The federal budget is central to Congress's ability to exercise its "power of the purse." Recent economic turmoil put a strain on the federal budget due to declining revenues and increasing spending levels. Subsequently, policies enacted to restrain spending, along with a recovering economy, have improved the budget outlook, at least in the near term. In August 2011, budget negotiations resulted in the enactment of the Budget Control Act of 2011 (BCA; P.L. This report will track legislative events related to the federal budget and will be updated as budgetary legislation moves through Congress. Overview

Each fiscal year Congress and the President undertake a variety of steps intended to set levels of spending and revenue and to make policy decisions. 112-25 ) and further modified by the Bipartisan Budget Act (BBA; P.L. The American Taxpayer Relief Act of 2012 (ATRA; P.L. Subsequently, two pieces of legislation have revised this law. 112-25 ) was enacted on August 2, 2011. The BCA contained a variety of measures intended to reduce the deficit by at least $2.1 trillion over the FY2012-FY2021 period, along with a mechanism to increase the debt limit. These changes allow for more discretionary spending than was provided under the BCA for FY2014 and FY2015. Various deficit reduction measures were included to offset the cost of the increased discretionary spending. Budget for FY2015

The Obama Administration released its FY2015 budget in two parts—the first on March 4, 2014, and the second on March 10, 2014. Congress has also begun its consideration of the FY2015 budget. The budget proposes to eliminate the sequester on mandatory programs in FY2015. In his budget, President Obama proposes an "Opportunity, Growth, and Security Initiative" to provide additional funding for unspecified discretionary programs in FY2015. For FY2015, the Bipartisan Budget Act (BBA) contained a provision directing the House and Senate Budget Committee Chairmen to file spending and revenue levels in the Congressional Record that would be enforceable in the same manner as a concurrent budget resolution. However, nothing would preclude Congress from acting on a budget resolution for FY2015 even after levels have been filed. It has been reported that Senate Budget Committee Chairwoman Patty Murray has signaled that the provisions contained in the BBA make a budget resolution for FY2015 unnecessary. House Budget Resolution

On April 2, 2014, the House Budget Committee reported a budget resolution ( H.Con.Res. On April 10, 2014, the resolution was agreed to by the House by a vote of 219 to 205. Even as Congress and the President worked to enact deficit reduction legislation (i.e., the BCA), legislators are seen not to have made significant changes to the part of the budget that is projected to grow. CBO, GAO, and the Administration agree that the current mix of federal fiscal policies is unsustainable in the long term.
The federal budget is central to Congress's ability to exercise its "power of the purse." Each fiscal year Congress and the President undertake a variety of steps intended to set levels of spending and revenue and to make policy decisions. The purpose of this report is to provide an overview and background on the current budget debate. This report will track legislative events related to the federal budget and will be updated as budgetary legislation moves through Congress.
In recent years, policies enacted to restrain spending, along with a stronger economy, have led to reductions in the budget deficit. On August 2, 2011, the President signed into law the Budget Control Act of 2011 (P.L. 112-25). The BCA contained a variety of measures intended to reduce the deficit by at least $2.1 trillion over the FY2012-FY2021 period, along with a mechanism to increase the debt limit. Two subsequent pieces of legislation have modified the BCA since it was enacted—the American Taxpayer Relief Act of 2012 (ATRA; P.L. 112-240) and the Bipartisan Budget Act of 2013 (BBA; P.L. 113-67). Both pieces of legislation allow for more discretionary spending than was provided under the BCA for FY2013, FY2014, and FY2015. Various deficit reduction measures were included to offset the costs of the changes to spending levels in both ATRA and the BBA. The BCA and the BBA will continue to affect spending levels in FY2015 and beyond as Congress may debate whether or not to enact further changes.
The Obama Administration released its FY2015 budget in two parts—the first on March 4, 2014, and the second on March 10, 2014. In his budget, President Obama proposes an "Opportunity, Growth, and Security Initiative" to provide additional funding for unspecified discretionary programs in FY2015. The budget also proposes to eliminate the BCA sequester on mandatory programs in FY2015. These proposals yield a deficit for FY2015 that is slightly higher than what is currently projected in the CBO baseline.
Congressional consideration of FY2015 budget and appropriations legislation has already begun. The BBA contained a provision directing the House and Senate Budget Committee chairmen to file spending and revenue levels in the Congressional Record that would be enforceable in the same manner as a concurrent budget resolution for FY2015 if an agreement on a budget resolution could not be reached by April 15, 2014. However, nothing would preclude Congress from acting on a budget resolution for FY2015 even after those levels have been filed. It has been reported that Senate Budget Committee Chairman Patty Murray has signaled that the provisions contained in the BBA make a budget resolution for FY2015 unnecessary. On April 10, 2014, the House agreed to a budget resolution (H.Con.Res. 96, 113th Congress) by a vote of 219 to 205.
Though the federal budget deficit has fallen in recent years, CBO, GAO, and the Administration agree that current federal fiscal policies are unsustainable in the long term. Projections indicate that putting the federal budget on a sustainable long-term path will require an agreement on additional deficit reduction. Such an agreement could include increases in revenues, changes to large spending programs, or some combination of the two.