Technology Administration ����������������������������������
National Infrastructure Innovation and Finance Fund:
Legislative proposal �������������������������������������������������������������������������������
Office of the Secretary ��������������������������������������������������������������������������������
All other �������������������������������������������������������������������������������������������������������
Total, Discretionary budgetary resources 1 ������������������������������������������������������

Estimate
2010

2011

11,959
3,515
176
39,715
541
127
729
1,798
1,969
9,247
333
32
144
13

12,477
3,515
936
41,107
550
143
730
4,360
2,388
8,343
363
32
164
13

12,953
3,515
–263
41,363
570
136
743
2,831
2,167
8,632
352
32
174
17

—
207
21
70,526

—
890
18
76,029

4,000
352
14
77,588

Memorandum:
Budget authority from American Recovery and Reinvestment Act �������������������
Budget authority from supplementals ���������������������������������������������������������������

48,120
3,013

—
—

—
—

Total, Discretionary outlays �������������������������������������������������������������������������������

68,778

73,393

74,376

Memorandum: Outlays from American Recovery and Reinvestment Act ���������

3,652

16,363

11,359

Mandatory Outlays:
Federal Aviation Administration ������������������������������������������������������������������
Federal Highway Administration �����������������������������������������������������������������
Federal Railroad Administration�������������������������������������������������������������������
Federal Maritime Administration �����������������������������������������������������������������
Pipeline and Hazardous Materials Safety Administration ���������������������������
Office of the Secretary ��������������������������������������������������������������������������������
All other �������������������������������������������������������������������������������������������������������
Total, Mandatory outlays �����������������������������������������������������������������������������������

–162
793
10
265
16
38
–384
576

–159
1,094
15
254
37
53
–106
1,188

–178
900
–3
176
35
50
–50
930

Total, Outlays ����������������������������������������������������������������������������������������������������

69,354

74,581

75,306

112

DEPARTMENT OF TRANSPORTATION

Department of Transportation—Continued
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Credit activity
Direct Loan Disbursements:
Transportation Infrastructure Financing and Innovation Program ���������������
Railroad Rehabilitation and Improvement Program ������������������������������������
National Infrastructure Innovation and Finance Fund����������������������������������
Total, Direct loan disbursements �����������������������������������������������������������������������

317
96
—
413

1,159
600
—
1,759

1,107
600
250
1,957

Guaranteed Loan Commitments:
Transportation Infrastructure Financing and Innovation Program ���������������
Railroad Rehabilitation and Improvement Program�������������������������������������
Minority Business Resource Centers ����������������������������������������������������������
Maritime Guaranteed Loans �����������������������������������������������������������������������

—
—
3
269

40
100
18
350

80
100
18
450

Total, Guaranteed loan commitments ���������������������������������������������������������������

272

508

648

1

Includes discretionary budget authority and obligation limitations.

DEPARTMENT OF THE TREASURY
Funding Highlights:
•

Includes resources to implement the Administration’s proposal to reform financial regulation
including a new agency to protect consumers, and increases the security and convenience of
Federal payment and collection transactions.

•

Manages responsibly Troubled Asset Relief Program (TARP) investments to protect taxpayer
interests while winding down extraordinary market interventions.

•

Provides $250 million to expand job-creating investments and access to credit in
disadvantaged communities through the Community Development Financial Institutions Fund.

•

Invests over $8 billion in the Internal Revenue Service’s enforcement and modernization
programs, while continuing to drive innovation and responsiveness in taxpayer services. The
Budget supports significant new revenue-generating initiatives that will target critical areas of
non-compliance, and enhances a multi-year modernization strategy that will deliver a vastly
improved IRS within the next five years.

•

Supports the capacity of the Department to respond to future economic challenges by
expanding Treasury’s finance and tax policy resources. This increased analytical capability
will also fund the Administration’s plan to strengthen oversight of financial institutions and
markets so that the system is safer for consumers and investors.

The Department of the Treasury is a leader in
the President’s efforts to promote the economic
prosperity and financial security of the United
States. Treasury operations are critical to the
core functions of government, including collecting over $2.3 trillion in revenue and disbursing
over $2.3 trillion in payments, managing Federal finances, and protecting the financial system from threats. Treasury also plays a key role
in modernizing the American financial regulatory framework and ensuring effective, transparent administration of programs designed to
strengthen the economy.

Supports the Administration’s Reform
of Financial Regulation and Consumer
­Protection. In June 2009, the Administration
proposed comprehensive financial reform legislation designed to create a robust financial regulatory system that could help prevent future economic crises. The proposal includes changes to
improve the safety and soundness of the ­financial
sector, especially large and interconnected firms,
and creates a new Government entity responsible for monitoring financial businesses and
­practices that impact consumers directly.

113

114
Redirects TARP to Small Businesses and
Homeowners. The Budget continues to support activities authorized under the Emergency
Economic Stability Act of 2008 and the Housing
and Economic Recovery Act of 2008 that help stabilize the financial system and restart markets
critical to financing American households and
businesses, through new and existing investment
agreements with financial institutions including
banks, servicers, insurance companies, and the
Government-Sponsored Enterprises Fannie Mae
and Freddie Mac. New TARP agreements will
be directed toward assisting homeowners threatened with foreclosure and small businesses needing access to affordable credit. The Budget emphasizes effective, transparent, and accountable
management of the TARP. Over the past year,
financial markets have rebounded faster than expected, and as a result the Budget reflects a significantly lower cost and volume of TARP asset
purchases than previously estimated.
Supports
Lending
in
Low-Income
­ ommunities. The Budget supports the availC
ability of affordable financing in low-income
communities by providing targeted support to
Community Development Financial Institutions throughout the Nation. The $250 million
in financial support will help these local financial institutions offer affordable loans to small
businesses, consumers, nonprofit developers, and
home buyers in communities that lack access to
affordable credit. These resources will also be
­coordinated with resources in other agencies to
support the Administration’s place-based initiatives. New initiatives will expand financing for
access to healthy foods and access to financial services in underserved communities. Supporting
the ­Department’s efforts to improve protections
for consumers of complicated financial products,
Treasury will continue its work to improve financial literacy, especially among youth and young
adult populations. Treasury along with its partners, will work to ­improve access to financial services for America’s unbanked and underbanked,
building upon findings from its multi-year community financial access ­pilot, which concludes in
2010.

DEPARTMENT OF THE TREASURY
Improves Services to Taxpayers. The Administration will improve the quality of IRS services to taxpayers, providing for a better tax filing experience. The Budget provides additional
resources for high-quality phone service so that
taxpayers’ questions are answered quickly and
correctly. A top priority of the IRS is to promptly
and correctly answer a taxpayer’s question the
first time asked, through the most efficient and
taxpayer-friendly means. The IRS will also work
to improve interactions between taxpayers and
tax preparation service providers through a new
targeted strategy, and will further enhance electronic filing capabilities through increased availability of electronic forms and improved information technology infrastructure.
Streamlines Internal Processes to ­Deliver
Tax Fairness while Targeting Waste and
Fraud. The Budget supports the IRS’ continued
progress in reducing the tax gap through fair,
robust, and equal application of the tax laws—
including new revenue-generating enforcement
initiatives that will increase recovery of tax debts
by nearly $2 billion a year once the initiatives are
fully mature in 2013. This set of initiatives will
be balanced with an increased focus on IRS modernization, for which the Budget makes a significant commitment through nearly $200 million in
targeted investments in the IRS’ new core taxpayer database and processing platform. Once
complete, this modernized system will i­mprove
both the taxpayer experience through, for example, enhanced service capabilities such as more
individualized self-service offerings, as well as
the IRS’ operational effectiveness, creating a
more responsive, nimble organization. The Budget also includes a set of innovative legislative
proposals to improve the fairness, effectiveness
and efficiency of tax administration, which will
also narrow the tax gap.
Achieves New Savings Through Commonsense Reforms. The Budget will increase collections of delinquent debt owed to the Federal
Government, as well as child support payments
through States, expand the use of electronic
­payment and collection transactions, and propose
other cross-cutting initiatives that are expected

115

THE BUDGET FOR FISCAL YEAR 2011
to yield approximately $2 billion in savings over
the next 10 years. The Budget eliminates nearly
$250 million in Federal subsidies to insurance
companies for terrorism insurance. These subsidies are no longer necessary given the robust
private market for such insurance, and domestic
terrorism insurance policies are now sufficiently
available and affordable to meet demand. According to ­industry data, property and casualty
insurers’ surpluses—the balances available to
pay claims associated with covered terrorist attacks—are currently estimated at over $490
­billion.

Strengthens the Analytic Capacity of
­ epartmental Offices. The Budget funds addiD
tional staff with expertise in finance and tax policy. This investment will allow the Department
to identify more effectively and address emerging
economic challenges and improve policy-making
capacity. Some of the new positions will support
implementation of Financial Regulation Reform
initiatives, including the launch of the Office of
National Insurance and the Financial Services
Oversight Council, which will improve supervision and regulation of financial institutions and
markets.

Department of the Treasury
(In millions of dollars)

Estimate

Actual
2009

2010

2011

Spending 1
Discretionary Budget Authority:
Internal Revenue Service ����������������������������������������������������������������������
Financial Management Service ������������������������������������������������������������
Departmental Offices ����������������������������������������������������������������������������
Department-wide Systems and Capital Investments Programs �����������
Bureau of the Public Debt ���������������������������������������������������������������������
Department and IRS Inspectors General�����������������������������������������������
Special Inspector General for TARP������������������������������������������������������
Alcohol and Tobacco Tax and Trade Bureau �����������������������������������������
Financial Crimes Enforcement Network ������������������������������������������������
Community Development Financial Institutions Fund ���������������������������
All other �������������������������������������������������������������������������������������������������
Total, Discretionary budget authority ����������������������������������������������������������

11,522
240
279
27
179
172
—
99
91
107
–92
12,624

12,147
244
305
10
182
182
23
103
111
247
—
13,554

12,633
235
346
22
176
185
50
—
100
250
–62
13,935

Memorandum:
Budget authority from American Recovery and Reinvestment Act �������������

318

—

—

Total, Discretionary outlays �������������������������������������������������������������������������

12,224

13,278

13,738

Memorandum: Outlays from American Recovery and Reinvestment Act���

139

149

16

Mandatory Outlays:
Payment where tax credit exceeds liability for tax (multiple programs)��
GSE MBS and HFA Purchases �������������������������������������������������������������

78,604
–4,500

71,821
–9,879

59,438
—

116

DEPARTMENT OF THE TREASURY

Department of the Treasury—Continued
(In millions of dollars)

Actual
2009

Estimate
2010

2011

GSE Preferred Stock Purchase Agreements and Dividends ����������������
Troubled Asset Relief Program (TARP) ������������������������������������������������
TARP Downward Reestimate of Subsidies �������������������������������������������
Office of Financial Stability ��������������������������������������������������������������������
Special Inspector General for TARP �����������������������������������������������������
Internal Revenue Collections for Puerto Rico ���������������������������������������
Legislative Proposal �������������������������������������������������������������������������
Terrorism Insurance Program ���������������������������������������������������������������
Legislative proposal �������������������������������������������������������������������������
All other �������������������������������������������������������������������������������������������������
Total, Mandatory outlays �����������������������������������������������������������������������������

91,264
151,151
—
90
12
473
—
2
—
–2,633
314,463

56,746
41,427
–114,531
443
37
356
66
104
—
5,239
51,763

5,435
10,734
—
309
11
348
91
236
–26
3,163
79,674

Memorandum: Outlays from American Recovery and Reinvestment Act ���

2,433

49,156

44,181

Total, Outlays ����������������������������������������������������������������������������������������������

326,687

65,041

93,412

Credit activity
Direct Loan Disbursements:
GSE MBS and HFA Purchases ������������������������������������������������������������
Troubled Asset Relief Program ������������������������������������������������������������
Total, Direct loan disbursements �����������������������������������������������������������������

190,574
363,825
554,399

48,676
85,713
134,389

—
5,168
5,168

Guaranteed Loan Commitments:
Troubled Assets Relief Program ������������������������������������������������������������
Total, Guaranteed loan commitments ���������������������������������������������������������

301,000
301,000

—
—

—
—

1

Excludes International Programs.

DEPARTMENT OF VETERANS AFFAIRS
Funding Highlights:
•

Builds on the historic past increase in funding for the Department of Veterans Affairs (VA), for
a 20 percent total increase since 2009.

•

Secures timely, sufficient, and predictable funding for health care services through 2012 with
advance appropriations for VA Medical Care.

•

Increases access to medical care services by focusing on the unique needs of women
veterans and continuing the enrollment of over 500,000 previously ineligible veterans into VA
health care by 2013.

•

Supports timely and high-quality delivery of health care and benefits through 21st Century
technology, including the Virtual Lifetime Electronic Record and benefits processing systems.

•

Funds the Administration’s commitment to dramatically reduce veteran homelessness.

•

Continues the emphasis on specialized care for veterans with psychological and cognitive
health needs, especially due to post-traumatic stress and traumatic brain injury.

•

Provides greater benefits to veterans who are medically retired from service.

•

Dramatically expands access to national cemeteries for eligible veterans.

Veterans earn an array of benefits and services through their dedicated service to America.
The President’s Budget makes it easier for veterans to access the benefits and services they have
earned, by investing in 21st Century technology
and in improved services for veterans with specialized needs.
Builds on the Historic Past Increase in
Funding for VA. The Budget provides $57
­billion in funding for a 20 percent total increase
since 2009. This significant increase contributes
to the President’s pledge to increase funding for
the VA, providing a foundation to transform the
Department and better serve veterans and their
families today.

Provides Advance Appropriations for
VA Medical Care. The 2011 Budget requests
$50.6 billion in advance appropriations for the
VA medical care program so that care for the Nation’s veterans is not hindered by budget delays.
This funding will enable the Department to have
timely and predictable funding from year to year,
ultimately making it easier for veterans to rely
on accessible VA care.
Focuses on the Unique Needs of Women
Veterans. The 2011 President’s Budget responds to the growing number of women veterans by providing for their unique needs, from an
appropriate environment of care to specialized
medical and counseling services.

117

118
Continues to Increase Enrollment of Previously Ineligible Veterans into VA Health
Care. The President’s Budget continues enrolling more than 500,000 moderate-income veterans into the VA health care system by 2013 while
maintaining high-quality and timely care for the
lower-income and disabled veterans who currently rely on VA.
Supports Timely
and
High-Quality
­ elivery of Health Care and Benefits
D
through 21st Century Technology. VA and
the Department of Defense (DOD) are jointly
implementing the Virtual Lifetime Electronic
­Record, which will enable VA to maintain a
complete health record for each veteran and
to deliver care and benefits to veterans with
efficiency and accuracy. The President’s Budget
also invests over $200 million in automated
processing to directly improve the accuracy and
timeliness of veterans benefits, particularly
disability compensation and the new Post-9/11
GI Bill benefit.
Works to Dramatically Reduce Veteran
Homelessness. With an investment of almost
$800 million, the President’s Budget expands
VA’s services for homeless veterans and those
at risk of becoming homeless through the
expansion of collaborative partnerships with
local governments, non-profit organizations,
and the Departments of Housing and Urban
Development, Justice, and Labor.

DEPARTMENT OF VETERANS AFFAIRS
Continues the Emphasis on Specialized
Care for Veterans with Psychological and
Cognitive Health Needs. The President’s Budget strengthens VA’s ability to provide veterans
the best possible care for Post-Traumatic Stress,
Traumatic Brain Injury, and other mental health
conditions by investing $5.2 billion in specialized care. These conditions will continue to be
urgent issues for the VA for many years to come.
The Budget increases collaboration between joint
DOD and VA programs that target psychological
health; increases research to develop new evidence-based approaches; and increases outreach
to veterans.
Provides Greater Benefits to Veterans
who are Medically Retired from Service.
For the first time, highly-disabled veterans who
are medically retired from service will be eligible
for concurrent receipt of disability benefits from
VA in addition to DOD retirement benefits. All
medically retired servicemembers will be eligible
for concurrent receipt of VA and DOD benefits by
2015.
Dramatically Expands Access to National
Cemeteries for Eligible Veterans. VA will reduce the population threshold used to determine
where new national veterans cemeteries should
be built from 170,000 to 80,000 veterans living
within 75 miles of a potential location. The lower
threshold will provide a nearby national cemetery
burial option to at least 500,000 additional veterans and will result in 94 percent of all veterans
having a veterans cemetery burial option within
a reasonable distance of their homes.

119

THE BUDGET FOR FISCAL YEAR 2011

Department of Veterans Affairs
(In millions of dollars)

Estimate

Actual
2009

2010

2011

Spending
Discretionary Budget Authority:
Medical Care �����������������������������������������������������������������������������������������������
Medical Collections (non-add) ������������������������������������������������������������
Total Medical Care including collections (non-add) ����������������������������
Medical Care and Prosthetics Research �����������������������������������������������������
Information Technology �������������������������������������������������������������������������������
Construction ������������������������������������������������������������������������������������������������
Veterans Benefits Administration ����������������������������������������������������������������
General Administration �������������������������������������������������������������������������������
Housing and Other Credit ���������������������������������������������������������������������������
National Cemetery Administration ��������������������������������������������������������������
Office of Inspector General �������������������������������������������������������������������������
Total, Discretionary budget authority ����������������������������������������������������������������

40,183
2,767
42,950
510
2,748
1,882
1,461
336
158
230
88
47,596

44,512
3,026
47,538
581
3,307
2,043
1,689
398
166
250
109
53,055

48,183
3,355
51,538
590
3,307
1,750
2,149
463
165
251
109
56,967

Memorandum:
Budget authority from American Recovery and Reinvestment Act �������������������
Budget authority from supplementals ���������������������������������������������������������������

1,408
198

—
—

—
—

Total, Discretionary outlays �������������������������������������������������������������������������������

46,580

51,516

55,224

Memorandum: Outlays from American Recovery and Reinvestment Act ���������

86

590

465

Mandatory Outlays:
Disability Compensation and Pensions:
Existing law ��������������������������������������������������������������������������������������������
Supplemental �����������������������������������������������������������������������������������������
Legislative proposal �������������������������������������������������������������������������������
Education Benefits ��������������������������������������������������������������������������������������
Vocational Rehabilitation and Employment �������������������������������������������������
Housing (credit) �������������������������������������������������������������������������������������������
Insurance ����������������������������������������������������������������������������������������������������
All other �������������������������������������������������������������������������������������������������������
Total, Mandatory outlays �����������������������������������������������������������������������������������

44,270
—
—
3,155
720
329
48
–188
48,334

47,901
13,377
531
8,444
787
828
49
549
72,466

57,109
—
44
9,704
830
19
63
764
68,533

Memorandum: Outlays from American Recovery and Reinvestment Act ���������

465

—

—

Total, Outlays ����������������������������������������������������������������������������������������������������

94,914

123,982

123,757

79

965

1,102

Credit activity
Direct Loan Disbursements:
Vendee and Acquired Loans �����������������������������������������������������������������������

120

DEPARTMENT OF VETERANS AFFAIRS

Department of Veterans Affairs—Continued
(In millions of dollars)
Actual
2009
All other programs ���������������������������������������������������������������������������������������
Total, Direct loan disbursements �����������������������������������������������������������������������
Guaranteed Loan Commitments:
Veterans Home Loans��������������������������������������������������������������������������������

22
101
67,849

Estimate
2010

2011
15
980

58,286

12
1,114
53,570

CORPS OF ENGINEERS­—CIVIL WORKS
Funding Highlights:
•

Helps build infrastructure to support economic growth and restore aquatic ecosystems by
allocating $1.7 billion to fund construction for projects that provide the highest economic and
environmental return to the Nation while achieving public safety objectives.

•

Emphasizes the safe and reliable operation and maintenance of key inland and coastal
waterways and other infrastructure.

•

Focuses resources on the restoration of significant aquatic ecosystems, such as the
Everglades, the California Bay-Delta, and the Louisiana coastal wetlands.

•

Begins to chart a new direction for the Corps to meet 21st Century water resources
challenges, including reforming the procedures for planning future projects and eliminating
funding for ongoing projects and activities that are ineffective or duplicative.

The Army Corps of Engineers civil works program (Corps) develops, manages, and protects
the Nation’s water resources through its studies
of potential projects; its construction, operation
and maintenance of projects; and its regulatory
program. The Corps, working with other Federal
agencies, also helps communities respond to and
recover from floods and other natural disasters.
The Corps conducts much of its work in partnership with State and local governments and other
non-Federal entities.
Funds High-Return Construction Projects. The Budget for the construction program
supports high-return investments for ongoing
work in the three main mission areas of the
Corps: commercial navigation; flood and storm
damage reduction; and aquatic ecosystem restoration. The Budget also gives priority for funding to dam safety work, projects that reduce sig-

nificant risks to human safety, and projects that
will complete construction during 2011.
Supports Capital Investment on the Inland Waterways. The Budget proposes to replace the current excise tax on diesel fuel for the
inland waterways with a new funding mechanism that raises the revenue needed to meet the
authorized non-Federal cost-share of inland waterways capital investments in a way that is more
efficient and more equitable than the fuel tax. It
will also preserve the landmark cost-sharing reform established by the Congress in 1986, while
supporting inland waterways construction, expansion, replacement, and rehabilitation work.
Advances Aquatic Ecosystem Restoration. The Budget supports ongoing, high-performing ecosystem restoration efforts, including
continued progress toward restoring the Florida

121

122
Everglades, the California Bay-Delta, and the
Louisiana coast. Based on sound science, these
and other aquatic ecosystem efforts supported in
the Budget focus on those activities that cost effectively provide high-quality, reliable, and sustainable long-term solutions that restore the environmental integrity and sustainability of the
affected ecosystems. The Corps will work with
Federal interagency working groups led by the
White House Council on Environmental Quality to develop performance measures and tools
to identify those restoration activities with the
highest returns to taxpayers.
Emphasizes the Operation and Maintenance of Existing Infrastructure. The Budget
focuses resources on furthering the operational
reliability, safety, and availability of the key features of the existing Corps infrastructure. The
Budget funds high-priority maintenance work
that will improve the overall performance of the
Corps aging infrastructure, including work on the
Ohio, Upper Mississippi, and Illinois Waterway,
and development of models to help the Corps understand the impact of climate change on its projects and how to adapt to those changes.

CORPS OF ENGINEERS­—CIVIL WORKS
Supports a New Direction for the Corps.
The Budget supports Corps activities to plan and
implement water resources projects that advance
sustainable economic development and preserve
and restore ecosystems. It also supports the Administration’s effort to revise the over 25-year
old procedures for planning future Federal water
resources projects and supports improving the
management of existing projects to incorporate
current water resources planning concepts and
analytical methods. In addition, the Administration intends to develop a set of broad principles
to chart the future course of the Corps and to
help guide authorization of Corps studies, projects, and programs in the next Water Resources
­Development Act.
Eliminates Funding for Ineffective or Duplicative Programs. The Budget eliminates
funding for dozens of projects that have a low
economic or environmental return or that are duplicative of programs in other agencies, including
cutting $129 million for water and wastewater
infrastructure projects that are better addressed
through other Federal programs.

