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Trump Administration’s FY 2019 Budget Request On February 12, 2018, President Donald Trump released his official fiscal year (FY) 2019 budget request to Congress, entitled “Efficient, Effective, Accountable: An American Budget.” The President’s $4.4 trillion budget request was finalized before the Bipartisan Budget Act (BBA) of 2018 (Public Law 115-123) was signed into law on February 9, 2018, which raises spending caps for defense and non-defense discretionary (NDD) funding by nearly $300 billion for FYs 2018 and 2019. The Trump Administration included an addendum to its FY19 budget to account for the additional spending, and also suggested cuts that Congress could make in the current fiscal year. The budget calls for $716 billion in defense spending for FY19, in line with the recently enacted BBA, while calling for $540 billion in NDD spending for FY19, $57 billion below the new cap level set by the BBA. Additional information on major savings and reforms; analytical perspectives; detailed budget estimates by agency; historical tables; supplemental documents; and fact sheets may be found here. The budget proposal includes increases in several Trump Administration priorities, including: an additional $10 billion in discretionary funding to address the opioid epidemic; and $18 billion over the next two years for a wall along the southern U.S. border with Mexico. The budget includes an ambitious, $1.5 trillion infrastructure program, although the bulk of the money for rebuilding roads, bridges and other projects would have to come from state and local governments or the private sector, with the federal government spending $200 billion over 10 years. The budget also proposes changes to safety net programs such as Medicaid, the Supplemental Nutrition Assistance Program, and Section 8 housing. Additionally, the FY19 budget proposal would completely eliminate 22 federal agencies and programs. The $4.4 trillion budget would be offset by $3.4 trillion in tax and other receipts, leaving a deficit of $984 billion; however, with the increased spending caps, the real deficit is expected to be around $1.2 trillion. The budget assumes that economic growth will accelerate, from 2.3 percent last year to 3 percent this year and 3.2 percent next year, spurred on in part by the $1.5 trillion Tax Cuts and Jobs Act that President Trump signed into law on December 22, 2017. Many independent economists see the White House forecast as overly optimistic. Even with the assumption of robust economic growth, the federal deficit is expected to hit 4.2 percent of GDP this year and 4.7 percent next year. While it is common for the deficit to grow during a recession, when tax revenues slump and spending on safety net programs increases, it is very unusual for the federal government to run large deficits when the economy is near full employment, as it is today. President Trump’s FY19 budget request is certain to face opposition from lawmakers in both parties, who will resist chopping favored programs. House and Senate Appropriators have also made clear that they, rather than President Trump, would be shaping the appropriations bills needed to fund the government. Markups of the twelve FY19 appropriations bills will likely begin in earnest in April and May 2018. Congress will also likely pass a FY 2018 omnibus appropriations bill prior to March 23, 2018 (when the current Continuing Resolution expires), to fund the federal government through September 30, 2018 at the increased funding levels set by the BBA.

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The FY 2019 USDA Budget provides about $18 billion in discretionary budget authority, approximately $5.8 billion below the FY 2018 Annualized Continuing Resolution (CR) level1. This includes funding for Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Rural Development, Forest Service, food safety, research, and conservation activities. Funding for mandatory programs is estimated to be $122 billion, about $1.7 billion greater than 2018. Highlights include:

Farm Production and Conservation: $7.6 billion for the Farm Loan and Grant program; $2.22 billion for the Conservation Reserve Program (CRP); $4.336 billion for the Natural Resources Conservation Service (NRCS), including $1.614 billion for the Environmental Quality Incentives Program (EQIP), $100 million for the Regional Conservation Partnership Program (RCPP), and $1.645 billion for the Conservation Stewardship Program (CSP).

Rural Development: $18 million for the Rural Water and Waste Program; $38 million for the Rural Electric and Telecommunications Loan Program; $8 million for the Broadband Loan Program; $244 million for the Rural Housing Insurance Fund Program; and $148 million for the Rural Development Loan Fund Program.

Community Facilities: $3.5 billion for the Community Facilities direct loan program to provide funding for rural infrastructure, such as healthcare facilities.

Rural Housing Assistance: $29.503 billion for the Rural Housing Service.

Wildland Fire Management: $2.5 billion for wildland fire management activities, including $1.3 billion for Preparedness and $1.17 billion for Suppression.

Forest Management: $1.720 billion for National Forest System management and activities.

