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Budget analyst Stephen Semler is out with a new analysis of the Fiscal Year 2027 federal budget request, which was released to the public on April 3rd.
Semler’s research shows that the traditional categorization of defense and non-defense spending in budget discussions doesn’t fully capture how small a share of the federal discretionary budget would be available for public investments in priorities like public health and environmental restoration if the current budget proposal goes through as requested.
Semler’s piece demonstrates that of $2.2 trillion in proposed federal discretionary spending – spending that Congress votes on each year, as opposed to entitlement programs like Medicare and Social Security which are funded by fixed formulas written into law that can only be adjusted through extraordinary Congressional action – fully 80% is tied either directly or indirectly to war, preparation for war, the consequences of past wars, or stepped up policing efforts. In addition to the Pentagon budget proper, the 80% includes funding for ICE, military aid programs that are authorized under the State Department budget, and Veteran’s Affairs. That leaves 20% of discretionary funding available for other purposes.
Semler lays out the implications of the new budget proposal for domestic public investment:
“The remaining 20% . . . $441 billion – is for government functions related to agriculture; community and regional development; education; health; housing and income assistance; international affairs; natural resources and environment; science, space, and technology; training, employment and social services; and more.”
If enacted, the new proposal would cut spending on the priorities cited above by $300 billion compared to the FY 2026 budget.
Congress will no doubt push back against these priorities, but if they only make changes at the margins rather than a wholesale shift towards a more balanced approach, millions of Americans will suffer from untreated medical conditions, inadequate nutrition, lack of access to economic opportunity, and more.
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Contrary to the view of this administration that spending on the Pentagon is the primary source of our national strength, the underlying foundation for security is a healthy, well educated population and a balanced approach to addressing all threats to our lives and livelihoods, from military threats to the risks posed by possible pandemics, climate change, or inadequate access to employment and training.
Congress needs to fundamentally evaluate the administration’s new budget plan, with input from all impacted parties, starting now.
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