123

THE BUDGET FOR FISCAL YEAR 2011

Corps of Engineers—Civil Works
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Spending
Discretionary Budget Authority:
Construction ������������������������������������������������������������������������������������������������
Operation and Maintenance ������������������������������������������������������������������������
Mississippi River and Tributaries �����������������������������������������������������������������
Flood Control and Coastal Emergencies ����������������������������������������������������
Investigations ����������������������������������������������������������������������������������������������
Regulatory Program ������������������������������������������������������������������������������������
Expenses ����������������������������������������������������������������������������������������������������
Office of the Assistant Secretary of the Army (Civil Works) ������������������������
Formerly Utilized Sites Remedial Action Program ��������������������������������������
Subtotal, Discretionary budget authority �����������������������������������������������������������
Cancellation of Unobligated Balances, Mississippi River and Tributaries ���
Total, Discretionary budget authority ����������������������������������������������������������������

2,080
2,202
384
—
168
183
179
5
140
5,341
—
5,341

2,029
2,400
340
—
162
190
185
5
134
5,446
—
5,446

1,690
2,361
240
30
104
193
185
6
130
4,939
–58
4,881

Memorandum:
Budget authority from American Recovery and Reinvestment Act �������������������
Budget authority from supplementals ���������������������������������������������������������������

4,600
6,558

—
—

—
—

Total, Discretionary outlays �������������������������������������������������������������������������������

6,777

7,566

5,951

Memorandum: Outlays from American Recovery and Reinvestment Act ���������

346

2,965

976

Mandatory Outlays:
Existing law �������������������������������������������������������������������������������������������������
Total, Mandatory outlays �����������������������������������������������������������������������������������

–261
–261

38
38

35
35

Total, Outlays ����������������������������������������������������������������������������������������������������

6,516

7,604

5,986

ENVIRONMENTAL PROTECTION AGENCY
Funding Highlights:
•

Provides $3.3 billion total for the Clean Water and Drinking Water State Revolving Funds.
This will allow States and Tribes to initiate approximately 800 clean water and 500 drinking
water projects nationally, continuing a major Federal commitment to water infrastructure
investment.

•

Provides new funding to support the Administration’s commitment to mitigate climate change.

•

Continues support for collaborative, interagency ecosystem restoration efforts in the Great
Lakes, Chesapeake Bay and Mississippi River Basin.

•

Provides grants for States and Tribes to administer delegated environmental programs at $1.3
billion, the highest level ever.

•

Funds the Agency’s operating budget at $3.8 billion to support regulatory, research, and
enforcement activities.

•

Supports economic growth and job creation in hard hit regions by bolstering Brownfields
cleanup.

The Environmental Protection Agency (EPA)
is committed to protecting human health and the
environment. To achieve this mission, EPA collaborates with States and Tribes to implement air,
water, waste, and chemical programs. The Budget requests $10 billion for EPA, a substantially
higher annual amount than requested under any
previous Administration. This total expands the
Administration’s 2010 increase to the Agency’s
core operating budget, which provides funds for
program implementation, priority research, enhanced regulation, and comprehensive enforcement activities. EPA’s budget also provides more
funding for State and tribal program implementation grants than any previous budget.
Invests in Clean Water Infrastructure.
The Budget requests $3.3 billion for the Clean

Water and Drinking Water State Revolving
Funds (SRFs). The Federal SRF funding provides grants to States for low-interest loans to
communities through a combination of Federal
capitalization, State matches, State leveraging, interest, and loan repayments. Since loan
interest and principal payments are returned
to the program, the SRFs continue to generate
funding for new loans even without continued
Federal funding. The Federal contribution to
water and waste water infrastructure has been
substantially incorporated into SRFs. These
Funds, combined, now produce approximately $5
billion in repayments each year. As the Funds
have grown, the need for Federal capitalization
will decline over the next decade. Some ongoing
­contribution will be maintained so the neediest
communities are adequately served.

125

126
For 2011, EPA proposes a new approach to
helping small drinking water systems, as well as
reforms to improve the long-term financial, managerial, and environmental sustainability of the
SRFs. As part of that strategy, Federal dollars
provided through the SRFs will act as a catalyst
for efficient system-wide planning, improvements
in technical, financial and managerial capacity,
and the design, construction and on-going management of sustainable water infrastructure.
Supports Efforts to Mitigate Climate
Change. The President has called on the Congress to enact forward-looking energy legislation
that would spur U.S. development of advanced,
clean energy technologies to reduce our dependence on oil, strengthen our energy and national
security, create new jobs, and restore America’s
position as a global leader in efforts to mitigate
climate change and address its worst consequences. The Administration supports a comprehensive
market-based climate change policy to reduce
greenhouse gas emissions in the United States
more than 80 percent below 2005 levels by 2050.
The President also supports a near-term target
in the range of a 17-percent reduction by 2020.
The Budget includes $21 million, an increase of
$4 million from 2010 enacted levels, to implement
the Mandatory Greenhouse Gas Reporting Rule
and ensure the availability of high quality emissions data that will serve as the basis for effective
climate policy.
In order for EPA and States to quickly and
effectively address climate change, the Budget requests $43 million in new funding for
regulatory initiatives to control greenhouse
gas emissions under existing Clean Air Act
authorities. Requested funds include $25 million to aid States in permitting activities for
greenhouse gas (GHG) emissions under the
New Source Review, and Title V operating permits programs. The Budget also requests $7
million to develop New Source Performance
Standards to control GHG emissions from a
few categories of major stationary sources.
The Budget requests an increase of $6 million to support regulatory programs to reduce
GHG emissions from mobile sources. These

ENVIRONMENTAL PROTECTION AGENCY
initiatives will help the United States meet its
t­ arget for emissions reductions.
Advances Restoration of Great Lakes and
Other Imperiled Waters. The 2011 Budget
supports ecosystem restoration efforts, including $300 million for the Great Lakes, the largest freshwater system in the world. This EPAled interagency effort to restore the Great Lakes
focuses on priority environmental issues such
as contaminated sediments and toxics, nonpoint
source pollution, habitat degradation and loss,
and invasive species.
The Budget also provides $17 million in new
funding for the Mississippi River Basin and increases support for the Chesapeake Bay by $13
million. In the Mississippi River Basin, EPA
will work with the Department of Agriculture
to target nonpoint source reduction practices on
agricultural land to reduce nutrient loadings.
Funding for the Chesapeake Bay supports the
President’s May 2009 Chesapeake Bay Protection and Restoration Executive Order and will
enable EPA to conduct robust regulatory, permitting, modeling, and reporting efforts. EPA
and Federal partners will continue to coordinate
with States, Tribes, municipalities, and industry
to restore the integrity of imperiled waters of
the United States.
Assists States and Tribes Clean Air and
Water Efforts. For grants that support eligible
States and Tribes that implement environmental programs, the Budget requests $1.3 billion, a
14-percent increase from 2010 enacted and the
highest level ever. In addition to the $25 million
provided for States to conduct GHG permitting
activities, the Budget recognizes State fiscal constraints and provides substantial increases for
select State and tribal programs, including a $45
million increase for State water pollution control
grants and a $58 million increase for air quality
management grants. The Budget includes $30
million for a new tribal multimedia grant program targeted at Tribes and tribal consortia that
can implement environmental program requirements on tribal lands.

127

THE BUDGET FOR FISCAL YEAR 2011
Promotes
Economic
Growth
with
I­ ncreased Funding for Brownfields Cleanup. Brownfields are lightly contaminated sites—
many in economically hard-hit regions—that pollution may keep from being used productively.

To stimulate economic growth and job creation
in ­economically distressed areas, the Budget
­provides a substantial increase for the Brownfields program to integrate area-wide planning
and environmental remediation activities.

Environmental Protection Agency
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Spending
Discretionary Budget Authority:
Operating Budget 1����������������������������������������������������������������������������������������
State and Tribal Assistance Grants ��������������������������������������������������������������
Clean Water State Revolving Fund ��������������������������������������������������������������
Drinking Water State Revolving Fund ����������������������������������������������������������
Brownfields Assessment and Cleanup ��������������������������������������������������������
Clean Diesel Grants �������������������������������������������������������������������������������������
Targeted Water Infrastructure ����������������������������������������������������������������������
Requested (non-add) ������������������������������������������������������������������������������
Unrequested (non-add) ���������������������������������������������������������������������������
Superfund ����������������������������������������������������������������������������������������������������
Leaking Underground Storage Tanks �����������������������������������������������������������
Cancellation of unobligated balances ����������������������������������������������������������
Total, Discretionary budget authority �����������������������������������������������������������������

3,281
1,082
689
829
97
75
192
39
153
1,285
113
–10
7,633

3,940
1,116
2,100
1,387
100
80
195
30
165
1,307
113
–40
10,298

3,843
1,276
2,000
1,287
138
60
20
20
—
1,293
113
–10
10,020

Memorandum: Budget authority from American Recovery and Reinvestment Act ������

7,220

—

—

Total, Discretionary outlays ��������������������������������������������������������������������������������

7,885

8,591

9,351

Memorandum: Outlays from American Recovery and Reinvestment Act ����������

302

2,841

2,005

Mandatory Outlays:
Agency-wide
Existing law ���������������������������������������������������������������������������������������������
Legislative proposals, Pesticide and PMN user fees �������������������������������
Total, Mandatory outlays ������������������������������������������������������������������������������������

–117
—
–117

–131
—
–131

–129
–50
–179

Total, Outlays ���������������������������������������������������������������������������������������������������

7,768

8,460

9,172

1

Includes funding for Great Lakes Initiative.

NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
Funding Highlights:
•

Adds $6 billion to NASA’s budget over five years and draws upon American ingenuity to
enable us to embark on an ambitious 21st Century program of human space exploration.

•

Initiates flagship exploration technology development and demonstration programs of “gamechanging” technologies that will increase the reach and reduce the costs of future human
space exploration as well as other NASA, government, and commercial space activities.

•

Embraces the commercial space industry and the thousands of new jobs that it can create
by contracting with American companies to provide astronaut transportation to the Space
Station—thus reducing the risk of relying exclusively on foreign crew transport capabilities.

•

Ends NASA’s Constellation program, which was planning to use an approach similar to the
Apollo program to return astronauts back to the Moon 50 years after that program’s triumphs.
An independent panel found that Constellation was years behind schedule and would require
large budget increases to land even a handful of astronauts back on the Moon before 2030.
Instead, we are launching a bold new effort that invests in American ingenuity for developing
more capable and innovative technologies for future space exploration.

•

Extends the International Space Station and enhances its utilization, bringing nations together
in a common pursuit of knowledge and excellence in space.

•

Enhances the Nation’s global climate change research and monitoring system, including reflight of a satellite that will help identify global carbon sources and sinks.

•

Provides for a robust program of robotic solar system exploration and new astronomical
observatories, including a probe that will fly through the Sun’s atmosphere and an expanded
effort to detect potentially hazardous asteroids.

•

Revitalizes and realigns NASA to put in place the right workforce and facilities to function as
an efficient 21st Century research and development agency.

The mission of the National Aeronautics and
Space Administration (NASA) is to drive advances in science, technology, and exploration
to enhance knowledge, education, innovation,
economic vitality, stewardship of the Earth, and
solutions to national and global challenges. The

President’s Budget will allow NASA to improve
our knowledge of the Earth, explore space with
humans and robots, foster strong partnerships
with other nations, and educate and inspire the
next generation of scientists and engineers.

129

130

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Lays the Foundation for a Bold New
Course for Human Space Flight. NASA’s
Constellation
program—based
largely
on
existing technologies—was begun to realize a
vision of returning astronauts back to the Moon
by 2020. However, the program was over budget,
behind schedule, and lacking in innovation due
to a failure to invest in critical new technologies.
Using a broad range of criteria, an independent
review panel determined that even if fully
funded, NASA’s program to repeat many of the
achievements of the Apollo era, 50 years later,
was the least attractive approach to space
exploration as compared to potential alternatives.
Furthermore, NASA’s attempts to pursue its Moon
goals had drawn funding away from other NASA
programs, including robotic space exploration,
science, and Earth observations. The President’s
Budget cancels Constellation and replaces it with
a bold new approach that invests in the building
blocks of a more capable approach to space
exploration that includes:
•

•

•

Develops and Deploys Technologies to Reduce Future Space Mission Costs, Expand
Opportunities, and Grow the American
Economy. NASA will embark on a new agencywide technology development and test program
aimed at increasing the capabilities and reducing the cost of future NASA, other government,
and commercial space activities. NASA will increase its support for transformative research
that can enable a broad range of NASA missions.
This program, which will involve work at NASA,
in private industry, and at all levels of academia,
will also generate spin-off technologies and potentially entire new industries.

Supports Extension and Enhanced Utilization of the Space Station. The International
Space Station is poised to reach its full complement of international crew and laboratories in
2010. The President’s Budget provides funds
to extend operations of the Space Station past
its previously planned retirement date of 2016.
Research and development to support Working with partners around the world, NASA
­future heavy-lift rocket systems that will will maximize return on this investment by deincrease the capability of future explora- ploying new research facilities to conduct sciention architectures with significantly lower tific research and test technologies in space and
operations costs than current systems—­ by making Space Station research capabilities
potentially taking us farther and faster available to educators and new researchers. New
capabilities could include a centrifuge to support
into space.
research into human physiology, inflatable space
A vigorous new technology development habitats, and a program to continuously upgrade
and test program that aims to increase Space Station capabilities.
the capabilities and reduce the cost of future exploration activities. NASA, workSupports Promising Commercial Space
ing with industry, will build, fly, and test Transportation. Commercial launch vehicles
in orbit key technologies such as automat- have for years carried all U.S. military and comed, autonomous rendezvous and docking, mercial—and most NASA—satellites to orbit.
closed-loop life support systems, in-orbit The Budget funds NASA to contract with induspropellant transfer, and advanced in- try to provide astronaut transportation to the
space propulsion so that our future hu- International Space Station as soon as possible,
man and robotic exploration missions are reducing the risk of relying solely on foreign
both highly capable and affordable.
crew transports for years to come. A strengthA steady stream of precursor robotic ex- ened U.S. commercial space launch industry will
ploration missions to scout locations and bring needed competition, act as a catalyst for the
demonstrate technologies to increase the ­development of other new businesses capitalizing
safety and capability of future human on affordable access to space, help create thoumissions and provide scientific dividends. sands of new jobs, and help reduce the cost of
­human access to space.

THE BUDGET FOR FISCAL YEAR 2011
Commits Funds to Safely and Prudently
Fly the Remaining Space Shuttle Flights.
The President’s Budget promotes a safe and orderly retirement of the Space Shuttle program
by providing funding for the Shuttle to fly its final five missions, even if their schedule slips into
2011.
Improves Our Understanding of Global
Climate Change. NASA’s Earth science program conducts first-of-a-kind demonstration
flights of sensors in air and space in an effort to
foster scientific understanding of the Earth system and to improve the ability to forecast climate change and natural disasters. The Budget
accelerates the development of new satellites
the ­National Research Council recommended as
Earth science priorities. The Budget also supports several research satellites currently in
development, a campaign to monitor changes in
polar ice sheets, and enhancements to climate
models. In addition, the Budget provides funds
for NASA to develop and fly a replacement for the
Orbiting Carbon Observatory, a mission designed
to identify global carbon sources and sinks that
was lost when its launch vehicle failed in 2009.
Increases Scientific Understanding of the
Solar System and Universe. NASA’s space
probes, rovers, and telescopes have revolutionized humanity’s scientific understanding of the
cosmos. The Budget supports space science research grants and dozens of operating missions
and telescopes currently studying the planets
and stars as well as many more in development—
including a telescope to succeed the Hubble Space
Telescope, missions to study the Moon, and two
Mars exploration missions. The Budget also
funds early work on a mission that will make the
closest-ever approach to the Sun, flying through

131
its outer atmosphere in an attempt to understand
how it is heated and how it ejects the stream of
charged particles known as the solar wind. In
addition, the Budget increases funding to detect
asteroids that could potentially pose a hazard to
the Earth.
Increases Support for Green Aviation and
a More Efficient Air Transportation System. The President’s Budget increases support
for NASA’s green aviation initiative by focusing
on both innovative fundamental research and
systems-level applications to reduce fuel needs,
noise, and emissions of aircraft. These improvements to future air transportation will promote
both the economic and environmental health of
this country.
Revitalizes and Realigns NASA. The Budget supports the revitalization of NASA to put in
place the right workforce and facilities to function
as an efficient 21st Century research and development agency. A major focus of this effort will be
to create the 21st Century launch facilities and
infrastructure needed at Kennedy Space Center,
transforming the facility to more effectively support future NASA, commercial, and other government launches.
Inspires More Young People to Engage
in Science, Technology, Engineering, and
Mathematics. The Budget supports NASA programs that are designed to meet the goals of the
President’s “Educate to Innovate” campaign in
Science, Technology, Engineering and Mathematics education. NASA’s Summer of Innovation,
for example, will work with thousands of middle
school teachers and students to engage students
in stimulating, evidence-based math and sciencebased education programs.

132

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

National Aeronautics and Space Administration
(In millions of dollars)

Estimate

Actual
2009
Spending
Discretionary Budget Authority:
Science �����������������������������������������������������������������������������������������������������
Exploration ������������������������������������������������������������������������������������������������
Aeronautics and Space Research and Technology ����������������������������������
Space Operations �������������������������������������������������������������������������������������
Education ��������������������������������������������������������������������������������������������������
Cross Agency Support ������������������������������������������������������������������������������
Construction and Environmental Compliance and Restoration�����������������
Inspector General �������������������������������������������������������������������������������������
Total, Discretionary budget authority ��������������������������������������������������������������

2010

2011

4,503
3,505
500
5,765
169
3,306
—
34
17,782

4,469
3,746
501
6,147
183
3,194
448
36
18,724

5,006
4,263
1,152
4,888
146
3,111
397
37
19,000

Budget authority from American Recovery and Reinvestment Act �����������������

1,002

—

—

Total, Discretionary outlays �����������������������������������������������������������������������������

19,138

18,347

17,694

Memorandum: Outlays from American Recovery and Reinvestment Act �������

37

790

183

Mandatory Outlays:
All Other General Funds and Proprietary Receipts ����������������������������������
Undistributed Intragovernmental Payments and Receivables �������������������
Science, Space, and Technology Education Trust Fund ���������������������������

–6
–2
1

–15
—
1

–15
—
1

Total, Mandatory outlays ���������������������������������������������������������������������������������

–7

–14

–14

Total, Outlays ��������������������������������������������������������������������������������������������������

19,131

18,333

17,680

Memorandum:

NATIONAL SCIENCE FOUNDATION
Funding Highlights:
•

Provides $7.4 billion for the National Science Foundation, an 8 percent increase over the
2010 enacted level, as part of the President’s Plan for Science and Innovation.

•

Drives the creation of the industries and jobs of the future by doubling funding for
multidisciplinary research targeted at next-generation information and biological technologies.

•

Provides $19 million in graduate and undergraduate fellowships and scholarships for a joint
initiative with the Department of Energy to inspire tens of thousands of American students to
pursue careers in science, engineering, and entrepreneurship related to clean energy.

•

Creates a new $766 million, cross-agency sustainability research effort focused on renewable
energy technologies and complex environmental- and climate-system processes.

•

Increases funding by 14 percent for a new consolidated program aimed at building the
science and technology workforce by recruiting and retaining undergraduate students from
under-represented groups.

The National Science Foundation (NSF) is the
key Federal agency responsible for supporting
the full breadth of non-biomedical science and
technology research at the Nation’s universities
and colleges. This basic research and the agency’s high-tech workforce development programs
help drive future economic growth and the creation of high-wage jobs for American workers.
The Budget fully funds the President’s Plan for
Science and Innovation by providing NSF with
$552 million over the 2010 enacted level, and
maintains the Administration’s commitment to
doubling funding for key basic research agencies.
Lays the Groundwork for the Industries
and Jobs of the Future. The Budget doubles
funding to $90 million for basic research aimed
at creating a future bio-economy by enhancing our ability to design biological systems, and

starting the next revolution in computing by
designing new materials. The Budget also supports advanced manufacturing technologies by
funding research on nano-manufacturing and
cyber-physical systems such as automated traffic control and zero-net energy buildings.
Inspires Students to Pursue Clean Energy
Careers. In partnership with the Department
of Energy, NSF will dedicate at least 5 percent
of its undergraduate and graduate fellowship,
scholarship, and traineeship programs, roughly
$19 million in 2011, to students pursuing clean
energy careers.
Increases Sustainability Research. The
Budget provides $766 million, an increase of
$105 million over comparable 2010 levels, for a
new effort at NSF that represents a fundamen-

133

134

NATIONAL SCIENCE FOUNDATION

tal shift in how the agency defines and supports
multidisciplinary energy and climate research.
This new cross-agency effort is an integrated approach to increasing U.S. energy independence,
enhancing environmental stewardship, reducing
energy and carbon intensity, and generating sustained economic growth.

Broadens Reach and Increases Funding to
Promote Study of Science and Technology.
The Budget proposes to launch a comprehensive
science and technology workforce program to
engage undergraduates at Historically Black,
Tribal, and Hispanic-serving colleges and
universities by realigning and building on
existing programs. Funding for these activities
would increase by over 14 percent to $103 million.

National Science Foundation
(In millions of dollars)

Estimate

Actual
2009

2010

2011

Spending
Discretionary Budget Authority:
Research and Related Activities ���������������������������������������������������������������
Education and Human Resources ������������������������������������������������������������
Major Research Equipment and Facilities Construction ���������������������������
Agency Operations and Award Management �������������������������������������������
Inspector General �������������������������������������������������������������������������������������
National Science Board ����������������������������������������������������������������������������
Total, Discretionary budget authority ��������������������������������������������������������������

5,183
845
152
294
4
12
6,490

5,564
873
117
300
5
14
6,873

6,019
892
165
329
5
14
7,424

Memorandum:
Budget authority from American Recovery and Reinvestment Act �����������������

3,002

—

—

Total, Discretionary outlays �����������������������������������������������������������������������������

5,834

6,149

6,653

Memorandum: Outlays from American Recovery and Reinvestment Act �������

27

1,463

859

Mandatory Outlays:
H-B Fee Programs ������������������������������������������������������������������������������������
All other �����������������������������������������������������������������������������������������������������
Total, Mandatory outlays ���������������������������������������������������������������������������������

96
1
97

165
42
207

137
-2
135

Total, Outlays ��������������������������������������������������������������������������������������������������

5,931

6,356

6,788

SMALL BUSINESS ADMINISTRATION
Funding Highlights:
•

Supports $28 billion in loan guarantees to help small businesses access the credit they need
to grow and create jobs.

•

Provides competitive technical assistance grants to better support business development and
regional economic growth.

•

Provides long-term disaster recovery loans for homeowners, renters, and businesses of all
sizes.

•

Strengthens lender and procurement program oversight to protect taxpayer dollars.

•

Upgrades the Agency’s information technology systems and human capital resources to
increase SBA’s impact on businesses and communities.

The 2011 Budget provides $994 million for the
Small Business Administration (SBA), a $170
million, or 21 percent, increase over the 2010
enacted level. This reflects the Administration’s
strong support of small businesses, which play a
vital role in the Nation’s economy.
Provides Small Business Access to ­Credit.
The Budget provides $165 million in subsidy
costs to support $17.5 billion in 7(a) loan guarantees that will help small businesses operate and
expand. This includes an estimated $16 billion
in term loans and $1.5 billion in revolving lines
of credit; the latter are expected to support $39
billion in total economic activity through draws
and repayments over the life of the guarantee.
The Budget also supports $7.5 billion in guaranteed lending for commercial real estate development and heavy machinery purchases; $3 billion
in Small Business Investment Company debentures to support new businesses and new jobs

through early-stage and mezzanine small business financing; and $25 million in direct Microloans, for intermediaries to provide small loans
to emerging entrepreneurs and other promising
but “un-bankable” borrowers.
The Budget also includes the following legislative proposals, to improve small business access
to credit. It proposes to increase the maximum
7(a) loan size from $2 million to $5 million; to
increase the maximum Certified Development
Company (or “504”) loan size from $2 million to
$5 million for regular projects and from $4 million to $5.5 million for manufacturing projects;
and to increase the maximum Microloan size to
$50,000. The Budget also proposes to increase
the maximum outstanding loan amount to Microloan intermediaries in their first year of participation from $750,000 to $1 million, and from
$3.5 million to $5 million in the subsequent
years.