Food and Nutrition Services: the budget reduces funding for the Supplemental Nutrition Assistance Program by $17.2 billion in FY19 (down to $73.218 billion), and $213.5 billion over the next 10 years. Child Nutrition Programs would receive $23.340 billion and the Women, Infants and Children (WIC) program would receive $5.751 billion.

The Addendum would restore the proposed FY 2019 cancellation of $192 million for the Department of Agriculture, Agricultural Research Service, Building and Facilities account.

Eliminated Programs: Forest Service Land Acquisition; McGovern-Dole International Food for Education; Rural Business and Cooperative Service; Rural Water and Wastewater Grants; and Single Family Housing Direct Loans.

1 A full-year 2018 appropriation was not enacted at the time the FY 2019 Budget was prepared; therefore, the Budget is built off of the Further

Continuing Appropriations Act, 2018 (P.L. 115-120). The amounts included for 2018 reflect the annualized level provided by the Continuing Resolution (CR).

Department of Agriculture (USDA)

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The FY 2019 Commerce Department Budget provides $9.8 billion in discretionary funding, a $0.6 billion or 7 percent increase from the FY 2018 Annualized CR level. Highlights include:

National Oceanic and Atmospheric Administration (NOAA): In FY 2018, NOAA requests a total of $2.938 billion for Operations, Research and Facilities (ORF) and $1.623 billion for Procurement, Acquisition and Construction (PAC). ORF and PAC consist of the following several activities and their corresponding mission priorities, including:

o National Marine Fisheries Service (NMFS): NMFS uses sound science and an ecosystem-based approach to management to support productive and sustainable fisheries; safe sources of seafood; the recovery and conservation of protected species; and healthy ecosystems. NMFS manages 474 marine and anadromous fish stocks within the U.S. Exclusive Economic Zone (EEZ) as well as invertebrates, sea turtles, marine mammals, and other marine and coastal species and their habitats. The FY 2019 Budget requests $837.3 million for NMFS.

o National Ocean Service (NOS): NOS observes, measures, assesses, and manages the nation’s coastal, ocean and Great Lakes resources; protects marine and coastal areas; provides critical navigation products and services (e.g., real time observations, nautical charts); and prepares for and responds to natural disasters and emergencies. The FY 2019 Budget requests $406.3 million for NOS.

National Telecommunications and Information Administration (NTIA): NTIA’s $33.6 million Budget supports the commercial sector’s development of next generation wireless services through NTIA’s mission of evaluating and ensuring efficient use of spectrum by government users. The NTIA also continues to represent U.S. interests at multi-stakeholder forums on internet governance and digital commerce. The Broadband Program would receive $8.27 million; the Spectrum Management Program totals $8.78 million.

Eliminated Programs: the Economic Development Administration; the Manufacturing Extension Partnership; the Minority Business Development Agency; and the National Oceanic and Atmospheric Administration Grants and Education.

The FY 2019 Defense Department Budget provides a total of $716 billion for national security, including $686 billion for the Department of Defense, which includes a $69 billion request for Overseas Contingency Operations (OCO). The FY 2019 budget is a total of $74.3 billion higher, or a 10.8% increase, than the FY 2018 Annualized CR level for total Defense spending. The budget adds $24 billion to modernize the nuclear infrastructure.

Department of Commerce

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The FY 2019 Education Department Budget provides $63.2 billion in discretionary funding, a $3.6 billion or 5 percent decrease below the FY 2018 Annualized CR level. Highlights include:

$129.8 billion in new postsecondary grants, loans, and work-study assistance to help an estimated 1.5 million students and their families pay for college.

$1 billion for a new Opportunity Grants program that would “expand both private and public school choices, particularly for students from low-income families or attending schools identified for improvement under the Elementary and Secondary Education Act.”

$500 million for the Charter Schools program to “strengthen State efforts to start new charter schools or expand and replicate existing high-performing charter schools, while providing up to $100 million to meet the growing demand for charter school facilities.”

The Addendum would add an extra $3.325 billion for the Department of Education. Eliminated Programs: 21st Century Community Learning Centers; Comprehensive Literacy

Development Grants; Federal Supplemental Educational Opportunity Grants; Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP); Impact Aid Payments for Federal Property; International Education; Promise Neighborhoods; Statewide Longitudinal Data Systems; Strengthening Institutions; Student Support and Academic Enrichment Grants; Supporting Effective Instruction State Grants; Teacher Grant Programs; and Teacher Assistance Programs.