135

136
Supports Business Growth and Cluster
Development. The Budget includes $14 ­million
for competitive technical assistance grants
to ­expand SBA’s Emerging Leaders (formerly
Emerging 200) initiative and to enhance small
business participation in regional economic
­clusters. The Emerging Leaders initiative ($3
million) provides intensive technical assistance
to companies that have high growth potential and
are located in distressed economic areas, such as
inner cities and Native American communities,
and connects them to regional business
networks to accelerate growth. SBA will also
support enhanced small business participation
in regional economic ­clusters ($11 million) by
awarding competitive grants to facilitate greater
coordination of resources (business counseling,
training, ­mentor-protégé partnerships).
Funds Long-Term Disaster Recovery. The
Budget supports $1.1 billion in direct loans, the
normalized 10-year average, for homeowners and
businesses whose property is damaged by natural disasters. The Budget requests $203 million
in new budget authority for disaster-loan administrative expenses, an increase of $126 million
from the 2010 enacted level.
Strengthens Oversight to Protect Taxpayer Dollars. Due to the economic downturn
and higher defaults on prior loans, SBA’s guaranteed loan programs are recording a $4.5 billion increase in losses and subsidy costs on its
outstanding loan portfolio, particularly on those
made between 2005 and 2007. This reestimate
increases the deficit in 2010. In addition, project-

SMALL BUSINESS ADMINISTRATION
ed defaults and economic conditions have doubled
the ­estimated cost of new 7(a) loan guarantees
for 2011 compared to 2010. The Budget provides
funding for these increased costs in 2011, as noted above. However, to strengthen the program’s
long-term economic foundation, the Administration will submit a legislative package to provide
SBA the flexibility to adjust fees in the program
to enable it to be self-sustaining over time. These
changes in the program’s fee structure would become effective for loans originated in 2012.
The Budget also provides additional resources
to improve program management through enhanced lender oversight and credit risk mitigation activities, to promote prudent use of taxpayer
dollars in SBA’s programs. In addition, an increase of $4 million is requested to improve SBA’s
oversight of Government contracting programs
($2 million), including the HUBzone program,
and to strengthen performance assessment and
management of the Small Business Innovation
Research program ($2 million), which provides
small business opportunities through set-asides
of over $2 billion annually in Federal research
and development funding.
Strengthens Core Agency Capabilities.
The Budget provides the resources needed to
modernize SBA information technology systems,
including migrating additional loan programs to
a modern loan management and accounting system. The Budget also contains funds to continue
SBA personnel training initiatives, to allow the
agency to continue to make progress on improving its human capital and customer relationships.

137

THE BUDGET FOR FISCAL YEAR 2011

Small Business Administration
(In millions of dollars)

Actual
2009
Spending
Discretionary Budget Authority:
Salaries and Expenses ����������������������������������������������������������������������������������
Business Loans:
Loan Subsidy �������������������������������������������������������������������������������������������
Loan Administration ����������������������������������������������������������������������������������
Subtotal, Business Loans ������������������������������������������������������������������������������
Disaster Loans:
Loan Subsidy �������������������������������������������������������������������������������������������
Loan Administration ����������������������������������������������������������������������������������
Subtotal, Disaster Loans ��������������������������������������������������������������������������������
Office of the Inspector General ����������������������������������������������������������������������
Surety Bond Revolving Fund �������������������������������������������������������������������������
Unrequested Projects ������������������������������������������������������������������������������������
Subtotal, Gross Discretionary budget authority�����������������������������������������������������
Negative subsidy receipts�������������������������������������������������������������������������������

Estimate
2010

2011

390

433

446

2
138
140

83
153
236

169
157
326

—
—
—
17
2
66
615
—

2
77
79
16
1
59
824
–2

—
203
203
18
1
—
994
–1

Total, Net Discretionary budget authority���������������������������������������������������������������

615

822

993

Memorandum:
Budget authority from American Recovery and Reinvestment Act �����������������������
Budget authority from supplementals �������������������������������������������������������������������

730
—

—
125

—
—

Total, Discretionary outlays �����������������������������������������������������������������������������������

924

916

1,233

Memorandum: Outlays from American Recovery and Reinvestment Act �������������

119

380

160

Mandatory Outlays:
Business Loan Subsidy Reestimates �������������������������������������������������������������
Disaster Loan Subsidy Reestimates ��������������������������������������������������������������
Liquidating Credit Accounts ���������������������������������������������������������������������������
Total, Mandatory outlays ���������������������������������������������������������������������������������������

1,051
159
–7
1,203

4,475
211
–4
4,682

N/A
N/A
–5
–5

Total, Outlays ��������������������������������������������������������������������������������������������������������

2,127

5,598

1,228

Credit activity
Direct Loan Disbursements:
Direct Disaster Loans �������������������������������������������������������������������������������������
Direct Business Loans �����������������������������������������������������������������������������������
Total, Direct loan disbursements ���������������������������������������������������������������������������

727
24
751

738
400
1,138

738
450
1,188

138

SMALL BUSINESS ADMINISTRATION

Small Business Administration—Continued
(In millions of dollars)

Actual
2009
Guaranteed Loan Commitments:
Guaranteed Business Loans ��������������������������������������������������������������������������
Guaranteed Disaster Loans ���������������������������������������������������������������������������
Total, Guaranteed loan commitments �������������������������������������������������������������������

12,116
—
12,116

Estimate
2010
22,803
75
22,878

2011
23,900
—
23,900

SOCIAL SECURITY ADMINISTRATION
Funding Highlights:
•

Provides $12.5 billion for the Social Security Administration, an 8 percent increase, targeted at
reducing backlogs and improving service for the American public.

•

Expands program integrity efforts to make sure payments are made to the right person and in
the right amount.

•

Restructures Federal Wage Reporting.

The President believes that all Americans
should be able to retire with dignity. He is committed to protecting Social Security and working
in a bipartisan manner to preserve its original
purpose as a reliable source of income for American seniors. The Social Security Administration
(SSA) administers the Old Age, Survivors, and
Disability Insurance program and the Supplemental Security Income (SSI) program. In 2009,
more than 51 million retired or disabled workers, survivors, and their families received over
$659 billion in benefit payments. Nearly 8 million Americans received SSI benefits totaling
$49 billion.
Protects Social Security. The President
recognizes that Social Security is indispensable
to workers, people with disabilities, seniors, and
survivors and is probably the most important
and most successful program that our country
has ever established. Based on current forecasts, Social Security can pay full benefits until
2037. The President is committed to making
sure that Social Security is solvent and viable for
the American people, now and in the future. He
is strongly opposed to privatizing Social Security

and looks forward to working in a bipartisan way
to preserve it for future generations.
Provides an 8 Percent Funding Increase
to Provide Services Faster and Reduce
Backlogs. This year, SSA will process almost
5 million retirement, survivor, and Medicare
claims; 3.3 million disability claims; and over
326,000 Supplemental Security Income (SSI)
aged claims. The Budget proposes $12.5 billion
for SSA, an increase of $930 million, or (8 percent), above the 2010 enacted level of $11.6 billion. This amount includes resources to increase
staffing in 2011 and will allow SSA to provide
services faster with a focus on key service delivery areas, such as processing initial retirement
and disability claims, and disability appeals.
At the end of 2010, the initial disability claims
backlog is expected to reach record highs with
over one million people waiting for a decision.
This is unacceptable. The 2011 Budget funds
SSA to lower the backlog below one million by
processing over three million claims. The Budget also allows SSA to continue to reduce the
appeals hearing backlog. By hearing approximately 799,000 cases in 2011, the backlog will

139

140

SOCIAL SECURITY ADMINISTRATION

fall to 657,000 hearings pending. In addition, the
Budget also includes resources to enable SSA to
more effectively and efficiently verify hundreds
of millions of Social Security Numbers and issue
about 19 million ­Social Security cards.
Increases Significantly Program Integrity
Efforts. SSA’s program integrity efforts are
part of a strong framework for making sure the
Government is spending tax dollars efficiently and
that benefits are paid only to those beneficiaries
who are eligible and are paid in correct amounts.
The President’s 2011 Budget provides $796
million for SSA program integrity, including an
over 9 percent increase in the level of medical
Continuing Disability Reviews over the prior
year. Continuing Disability Reviews make sure

that Disability Insurance and SSI recipients
continue to the meet the medical criteria for those
programs.
Restructures the Federal Wage Reporting
Process. The President’s 2011 Budget proposes
to restructure the Federal wage reporting process
by reverting to quarterly wage reporting. Currently, wages are reported to the Federal Government once a year. Increasing the timeliness of
wage reporting would enhance tax administration, improve program integrity for a range of
programs, and facilitate implementation of automatic workplace pensions. The Administration
will work with the States so that the overall reporting burden on employers is not increased.

Social Security Administration
(In millions of dollars)

Estimate

Actual
2009

2010

2011

Spending
Discretionary Budget Authority:
Limitation on Administrative Expenses (LAE) Base 1, 2����������������������
Office of Inspector General �����������������������������������������������������������
Research and Development ����������������������������������������������������������
Total, Discretionary budget authority �������������������������������������������������������

10,285
100
28
10,413

11,281
103
42
11,426

12,195
106
36
12,338

Memorandum:
Budget authority from American Recovery and Reinvestment Act ����������

1,092

—

—

Total, Discretionary outlays ����������������������������������������������������������������������

10,163

11,124

12,142

Memorandum: Outlays from American Recovery and Reinvestment Act ���

165

389

31

Mandatory Outlays:
Old-age, Survivors, and Disability Insurance �������������������������������������
Supplemental Security Income ����������������������������������������������������������
Special Benefits for Certain World War II Veterans ����������������������������
Offseting collections ���������������������������������������������������������������������������
Legislative proposals �������������������������������������������������������������������������
All other ����������������������������������������������������������������������������������������������
Total, Mandatory outlays ��������������������������������������������������������������������������

664,732
44,906
9
–24,452
—
20,838
706,033

702,582
47,478
9
–28,006
12,543
24,440
759,046

729,523
52,761
8
–30,285
569
26,889
779,465

141

THE BUDGET FOR FISCAL YEAR 2011

Social Security Administration—Continued
(In millions of dollars)

Actual
2009

Estimate
2010

2011

Memorandum: Outlays from American Recovery and Reinvestment Act ���

13,079

300

45

Total, Outlays ��������������������������������������������������������������������������������������������

716,173

770,379

791,681

The LAE account includes funding from the Hospital Insurance and Supplementary Medical Insurance trust funds for services that support the Medicare
program, including implementation of Medicare Reform.
2
This amount reflects offsetting collections from SSI State Supplemental Fees.
1

CORPORATION FOR NATIONAL
AND COMMUNITY SERVICE
Funding Highlights:
•

Expands AmeriCorps, the national service program, to a record-level 105,000 members from
85,000 members, providing more opportunities for all Americans to serve their communities.

•

Fosters the replication of innovative, proven and transformative evidence-based programs
through the Social Innovation Fund.

•

Strengthens the Corporation’s management and information technology infrastructure to meet
the President’s vision and support the growth and excellence in its programs.

The President believes that service is ­central
to addressing our Nation’s greatest challenges.
The Corporation for National and Community Service (CNCS) provides an on-ramp for
Americans of all ages to serve their community
and country in sustained and effective ways
throughout their lives, from tutoring ­at-risk
youth to responding to natural disasters to
building the capacity of community organizations. The President also believes that many of
the best solutions to America’s challenges can
be found outside of Washington, in communities
across the country. That is why the President’s
Budget proposes $1.416 billion for CNCS, an
increase of $266 million from 2010, providing
more Americans the opportunity to serve and
fostering community innovation.
Expands National Service. In April 2009,
the President signed the Edward M. Kennedy
Serve America Act, which authorized an
unprecedented expansion of the AmeriCorps
program to 250,000 members by 2017. This
Budget keeps the program on that trajectory
by funding over 105,000 members in 2011, an
increase of 20,000 from 2010. The increase for

AmeriCorps includes additional funds for the
National Civilian Community Corps program, a
full-time, team-based, residential program with
a focus on disaster ­relief.
Invests in Innovative Non-Profits. ­Innovators
often come up with great ideas for addressing critical
national challenges, but too often they lack the
capital to develop, evaluate, and replicate successful
approaches. The Budget invests $60 million in
the Social Innovation Fund to test promising new
approaches to major challenges, leverage private
and foundation capital to meet these needs, and
grow evidence-based programs.
Strengthens the Management Capacity
of the Corporation. The success of the Corporation’s programs and growth requires an investment in its management, so the Budget provides
resources to strengthen the Corporation’s capacity to meet the President’s vision and manage
its growing portfolio. In addition to staffing, the
Budget supports targeted enhancements to the
agency’s information technology (IT) infrastructure. These IT improvements are critical to the
effective performance of nearly every aspect of

143

144

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

the Corporation’s business. The Budget likewise
invests in the Corporation’s capacity to measure

its performance, evaluate its programs, and make
data-driven decisions.

Corporation for National and Community Service
(In millions of dollars)

Estimate

Actual
2009

2010

2011

Spending
Discretionary Budget Authority:
Operating Expenses ���������������������������������������������������������������������������������
AmeriCorps (non-add) �������������������������������������������������������������������������
Learn and Serve America (non-add) ����������������������������������������������������
Senior Corps (non-add) �����������������������������������������������������������������������
Social Innovation Fund (non-add) ��������������������������������������������������������
Salaries and Expenses ����������������������������������������������������������������������������
Office of the Inspector General �����������������������������������������������������������������
Total, Discretionary budget authority ��������������������������������������������������������������

812
526
37
214
—
72
7
891

1,054
698
40
221
50
88
8
1,150

1,298
914
40
221
60
109
9
1,416

Memorandum:
Budget authority from American Recovery and Reinvestment Act �����������������

201

—

—

Total, Discretionary outlays �����������������������������������������������������������������������������

860

732

945

Memorandum: Outlays from American Recovery and Reinvestment Act �������

56

50

26

Mandatory Outlays:
Interest, National Service Trust �����������������������������������������������������������������
Total, Mandatory outlays ���������������������������������������������������������������������������������

—
—

30
30

22
22

Total, Outlays ��������������������������������������������������������������������������������������������������

859

762

967

SUMMARY TABLES

145

14,624

1,413
7,545
6,647
14,237

Deficit �������������������������������������������������������

Debt held by the public ����������������������������������

Debt net of financial assets ���������������������������

Gross domestic product (GDP) ���������������������������

24.7%
9.9%
53.0%
46.7%

Deficit �������������������������������������������������������

Debt held by the public ����������������������������������

Debt net of financial assets ���������������������������
55.8%

63.6%

10.6%

25.4%

14.8%

9,298

1,556

63.2%

70.8%

5.1%

23.2%

18.1%

16,203

10,246

11,472

828

3,755

2,926

2012

63.9%

71.7%

4.2%

22.8%

18.6%

17,182

10,972

12,326

727

3,915

3,188

2013

64.2%

72.2%

3.9%

22.9%

19.0%

18,193

11,677

13,139

706

4,161

3,455

2014

FISCAL COMMISSION

61.6%

68.6%

8.3%

25.1%

16.8%

15,299

9,418

10,498

1,267

3,834

2,567

2011

64.8%

72.9%

3.9%

22.9%

18.9%

19,190

12,428

13,988

752

4,386

3,634

2015

65.5%

73.6%

3.9%

23.1%

19.3%

20,163

13,205

14,833

778

4,665

3,887

2016

66.2%

74.2%

3.7%

23.1%

19.4%

21,136

13,983

15,686

778

4,872

4,094

2017

66.9%

74.9%

3.6%

23.0%

19.5%

22,087

14,767

16,535

785

5,084

4,299

2018

The Administration supports the creation of a Fiscal Commission. The Fiscal Commission is charged with identifying policies to improve the fiscal situation in the
medium term and to achieve fiscal sustainability over the long run.  Specifically,
the Commission is charged with balancing the budget excluding interest payments
on the debt by 2015. The result is projected to stabilize the debt-to-GDP ratio at an
acceptable level once the economy recovers.  The magnitude and timing of the policy
measures necessary to achieve this goal are subject to considerable uncertainty and
will depend on the evolution of the economy.  In addition, the Commission will examine policies to meaningfully improve the long-run fiscal outlook, including changes to address the growth of entitlement spending and the gap between the projected
revenues and expenditures of the Federal Government.

14.8%

Receipts ����������������������������������������������������������

Outlays �����������������������������������������������������������

Budget Totals as a Percent of GDP:

8,164

3,518

3,721

2,105

Receipts ����������������������������������������������������������
2,165

2010

Outlays �����������������������������������������������������������

Budget Totals in Billions of Dollars:

Budget (Without Fiscal Commission)

2009

(In billions of dollars)

Table S–1. Budget Totals

68.0%

75.9%

3.9%

23.5%

19.5%

23,065

15,675

17,502

908

5,415

4,507

2019

69.3%

77.2%

4.2%

23.7%

19.6%

24,067

16,677

18,573

1,003

5,713

4,710

2020

5.1%

23.3%

18.3%

4,280

20,051

15,771

4.5%

23.3%

18.9%

8,532

45,800

37,268

20112020

Totals
20112015

146
SUMMARY TABLES

9.8%

Percent of GDP �������������������������������������������������������������

53

–34
–2
2
121

*
11
127

–1
-*
*
125
1,556
10.6%

Non-security ����������������������������������������������������������������

Subtotal, appropriated programs ������������������������

Subtotal, policy proposals �������������������������������������

Upper-income tax provisions dedicated to deficit
reduction ��������������������������������������������������������������������

Credit and other indirect interest effects �����������������������
Debt service ����������������������������������������������������������������������
Total reduction in projected deficits ������������������

Resulting deficits in 2011 Budget �����������������������������

Percent of GDP �������������������������������������������������������������

37

8.3%

1,267

154

39

–10

12

9
2

–2

2

Overseas contingency operations (OCO) ��������������������

29
–36

12
–1

Security (except OCO) �������������������������������������������������

Tax cuts for families and businesses 4, 5 ���������������������������
Other revenue changes and loophole closers 4, 6 �������������
Proposed changes in mandatory programs and user
fees7 ������������������������������������������������������������������������������
Proposed changes in appropriated (“discretionary”)
programs:

Allowance for climate policy 3 �������������������������������������������

–23

6

Allowance for health reform 2 �������������������������������������������

50
147

24
98

44

Total, temporary recovery measures �������������������

Mandatory proposals ���������������������������������������������������

7.5%

1,145

2011

Allowance for other jobs initiatives �����������������������������

29
45

Tax cuts ������������������������������������������������������������������������

Temporary recovery measures:

1,430

Projected deficits in the baseline projection of
current policy 1 �����������������������������������������������������������

2010

5.1%

828

–105

–2
5

–41

–67

–38

–15

18

–41

4

31
–66

–34

37

16

1

20

5.8%

934

2012

4.2%

727

–213

-*
1

–50

–164

–76

–24

23

–75

2

23
–74

–39

–1

6

*

–7

5.5%

940

2013

3.9%

706

–228

1
–8

–60

–161

–84

–27

26

–83

4

24
–77

–28

–1

4

.....

–5

5.1%

934

2014

3.9%

752

–231

2
–18

–68

–147

–86

–29

30

–87

–2

25
–78

–3

–4

.....

.....

–4

5.1%

983

2015

3.9%

778

–235

2
–28

–74

–135

–88

–29

32

–91

–4

27
–79

12

–3

.....

.....

–3

5.0%

1,013

2016

(Deficit increases (+) or decreases (–) in billions of dollars)

3.7%

778

–264

2
–39

–80

–148

–89

–30

34

–93

–6

28
–81

2

–2

.....

.....

–2

4.9%

1,042

2017

3.6%

785

–292

3
–51

–85

–158

–91

–31

35

–95

–7

30
–83

–6

–2

.....

.....

–2

4.9%

1,077

2018

Table S–2. Effect of Budget Proposals on Projected Deficits

3.9%

908

–319

3
–64

–91

–166

–92

–30

36

–98

–7

32
–86

–12

–1

.....

.....

–1

5.3%

1,227

2019

4.2%

1,003

–343

3
–79

–97

–170

–88

–25

37

–101

–6

35
–90

–20

–1

.....

.....

–1

5.6%

1,346

2020

5.1%

4,280

–656

–1
–17

–252

–386

–245

–105

109

–250

6

133
–331

–127

179

76

46

57

5.8%

4,936

2011–
2015

4.5%

8,532

–2,108

13
–279

–678

–1,164

–693

–249

284

–728

–24

284
–749

–150

169

76

46

47

5.5%

10,640

2011–
2020

Totals

THE BUDGET FOR FISCAL YEAR 2011

147

16

8
.....

Security (except OCO) �������������������������������������������������

Non-security ����������������������������������������������������������������
–19

27

–84

2012

–31

30

–86

2013

–29

33

–88

2014

–27

37

–90

2015

–32

38

–93

2016

–34

39

–95

2017

–34

39

–98

2018

–32

40

–101

2019

–25

41

–103

2020

–120

144

–320

2011–
2015

–278

341

–810

2011–
2020

Totals

Total, appropriated funding ���������������������������������
41
30
–75
–86
–85
–80
–87
–91
–93
–93
–87
–296
–747
Memorandum, deficit reduction exclusive of OCO
proposals and related debt service ������������������������������
117
84
–65
–136
–140
–135
–131
–153
–173
–192
–208
–391
–1,249
Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission.
* $500 million or less.
1
See tables S–3 and S–7 for information on the baseline projection of current policy.
2
Allowance for pending health reform legislation. See Table S–8 for further detail.
3
A comprehensive market-based climate change policy will be deficit neutral because proceeds from emissions allowances will be used to compensate vulnerable families,
communities, and businesses during the transition to a clean energy economy. Receipts will also be reserved for investments to reduce greenhouse gas emissions,
including support of clean energy technologies, and in adapting to the impacts of climate change, both domestically and in developing countries.
4
Includes refundable tax credits.
5
Includes the effects of continuing certain expiring provisions through calendar year 2011.
6
Includes limiting itemized deductions, trade initiatives, and other tax initiatives on Table S–8.
7
Includes PAYGO impact of changes in mandatory programs included in appropriations language.

–14

28

2011

33

Overseas contingency operations �������������������������������

Memorandum, proposed changes in appropriated
(“discretionary”) budgetary resources:

2010

(Deficit increases (+) or decreases (–) in billions of dollars)

Table S–2. Effect of Budget Proposals on Projected Deficits—Continued

148
SUMMARY TABLES

678
425
251
151
607
2,112
187
.....
3,518

Subtotal, mandatory programs ��������������

Net interest ���������������������������������������������������������

Disaster costs 3 ����������������������������������������������������

Total outlays �������������������������������������������������
915
138
654
191
38
8
62
23
22
34
18
2,105
1,413
1,550
–137

Individual income taxes ��������������������������������������

Corporation income taxes �����������������������������������

Social insurance and retirement receipts:
Social Security payroll taxes �����������������������
Medicare payroll taxes ���������������������������������
Unemployment insurance ����������������������������
Other retirement ������������������������������������������

Excise taxes ���������������������������������������������������������

Estate and gift taxes �������������������������������������������

Customs duties ����������������������������������������������������

Deposits of earnings, Federal Reserve System ��

Other miscellaneous receipts �����������������������������

Total receipts ������������������������������������������������

Deficit ����������������������������������������������������������������������

On-budget deficit �������������������������������������������������

Off-budget surplus (–) �����������������������������������������

Receipts:

1,397

1,219

Subtotal, appropriated programs �����������

Mandatory programs:
Social Security ����������������������������������������������
Medicare �������������������������������������������������������
Medicaid ��������������������������������������������������������
Troubled Asset Relief Program (TARP) 2 ����
Other mandatory programs �������������������������

–78

1,508

1,430

2,213

18

77

24

17

74

635
180
51
9

176

951

3,643

1

188

2,057

703
451
275
–73
701

844
553

2010

782
437

Appropriated (“discretionary”) programs:
Security ���������������������������������������������������������
Non-security �������������������������������������������������

Outlays:

2009

–96

1,241

1,145

2,583

18

79

29

24

80

674
192
60
8

293

1,126

3,728

3

250

2,100

730
492
271
11
596

1,376

846
530

2011

–120

1,054

934

2,829

18

67

33

21

83

720
208
66
9

333

1,271

3,762

4

340

2,079

762
502
274
10
532

1,340

850
490

2012

–135

1,074

940

3,033

18

59

36

22

84

764
222
71
9

361

1,387

3,973

4

434

2,191

801
557
293
7
532

1,343

863
480

2013

–147

1,080

934

3,269

18

52

38

24

86

810
236
75
9

415

1,507

4,203

4

516

2,316

846
625
313
6
526

1,367

882
484

2014

(In billions of dollars)

–156

1,139

983

3,417

19

48

40

25

87

854
250
77
9

383

1,625

4,400

5

586

2,413

894
654
337
3
525

1,396

903
493

2015

–170

1,183

1,013

3,648

19

50

43

27

88

908
266
77
9

422

1,739

4,661

5

652

2,579

947
727
363
1
542

1,425

921
504

2016

–168

1,209

1,042

3,838

19

52

45

29

89

949
278
76
9

437

1,853

4,879

5

716

2,698

1,004
760
390
*
543

1,460

944
516

2017

–166

1,243

1,077

4,026

19

55

48

32

89

994
292
74
9

449

1,966

5,103

5

779

2,823

1,067
795
420
*
542

1,496

968
528

2018

–157

1,385

1,227

4,215

20

57

50

34

90

1,038
305
74
9

461

2,078

5,443

5

844

3,060

1,133
886
453
.....
588

1,534

993
541

2019

Table S–3. Baseline Projection of Current Policy by Category 1

–140

1,486

1,346

4,400

20

59

53

36

91

1,077
317
75
10

478

2,186

5,746

5

912

3,256

1,204
957
488
.....
606

1,573

1,019
554

2020

–653

5,589

4,936

15,130

91

305

175

116

419

3,823
1,108
349
43

1,785

6,917

20,066

21

2,126

11,098

4,033
2,830
1,488
37
2,710

6,821

4,344
2,477

2011–2015

–1,454

12,094

10,640

35,257

188

578

413

274

867

8,788
2,566
725
89

4,031

16,739

45,897

46

6,029

25,515

9,388
6,955
3,602
39
5,532

14,307

9,187
5,120

2011–2020

Totals

THE BUDGET FOR FISCAL YEAR 2011

149

824

814

2010

834

2011

854

2012

874

2013

895

2014

917

2015

939

2016

963

2017

988

2018

1,013

2019

1,040

2020

4,374

9,318

2011–2020

Totals
2011–2015

689
447
456
465
477
488
499
511
523
536
549
563
2,385
5,067
Non-security ��������������������������������������������������������
Total, appropriated funding �������������������������
1,513 1,260 1,290 1,319 1,351 1,383 1,416 1,450 1,486 1,524 1,562 1,602
6,760
14,385
* $500 million or less.
1
See Table S–7 for information on adjustments to the Budget Enforcement Act (BEA) baseline.
2
Outlays for TARP in 2011 and subsequent years result from obligations for the Home Affordable Modification Program, and other estimated TARP obligations incurred
through October 3, 2010.
3
These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction. Such assistance might be provided in the form of
discretionary or mandatory outlays or tax relief. These amounts are included as outlays for convenience.

Memorandum, funding (“budgetary resources”) for
appropriated programs:
Security ����������������������������������������������������������������

2009

(In billions of dollars)

Table S–3. Baseline Projection of Current Policy by Category 1 —Continued

150
SUMMARY TABLES

715
451
275
–73
12
6
737
2,123

678
425
251
151
.....
.....
607
2,112
187
.....
3,518

Subtotal, mandatory programs ���������������

Net interest �����������������������������������������������������������

Disaster costs 3 �������������������������������������������������������

Total outlays ��������������������������������������������������

18
2,105
1,413

Other miscellaneous receipts �������������������������������

Total receipts �������������������������������������������������

Deficit �����������������������������������������������������������������������

.....

22

Customs duties ������������������������������������������������������

Allowance for health reform 2 �������������������������������

23
34

62

Excise taxes �����������������������������������������������������������

Estate and gift taxes ���������������������������������������������

.....

654
191
38
8

Social insurance and retirement receipts:
Social Security payroll taxes ������������������������
Medicare payroll taxes ����������������������������������
Unemployment insurance �����������������������������
Other retirement �������������������������������������������

Allowance for jobs initiatives �������������������������������

138

Corporation income taxes �������������������������������������

Deposits of earnings, Federal Reserve System ����

915

Individual income taxes ����������������������������������������

Receipts:

1,408

1,219

Subtotal, appropriated programs ������������

Mandatory programs:
Social Security �����������������������������������������������
Medicare ��������������������������������������������������������
Medicaid ���������������������������������������������������������
Troubled Asset Relief Program (TARP) 1 �����
Allowance for jobs initiatives ������������������������
Allowance for health reform 2 ������������������������
Other mandatory programs ��������������������������

1,556

2,165

18

.....

–12

77

24

17

73

635
180
51
9

157

936

3,721

1

188

855
553

2010

782
437

Appropriated (“discretionary”) programs:
Security ����������������������������������������������������������
Non-security ��������������������������������������������������

Outlays:

2009

1,267

2,567

17

16

–25

79

27

25

74

674
192
60
8

297

1,121

3,834

3

251

2,165

730
491
297
11
25
–7
619

1,415

895
520

2011

828

2,926

17

18

–8

67

32

23

81

720
208
67
9

366

1,326

3,755

4

343

2,107

762
501
274
10
8
–17
570

1,301

827
475

2012

727

3,188

17

39

–3

59

35

24

85

766
223
73
9

393

1,468

3,915

4

436

2,208

801
556
292
7
3
2
547

1,267

811
456

2013

706

3,455

18

58

–2

52

37

26

87

809
237
77
9

445

1,604

4,161

4

510

2,364

845
623
313
6
2
30
546

1,283

825
457

2014

(In billions of dollars)

752

3,634

18

74

.....

48

39

28

88

856
251
79
9

411

1,733

4,386

5

571

2,500

893
652
336
3
.....
72
544

1,310

845
465

2015

778

3,887

18

86

.....

50

42

30

89

911
267
79
9

449

1,856

4,665

5

627

2,696

945
724
362
1
.....
101
563

1,337

862
475

2016

778

4,094

18

93

.....

52

44

32

90

954
280
78
9

463

1,980

4,872

5

681

2,815

1,002
757
389
*
.....
100
567

1,371

885
486

2017

Table S–4. Proposed Budget by Category

785

4,299

19

101

.....

55

47

35

90

1,000
293
77
9

473

2,102

5,084

5

733

2,942

1,064
791
419
*
.....
100
568

1,405

907
497

2018

908

4,507

19

110

.....

57

49

37

91

1,044
307
76
9

486

2,223

5,415

5

786

3,182

1,130
881
451
.....
.....
104
616

1,442

931
511

2019

1,003

4,710

19

119

.....

59

52

40

92

1,084
318
77
10

502

2,338

5,713

5

840

3,384

1,201
953
487
.....
.....
106
637

1,484

955
529

2020

4,280

15,771

87

204

–38

305

170

124

415

3,825
1,112
357
43

1,913

7,253

20,051

21

2,110

11,344

4,030
2,822
1,512
37
38
80
2,826

6,576

4,203
2,373

8,532

37,268

180

712

–38

578

404

298

867

8,819
2,578
743
89

4,285

17,752

45,800

46

5,777

26,363

9,373
6,927
3,619
39
38
590
5,775

13,614

8,743
4,871

2011–2015 2011–2020

Totals

THE BUDGET FOR FISCAL YEAR 2011

151

–137
1,226
187

Off-budget surplus (–) �������������������������������������������

Primary deficit ������������������������������������������������������

Net interest �����������������������������������������������������������

689

Non-security ����������������������������������������������������������
447

855

188

1,368

–78

1,634

2010

441

879

251

1,016

–96

1,363

2011

446

798

343

486

–120

949

2012

446

819

436

291

–136

863

2013

459

840

510

196

–146

852

2014

472

864

571

181

–158

910

2015

479

885

627

151

–175

952

2016

489

906

681

97

–174

952

2017

502

929

733

52

–174

959

2018

517

953

786

123

–167

1,075

2019

538

978

840

163

–151

1,153

2020

Totals

2,265

4,198

2,110

2,170

–656

4,937

4,789

8,849

5,777

2,755

–1,496

10,028

2011–2015 2011–2020

Total, appropriated funding ��������������������������
1,513 1,302 1,320 1,244 1,265 1,299 1,336 1,363 1,395 1,431 1,470 1,515
6,464
13,638
Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission.
* $500 million or less.
1
Outlays for TARP in 2011 and subsequent years result from obligations for the Home Affordable Modification Programs, and other estimated TARP obligations incurred
through October 3, 2010.
2
Reflects on-budget effects only. See Table S–8 for further detail.
3
These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction. Such assistance might be provided in the form of
discretionary or mandatory outlays or tax relief. These amounts are included as outlays for convenience.

824

Security ������������������������������������������������������������������

Memorandum, funding (“budgetary resources”) for
appropriated programs:

1,550

On-budget deficit ���������������������������������������������������

2009

(In billions of dollars)

Table S–4. Proposed Budget by Category—Continued

152
SUMMARY TABLES

Medicare

Other Mandatory
Programs and
Disaster Costs

Net Interest

Other Mandatory
Programs and
Disaster Costs

Net Interest

Medicaid

Medicaid

Security Discretionary

Social
Security

Non-Security
Discretionary

Medicare

2015

Social Security

Non-Security
Discretionary

Security Discretionary

2011

Policy Outlays by Category

Social
Security
Payroll Taxes

Other Receipts

Social
Security
Payroll Taxes

Other Receipts

Corporation
Income Taxes

Medicare Payroll
Taxes

Unemployment
Insurance

Excise Taxes

Corporation
Income Taxes

Medicare
Payroll
Taxes

Unemployment
Insurance

Excise Taxes

Individual
Income Taxes

Borrowing and Other Net
Financing

2015

Individual
Income Taxes

Borrowing and
Other Net
Financing

2011

Policy Revenues by Source

THE BUDGET FOR FISCAL YEAR 2011

153

8.6
4.8
3.0
1.8
1.1
.....
.....
4.3
14.8
1.3
.....
24.7

Subtotal, appropriated programs ���������������

Mandatory programs:
Social Security ��������������������������������������������������
Medicare �����������������������������������������������������������
Medicaid ������������������������������������������������������������
Troubled Asset Relief Program (TARP)1 ���������
Allowance for jobs initatives ����������������������������
Allowance for health reform2 ���������������������������
Other mandatory programs �����������������������������

Subtotal, mandatory programs ������������������

Net interest �������������������������������������������������������������

Disaster costs3 ����������������������������������������������������������

Total outlays �����������������������������������������������������

9.9

.....

Allowance for jobs initatives �����������������������������������

Deficit ��������������������������������������������������������������������������

0.2

Deposits of earnings, Federal Reserve System ������

14.8

0.2

Customs duties ��������������������������������������������������������

Total receipts ����������������������������������������������������

0.2

Estate and gift taxes �����������������������������������������������

.....

0.4

Excise taxes �������������������������������������������������������������

0.1

4.6
1.3
0.3
0.1

Social insurance and retirement receipts:
Social Security payroll taxes ��������������������������
Medicare payroll taxes ������������������������������������
Unemployment insurance ��������������������������������
Other retirement ����������������������������������������������

Allowance for health reform �����������������������������������

1.0

Corporation income taxes ���������������������������������������

Other miscellaneous receipts ���������������������������������

6.4

Individual income taxes ������������������������������������������

Receipts:

5.5
3.1

Appropriated (“discretionary”) programs:
Security �������������������������������������������������������������
Non-security ����������������������������������������������������

Outlays:

2009

10.6

14.8

0.1

.....

–0.1

0.5

0.2

0.1

0.5

4.3
1.2
0.4
0.1

1.1

6.4

25.4

*

1.3

14.5

4.9
3.1
1.9
–0.5
0.1
*
5.0

9.6

5.8
3.8

2010

8.3

16.8

0.1

0.1

–0.2

0.5

0.2

0.2

0.5

4.4
1.3
0.4
0.1

1.9

7.3

25.1

*

1.6

14.2

4.8
3.2
1.9
0.1
0.2
–*
4.0

9.2

5.8
3.4

2011

5.1

18.1

0.1

0.1

-*

0.4

0.2

0.1

0.5

4.4
1.3
0.4
0.1

2.3

8.2

23.2

*

2.1

13.0

4.7
3.1
1.7
0.1
*
–0.1
3.5

8.0

5.1
2.9

2012

4.2

18.6

0.1

0.2

-*

0.3

0.2

0.1

0.5

4.5
1.3
0.4
*

2.3

8.5

22.8

*

2.5

12.9

4.7
3.2
1.7
*
*
*
3.2

7.4

4.7
2.7

2013

(As a percent of GDP)

3.9

19.0

0.1

0.3

-*

0.3

0.2

0.1

0.5

4.4
1.3
0.4
*

2.4

8.8

22.9

*

2.8

13.0

4.6
3.4
1.7
*
*
0.2
3.0

7.1

4.5
2.5

2014

3.9

18.9

0.1

0.4

.....

0.2

0.2

0.1

0.5

4.5
1.3
0.4
*

2.1

9.0

22.9

*

3.0

13.0

4.7
3.4
1.8
*
.....
0.4
2.8

6.8

4.4
2.4

2015

3.9

19.3

0.1

0.4

.....

0.2

0.2

0.1

0.4

4.5
1.3
0.4
*

2.2

9.2

23.1

*

3.1

13.4

4.7
3.6
1.8
*
.....
0.5
2.8

6.6

4.3
2.4

2016

3.7

19.4

0.1

0.4

.....

0.2

0.2

0.2

0.4

4.5
1.3
0.4
*

2.2

9.4

23.1

*

3.2

13.3

4.7
3.6
1.8
*
.....
0.5
2.7

6.5

4.2
2.3

2017

3.6

19.5

0.1

0.5

.....

0.2

0.2

0.2

0.4

4.5
1.3
0.3
*

2.1

9.5

23.0

*

3.3

13.3

4.8
3.6
1.9
*
.....
0.5
2.6

6.4

4.1
2.3

2018

Table S–5. Proposed Budget by Category as a Percent of GDP

3.9

19.5

0.1

0.5

.....

0.2

0.2

0.2

0.4

4.5
1.3
0.3
*

2.1

9.6

23.5

*

3.4

13.8

4.9
3.8
2.0
.....
.....
0.4
2.7

6.3

4.0
2.2

2019

4.2

19.6

0.1

0.5

.....

0.2

0.2

0.2

0.4

4.5
1.3
0.3
*

2.1

9.7

23.7

*

3.5

14.1

5.0
4.0
2.0
.....
.....
0.4
2.6

6.2

4.0
2.2

2020

5.1

18.3

0.1

0.2

–*

0.4

0.2

0.1

0.5

4.4
1.3
0.4
0.1

2.2

8.4

23.3

*

2.4

13.2

4.7
3.3
1.8
*
*
0.1
3.3

7.7

4.9
2.8

2011–
2015

4.8
3.5
1.8
*
*
0.3
3.0

7.0

4.5
2.5

4.5

18.9

0.1

0.3

–*

0.3

0.2

0.2

0.4

4.5
1.3
0.4
*

2.2

8.9

23.3

*

2.9

13.4

20112020

Averages

154
SUMMARY TABLES

8.6
1.3

Primary deficit ��������������������������������������������������������

Net interest �������������������������������������������������������������

5.8
3.1

1.3

9.4

–0.5

11.2

2010

5.7
2.9

1.6

6.6

–0.6

8.9

2011

4.9
2.8

2.1

3.0

–0.7

5.9

2012

4.8
2.6

2.5

1.7

–0.8

5.0

2013

4.6
2.5

2.8

1.1

–0.8

4.7

2014

4.5
2.5

3.0

0.9

–0.8

4.7

2015

4.4
2.4

3.1

0.7

–0.9

4.7

2016

4.3
2.3

3.2

0.5

–0.8

4.5

2017

4.2
2.3

3.3

0.2

–0.8

4.3

2018

4.1
2.2

3.4

0.5

–0.7

4.7

2019

4.1
2.2

3.5

0.7

–0.6

4.8

2020

4.9
2.6

2.4

2.7

–0.8

5.8

2011–
2015

5.2

4.6
2.5

2.9

1.6

–0.8

20112020

Averages

Subtotal, appropriated programs ��������������������
10.6
8.9
8.6
7.7
7.4
7.1
7.0
6.8
6.6
6.5
6.4
6.3
7.6
7.0
Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission.
* 0.05 percent of GDP or less.
1
Outlays for TARP in 2011 and subsequent years result from obligations for the Home Affordable Modification Program, and other estimated TARP obligations incurred
through October 3, 2010.
2
Reflects on-budget effects only. See Table S–8 for further detail.
3
These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction. Such assistance might be provided in the form of
discretionary or mandatory outlays or tax relief. These amounts are included as outlays for convenience.

Security ��������������������������������������������������������������������
Non-security �����������������������������������������������������������
5.8
4.8

–1.0

Memorandum, funding (“budgetary resources”) for
appropriated programs:

10.9

On-budget deficit �����������������������������������������������������

Off-budget surplus (–) ���������������������������������������������

2009

(As a percent of GDP)

Table S–5. Proposed Budget by Category as a Percent of GDP—Continued

THE BUDGET FOR FISCAL YEAR 2011

155

333

730
491
297
11
25
–7
619
2,165
251
3
3,834

Mandatory programs:
Social Security ����������������������������������������������������������������������������������������������������
Medicare �������������������������������������������������������������������������������������������������������������
Medicaid ��������������������������������������������������������������������������������������������������������������
Troubled Asset Relief Program (TARP) 1 �����������������������������������������������������������
Allowance for jobs initiatives �����������������������������������������������������������������������������
Allowance for health reform 2 �����������������������������������������������������������������������������
Other mandatory programs �������������������������������������������������������������������������������

Subtotal, mandatory programs ��������������������������������������������������������������������

Net interest ����������������������������������������������������������������������������������������������������������������

Disaster costs 3 ������������������������������������������������������������������������������������������������������������

Total outlays �������������������������������������������������������������������������������������������������������
1,121
297
674
192
60
8
74
25
27
79
–25
16
17
2,567
1,267

Individual income taxes ���������������������������������������������������������������������������������������������

Corporation income taxes ������������������������������������������������������������������������������������������

Social insurance and retirement receipts:
Social Security payroll taxes ����������������������������������������������������������������������������
Medicare payroll taxes ��������������������������������������������������������������������������������������
Unemployment insurance ����������������������������������������������������������������������������������
Other retirement ������������������������������������������������������������������������������������������������

Excise taxes ����������������������������������������������������������������������������������������������������������������

Estate and gift taxes ��������������������������������������������������������������������������������������������������

Customs duties �����������������������������������������������������������������������������������������������������������

Deposits of earnings, Federal Reserve System ���������������������������������������������������������

Allowance for jobs initiatives ������������������������������������������������������������������������������������

Allowance for health reform 2 ������������������������������������������������������������������������������������

Other miscellaneous receipts ������������������������������������������������������������������������������������

Total receipts ������������������������������������������������������������������������������������������������������

Deficit ����������������������������������������������������������������������������������������������������������������������������

Receipts:

2,048

1,415

Subtotal, appropriated programs �����������������������������������������������������������������

805

2,845

17

17

–8

65

31

22

79

700
203
66
8

356

1,289

3,650

4

740
487
266
10
8
–17
554

1,265

895
520

804
461

2012

Appropriated (“discretionary”) programs:
Security ���������������������������������������������������������������������������������������������������������������
Non-security ������������������������������������������������������������������������������������������������������

Outlays:

2011

686

3,009

16

37

–3

56

33

22

80

723
210
69
8

371

1,386

3,695

4

411

2,084

756
524
276
7
3
1
517

1,196

766
430

2013

647

3,167

16

53

–2

48

34

23

79

741
217
71
8

408

1,470

3,813

4

467

2,166

774
570
287
6
2
27
500

1,175

756
419

2014

(In billions of dollars, based on 2011 prices and population)

669

3,233

16

66

.....

42

35

25

78

762
224
70
8

366

1,542

3,902

4

508

2,225

794
580
299
3
.....
65
484

1,165

752
413

2015

672

3,358

16

74

.....

43

36

26

77

787
231
68
8

388

1,604

4,030

4

542

2,329

816
625
313
1
.....
87
486

1,155

745
410

2016

652

3,431

15

78

.....

44

37

27

75

800
235
65
7

388

1,659

4,082

4

571

2,358

840
634
326
*
.....
83
475

1,149

741
407

2017

638

3,495

15

82

.....

44

38

28

74

813
239
62
7

384

1,709

4,133

4

596

2,391

865
643
340
*
.....
82
461

1,142

738
404

2018

716

3,554

15

86

.....

45

39

29

72

823
242
60
7

383

1,753

4,271

4

620

2,510

891
695
356
.....
.....
82
486

1,137

734
403

2019

Table S–6. Proposed Budget by Category Adjusted for Inflation and Population Growth

768

3,607

15

91

.....

45

40

31

70

830
244
59
7

385

1,791

4,376

4

643

2,592

920
730
373
.....
.....
82
488

1,137

731
405

2020

156
SUMMARY TABLES

251

411

275

–128

815

2013

467

179

–134

781

2014

508

161

–141

810

2015

542

130

–151

823

2016

571

81

–146

798

2017

596

42

–141

779

2018

620

97

–131

848

2019

643

125

–115

883

2020

Security �����������������������������������������������������������������������������������������������������������������������
879
775
773
769
769
764
760
755
751
749
Non-security ��������������������������������������������������������������������������������������������������������������
441
434
421
421
420
414
410
408
408
412
Subtotal, appropriated programs ����������������������������������������������������������������������
1,320
1,209
1,194
1,190
1,189
1,178
1,169
1,163
1,159
1,160
Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission.
* $500 million or less.
1
Outlays for TARP in 2011 and subsequent years result from obligations for the Home Affordable Modification Program, and other estimated TARP obligations incurred
through October 3, 2010.
2
Reflects on-budget effects only. See Table S–8 for further detail.
3
These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction. Such assistance might be provided in the form of
discretionary or mandatory outlays or tax relief. These amounts are included as outlays for convenience.

Memorandum, funding (“budgetary resources”) for appropriated programs:

472

1,016

Primary deficit �����������������������������������������������������������������������������������������������������������

Net interest ����������������������������������������������������������������������������������������������������������������
333

–117

–96

Off-budget surplus (–) ������������������������������������������������������������������������������������������������

922

1,363

2012

On-budget deficit ��������������������������������������������������������������������������������������������������������

2011

(In billions of dollars, based on 2011 prices and population)

Table S–6. Proposed Budget by Category Adjusted for Inflation and Population Growth—Continued

THE BUDGET FOR FISCAL YEAR 2011

157

.....
.....
.....
.....