The FY 2019 Energy Department Budget provides $30.6 billion in discretionary funding, a 2 percent increase from the FY 2018 Annualized CR level. Highlights include:

$5.4 billion for the Office of Science, including $2.2 billion for discovery at the frontiers of science; $2.1 billion to operate national labs; and $760 million to construct the next generation of scientific facilities and tools.

$2.5 billion for energy and related programs, including $696 million for Energy Efficiency and Renewable Energy ($1.3 billion below the FY 2017 enacted level)—this includes splitting the Electricity Delivery and Energy Reliability (OE) account, which totals $157 million: $61 million for Electricity Delivery and $96 million for Cyber Security, Energy Security, & Emergency Response; $502 million for Fossil Energy Research and Development; $757 million for Nuclear Energy; $102 million for the Yucca Mountain and Interim Storage Program; $10 million for Indian Energy programs; and $77 million for Power Marketing Administrations.

$6.6 billion for Environmental Management to address the legal and moral obligations to clean up the Nation’s nuclear legacy following World War II and the Cold War.

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$58 million for the Water Power account, down from $117 million for the enacted FY 2017 level;

$369.9 million for the Federal Energy Regulatory Commission;

The Addendum adds an additional $1.533 billion for DOE, including: $1.213 billion to the Science account for fundamental scientific research; $200 million to the Fossil Energy Research and Development account for research and development (R&D) of clean coal technologies; and $120 million to the Energy Efficiency and Renewable Energy account for R&D of sustainable transportation, renewable energy, and energy efficiency technologies.

Eliminated Programs: Advanced Research Projects Agency—Energy; Department of Energy Loan and Loan Guarantee Programs; and the Mixed Oxide Fuel Fabrication Facility.

The FY 2019 EPA Budget provides $6.146 billion, a 23.2 percent reduction from the FY 2018 Annualized CR level. Highlights include:

EPA’s support for water infrastructure will be provided under the State Revolving Funds (SRFs) and Water Infrastructure Finance and Innovation Act (WIFIA) program. The FY 2019 budget includes $2.3 billion for the SRFs and $20 million for the WIFIA program.

EPA is requesting $84 million in Drinking Water Programs to continue to partner with states, drinking water utilities, and other stakeholders to identify and address current and potential sources of drinking water contamination.

The FY 2019 budget includes $175 million to support work in Surface Water Protection and $18 million for the Wetlands programs.

In FY 2019, the Superfund Cleanup program is funded at $718.367 million, including $508.496 million for Remedial work and $181.306 million for Emergency Response and Removal work.

In FY 2019, the Brownfields Grants program is funded at $31.8 million.

EPA’s FY 2019 budget of $410 million provides funding to better manage and support air quality with stakeholders. The budget focuses on air quality efforts and on making progress toward increased attainment.

The Addendum would provide an additional $724 million for the EPA, including $327 million to the Hazardous Substance Superfund account largely for the Superfund Remedial program; and $397 million to the State and Tribal Assistance Grants account for the Clean Water and Drinking Water State Revolving Funds (SRF).

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The FY 2019 HHS Budget includes $68.4 billion in discretionary budget authority, a $17.9 billion or 21 percent decrease from the FY 2018 Annualized CR level. Highlights include:

Combating the Opioid Epidemic: The Budget includes $5 billion in new resources over the next five years to combat the opioid epidemic. The Administration will increase awareness of the dangers of opioids through a national media campaign, encourage safer prescribing practices to reduce unnecessary prescriptions, and help states improve their Prescription Drug Monitoring Programs. For Medicaid, the Budget proposes expanding coverage of comprehensive and evidence-based Medication Assisted Treatment options, previews forthcoming guidance from the Centers for Medicare & Medicaid Services that would set minimum standards for State Drug Utilization Reviews to reduce clinical abuse, and requires states to track and act on high prescribers and utilizers of prescription drugs. For Medicare, the Budget proposes to test and expand nationwide a bundled payment for community-based medication assisted treatment, including, for the first time, comprehensive Medicare reimbursement for methadone treatment. The Budget also proposes to prevent prescription drug abuse in Medicare Part D and protect beneficiaries from potentially harmful drugs by requiring plan participation in a program to prevent prescription drug abuse.

Reforming Drug Pricing and Payment: The Budget proposes new strategies to address high drug prices, increase access to lifesaving medicines, rationalize the current payment incentive structure in Medicare Part D and Part B, and foster greater competition among generic pharmaceutical firms.