.....

Prevent reduction in Medicare physician payments ����

Correct baseline growth rates for pay increases �����

Subtotal ���������������������������������������������������������������

Adjustment to reflect costs of possible
emergencies2 �����������������������������������������������������������

.....
26

19
.....
.....
.....
.....

Add Pell Grants to mandatory category ������������������

Subtotal ���������������������������������������������������������������

Total program adjustments ��������������������������������������

Debt service on adjustments ������������������������������������

Total adjustments �����������������������������������������������
233

2

231

9

27

–27

9

3

219

–2

22

135

64

912

2011

321

11

310

12

29

–29

12

4

294

–3

27

237

32

613

2012

379

31

349

12

30

–30

12

4

333

–3

32

266

38

561

2013

438

51

387

12

30

–30

12

4

371

–3

34

295

45

495

2014

491

71

420

12

31

–31

12

5

403

–3

35

318

53

492

2015

543

94

449

12

31

–31

12

5

432

–3

38

335

62

469

2016

597

118

478

12

32

–32

12

5

461

–3

40

352

72

445

2017

655

146

510

12

32

–32

12

5

492

–4

43

369

84

421

2018

720

175

545

12

32

–32

12

5

527

–4

48

386

97

507

2019

789

209

580

13

33

–33

13

5

562

–4

53

403

110

557

2020

1,863

167

1,697

56

147

–147

56

21

1,620

–14

150

1,251

233

3,073

2011–
2015

5,167

909

4,259

118

307

–307

118

46

4,095

–32

371

3,097

659

5,472

2011–
2020

Totals

1,413
1,430
1,145
934
940
934
983
1,013
1,042
1,077
1,227
1,346
4,936 10,640
Baseline projection of current policy deficit �������
*$500 million or less.
1
In continuing the 2001 and 2003 tax cuts, the estate tax is maintained at its 2009 parameters.
2
These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction. Such assistance might be provided in the form of
discretionary or mandatory outlays or tax relief. These amounts are included as outlays for convenience.

26

*

27

–27

.....
–19

Remove Pell Grants from appropriated category ����

.....

1

25

.....

7

5

13

1,404

2010

Reflect cost of funding existing maximum grant
award ���������������������������������������������������������������������

Adjustments to Pell Grants:

.....

Continue the 2001 and 2003 tax cuts1 ��������������������

1,413

Index to inflation the 2009 parameters of the AMT 

Adjustments to reflect current policies:

BEA baseline deficit ���������������������������������������������������

2009

(Deficit increases (+) or decreases (–) in billions of dollars)

Table S–7. Bridge From Budget Enforcement Act
Baseline to Baseline Projection of Current Policy

158
SUMMARY TABLES

28,774

Climate policy (deficit-neutral reserve) 4 �������������

Health insurance reform (allowance)2,3 ����������������

–434

731

50,000

43,791

–1,986
16,000

1,475

6,000

277

.....

.....

95
–2

.....
273

4

.....

–6,870

–269

.....
1,363

19

.....

19,597

–91

–7,478

–268

1,145

.....

.....

2013

4,000

.....

.....

.....

.....
.....

.....

.....

–4,650

–429

–5,149

–186

1,114

.....

.....

2014

.....

.....

.....

.....

.....

5,500 –23,000 –34,500 –39,000 –27,500

24,000

Allowance for other jobs initiatives �����������
2

–348
44,745

31,000
508
.....
13,585

Total, mandatory initiatives ������������������������

18,000
1,357
25
681

.....

Foster care impact ���������������������������������������
Extend EUC/EB unemployment insurance
benefits �����������������������������������������������������������
Enhance TANF emergency fund ����������������������
Extend ARRA suspension of SNAP time limits ����
Provide $250 Economic Recovery Payments 2 ��

Interaction with the making work pay tax
credit ���������������������������������������������������������

214

.....

25,500

53,107

1,798

Medicaid impact �������������������������������������������

Mandatory Initiatives:
Provide 6-month extension of FMAP relief to
states:

2,435

440

706

Total, tax cuts �����������������������������������������������

284

.....

228

31,075

2012

15,216 –11,912

5,237

3,188

22,445

30,132

2011

.....

Tax Cuts:
Extend making work pay tax credit in 2011 1 ����
Extend COBRA health insurance premium
assistance 1 �����������������������������������������������������
Provide additional tax credits for investment
in qualified property used in a qualified
advanced energy manufacturing project ������
Extend temporary increase in expensing for
small businesses ��������������������������������������������
Extend temporary bonus depreciation for
certain property ���������������������������������������������
Extend option for grants to States in lieu of
housing tax credits 1 ��������������������������������������

Temporary Recovery Measures (emergency,
exempt from PAYGO):

2010

.....

–3,000

.....

.....

.....

.....

.....
.....

.....

.....

–4,019

–511

–3,912

–135

539

.....

.....

2015

.....

12,000

.....

.....

.....

.....

.....
.....

.....

.....

–3,072

–538

–2,580

–76

122

.....

.....

2016

(Deficit increases (+) or decreases (-) in millions of dollars)

.....

2,000

.....

.....

.....

.....

.....
.....

.....

.....

–2,338

–538

–1,685

–43

–72

.....

.....

2017

S–8. Mandatory and Receipt Proposals

.....

.....

.....

.....

.....
.....

.....

.....

–1,407

–538

–792

–15

–62

.....

.....

2019

.....

.....

.....

.....

.....
.....

.....

.....

–1,320

–538

–744

–12

–26

.....

.....

2020

.....

.....

.....

–5,500 –12,000 –19,500

.....

.....

.....

.....

.....
.....

.....

.....

–1,739

–538

–1,063

–24

–114

.....

.....

2018

.....

–127,000

76,000

45,543

–1,988

18,000
2,993
25
776

237

25,500

57,165

498

–13,235

–583

3,813

5,465

61,207

2011–
2015

.....

–150,000

76,000

45,543

–1,988

18,000
2,993
25
776

237

25,500

47,289

–2,192

–20,099

–753

3,661

5,465

61,207

2011–
2020

Totals

THE BUDGET FOR FISCAL YEAR 2011

159

377
.....
323
951

.....
.....
.....
.....
.....

Total, tax cuts for families and individuals 

3,113
8,867

Total, tax cuts for businesses ����������������������

Continue certain expiring provisions
through calendar year 2011 1 �������������������������

–8,189
–1,203
.....
–46

–52
.....
.....
.....

–169

–5

–15

–49

Require ordinary treatment of income
from day-to-day dealer activities for
certain dealers of equity options and
commodities ���������������������������������������������

–8,000

21,539

–2

–1

Require accrual of income on forward sale
of corporate stock �������������������������������������

Modify the definition of “control” for
purposes of section 249 ����������������������������
Subtotal, reform treatment of financial
institutions and products �������������������
Reinstate Superfund taxes �������������������������������
Repeal LIFO method of accounting for
inventories �����������������������������������������������������
Repeal gain limitation for dividends received
in reorganization exchanges �������������������������

.....

Impose a financial crisis responsibility fee ���

Other Revenue Changes and Loophole
Closers:
Reform treatment of financial institutions and
products:

5,346
277

3,044
69
5,623

.....

.....

Tax Cuts for Businesses:
Eliminate capital gains taxation on small
businesses ������������������������������������������������������
Make research and experimentation tax credit
permanent �����������������������������������������������������
Remove cell phones from listed property ���������

1,736

85

.....

2011

Tax Cuts for Families and Individuals: 6
Expand earned income tax credit 1 �������������������
Expand the child and dependent care tax
credit ��������������������������������������������������������������
Provide for automatic enrollment in IRAs and
double the tax credit for small employer
plan startup costs 1 ����������������������������������������
Expand saver’s credit 1 ��������������������������������������
Extend American opportunity tax credit 1 ��������

Other Tax Provisions: 5

2010

–77

–2,667

–8,256
–1,608

–30

–214

–12

–8,000

11,926

6,195

5,969
226

.....

13,083

506
2,683
6,875

1,345

1,674

2012

–78

–6,007

–9,277
–1,729

–32

–226

–19

–9,000

2,205

6,860

6,622
238

.....

14,269

825
2,996
7,444

1,359

1,645

2013

–78

–7,070

–9,300
–1,837

–34

–240

–26

–9,000

1,581

7,589

7,286
248

55

14,724

876
3,029
7,815

1,368

1,636

2014

–81

–7,120

–9,323
–1,921

–36

–254

–33

–9,000

1,422

8,491

7,945
266

280

15,492

982
3,109
8,400

1,373

1,628

2015

–83

–7,162

–9,344
–1,995

–38

–270

–36

–9,000

1,309

9,609

8,597
281

731

16,165

1,113
3,195
8,841

1,377

1,639

2016

(Deficit increases (+) or decreases (-) in millions of dollars)

–85

–7,224

–9,365
–2,068

–41

–286

–38

–9,000

1,013

10,757

9,244
296

1,217

16,253

1,261
3,323
8,632

1,374

1,663

2017

1,435

12,795

10,530
332

1,933

17,274

1,604
3,716
8,870

1,354

1,730

2019

3,109

13,778

11,182
348

2,248

17,733

1,801
3,910
8,907

1,349

1,766

2020

–46

–321

–42

–48

–341

–44

–86

–7,207

–86

–7,278

–88

–7,350

–9,386 –10,409 –10,433
–2,129 –2,196 –2,239

–43

–303

–40

–9,000 –10,000 –10,000

1,138

11,792

9,887
314

1,591

16,708

1,423
3,490
8,738

1,365

1,692

2018

S–8. Mandatory and Receipt Proposals—Continued

–360

–22,864

–44,345
–8,298

–147

–1,103

–95

–43,000

38,673

34,758

33,168
1,255

335

59,304

3,189
12,140
31,485

5,822

6,668

2011–
2015

–788

–59,085

–93,282
–18,925

–363

–2,624

–295

–90,000

46,677

93,489

82,608
2,826

8,055

143,437

10,391
29,774
75,473

12,641

15,158

2011–
2020

Totals

160
SUMMARY TABLES

.....
.....
.....
.....
.....
.....
–219
.....

Reform foreign tax credit: Prevent
splitting of foreign income and foreign
taxes ���������������������������������������������������������

Tax currently excess returns associated
with transfers of intangibles offshore �����

Limit shifting of income through intangible
property transfers ������������������������������������

Disallow the deduction for excess nontaxed
reinsurance premiums paid to affiliates ����

Limit earnings stripping by expatriated
entities ������������������������������������������������������

Repeal 80/20 company rules ������������������������

Prevent the use of equity swaps to avoid
dividend withholding taxes ���������������������

Modify tax rules for dual capacity
taxpayers ��������������������������������������������������

–161

–676

–135

–111

–352

–53

–32

–1,580

–2,223

–3,198

–3,357

2012

–716

–734

–91

–111

–353

–54

–54

–1,573

–2,494

–3,184

–3,343

2013

–919

–788

–94

–112

–356

–54

–78

–1,577

–2,707

–3,191

–3,350

2014

–447

–846

–96

–116

–368

–50

–104

–1,616

–2,875

–3,271

–3,434

2015

–381

–907

–97

–120

–379

–50

–131

–1,657

–3,006

–3,353

–3,520

2016

–549

–972

–102

–122

–385

–54

–159

–1,681

–3,106

–3,403

–3,572

2017

–686

–1,044

–109

–123

–390

–58

–189

–1,699

–3,186

–3,439

–1,803

2018

–740

–1,121

–115

–124

–393

–60

–220

–1,711

–3,253

–3,462

–613

2019

–762

–1,080

–123

–127

–402

–64

–254

–1,745

–3,327

–3,532

–626

2020

.....
.....
–1,202
–5
–20
–522

.....
.....
.....
.....
.....

–895

–24

–1,582
–9

.....

.....

–933

–19

–1,089
–9

.....

.....

–969

–18

–914
–8

.....

.....

–1,009

–17

–848
–7

.....

.....

–1,052

–17

–694
–6

.....

.....

–1,095

–17

–482
–6

.....

.....

–1,141

–16

–374
–5

.....

.....

–1,184

–16

–344
–6

.....

.....

–1,226

–16

–310
–6

.....

.....

–6,869 –11,878 –12,707 –13,226 –13,223 –13,601 –14,105 –12,726 –11,812 –12,042

–72

–381

–275

–83

–211

–22

–12

–635

–1,226

–1,928

–2,024

2011

.....

–246

–27

.....

Reform foreign tax credit: Determine the
foreign tax credit on a pooling basis �������

Combat under-reporting of income on
accounts and entities in offshore
jurisdictions ����������������������������������������������
Subtotal, reform U.S. international tax
system �������������������������������������������������
Eliminate fossil fuel tax preferences:
Oil and gas company preferences:
Repeal enhanced oil recovery credit 7 ����
Repeal credit for oil and gas produced
from marginal wells 7 ��������������������������
Repeal expensing of intangible drilling
costs �����������������������������������������������������
Repeal deduction for tertiary injectants 
Repeal exception to passive loss
limitations for working interests in
oil and natural gas properties ������������
Repeal percentage depletion for oil and
natural gas wells ��������������������������������

.....

Defer deduction of interest expense related
to deferred income �����������������������������������

Reform U.S. international tax system:

2010

(Deficit increases (+) or decreases (-) in millions of dollars)

S–8. Mandatory and Receipt Proposals—Continued

–4,328

–98

–5,635
–38

.....

.....

–57,903

–2,315

–3,425

–691

–533

–1,640

–233

–280

–6,981

–11,525

–14,772

–15,508

2011–
2015

–10,026

–180

–7,839
–67

.....

.....

–122,189

–5,433

–8,549

–1,237

–1,149

–3,589

–519

–1,233

–15,474

–27,403

–31,961

–25,642

2011–
2020

Totals

THE BUDGET FOR FISCAL YEAR 2011

161

Subtotal, coal tax preferences ����������
Subtotal, eliminate fossil fuel tax
preferences ���������������������������������
Tax carried interest as ordinary income ����������
Modify cellulosic biofuel producer credit ���������
Eliminate advanced earned income tax credit 1 
Deny deduction for punitive damages ��������������
Repeal lower-of-cost-or-market inventory
accounting method ����������������������������������������
Make unemployment insurance surtax
permanent �����������������������������������������������������
Reduce the tax gap and make reforms:
Expand information reporting:
Require information reporting on
payments to corporations �������������������
Require information reporting for rental
property expense payments ���������������
Require information reporting for
private separate accounts of life
insurance companies ��������������������������
Require a certified Taxpayer Identification
Number for contractors ����������������������������
Require increased information reporting
for certain government payments �����
Increase information return penalties ����
Subtotal, expand information
reporting ����������������������������������������

Repeal domestic manufacturing tax
deduction for oil and natural gas
companies �������������������������������������������
Increase geological and geophysical
amortization period for independent
producers to seven years ��������������������
Subtotal, oil and gas company
preferences ������������������������������������
Coal tax preferences:
Repeal expensing of exploration and
development costs �������������������������������
Repeal percentage depletion for hard
mineral fossil fuels �����������������������������
Repeal capital gains treatment for
royalties ����������������������������������������������
Repeal domestic manufacturing
deduction for hard mineral fossil
fuels �����������������������������������������������������

.....

–84
–179
–1
–17
–25
–20
–326

.....

.....
.....
.....
.....
.....
.....
.....

–3

.....

.....

–18

–10

.....

–57

.....

–2,754
–1,452
–6,569
–120
.....

–32

.....

–10
.....
–784
.....
.....

–2,644

.....

–110

–44

.....

–10

–851

2011

.....

2010

–1,029

–70
–34

–44

–2

–267

–612

–1,458

–286

–4,323
–3,289
–8,058
–72
–22

–183

–5

–25

–98

–55

–4,140

–160

–1,470

2012

–1,217

–58
–35

–63

–3

–281

–777

–1,501

–1,423

–4,059
–3,914
–4,901
–70
–32

–204

–5

–48

–102

–49

–3,855

–246

–1,559

2013

–1,359

–28
–35

–72

–4

–296

–924

–1,539

–2,045

–4,013
–3,741
–2,659
–69
–33

–223

–5

–67

–106

–45

–3,790

–231

–1,650

2014

–1,441

–30
–36

–76

–4

–312

–983

–1,571

–1,402

–4,038
–3,176
–1,491
–68
–34

–238

–6

–78

–109

–45

–3,800

–177

–1,742

2015

–1,526

–32
–42

–79

–6

–327

–1,040

–1,596

–1,127

–3,970
–2,534
–309
–69
–35

–248

–6

–87

–111

–44

–3,722

–122

–1,831

2016

(Deficit increases (+) or decreases (-) in millions of dollars)

–1,604

–34
–43

–83

–7

–342

–1,095

–1,616

–283

–3,843
–1,975
.....
–69
–36

–256

–6

–95

–115

–40

–3,587

–67

–1,920

2017

–1,681

–35
–43

–86

–8

–357

–1,152

–1,631

–296

–3,837
–1,530
.....
–72
–38

–266

–7

–103

–119

–37

–3,571

–28

–2,007

2018

S–8. Mandatory and Receipt Proposals—Continued

–1,765

–37
–44

–90

–10

–372

–1,212

–1,642

–309

–3,937
–1,355
.....
–74
–38

–274

–7

–111

–122

–34

–3,663

–17

–2,096

2019

–1,852

–39
–44

–94

–13

–387

–1,275

–1,642

–323

–4,045
–1,011
.....
–77
–39

–281

–7

–119

–123

–32

–3,764

–18

–2,188

2020

–5,372

–211
–160

–272

–14

–1,335

–3,380

–6,069

–5,156

–19,187
–15,572
–23,678
–399
–121

–958

–24

–236

–472

–226

–18,229

–858

–7,272

2011–
2015

–13,800

–388
–376

–704

–58

–3,120

–9,154

–14,196

–7,494

–38,819
–23,977
–23,987
–760
–307

–2,283

–57

–751

–1,062

–413

–36,536

–1,110

–17,314

2011–
2020

Totals

162
SUMMARY TABLES

–4
–11
–15
–23
.....
–3
.....
.....
.....
–3
.....
–29

–1
.....

.....
.....
.....
.....
.....
–1
.....
.....
.....
.....
.....
–1

.....
.....
.....

–40
.....

Subtotal, expand penalties ���������������������

Modify estate and gift tax valuation
discounts and make other reforms:
Require consistent valuation for
transfer and income tax purposes �����
Modify rules on valuation discounts ����

–135
–666

–1

.....

.....

2011

Improve compliance by businesses:
Require electronic filing by certain large
organizations ��������������������������������������
Implement standards clarifying when
employee leasing companies can be
held liable for their clients’ Federal
employment taxes �������������������������������
Strengthen rules pertaining to
classification of employees as
independent contractors ���������������������
Subtotal, improve compliance by
businesses ��������������������������������������
Strengthen tax administration:
Codify “economic substance doctrine” ���
Allow assessment of criminal restitution
as tax ���������������������������������������������������
Revise offer-in-compromise application
rules ����������������������������������������������������
Expand IRS access to information in the
National Directory of New Hires for
tax administration purposes ��������������
Make repeated willful failure to file a
tax return a felony �����������������������������
Facilitate tax compliance with local
jurisdictions ���������������������������������������
Extend statute of limitations where
State adjustment affects Federal tax
liability ������������������������������������������������
Improve investigative disclosure statute ���
Subtotal, strengthen tax
administration �������������������������������
Expand penalties:
Clarify the bad check penalty applies to
electronic checks and other payment
forms ���������������������������������������������������
Impose a penalty on failure to comply
with electronic filing requirements ���

2010

–171
–1,413

–2

.....

–2

–87

–4
.....

.....

.....

.....

–3

–3

–77

–220

–214

–6

.....

2012

–182
–1,531

–2

.....

–2

–168

–4
.....

.....

.....

.....

–3

–4

–157

–549

–543

–6

.....

2013

–192
–1,671

–2

.....

–2

–285

–4
–1

.....

–1

.....

–3

–4

–272

–695

–688

–7

.....

2014

–204
–1,818

–4

–1

–3

–380

–4
–1

–1

–1

.....

–3

–4

–366

–773

–766

–7

.....

2015

–216
–1,972

–4

–1

–3

–491

–5
–1

–1

–1

.....

–3

–4

–476

–855

–848

–7

.....

2016

(Deficit increases (+) or decreases (-) in millions of dollars)

–229
–2,135

–4

–1

–3

–608

–5
–1

–1

–1

.....

–3

–4

–593

–941

–933

–8

.....

2017

–243
–2,305

–5

–2

–3

–699

–5
–2

–1

–2

.....

–3

–4

–682

–1,028

–1,020

–8

.....

2018

S–8. Mandatory and Receipt Proposals—Continued

–258
–2,484

–6

–2

–4

–775

–5
–2

–1

–2

.....

–3

–4

–758

–1,121

–1,112

–9

.....

2019

–273
–2,672

–6

–2

–4

–857

–6
–2

–1

–2

.....

–4

–4

–838

–1,217

–1,208

–9

.....

2020

–884
–7,099

–11

–1

–10

–949

–19
–2

–1

–2

.....

–15

–15

–895

–2,252

–2,222

–30

.....

2011–
2015

–2,103
–18,667

–36

–9

–27

–4,379

–45
–10

–6

–10

.....

–31

–35

–4,242

–7,414

–7,343

–71

.....

2011–
2020

Totals

THE BUDGET FOR FISCAL YEAR 2011

163

Impose 20-percent tax rate on capital gains
and dividends for those taxpayers with
income over $250,000 (married) and
$200,000 (single) (non-PAYGO). ��������������
Subtotal, upper-income provisions
devoted to deficit reduction ����������������

Reinstate the personal exemption phaseout
and limitation on itemized deductions
for those taxpayers with income over
$250,000 (married) and $200,000 (single)
(non-PAYGO) ��������������������������������������������

–1,076

–1,368

–1,690

–132

–910

–492

–2,143

–160

–1,293

–511

–2,639

–192

–1,731

–512

–204

–6,979

–3,312

–570

2019

–226

–2,188

–515

–233

–7,547

–3,615

–670

2020

–34,819
–251,755

–1,344 –33,514 –40,879 –49,729 –59,777 –67,856 –73,750 –79,572 –85,351 –91,059 –96,805

–3,315

–78,683

5,812
–144,065

–205

–1,003

–1,808

–395

–17,112

–8,528

–545

2011–
2015

–8,230 –11,372 –12,370 –13,288 –14,162 –14,973 –15,752

263

–6,840 –14,925 –17,119 –18,991 –20,808 –22,571 –24,324 –26,054 –27,687 –29,170

–1,344 –12,165

.....

–868

–105

–659

–468

–179

–6,438

–3,025

–477

2018

.....
698
1,075
1,211
1,349
1,479
1,617
1,757
1,899
2,035
2,175
..... –15,207 –27,292 –30,506 –33,905 –37,155 –40,426 –43,717 –47,034 –50,434 –54,058

–713

–81

–437

–441

–156

–5,910

–2,753

–389

2017

–224,475

–558

–59

–276

–432

–136

–5,372

–2,496

–308

2016

–1,133 –28,585 –45,520 –50,153 –50,842 –49,375 –48,565 –48,269 –47,519 –48,754 –49,998

–196

.....

–39

–183

–407

–117

–4,851

–2,253

–231

2015

Upper-Income Tax Provisions:
Upper-income tax provisions devoted to deficit
reduction:
Expand the 28-percent rate and reinstate
the 36-percent and 39.6-percent rates
for those taxpayers with income over
$250,000 (married) and $200,000 (single):
PAYGO �����������������������������������������������
Non-PAYGO ���������������������������������������

–5

.....

–21

–87

–379

–101

–4,364

–2,023

–160

2014

–3,411

–20

–149

–84

–3,742

–1,806

–93

2013

–3,162

.....

Expand pro rata interest expense
disallowance for corporate-owned life
insurance ��������������������������������������������������

–71

–2,968

–1,630

–46

2012

–678,292

–105,364

–208,489

15,295
–379,734

–467,580

–14,413

–1,020

–7,784

–4,306

–1,303

–49,358

–23,729

–2,959

2011–
2020

Totals

Permit partial annuitization of a
nonqualified annuity contract �����������������
Subtotal, reform treatment of life
insurance and products ����������������������
Total, other revenue changes and
loophole closers ������������������������������

.....

Modify dividends-received deduction for life
insurance company separate accounts ���

–1,187

–41

–22

–816

–40

.....

–15

2011

.....

Modify rules that apply to sales of life
insurance contracts ����������������������������������

Require a minimum term for grantor
retained annuity trusts (GRATs) �������
Subtotal, modify estate and gift tax
valuation discounts and make
other reforms ���������������������������������
Subtotal, reduce the tax gap and
make reforms �����������������������������
Reform treatment of insurance institutions
and products:

2010

(Deficit increases (+) or decreases (-) in millions of dollars)

S–8. Mandatory and Receipt Proposals—Continued

164
SUMMARY TABLES

.....

.....

.....
.....
.....

Other Initiatives:
Extend and modify the New Markets tax
credit ��������������������������������������������������������������
Reform and extend build America bonds 1 �������

Total, other initiatives ���������������������������������

.....
.....
.....
.....
.....
.....
.....

Enact Grain Inspection, Packers, and Stockyards
Administration (GIPSA) fees ��������������������������������

Enact Natural Resources Conservation Service
(NRCS) fee �������������������������������������������������������������

Eliminate Commodity Storage payments ����������������

Reduce commodity payments to wealthy farmers ���

Reauthorize Child Nutrition programs �������������������

Reform Market Access Program �������������������������������

Total, Agriculture ����������������������������������������������

Eliminate grants to manufacturers of worsted wool ���

Implement concurrent receipt policy:
Effect on military retirement ���������������������������
Accrual payments to the Military Retirement
Fund (non-PAYGO) ���������������������������������������

Defense:

Support capital investment in the inland
waterways (receipt effect) 2 �����������������������������������

Corps of Engineers:

217
408

.....

.....

–5

770

–8

860

–1

–2

–19

–29

–11

–20

105

113
–8

145

.....

.....

.....

.....

Enact Food Safety and Inspection Service (FSIS)
performance fee �����������������������������������������������������

Commerce:

.....

Enact Animal Plant and Health Inspection Service
(APHIS) fees ����������������������������������������������������������

Agriculture:

Mandatory Initiatives and Savings: 8

2012

2013

2014

2015

2016

2017

2018

2019

2020

–7,896 –21,582 –24,500 –27,019 –29,351 –31,570 –33,938 –36,268 –38,426 –40,625

2011

395

346

–196

–5

701

–38

1,000

–172

.....

–19

–30

–13

–27

232

229
3

430

406

435

–163

–5

669

–40

1,000

–201

.....

–19

–31

–13

–27

348

345
3

552

416

511

–187

–5

628

–40

1,000

–241

.....

–19

–31

–13

–28

433

430
3

606

426

531

–129

–5

622

–40

1,000

–245

.....

–19

–31

–14

–29

484

480
4

647

440

541

–100

.....

607

–40

1,000

–258

.....

–19

–32

–14

–30

515

511
4

680

455

550

–72

.....

602

–40

1,000

–262

.....

–19

–32

–14

–31

514

510
4

705

470

560

–70

.....

586

–40

1,000

–277

.....

–19

–32

–14

–32

445

441
4

729

486

570

–68

.....

563

–40

1,000

–297

.....

–19

–33

–15

–33

283

279
4

753

503

581

–68

.....

549

–40

1,000

–309

.....

–19

–34

–15

–34

106

103
3

777

–1,344 –41,410 –62,461 –74,229 –86,796 –97,207 –105,320 –113,510 –121,619 –129,485 –137,430

Trade Initiatives:
Promote trade ����������������������������������������������������

Total, upper-income tax provisions �������������

Limit the tax rate at which itemized
deductions reduce tax liability to 28 percent 

2010

(Deficit increases (+) or decreases (-) in millions of dollars)

S–8. Mandatory and Receipt Proposals—Continued

2,051

2,040

–675

–25

3,390

–166

4,860

–860

–2

–95

–152

–64

–131

1,602

1,597
5

2,380

–362,103

–110,348

2011–
2015

4,405

4,842

–1,053

–25

6,297

–366

9,860

–2,263

–2

–190

–315

–136

–291

3,465

3,441
24

6,024

–969,467

–291,175

2011–
2020

Totals

THE BUDGET FOR FISCAL YEAR 2011

165

–469

.....
.....
.....

Provide additional accrual payments to Medicare/
Eligible Retiree Health Care Fund (non-PAYGO) ���

Total, Defense ����������������������������������������������������

117

Create a new Access and Completion Fund
program �����������������������������������������������������������������

Expand child care entitlement to States �����������������

Health and Human Services (HHS):

Enact pesticide and pre-manufacture notification
(PMN) fees �������������������������������������������������������������

Environmental Protection Agency:

Repeal ultra-deepwater oil and gas research and
development program �������������������������������������������

Energy:

.....

.....

.....

–388

31

Create a new Early Learning Challenge Fund �������

Total, Education ������������������������������������������������

20

Create a new Graduation Promise Grants program
to strengthen high schools ������������������������������������

3

13

Extend mandatory funding for Historically Black
Colleges and Universities and other MinorityServing Institutions ����������������������������������������������

.....

1,692

Expand income-based repayment options for
Federal student loans �������������������������������������������

Modernize Perkins loans ������������������������������������������

–2,266

Eliminate entitlements for financial intermediaries
under the Family Federal Education Loan
Program �����������������������������������������������������������������

Provide mandatory funding for community colleges
to support the American Graduation Initiative ��

2

Make Pell Grant funding mandatory and increase
and index maximum awards ��������������������������������

Education:

469

.....

502

–50

–20

–5,592

–736

541

583

456

140

186

448

–8,034

825

74

–143

–408

.....

2011

Military Retirement Fund offsetting receipts
for concurrent receipt accruals (nonPAYGO) ����������������������������������������������������������
Payments to Military Retirement Fund (nonPAYGO) ����������������������������������������������������������
Military Retirement Fund offsetting receipts
(non-PAYGO) �������������������������������������������������

2010

753

–54

–40

–1,351

–709

991

700

588

260

232

512

–6,527

2,603

346

.....

–487

487

–395

2012

961

–80

–50

1,420

–614

765

700

899

380

255

551

–4,458

2,942

435

.....

–505

505

–406

2013

1,115

–83

–50

6,645

–563

958

700

966

260

255

586

–3,098

6,581

511

.....

–524

524

–416

2014

1,106

–89

–30

5,039

–583

793

583

1,000

140

255

644

–2,975

5,183

531

.....

–604

604

–426

2015

1,142

–89

–10

5,873

–589

950

117

1,000

.....

255

708

–3,184

6,616

541

.....

–627

627

–440

2016

(Deficit increases (+) or decreases (-) in millions of dollars)

1,226

–92

.....

7,180

–539

950

.....

1,000

.....

255

774

–3,414

8,154

550

.....

–651

651

–455

2017

1,314

–92

.....

8,761

–468

950

.....

1,000

.....

255

842

–3,636

9,818

560

.....

–675

675

–470

2018

S–8. Mandatory and Receipt Proposals—Continued

1,403

–95

.....

11,000

–396

950

.....

1,000

.....

255

1,158

–3,840

11,873

570

.....

–700

700

–486

2019

1,493

–95

.....

13,098

–274

950

.....

1,000

.....

255

1,265

–4,129

14,031

581

.....

–727

727

–503

2020

4,437

–356

–190

6,162

–3,205

4,046

3,266

3,909

1,180

1,183

2,741

–25,092

18,134

1,897

–143

–2,589

2,589

–2,051

2011–
2015

11,015

–819

–200

52,074

–5,471

8,796

3,383

8,909

1,180

2,458

7,487

–43,294

68,626

4,699

–143

–5,969

5,969

–4,405

2011–
2020

Totals

166
SUMMARY TABLES

.....
1

.....
.....
.....
.....
.....
.....
.....

Extend TANF supplemental grants �������������������������

Establish Fatherhood, Marriage, and Families
Innovation Fund ���������������������������������������������������

Improve child support enforcement tools ����������������

Outyear costs of extending TANF supplemental
grants ���������������������������������������������������������������������

Reauthorize the Court Improvement Program �������

Support teen pregnancy prevention �������������������������

Total, HHS ���������������������������������������������������������

.....

.....
.....
.....
.....
.....
.....

Reauthorize Federal land sales/acquisition law
(FLTFA) �����������������������������������������������������������������

Repeal geothermal payments to counties under
EPAct ���������������������������������������������������������������������

Return to net receipts sharing for energy minerals 

Reserve funds for insular affairs assistance ������������

Total, Interior ����������������������������������������������������

–118

21

.....

–8

–4

–115
–8

–4

20

.....
.....

.....

.....

5

2,566

20

1

–118

3

Increase return from minerals on Federal lands:
End Abandoned Mine Lands (AML) payments
to certified States ������������������������������������������
Impose fee on nonproducing oil and gas leases 
Repeal Energy Policy Act fee prohibition and
mandatory permit funds �������������������������������

Increase fees for migratory bird hunting and
conservation stamps 2 ��������������������������������������������

Interior:

Provide funding for the Affordable Housing Trust
Fund �����������������������������������������������������������������������

Housing and Urban Development:

Eliminate grants to manufacturers of worsted wool ����
.....

251

.....

Expand CMS program integrity authority ��������������

Homeland Security:

–109

.....

Continue child welfare study �����������������������������������

1,460

.....

Create a LIHEAP trigger �����������������������������������������

555

.....

2011

Extend ARRA child support enforcement incentive
match provision �����������������������������������������������������

2010

–253

21

–45

–8

–6

–22

–171
–22

.....

140

5

2,710

42

4

251

–2

220

64

–213

2

1,475

114

2012

–280

21

–45

–8

–11

–22

–177
–38

.....

250

5

1,485

48

16

315

–2

148

4

–1,121

1

1,115

.....

2013

–296

21

–47

–8

–12

–21

–176
–53

.....

250

5

1,039

49

18

319

–2

100

.....

–1,250

.....

690

.....

2014

–230

16

–51

–8

–3

–20

–97
–67

.....

240

.....

448

50

20

319

–2

.....

.....

–1,418

.....

373

.....

2015

–194

16

–50

–8

.....

.....

–72
–80

.....

100

.....

249

50

19

319

–2

.....

.....

–1,564

.....

285

.....

2016

(Deficit increases (+) or decreases (-) in millions of dollars)

–215

16

–51

–8

.....

.....

–75
–97

.....

.....

.....

207

50

16

319

–2

.....

.....

–1,660

.....

258

.....

2017

–280

16

–51

–8

.....

.....

–123
–114

.....

.....

.....

151

50

4

319

–2

.....

.....

–1,784

.....

250

.....

2018

S–8. Mandatory and Receipt Proposals—Continued

–318

16

–54

–8

.....

.....

–140
–132

.....

.....

.....

110

50

2

319

–2

.....

.....

–1,912

.....

250

.....

2019

–293

15

–56

–8

.....

.....

–95
–149

.....

.....

.....

63

50

.....

319

–2

.....

.....

–2,047

.....

250

.....

2020

–1,177

100

–188

–40

–36

–85

–736
–188

–4

900

20

8,248

209

59

1,204

–7

350

319

–4,111

6

5,113

669

2011–
2015

–2,477

179

–450

–80

–36

–85

–1,241
–760

–4

1,000

20

9,028

459

100

2,799

–17

350

319

–13,078

6

6,406

669

2011–
2020

Totals

THE BUDGET FOR FISCAL YEAR 2011

167

.....
.....
.....

Reform Trade Adjustment Assistance ����������������������

Total, Labor ��������������������������������������������������������

.....
.....
.....

.....
.....

Offset tax refunds to collect deliquent taxes for
out-of-state residents ��������������������������������������������

Establish FMS debt collection fee ����������������������������

Restructure assistance to New York City (NYC):
Provide tax incentives for transportation
infrastructure (receipt effect) 2 �����������������������������

Total, Treasury ��������������������������������������������������

.....
.....
.....
.....
.....
.....
.....
.....

Implement concurrent receipt policy:
Effect on Veterans disability payments �����������

Extend VBA pension limitation �������������������������������
Medicaid impact ������������������������������������������������

Reform criteria for special monthly pension �����������

Extend VBA authority for use of HHS data ������������

Extend veterans income verification ������������������������

Provide authority for vendee loan pooling ���������������

Total, Veterans Affairs ��������������������������������������

Veterans Affairs:

–61

.....

Revise terrorism risk insurance program 2 ��������������

44

.....

.....

.....

–3

.....
.....

47

36

200

.....

.....

–26

–77

.....

782

135

145

.....

–10

.....
.....

2011

Levy payments to Federal contractors with
delinquent tax debt:
Authorize post-levy due process (receipt
effect) 2 ������������������������������������������������������������
Increase levy authority to 100 percent for
vendor payments (receipt effect) 2 �����������������

Treasury:

Change retention policy for consular fees (receipt
effect) 2 ��������������������������������������������������������������������
.....

.....

Reform FECA program ���������������������������������������������

Extend foreign labor certification fees ���������������������

State:

.....
.....

Implement unemployment insurance integrity
legislation: 2,9 ����������������������������������������������������������
PAYGO ���������������������������������������������������������������
Non-PAYGO �������������������������������������������������������

Labor:

2010

–267

–86

20

2

–6

–559
313

49

–44

200

.....

.....

–42

–87

–115

810

286

564

.....

–14

–190
–74

2012

–309

–99

–7

1

–10

–571
326

51

–107

200

.....

.....

–102

–86

–119

825

424

796

1

–7

–218
–148

2013

–223

–5

–13

.....

–13

–584
339

53

–148

200

.....

.....

–134

–90

–124

840

751

1,044

17

–10

–162
–138

2014

–227

.....

–20

–1

–16

–597
353

54

–61

200

.....

.....

–74

–78

–109

857

665

948

18

–20

–164
–117

2015

–239

.....

–27

–2

–20

–611
367

54

60

200

.....

.....

55

–82

–113

873

660

884

18

–29

–179
–34

2016

(Deficit increases (+) or decreases (-) in millions of dollars)

28

.....

.....

–3

–23

.....
.....

54

131

200

.....

.....

134

–85

–118

891

708

846

20

–39

–202
83

2017

22

.....

.....

–4

–27

.....
.....

53

–49

200

.....

.....

–39

–88

–122

909

311

832

20

–50

–114
–377

2018

S–8. Mandatory and Receipt Proposals—Continued

18

.....

.....

–5

–30

.....
.....

53

–28

200

.....

.....

–9

–92

–127

927

634

847

20

–60

–199
26

2019

14

.....

.....

–5

–33

.....
.....

52

–40

200

.....

.....

–12

–96

–132

946

686

879

21

–71

–214
71

2020

–982

–190

–20

2

–48

–2,311
1,331

254

–324

1,000

.....

.....

–378

–402

–544

4,114

2,261

3,497

36

–61

–734
–477

2011–
2015

–1,139

–190

–47

–17

–181

–2,922
1,698

520

–250

2,000

.....

.....

–249

–845

–1,156

8,660

5,260

7,785

135

–310

–1,642
–708

2011–
2020

Totals

168
SUMMARY TABLES

–3
–53

Enact spectrum license user fee �������������������������������

Eliminate Telecommunications Development Fund ����

Total, Federal Communications Commission �����

.....
.....

Revert to Quarterly Wage Reporting (non-PAYGO) 

Total, Social Security Administration ��������������

690
690

Reflect discrimination claims settlement (nonPAYGO) ������������������������������������������������������������������

Total, other independent agencies ��������������������

.....

–1,012

426

26

–1,864

400
.....

1,097

230

867

20

20

.....

–307

–7

–200

.....

–100

2011

2,731

–3,316

813

26

–4,555

400
.....

1,825

230

1,595

30

30

.....

–382

–7

–300

.....

–75

2012

1,366

–5,635

1,145

25

–7,005

200
.....

2,204

.....

2,204

100

100

.....

–657

–7

–425

–200

–25

2013

200
.....

2,893

.....

2,893

–375

.....

–375

–756

–6

–550

–200

.....

2015

200
.....

3,052

.....

3,052

–492

.....

–492

–756

–6

–550

–200

.....

2016

200
.....

2,397

.....

2,397

–523

.....

–523

–756

–6

–550

–200

.....

2017

100
.....

1,855

.....

1,855

–478

.....

–478

–756

–6

–550

–200

.....

2018

.....
.....

1,433

.....

1,433

–452

.....

–452

–756

–6

–550

–200

.....

2019

.....
.....

1,141

.....

1,141

–417

.....

–417

–756

–6

–550

–200

.....

2020

25
1,027

24
982

23
965

23
973

22
986

22
986

455

.....

.....

.....

.....

.....

.....

–8,137 –11,255 –14,601 –16,751 –18,352 –20,130 –21,498

1,090

25

–9,452 –12,507 –15,807 –17,939 –19,448 –21,138 –22,506

200
.....

2,583

.....

2,583

–172

.....

–172

–756

–6

–550

–200

.....

2014

4,552

–29,355

4,501

127

–35,383

1,400
.....

10,602

460

10,142

–397

150

–547

–2,858

–33

–2,025

–600

–200

2011–
2015

4,552

–120,687

9,393

241

–132,221

1,900
.....

20,480

460

20,020

–2,759

150

–2,909

–6,638

–63

–4,775

–1,600

–200

2011–
2020

Totals

Total, mandatory and receipt proposals ��������� 114,309 81,497 –69,867 –137,843 –137,205–128,927 –121,145–138,590 –152,488–165,698 –178,834 –392,346 –1,149,100
Note: For receipt effects, positive figures indicate lower receipts.  For outlay effects, positive figures indicate higher outlays.  For net costs, positive figures indicate higher
deficits.
Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission.


Justice, Crime Victims Fund Obligation Delay �������
.....

1,538

Total, multi-agency ��������������������������������������������

Outyear PAYGO Impact of Changes in
Mandatory Programs included in
Appropriations Language:

26
.....

Reform asset limits in means-tested programs �������

.....

Implement program integrity allocation
adjustments (non-PAYGO) 2 ����������������������������������

Exclude refundable tax credits from means-tested
programs ����������������������������������������������������������������

100
1,412

Fund Cobell settlement costs:
PAYGO ���������������������������������������������������������������
Non-PAYGO �������������������������������������������������������

Multi-Agency:

.....

Reform financial regulatory system �������������������������

Other Independent Agencies:

.....

Require States and localities to provide pension
information (non-PAYGO) ������������������������������������

Social Security Administration:

.....
–50

Provide permanent auction authority ����������������������

.....

Auction domestic satellite spectrum ������������������������

Federal Communications Commission:

2010

(Deficit increases (+) or decreases (-) in millions of dollars)

S–8. Mandatory and Receipt Proposals—Continued

THE BUDGET FOR FISCAL YEAR 2011

169

(Deficit increases (+) or decreases (-) in millions of dollars)

2,435
.....
.....

.....
.....
.....
66
.....
.....
2,820

Extend option for grants to States in lieu of
housing tax credits ������������������������������������������������

Expand earned income tax credit ����������������������������

Expand child and dependent care tax credit �����������

Provide for automatic enrollment in IRAs and
double the tax credit for small employer plan
startup costs ����������������������������������������������������������

Expand saver’s credit ������������������������������������������������

Provide American opportunity tax credit ����������������

Continue certain expiring provisions through
calendar year 2011 ������������������������������������������������

Eliminate advanced earned income tax credit ��������

Reform and extend build America bonds �����������������

Total outlay effects of receipt proposals �����������
3,932

266

–120

91

.....

570

.....

.....

83

1,815

524

703

2011

31,260

1,216

–72

23

2,941

3,715

83

399

1,667

.....

23

21,265

2012

9,207

2,630

–70

.....

3,058

1,402

146

406

1,635

.....

.....

.....

2013

10,734

4,108

–69

.....

3,146

1,369

149

403

1,628

.....

.....

.....

2014

12,352

5,608

–68

.....

3,268

1,366

158

398

1,622

.....

.....

.....

2015

14,040

7,105

–69

.....

3,441

1,349

177

403

1,634

.....

.....

.....

2016

15,491

8,595

–69

.....

3,363

1,337

200

406

1,659

.....

.....

.....

2017

.....

–61

21

–87

18

–86

45

–90

857

99

–78

–109

173

–82

–113

873

–49
124

–14

–100

205

–85

–118

891

–72
247

–14

–72

6

–88

–122

909

19
–208

–14

–70

21

–92

–127

927

–62
200

–14

–68

15

–96

–132

946

–73
252

–14

–68

.....

840
–124

–32
36

–14

–129

.....

825
–119

–27
11

–14

–187

Revise terrorism risk insurance program ����������������

810
–115

–40
–2

–14

–163

Increase levy authority to 100 percent for vendor
payments ���������������������������������������������������������������

–77

782

–39
–3

–14

–196

.....

.....
.....

–14

.....

.....

.....

.....

2020

Authorize post-levy due process �������������������������������

.....

.....

2019

Change retention policy for passport application
fees �������������������������������������������������������������������������

.....

.....

2018

.....
.....

.....

.....

2017

.....

.....

.....

2016

Implement unemployment insurance integrity
legislation:
PAYGO ���������������������������������������������������������������
Non-PAYGO �������������������������������������������������������

.....

.....

2015

.....

2,000

.....

2014

Increase fees for migratory bird hunting and
conservation stamps ���������������������������������������������

3,000

.....

2013

20,053

13,023

–77

.....

3,302

1,353

281

409

1,762

.....

.....

.....

2020

Preserve cost-sharing of inland waterways capital
costs �����������������������������������������������������������������������

8,000

.....

2012

18,513

11,554

–74

.....

3,310

1,340

250

407

1,726

.....

.....

.....

2019

..... –16,000 –17,500 –40,500 –57,000 –75,500 –89,500 –98,000 –106,500 –116,000 –126,500

25,000

–1,959

2011

16,995

10,078

–72

.....

3,330

1,339

223

408

1,689

.....

.....

2018

Health insurance allowance �������������������������������������

38
12,000

Jobs initiatives allowance �����������������������������������������

2010

Provide $250 economic recovery payments �������������



The estimates for this proposal include effects on receipts. The receipt effects included in the totals above are listed below.

319

Extend COBRA health insurance premium
assistance ��������������������������������������������������������������

2

.....

Extend making work pay tax credit in 2011 �����������

2010

The estimates for this proposal include effects on outlays. The outlay effects included in the totals above are listed below:



1

S–8. Mandatory and Receipt Proposals—Continued

183

–402

–544

4,114

–138
42

–70

–675

–206,500

38,000

–1,959

2011–
2015

67,485

13,828

–399

114

12,413

8,422

536

1,606

6,635

1,815

547

21,968

2011–
2015

603

–845

–1,156

8,660

–375
657

–140

–1,053

–743,000

38,000

–1,959

2011–
2020

152,577

64,183

–760

114

29,159

15,140

1,667

3,639

15,105

1,815

547

21,968

2011–
2020

170
SUMMARY TABLES

.....

–385

200

2011

–1,164

200

2012

–2,355

200

2013

–3,955

200

2014

–6,015

200

2015

–7,987

200

2016

–9,238

200

2017
200

2019
200

2020

–9,931 –10,378 –10,809

200

2018

–13,874

1,000

2011–
2015

–62,217

2,000

2011–
2020

Total receipt effects of mandatory proposals ���
12,038
7,486 –10,087 –39,236 –58,301 –80,685 –96,475 –106,056 –115,799 –125,393 –136,279 –180,823 –760,825
3
Allowance reflects the average budget impacts of the House- and Senate-passed health care reform bills, extrapolated to 2020 and adjusted to remove the effects of four
provisions already included explicitly as 2011 Budget proposals. The four adjustments are for proposals to require information reporting on payments to corporations,
codify the economic substance doctrine, modify cellulosic biofuel producer credit, and extend FMAP relief to States.
4
A comprehensive market-based climate change policy will be deficit neutral because proceeds from emissions allowances will be used to compensate vulnerable families,
communities, and businesses during the transition to a clean energy economy. Receipts will also be reserved for investments to reduce greenhouse gas emissions, including
support of clean energy technologies, and in adapting to the impacts of climate change, both domestically and in developing countries.
5
Receipt effects unless otherwise noted.
6
The Administration continues to support expanding refundability of the child tax credit by lowering the refundability threshold to $3,000, as well as the expansion of the
earned income tax credit for married couples by increasing the phase-out threshold by $5,000 compared to other filers. These policies are incorporated in the baseline
projection of current policy.
7
This provision is estimated to have zero receipt effects under the Administration’s current projections for energy prices.
8
Outlay effects unless otherwise noted.
9
Net of income offsets.

.....

Implement program integrity allocation
adjustments – IRS ������������������������������������������������

2010

Restructure assistance to NYC: Provide tax
incentives for transportation infrastructure �������



(Deficit increases (+) or decreases (-) in millions of dollars)

S–8. Mandatory and Receipt Proposals—Continued

THE BUDGET FOR FISCAL YEAR 2011

171

–1,034,791

2010–2020 total mandatory and receipt proposals and climate policies, Table S–8 �����������������������������������������

135,838
–3,847
561,261

Program integrity and other savings generated by increased discretionary funding ���������������������������������������������

Other non-PAYGO items ��������������������������������������������������������������������������������������������������������������������������������������������

Total, adjustments for non-PAYGO items �����������������������������������������������������������������������������������������������������

–473,530

694,931

Savings from not extending upper-income tax cuts ��������������������������������������������������������������������������������������������������

TOTAL: Net scoreable PAYGO savings in Administration’s budget �������������������������������������������������������������������
Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission.
1
Totals represent 2010-2020 unless otherwise stated.

–266,351

Temporary recovery measures �����������������������������������������������������������������������������������������������������������������������������������

Adjustments to remove costs or savings for non-PAYGO items on S–8:

114,309

–1,149,100

Total 1

2011-2020 total mandatory and receipt proposals, Table S–8 ������������������������������������������������������������������������������������������
Plus 2010 effects: PAYGO includes a “lookback” provision to capture current-year costs ��������������������������������������

Deficit increases (+) or decreases (–) in millions of dollars

Table S–9. Bridge Between Total Mandatory and
Receipt Proposals and PAYGO Scorekeeping

172
SUMMARY TABLES

.....
.....

44.1
.....

1,248.0

685.5
430.0

1,315.9

Grand Total, Discretionary
Budgetary Resources ���������������

Memorandum:
Base Security Budget Authority
adjusted for Inflation and
Population ����������������������������������������

Base Non-Security Budgetary Resources
adjusted for Inflation and Population ����

Grand Total, Discretionary Budgetary
Resources adjusted for Inflation
and Population ��������������������������������
1,332.8

457.0

700.1

1,301.5

41.1

0.4

130.0

1,130.0

683.7
446.3

747.5
446.4

768.7
446.2

2013

789.7
459.1

2014

814.0
472.3

2015

834.6
478.7

2016

856.5
488.8

2017

879.0
501.6

2018

902.7
517.0

2019

927.6
537.5

2020

2011–
2020

3,839.0 8,239.4
2,265.2 4,788.9

2011–
2015

.....

.....

50.0

.....

.....

50.0

.....

.....

50.0

.....

.....

50.0

.....

.....

50.0

.....

.....

50.0

.....

.....

50.0

.....

.....

50.0

.....

.....

50.0

.....

.....

359.3

.....

.....

609.3

1,319.8

441.3

719.2
421.1

725.5

420.8

723.7

420.2

724.3

413.6

721.0

409.6

717.7

407.7

714.6

407.7

711.9

411.7

710.5

1,209.1 1,193.8 1,190.2 1,189.0 1,177.7 1,169.2 1,163.0 1,159.1 1,160.5

433.9

726.6

6,102.0 11,931.5

2,137.3 4,187.6

3,619.3 7,194.9

1,319.8 1,243.9 1,264.9 1,298.8 1,336.2 1,363.3 1,395.3 1,430.6 1,469.7 1,515.1 6,463.6 13,637.6

.....

.....

159.3

1,160.5 1,193.9 1,214.9 1,248.8 1,286.2 1,313.3 1,345.3 1,380.6 1,419.7 1,465.1 6,104.3 13,028.3

719.2
441.3

2012

Totals

Grand Total, Discretionary Budgetary
Resources as a Percent of GDP ������
8.8%
1.9%
8.9%
8.6%
7.7%
7.4%
7.1%
7.0%
6.8%
6.6%
6.5%
6.4%
6.3%
7.6%
7.0%
1
Although the Budget shows discretionary funding in nominal terms, the Administration conceives of discretionary growth rates in inflation-adjusted terms. If inflation
projections are revised from what is currently projected, future budgets would be expected to adjust funding levels up or down accordingly. (This statement does not apply
to funding growth between 2010 and the 2011 budget year, since the appropriations process for 2011 must begin immediately and before inflation assumptions will be
revisited. It also does not apply to the outyear BA for overseas contingency operations, which is a placeholder and does not represent a policy determination.)
2
“ARRA” refers to the American Recovery and Reinvestment Act of 2009 (P.L. 111-5).
3
The Budget includes placeholder estimates of $50 billion per year for Overseas Contingency Operations in 2012 and beyond.  These estimates do not reflect any specific
policy decisions.
4
The 2010 requested supplemental includes additional funding for Overseas Contingency Operations.

279.5

266.9

12.6

265.1

.....

145.9

265.1

Total, Base Discretionary Funding ���� 1,057.9

Other Discretionary Funding (not
included above):
Overseas Contingency
Operations3 �������������������������������
Other Supplemental/Emergency
Funding �������������������������������������
Proposed 2010 Supplemental
Funding 4 �����������������������������������

12.0
253.1

650.1
407.8

Discretionary Policy by Category:
Security Agencies �������������������������
Non-Security Agencies �����������������

Non2010
2011
ARRA ARRA2 Enacted Request

2009 Actual

(Budgetary resources in billions of dollars)

Table S–10. Funding Levels for Appropriated (“Discretionary”) Programs by Category 1

THE BUDGET FOR FISCAL YEAR 2011

173

650.1

Subtotal, Security Agencies ��������������������������������������������������

36.7
22.4
13.6
3.0
4.0
4.8
0.2
48.1

3.1
41.4
16.9
77.6
40.0
11.3
26.0
12.9
0.1
70.5
16.8
53.7
12.6
5.3
7.6
0.6
17.8
6.5
0.6
8.5
0.9
18.6
354.1

Census Bureau ����������������������������������������������������������������
Education6 �����������������������������������������������������������������������������
Energy (excluding National Nuclear Security
Administration) ����������������������������������������������������������������
Health and Human Services (HHS)7 �����������������������������������
Housing and Urban Development ���������������������������������������
Interior ����������������������������������������������������������������������������������
Justice �����������������������������������������������������������������������������������
Labor �������������������������������������������������������������������������������������
State and Other International Programs 5 ��������������������������
Transportation ���������������������������������������������������������������������

Budget Authority (BA) ����������������������������������������������������

Obligation Limitations ���������������������������������������������������
Treasury ��������������������������������������������������������������������������������
Corps of Engineers ���������������������������������������������������������������
Environmental Protection Agency ��������������������������������������
General Services Administration ����������������������������������������
National Aeronautics and Space Administration ���������������
National Science Foundation �����������������������������������������������
Small Business Administration �������������������������������������������
Social Security Administration7 �������������������������������������������
Corporation for National and Community Service �������������

Other Agencies ���������������������������������������������������������������������

Subtotal, Non-Security Discretionary Budget Authority ����

253.1

0.3

.....
0.3
4.6
7.2
5.9
1.0
3.0
0.7
1.1
0.2

48.1

1.0
81.1

22.6
9.4

6.9
7.8

12.0

7.4
.....
2.8
1.4
0.4

ARRA2

Agriculture5 ���������������������������������������������������������������������������
Commerce �����������������������������������������������������������������������������

Non-Security Agencies:

513.2
9.1
42.1
47.6
38.1

Defense (DOD) ����������������������������������������������������������������������
Energy - National Nuclear Security Administration ���������
Homeland Security (DHS)3 ��������������������������������������������������
Veterans Affairs4 �������������������������������������������������������������������
State and Other International Programs 5 ��������������������������

Security Agencies:

Base Discretionary Resources by Agency:

NonARRA

2009 Actual

392.1

19.4

54.2
13.6
5.4
10.3
0.6
18.7
6.9
0.8
9.3
1.2

21.8

16.5
84.1
43.6
12.2
27.5
14.3
0.1
76.0

7.2
46.8

25.0
13.9

683.7

530.8
9.9
39.4
53.1
50.6

386.4

20.2

54.8
13.9
4.9
10.0
0.7
19.0
7.4
1.0
10.1
1.4

22.8

17.1
83.5
41.6
12.0
24.1
14.0
0.1
77.6

1.3
49.7

23.9
8.9

719.2

548.9
11.2
43.6
57.0
58.5

2010
2011
Enacted Request

(Budgetary resources in billions of dollars)

437.1

19.2

9.3
14.1
4.7
9.4
0.6
19.4
7.8
1.0
10.5
1.7

70.0

17.1
82.4
41.3
11.9
28.5
13.5
0.1
79.2

1.1
50.1

24.6
9.1

747.5

566.4
11.6
44.2
59.7
65.7

2012

399.4

18.6

46.8
14.5
4.6
8.8
0.6
20.0
8.3
0.9
10.9
2.0

33.8

17.2
80.7
42.0
11.8
28.0
13.1
0.1
80.6

1.2
50.2

24.5
8.8

768.7

581.8
11.9
44.8
61.3
69.0

2013

416.0

19.1

43.1
15.1
4.7
8.6
0.6
20.6
8.9
0.9
11.4
2.3

39.0

17.7
83.1
44.1
12.2
29.0
13.3
0.1
82.1

1.3
51.4

25.2
8.5

789.7

597.8
12.4
45.3
63.0
71.2

2014

428.7

19.5

43.6
15.9
4.8
8.5
0.7
21.0
9.5
1.0
11.7
2.6

41.2

18.3
85.5
45.3
12.5
29.9
13.5
0.1
84.7

1.5
52.7

26.0
8.8

814.0

616.0
12.9
46.7
64.7
73.6

2015

Totals

2,067.6

96.6

197.6
73.6
23.6
45.4
3.2
100.0
41.9
4.8
54.7
10.0

206.6

87.5
415.1
214.3
60.3
139.5
67.4
0.6
404.2

12.1
254.1

124.2
44.2

3,839.0

2,910.9
60.0
224.6
305.6
337.9

4,382.5

202.0

406.4
158.9
49.3
89.0
6.8
212.7
96.9
9.9
117.6
26.9

418.1

186.2
881.1
464.1
126.6
291.8
138.4
1.3
824.5

23.9
537.5

266.2
101.0

8,239.4

6,255.3
126.6
481.4
659.7
716.4

2011–2015 2011–2020

Table S–11. Funding Levels for Appropriated (“Discretionary”) Programs by Agency 1

174
SUMMARY TABLES

44.1
1.4
7.9
10.5
13.8
3.0
6.6
0.9
.....
.....
.....
.....
1,194.2

Other Enacted Supplemental or Emergency Funding ���
Agriculture ����������������������������������������������������������������������������
Energy ��������������������������������������������������������������������������������������������������
Health and Human Services ������������������������������������������������
State and Other International Programs ����������������������������
Department of Transportation ���������������������������������������������
Corps of Engineers-Civil Works �������������������������������������������
Other Agencies ����������������������������������������������������������������������

Proposed 2010 Supplemental Funding ������������������������������
Defense (includes Overseas Contingency Operations) ���������
Homeland Security ���������������������������������������������������������������
State and Other International Programs ����������������������������

Grand Total, Discretionary Budget Authority ����������������������

265.1

.....
.....
.....
.....

.....
.....
.....
.....
.....
.....
.....
.....

.....
.....
.....
.....

253.1

ARRA2

1,247.3

41.1
33.0
3.6
4.5

0.4
0.4
.....
.....
.....
.....
.....
-*

130.0
129.6
0.2
0.1

446.3

1,265.0

.....
.....
.....
.....

.....
.....
.....
.....
.....
.....
.....
.....

159.3
159.1
0.3
.....

441.3

2010
2011
Enacted Request

1,234.6

.....
.....
.....
.....

.....
.....
.....
.....
.....
.....
.....
.....

50.0
50.0
.....
.....

446.4

2012

1,218.1

.....
.....
.....
.....

.....
.....
.....
.....
.....
.....
.....
.....

50.0
50.0
.....
.....

446.2

2013

1,255.7

.....
.....
.....
.....

.....
.....
.....
.....
.....
.....
.....
.....

50.0
50.0
.....
.....

459.1

2014

1,292.6

.....
.....
.....
.....

.....
.....
.....
.....
.....
.....
.....
.....

50.0
50.0
.....
.....

472.3

2015

6,266.0

.....
.....
.....
.....

.....
.....
.....
.....
.....
.....
.....
.....

359.3
359.1
0.3
.....

2,265.2

13,231.2

.....
.....
.....
.....

.....
.....
.....
.....
.....
.....
.....
.....

609.3
609.1
0.3
.....

4,788.9

2011–2015 2011–2020

Totals

1,248.0
265.1
1,301.5 1,319.8
1,243.9
1,264.9
1,298.8 1,336.2
6,463.6
13,637.6
Grand Total, Discretionary Budgetary Resources ���������������
* $50 million or less. 
1
Although the Budget shows discretionary funding in nominal terms, the Administration conceives of discretionary growth rates in inflation-adjusted terms. If inflation
projections are revised from what is currently projected, future budgets would be expected to adjust funding levels up or down accordingly. (This statement does not apply
to funding growth between 2010 and the 2011 budget year, since the appropriations process for 2011 must begin immediately and before inflation assumptions will be
revisited. It also does not apply to the outyear BA for overseas contingency operations, which is a placeholder and does not represent a policy determination.)
2
“ARRA” refers to the American Recovery and Reinvestment Act of 2009 (P.L. 111-5).
3
The DHS level includes $1.8 billion for BioShield in 2009 and a -$3.0 billion transfer in 2010 of BioShield balances to HHS.
4
The Veterans Affairs total is net of medical care collections.
5
The Security category for State and Other International Programs is comprised entirely of International Function 150. This includes funding for International Food Aid
programs in the Department of Agriculture.
6
Adjusted for advance appropriations, 2009 funding for the Department of Education is $46.2 billion.  All numbers exclude funding for Pell Grants.
7
Funding from the Hospital Insurance and Supplementary Medical Insurance trust funds for administrative expenses incurred by the Social Security Administration that
support the Medicare program are included in the HHS total and not in the Social Security Administration total. Additionally, the HHS total includes $0.4 billion and
$3.0 billion in 2009 and 2010, respectively, for transfer of the BioShield program in DHS.
8
The Budget includes placeholder estimates of $50 billion per year for Overseas Contingency Operations in 2012 and beyond.  These estimates do not reflect any specific
policy decisions.

145.9
145.7
0.3
.....

407.8

Overseas Contingency Operations8 ������������������������������������
Defense ����������������������������������������������������������������������������������
Homeland Security ���������������������������������������������������������������
Justice �����������������������������������������������������������������������������������

Other Discretionary Funding (not included above):

Subtotal, Non-Security Discretionary Budgetary
Resources ������������������������������������������������������������������������������

NonARRA

2009 Actual

(Budgetary resources in billions of dollars)

Table S–11. Funding Levels for Appropriated (“Discretionary”) Programs by Agency 1—Continued

THE BUDGET FOR FISCAL YEAR 2011

175

.....
.....

Senior Preferred Dividend Payments from Fannie
Mae/Freddie Mac ��������������������������������������������������

Net Payments �����������������������������������������������������

–3

Value of Private Equity Shares ��������������������������������

.....
1,524
115
63

1,615
90

.....
–4
–4

Assets:
U.S. Treasury Securities ������������������������������������
Other Financial Assets ���������������������������������������
Cash ��������������������������������������������������������������������
Other �������������������������������������������������������������������

Liabilities:
Debt Outstanding �����������������������������������������������

Other Financial Liabilities ���������������������������������������

Equity:
Treasury Senior Preferred Stock �����������������������
Private Equity ����������������������������������������������������

Net Position ���������������������������������������������������

Net Position of Fannie Mae and Freddie Mac:

–18

Market Value of Net Liability ����������������������������������

Market Valuation of Fannie Mae and Freddie
Mac:

.....

Senior Preferred Liquidity Payments to Fannie
Mae/Freddie Mac���������������������������������������������������

Transactions between Treasury and
Fannie Mae/Freddie Mac:

2008

–5

96
–101

155

1,607

12
1,579
110
54

–3

–18

91

–4

96

2009

57

–12

69

2010

5

–18

23

2011

–7

–7

.....

2012

–7

–7

.....

2013

(In billions of dollars)

–7

–7

.....

2014

–7

–7

.....

2015

–7

–7

.....

2016

–7

–7

.....

2017

–7

–7

.....

2018

–7

–7

.....

2019

–7

–7

.....

2020

Table S–12. Market Valuation and Balance Sheet of Fannie Mae and Freddie Mac

–21

–44

23

20112015

–55

–78

23

20112020

Totals

176
SUMMARY TABLES

2.6
0.4
–1.9
2.1

3.8
5.8

Percent change, nominal GDP, year/year �������

Real GDP, percent change, year/year ������������

Real GDP, percent change, Q4/Q4 �����������������

GDP chained price index, percent change,
year/year ������������������������������������������������������

Consumer Price Index1, percent change,
year/year ���������������������������������������������������������

Unemployment rate, civilian, percent2 ��������
9.3

–0.3

1.2

–0.5

–2.5

–1.3

14,252

2009

10.0

1.9

0.9

3.0

2.7

3.6

14,768

2010

9.2

1.5

1.2

4.3

3.8

5.1

15,514

2011

8.2

2.0

1.6

4.3

4.3

6.0

16,444

2012

7.3

2.0

1.7

4.2

4.2

6.0

17,433

2013

6.5

2.0

1.7

3.9

4.0

5.8

18,446

2014

5.9

2.0

1.7

3.4

3.6

5.3

19,433

2015

Projections

5.5

2.0

1.8

3.1

3.2

5.0

20,408

2016

5.3

2.1

1.8

2.7

2.8

4.7

21,373

2017

5.2

2.1

1.8

2.6

2.6

4.5

22,329

2018

4.1
5.3

5.2

2.1

1.8

2.5

2.5

4.4

23,312

2019

91-day Treasury bills3 �������������������������������
1.4
0.2
0.4
1.6
3.0
4.0
4.1
4.1
4.1
4.1
4.1
10-year Treasury notes ����������������������������
3.7
3.3
3.9
4.5
5.0
5.2
5.3
5.3
5.3
5.3
5.3
Note: A more detailed table of economic assumptions is in Chapter 2, “Economic Assumptions,” in the Analytical Perspectives volume of the Budget, Table 2–1.
1
Seasonally adjusted CPI for all urban consumers.
2
Annual average.
3
Average rate, secondary market (bank discount basis).

Interest rates, percent:

14,441

Nominal level, billions of dollars ��������������������

Gross Domestic Product (GDP):

2008
Actual

(Calendar years)

Table S–13. Economic Assumptions

4.1
5.3

5.2

2.1

1.8

2.5

2.5

4.3

24,323

2020

THE BUDGET FOR FISCAL YEAR 2011

177

210
–7
1

293
7
105
–3

Net purchases of non-Federal securities by the National
Railroad Retirement Investment Trust (NRRIT) ������������������

197
1,753

329
1,742

4
1,893

Change in other factors ���������������������������������������������������������������������������

Total, change in debt subject to statutory limitation ����������������������

1,357

–1

157

1,201

1,193

1

218

974

974

145

–1

146

.....

–1

–*

135
12

.....

828

2012

1,119

1

264

854

854

126

–1

127

.....

–1

–2

118
12

.....

727

2013

1,079

1

265

814

814

108

–1

109

.....

–1

–5

108
6

.....

706

2014

1,152

1

302

849

849

97

–1

98

.....

–1

–5

99
4

.....

752

2015

1,155

1

309

844

844

67

–1

67

.....

–1

–5

70
3

.....

778

2016

1,176

1

321

853

853

75

–1

76

.....

–1

–9

85
1

.....

778

2017

1,187

1

337

849

849

64

–1

65

.....

–1

–11

79
–2

.....

785

2018

1,253

1

285

967

967

59

–1

60

.....

–1

–26

91
–4

.....

908

2019

1,327

–*

256

1,071

1,071

68

–1

69

.....

–1

–16

91
–6

.....

1,003

2020

3

2

2

4

5

6

7

8

8

9

9

9

4,331
7,545

Debt held by Government accounts �������������������������������������������������

Debt held by the public 7 �������������������������������������������������������������������

4,646

4,864

5,128

5,393

5,695

6,004

6,325

6,663

6,948

7,204
9,298 10,498 11,472 12,326 13,139 13,988 14,833 15,686 16,535 17,502 18,573

4,489

11,876 13,787 15,144 16,336 17,453 18,532 19,683 20,837 22,011 23,197 24,450 25,777

Total, gross Federal debt �������������������������������������������������������������

Held by:

11,850 13,760 15,117 16,308 17,426 18,505 19,656 20,809 21,984 23,171 24,424 25,751
26
27
27
27
27
28
28
28
27
26
26
26

11,853 13,762 15,119 16,312 17,431 18,511 19,662 20,817 21,993 23,180 24,433 25,760

Gross Federal debt: 6
Debt issued by Treasury �������������������������������������������������������������������
Debt issued by other agencies ����������������������������������������������������������

Debt Outstanding, End of Year:

Total, debt subject to statutory limitation 5 ��������������������������������������

Adjustment for discount, premium, and coverage 4 ��������������������������������

Debt issued by Treasury ��������������������������������������������������������������������������

1,909

–2

158

1,753

1,201

–66

–*

–66

.....

–1

–15

143
8

–200

1,267

2011

Estimate

11,850 13,760 15,117 16,308 17,426 18,505 19,656 20,809 21,984 23,171 24,424 25,751

148

Change in debt held by Government accounts ���������������������������������������

Debt Subject to Statutory Limitation, End of Year:

1,742

Change in debt held by the public ����������������������������������������������������������

Changes in Debt Subject to Statutory Limitation:

–*

–*

Seigniorage on coins ��������������������������������������������������������������������������
Total, other transactions affecting borrowing from the
public �����������������������������������������������������������������������������������
Total, requirement to borrow from the public (equals
change in debt held by the public) �������������������������������

.....
198

22
329

Subtotal, changes in financial assets and liabilities �������������

3

Net change in other financial assets and liabilities �����������������

–1

–5

1,556

2010

–96

1,413

2009

Change in Treasury operating cash balance 2 �����������������������������
Net disbursements of credit financing accounts:
Direct loan accounts ���������������������������������������������������������������
Guaranteed loan accounts �����������������������������������������������������
Troubled Asset Relief Program (TARP) equity purchase
accounts ������������������������������������������������������������������������������

Other transactions affecting borrowing from the public:
Changes in financial assets and liabilities: 1

Unified budget deficit �������������������������������������������������������������������������������

Financing:

(In billions of dollars)

Table S–14. Federal Government Financing and Debt

178
SUMMARY TABLES

–35
105
65
22
–24
898

TARP equity purchase accounts �������������������������������������������������
Government-sponsored enterprise preferred stock �������������������������
Non-Federal securities held by NRRIT ��������������������������������������������
Other assets net of liabilities ������������������������������������������������������������

Total, financial assets net of liabilities ���������������������������������������

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

1,133

106
102
21
–24

–42

700

270

1,080

91
115
20
–24

–34

842

70

1,227

91
115
19
–24

–22

977

70

1,353

89
115
18
–24

–10

1,095

70

1,462

84
115
17
–24

–4

1,204

70

1,560

80
115
16
–24

*

1,303

70

1,627

75
115
14
–24

3

1,373

70

1,703

66
115
13
–24

5

1,458

70

1,768

55
115
12
–24

2

1,537

70

1,827

29
115
11
–24

–2

1,628

70

1,896

13
115
10
–24

–7

1,719

70

9,298 10,498 11,472 12,326 13,139 13,988 14,833 15,686 16,535 17,502 18,573

2010

Estimate

Debt held by the public net of financial assets ���������������������
6,647
8,164
9,418 10,246 10,972 11,677 12,428 13,205 13,983 14,767 15,675 16,677
Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission.
* $500 million or less.
1
A decrease in the Treasury operating cash balance (which is an asset) is a means of financing a deficit and therefore has a negative sign. An increase in checks
outstanding (which is a liability) is also a means of financing a deficit and therefore also has a negative sign.
2
Includes assumed Supplementary Financing Program balance of $200 billion on September 30, 2010, and zero on September 30, 2011, and beyond.
3
Besides checks outstanding, includes accrued interest payable on Treasury debt, uninvested deposit fund balances, allocations of special drawing rights, and other liability
accounts; and, as an offset, cash and monetary assets (other than the Treasury operating cash balance), other asset accounts, and profit on sale of gold.
4
Consists mainly of debt issued by the Federal Financing Bank (which is not subject to limit), debt held by the Federal Financing Bank, the unamortized discount (less
premium) on public issues of Treasury notes and bonds (other than zero-coupon bonds), and the unrealized discount on Government account series securities.
5
The statutory debt limit is $12,394 billion, as enacted on December 28, 2009.
6
Treasury securities held by the public and zero-coupon bonds held by Government accounts are almost all measured at sales price plus amortized discount or less
amortized premium. Agency debt securities are almost all measured at face value. Treasury securities in the Government account series are otherwise measured at face
value less unrealized discount (if any).
7
At the end of 2009, the Federal Reserve Banks held $769.2 billion of Federal securities and the rest of the public held $6,775.5 billion. Debt held by the Federal Reserve
Banks is not estimated for future years.

489

Guaranteed loan accounts �����������������������������������������������������������

275

7,545

Direct loan accounts ��������������������������������������������������������������������

Credit financing account balances:

Treasury operating cash balance 2 ����������������������������������������������������

Less financial assets net of liabilities:

Debt held by the public ����������������������������������������������������������������������������

Debt Held by the Public Net of Financial Assets:

2009

(In billions of dollars)

Table S–14. Federal Government Financing and Debt—Continued

THE BUDGET FOR FISCAL YEAR 2011

179

OMB CONTRIBUTORS TO THE 2011 BUDGET
The following personnel contributed to the preparation of this publication. Hundreds, perhaps
thousands, of others throughout the Government also deserve credit for their valuable contributions.

A
Katherine D. Aaby
Andrew Abrams
Chandana Achanta
Karl Agcaoili
Brenda Aguilar
Shagufta I. Ahmed
Steven D. Aitken
Jameela Raja Akbari
Robert Alderfer
David Alekson
Lois E. Altoft
Scott J. Anchin
Lucas J. Anderson
Robert B. Anderson
Kevin Archer
Anna R. Arroyo
Katherine T. Astrich
Lisa L. August
Laura G. Auletta
Renee Austin
Shawn D. Azman

B
Peter Babb
Kenneth S. Baer
Elizabeth A. Bafford
Paul W. Baker
Carol Bales
Preeta D. Bansal
John W. Barkhamer
Patti Barnett
Carl Barrick
Jody Barringer
Tali Bar-Shalom

Mary C. Barth
Julie Basile
Nancy B. Beck
Jennifer Wagner Bell
Stuart Bender
Lindsey R. Berman
Elizabeth Bernhard
Boris Bershteyn
Catherine Bloniarz
Mathew C. Blum
James Boden
Melissa B. Bomberger
Debra Bond
Dan Bonesteel
Edward P. Borrego
David S. Bortnick
Constance J. Bowers
Bill Boyd
Wyatt Boyd
Chantel M. Boyens
Betty I. Bradshaw
Joshua J. Brammer
Shannon Bregman
Xavier D. Briggs
Brooke Brody-Waite
Mark Brooks
Charles H. Brown
Dustin S. Brown
James A. Brown
Jennifer E. Brown
Kelly D. Brown
Emily P. Brownlow
Michael Brunetto
Ryan J. Bubb
Paul Bugg
Joshua Bull
Tom D. Bullers

Robert B. Bullock
Benjamin Burnett
John D. Burnim
John C. Burton
Rachel A. B. Burton
Mark Bussow

C
Kathleen Cahill
Steven Cahill
Philip T. Calbos
Mark F. Cancian
Anna Canfield
Christa Capozzola
Kara K. Cardinale
Eric D. Cardoza
J. Kevin Carroll
Randy J. Caruso
Mary I. Cassell
David Cassidy
Benjamin Chan
Daniel E. Chandler
Alan Chao
James Chase
Anita Chellaraj
Lingjiao Chen
Shawn Choy
Michael C. Clark
Allison Leah Cole
John J. Colleran
Debra M. Collins
Nicole E. Comisky
David C. Connolly
Ryan H. Cooper
Matthew Coryell
Daniel Costello

181

Kelly T. Coylar
Catherine Crato
Joseph Crilley
Rosemarie C. Crow
Michael F. Crowley
Craig Crutchfield
Edna T. Falk Curtin
C. Tyler Curtis
William P. Curtis

D
Michael D’Amato
Veronica Daigle
Neil Danberg
J. Michael Daniel
Kristy L. Daphnis
Michael P. Darling
A. James Daumit
Joanne Davenport
Garrick Davis
Margaret B. DavisChristian
Anne M. Decesaro
Deanna DeMott
Carol R. Dennis
Alyssa Denzer
G. Edward DeSeve
Samantha L.
Deshommes
Cynthia Diamond
John H. Dick, Jr.
Frank DiGiammarino
Angela Donatelli
Paul Donohue
Bridget C. E. Dooling
Shamera Dorsey

182

LIST OF CONTRIBUTORS

Vishal D. Doshi
Audrey L. Duchesne
Laura Duke
Van Duong
Louise Dyer

E
Jacqueline A. Easley
Eugene M. Ebner
Mabel E. Echols
Jeanette Edwards
Emily M. Eelman
Katherine A. Eltrich
Zeke Emanuel
Gene Emmans
Noah Engelberg
Michelle A. Enger
Leandra English
Elizabeth Erickson
Kristofor Erickson
Sally Ericsson
Dinée Eriksen
Giannina Espichan
Victoria Espinel
Suzann K. Evinger
Rowe Ewell

F
Chris Fairhall
Robert S. Fairweather
Michael C. Falkenheim
Kim Farington
Kara Farley-Cahill
Dick Feezle
Nicole A. Fernandes
Patricia A. Ferrell
Lesley A. Field
Jessica Finkel
Alyssa D. Fisher
E. Holly Fitter
Mary E. Fitzpatrick
Michael A. Fitzpatrick
Darlene B. Fleming
Michael P. Flood
Tera Fong
Keith Fontenot
Kim Ford

James Ford-Fleming
Emily Fort
Peggy Fouts
Nicholas A. Fraser
Farrah Freis
Nathan J. Frey
Michael Friedberg

G
Marc Garufi
Thomas E. Gavin
Darcel D. Gayle
Jennifer Gera
Bassam F. Gergi
Michael D. Gerich
Brian W. Gill
Brian Gillis
David Glaudemans
Joshua Glazer
Kimberly Glenn
Adam Goldberg
Robert Goldberg
Jeffrey Goldstein
Oscar Gonzalez
Dan Gordon
Robert M. Gordon
Andrew Grandison
Melissa Green
Richard E. Green
Aron Greenberg
Lisa Greenwood
Fumie Y. Griego
Hester Grippando
Rebecca Grusky

H
Michael B. Hagan
Susan Haggerty
Christopher C. Hall
Kathleen D. Hamm
Eric V. Hansen
Linda W. Hardin
Dionne M. Hardy
David Harmon
Patsy Harris
Brian Harris-Kojetin

Nicholas R. Hart
Luke Hartig
Paul Harvey
David J. Haun
Florence Hawald
Mark H. Hazelgren
Pamela L. Heijmans
Gregory G. Henry
Kevin W. Herms
Jessica R. Hertz
Michael Hickey
Beth Higa
Cortney J. Higgins
Mary Lou Hildreth
Jeffrey C. Hilliard
Leslie K. Hinchman
Andrew Hire
Jennifer Hoef
Joanne Cianci Hoff
Adam Hoffberg
Stuart Hoffman
Michael J. Howell
Grace Hu
Kathy M. Hudgins
Carrie A. Hug
Tammy S. Hughes
Jeremy D. Hulick
James Hundt
Alexander T. Hunt
Lorraine D. Hunt
James C. Hurban
Jaki Mayer Hurwitz
Kristen D. Hyatt

I
Tae H. Im

J
Laurence R. Jacobson
Dana M. James
Carol D. Jenkins
Christopher S. Johns
Barbara A. Johnson
Carol Johnson
Kim A. Johnson
Kim I. Johnson
Kristen Johnson

Michael D. Johnson
Bryant A. Jones
Denise B. Jones
Lisa M. Jones
Scott W. Jones
James F. Jordan
James J. Jukes
Hee K. Jun

K
Julie A. Kalishman
David C. Kamin
Amy Kaminski
Jacob H. Kaplan
Irene B. Kariampuzha
Jenifer Karwoski
Regina Kearney
Matthew J. Keeneth
John W. Kelly
Kenneth S. Kelly
Ann H. Kendrall
Nancy Kenly
Paul E. Kilbride
Timothy Kim
Barry D. King
Heidi R. King
Kelly Kinneen
Carole Kitti
Ben Klay
Sarah B. Klein
Melissa A. Kline
Richard L. Kogan
Emily M. Kornegay
Steve M. Kosiak
Constantine Koulouris
John Kraemer
Lori A. Krauss
Caroline Krency
Kristi Kubista-Hovis
Divya Kumaraiah
Vivek Kundra
Joydip Kundu
Christine J. Kymn

L
Leonard L. Lainhart
James A. Laity

THE BUDGET FOR FISCAL YEAR 2011
Chad A Lallemand
Lawrence L. Lambert
Daniel LaPlaca
Eric P. Lauer
Kristen Lauer
Jessie LaVine
Michael Lazzeri
Amanda I. Lee
David Lee
Jane K. Lee
Jessica Lee
Nicholas Lee
Richard Lee
Sarah S. Lee
Sun H. Lee
Susan Leetmaa
M. Bryan Legaspi
Christine M. Leininger
Stuart Levenbach
Ariel D. Levin
Shoshana M. Lew
Sheila D. Lewis
Wendy Liberante
Richard A.
Lichtenberger
Jeffrey B. Liebman
Elizabeth K. Lien
Suzanne Lightman
Tung-Yen Lin
Lin C. Liu
Patrick G. Locke
Aaron M. Lopata
Marta M. Lopez
Adrienne C. Erbach
Lucas
Kimberley Luczynski
Sarah Lyberg
Randolph M. Lyon

M
Debbie Macaulay
Ryan MacMaster
John S. Macneil
Anish Mahajan
Natalia Mahmud
Neale A. Mahoney
Mikko Makarainen
Margaret A. Malanoski

Dominic J. Mancini
Kate Mann
Meagan Mann
Sharon Mar
Celinda A. Marsh
Brendan A. Martin
Kathryn Martin
Rochelle Wilkie
Martinez
Surujpat J. Adrian
Mathura
Karen Yoshiko
Matsuoka
Shelly McAllister
Karen R. McBride
Emily M. McCartan
Erin McCartney
Alexander J.
McClelland
Anthony W. McDonald
Christine McDonald
Katrina A. McDonald
Renford McDonald
Carl McGruder
Matthew McKearn
Christopher McLaren
Robin J. McLaughry
Alex McPhillips
William J. McQuaid
William J. Mea
Andrew Medley
Inna L. Melamed
Karen C. Melanson
Gordon B. Mermin
Richard A. Mertens
Steven M. Mertens
Margaret M. Mesaros
Justin R. Meservie
P. Thaddeus
Messenger
Shelley Metzenbaum
Julie V. Middleton
Laurie A. Mignone
Joanna Mikulski
Caitlyn Miller
Julie L. Miller
Kimberly Miller
Joe Montoni
Jeremy L. Moon

183
Jamesa C. Moone
David A. Morris
Jonathan D. Morse
Jane T. Moy
Jennifer W. Murray
Chris Music

N
Robert L. Nabors
Jennifer Nading
Jeptha E. Nafziger
Larry Nagl
Barry Napear
Erica Navarro
Michael A. Negron
Kimberly Nelson
Betsy Newcomer
John Newman
Kimberly A. Newman
Kevin F. Neyland
Teresa Nguyen
Abigail P. Norris
Douglas A. Norwood

O
Erin O’Brien
Kathleen E. O’Connell
Erin M. O’Keefe
Marvis G. Olfus
Farouk Ophaso
Peter R. Orszag
Jared Ostermiller
Tyler J. Overstreet
Pearson Owens

P
Ben Page
Brandye N. Page
Rasik Pandey
Louis Pappas
Sangkyun Park
Joel R. Parriott
John Pasquantino
Arati Patel
Melissa N. Patterson
Kshemendra N. Paul

Terri B. Payne
Jacqueline M. Peay
Falisa L. Peoples-Tittle
Kathleen Peroff
Andrew B. Perraut
Andrea M. Petro
John R. Pfeiffer
Stacey Que-Chi Pham
Carolyn R. Phelps
Karen A. Pica
Joseph T. Pika
Joseph G. Pipan
Alisa M. Ple-Plakon
Ruxandra I. Pond
Celestine M. Pressley
Jamie Price Pressly
Marguerite Pridgen
Robert B. Purdy
Michael J. Pyle

Q
John P. Quinlan

R
Lucas R. Radzinschi
Latonda Glass Raft
Ganeshkumar B. Raju
Maria Raphael
Peter J. Ray
McGavock D. Reed
Paul B. Rehmus
Thomas M. Reilly
Richard J. Renomeron
Keri A. Rice
M. David Rice
Renee Richburg
Shannon Richter
Earl W. Rilington, Jr.
Crystal Roach
Benjamin Roberts
John S. Roberts
Donovan O. Robinson
Marshall Rodgers
Teresa Canton Rojas
Meredith Romley
Dan T. Rosenbaum
Adam J. Ross

184

LIST OF CONTRIBUTORS

David Rostker
David Rowe
Mario D. Roy
Jonathan Rupp
Ross A. Rutledge
Rexon Y. Ryu

S
Fouad P. Saad
John Asa Saldivar
Dominic K. Sale
Erika Saleski
Hana Sarsour
Narahari Sastry
Ryan J. Schaefer
Erik K. Scheirer
Caryn Schenewerk
Jill Schiller
Evan Schlom
Tricia Schmitt
Andrew M. Schoenbach
Ingrid M. Schroeder
Margo Schwab
Candice M. Schwartz
Nancy Schwartz
Jasmeet K. Seehra
Nirav Shah
Shahid N. Shah
Emily L. Sharp
Dianne Shaughnessy
Paul Shawcross
Kathryn D. Sheehey
Rachel C. Shoemate
R. Jacob Shuler
Mary Jo Siclari
Sarah S. Siddiqui
Matthew J. Siegel
Sara R. Sills
Angela M. Simms
Robin Sinquefield

Jack A. Smalligan
Curtina O. Smith
Gayle E. Smith
Jan Smith
Jennifer Smookler
Joanne Snow
Silvana Solano
Leo Sommaripa
Lillian S. Spuria
Kathryn B. Stack
Scott Stambaugh
Andrea M. Staron
Henry Stawski
Nora Stein
Charlie Stern
Catherine L. Stewart
Gary Stofko
Carla B. Stone
Justin Streufert
Shannon Stuart
Tom Suarez
Alice Suh
Stephen Suh
Kevin J. Sullivan
Jessica Sun
Cass R. Sunstein

T
Teresa A. Tancre
Benjamin K. Taylor
Richard P. Theroux
LaTina Thomas
Payton Thomas
Courtney B.
Timberlake
Bruce D. Timman
Thomas Tobasko
Richard Toner
Anne M. Toomey
Gilbert Tran

Gregg Treml
Susan M. Truslow
Gretchen Trygstad
Donald L. Tuck
Grant Turner

U
Darrell J. Upshaw

V
Matthew J. Vaeth
Ofelia M. Valeriano
Cynthia A. Vallina
Uday Varadarajan
Areletha L. Venson
Alexandra Ventura
Mark Vinkenes
Patricia Vinkenes
Dean Vonk
Kathy Voorhees
Ann M. Vrabel

W
James A. Wade
Emily Waechter
Ted Wainwright
Richard K. Wall
Martha A. Wallace
Katherine K. Wallman
Heather V. Walsh
Ali Wardle
LaTonya R. Ware
Sharon A. Warner
Gary S. Washington
Gary Waxman
Mark A. Weatherly
Bessie M. Weaver
Jean Weinberg

Jeffrey A. Weinberg
Maggie Weiss
Philip R. Wenger
Daniel Werfel
Arnette C. White
Kamela White
Kim S. White
Sherron R. White
Sarah Widor
Mary Ellen Wiggins
Debra L. Williams
Monique C. Williams
Tommy Williams
Jennifer Winkler
Brian C. Winseck
Melanie Winston
Julia B. Wise
Julie A. Wise
Daryl Womack
Chantale Wong
Daren Wong
Raymond Wong
Lauren Wright
Sophia Wright

X
Xiao Ling Xu

Y
Melany N. Yeung

Z
Ali A. Zaidi
Jeff Zients
Gail S. Zimmerman
Rachel Zinn

Budget of the U.S. Government, FY 2011
Stock number: 041-001-00671-1
ISBN number: 978-0-16-084795-0
Price: $37.00
Appendix-Budget of the U.S. Government, FY 2011
Stock number: 041-001-00672-9
ISBN number: 978-0-16-084796-7
Price: $73.00
Historical Tables-Budget of the U.S. Government, FY 2011
Stock number: 041-001-00673-7
ISBN number: 978-0-16-084797-4
Price: $49.00
Analytical Perspectives-Budget of the U.S. Government, FY 2011
Stock number: 041-001-00674-5
ISBN number: 978-0-16-084798-1
Price: $52.00
The Federal Budget on CD-ROM-Budget of the U.S. Government, FY 2011
Stock number: 041-001-00675-3
ISBN number: 978-0-16-084799-8
Price: $25.00
Order Processing Code:
3555
Qty

Easy Secure Internet:

bookstore.gpo.gov

Toll Free: 866 512–1800
DC Area: 202 512–1800
Fax:
202 512–2104

Mail: US Government Printing Office
P.O. Box 979050
St. Louis, MO 63197–9000

Stock Number

ISBN Number

Publication Title

Unit Price

041-001-00671-1

978-0-16-084795-0

Budget of the U.S. Government, FY 2011

$37.00

041-001-00672-9

978-0-16-084796-7

Appendix-Budget of the U.S. Government, FY 2011

$73.00

041-001-00673-7

978-0-16-084797-4

Historical Tables-Budget of the U.S. Government, FY 2011

$49.00

041-001-00674-5

978-0-16-084798-1

Analytical Perspectives-Budget of the U.S. Government, FY 2011

$52.00

041-001-00675-3

978-0-16-084799-8

The Federal Budget on CD-ROM-Budget of the U.S. Government, FY 2011

$25.00

Total Price

Total Order
Check Method of Payment
Personal Name

(Please type or Print)

Check payable to Superintendent of Documents
Company Name

SOD Deposit Account
VISA

MasterCard

Discover/NOVUS

American Express

Street Address

City, State, Zip Code

Daytime Phone Including Area Code

(EXPIRATION DATE

AUTHORIZING SIGNATURE

Thank you for your order!

01/10

Budget of the U.S. Government, FY 2011
Stock number: 041-001-00671-1
ISBN number: 978-0-16-084795-0
Price: $37.00
Appendix-Budget of the U.S. Government, FY 2011
Stock number: 041-001-00672-9
ISBN number: 978-0-16-084796-7
Price: $73.00
Historical Tables-Budget of the U.S. Government, FY 2011
Stock number: 041-001-00673-7
ISBN number: 978-0-16-084797-4
Price: $49.00
Analytical Perspectives-Budget of the U.S. Government, FY 2011
Stock number: 041-001-00674-5
ISBN number: 978-0-16-084798-1
Price: $52.00
The Federal Budget on CD-ROM-Budget of the U.S. Government, FY 2011
Stock number: 041-001-00675-3
ISBN number: 978-0-16-084799-8
Price: $25.00
Order Processing Code:
3555
Qty

Easy Secure Internet:

bookstore.gpo.gov

Toll Free: 866 512–1800
DC Area: 202 512–1800
Fax:
202 512–2104

Mail: US Government Printing Office
P.O. Box 979050
St. Louis, MO 63197–9000

Stock Number

ISBN Number

Publication Title

Unit Price

041-001-00671-1

978-0-16-084795-0

Budget of the U.S. Government, FY 2011

$37.00

041-001-00672-9

978-0-16-084796-7

Appendix-Budget of the U.S. Government, FY 2011

$73.00

041-001-00673-7

978-0-16-084797-4

Historical Tables-Budget of the U.S. Government, FY 2011

$49.00

041-001-00674-5

978-0-16-084798-1

Analytical Perspectives-Budget of the U.S. Government, FY 2011

$52.00

041-001-00675-3

978-0-16-084799-8

The Federal Budget on CD-ROM-Budget of the U.S. Government, FY 2011

$25.00

Total Price

Total Order
Check Method of Payment
Personal Name

(Please type or Print)

Check payable to Superintendent of Documents
Company Name

SOD Deposit Account
VISA

MasterCard

Discover/NOVUS

American Express

Street Address

City, State, Zip Code

Daytime Phone Including Area Code

(EXPIRATION DATE

AUTHORIZING SIGNATURE

Thank you for your order!

01/10

I S B N 978-0-16-084795-0

90000

For sale by the Superintendent of Documents,
Internet: bookstore.gpo.gov Phone: toll free (866)
Fax: (202) 512-2104 Mail: Stop IDCC, W

I S B N 978-0-16-08

9

780160 847950