Repealing and Replacing Obamacare: The Budget supports a two-part approach to repealing and replacing Obamacare, starting with enactment of legislation modeled closely after the Graham-Cassidy-Heller-Johnson bill as soon as possible, followed by enactment of additional reforms to help set government healthcare spending on a sustainable fiscal path that leads to higher value spending.

The Addendum would add an additional $27.005 billion for HHS, including $10 billion to address the opioid epidemic and serious mental illness; and $9.167 billion to the National Institutes of Health (NIH).

Eliminated Programs: Agency for Healthcare Research and Quality; Community Services Block Grant; Health Workforce Programs; Low Income Home Energy Assistance Programs.

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The FY 2019 DHS Budget includes $46 billion in discretionary budget authority, a $3.4 billion or 8 percent increase from the FY 2018 Annualized CR level. In addition, $6.7 billion is available to help communities overwhelmed by major disasters. Highlights include:

$1.6 billion for construction of the border wall and $782 million to hire and support 2,750 additional law enforcement officers and agents at U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement. The Budget also requests $2.5 billion for detaining up to 47,000 illegal aliens on a daily basis.

$7.7 billion to support Transportation Security Administration employees and new technology.

$1.9 billion for the Federal Emergency Management Agency (FEMA) for its programs that award grants to state and local governments.

$6.9 billion for the FEMA Disaster Relief Fund.

$1 billion to support efforts to safeguard the Federal Government’s civilian information technology systems against cybersecurity threats.

The Addendum would provide an additional $1.491 billion for DHS, including $522 million for FEMA’s Federal Assistance account.

Eliminated Programs: Transportation Security Administration Law Enforcement Grants.

The FY 2019 HUD Budget provides $39.2 billion in discretionary budget authority, an $8.8 billion or 18.3 percent decrease from the FY 2018 Annualized CR level. Highlights include:

$33.8 billion for rental assistance programs, a decrease of 11.2 percent relative to the 2017 enacted level. The Budget also requests legislative reforms that would produce cost savings. Savings would specifically come from the Housing Voucher and Public Housing programs. Other legislative reforms include encouraging work and self-sufficiency across its core rental assistance programs.

$75 million for the Family Self-Sufficiency program and $10 million for the Jobs-Plus Initiative.

$2.4 billion for the Homeless Assistance Grants Program, equal to the 2017 enacted level.

$255 million for the Emergency Solutions Grants program.

$145 million for the mitigation of lead-based paint and other hazards in low-income homes, equal to the FY 2017 enacted level.

No funding for the Public Housing Capital Fund.

Provides funding and authorities to facilitate a shift from the Public Housing funding platform to Housing Vouchers and Project-Based Rental Assistance (PBRA). Requests $100 million for the

Department of Homeland Security (DHS)

Department of Housing and Urban Development (HUD)

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Rental Assistance Demonstration, which supports the redevelopment of Public Housing units through conversion to the Housing Voucher and PBRA funding platforms.

Provides funding to evaluate EnVision Centers and adjust the program design and improve implementation if needed to achieve better outcomes for individuals and communities. EnVision Centers were established by HUD Secretary Ben Carson in 2017 to help HUD-assisted households achieve self-sufficiency.

Provides access to sustainable homeownership opportunities for creditworthy borrowers through the Federal Housing Administration (FHA) and Ginnie Mae credit guarantees. Requests an additional $20 million above the 2017 enacted level of $130 million for the FHA to upgrade its operations by investing in information technology and contract support.

The Addendum would provide an additional $2 billion for HUD, including $1 billion to avoid rent increases on elderly and disabled families receiving rental assistance; $700 million for the Tenant-Based Rental Assistance account to restore funding for an estimated 200,000 housing vouchers; and $300 million for the Public Housing Operating Fund account to assist Public Housing Authorities that could potentially face insolvency.

Eliminated Programs: Choice Neighborhoods; Community Development Block Grant program; HOME Investment Partnerships Program; and Self-Help and Assisted Homeownership Opportunity Program Account.

The FY 2019 DOI Budget provides $11.3 billion in discretionary budget authority, a $2.2 billion or 16 percent decrease from the FY 2018 Annualized CR level. Highlights include:

$1 billion for the Bureau of Reclamation (down from $1.24 billion under the FY 2018 Annualized CR level).

o $34 million for Rural Water Projects. o $20 million for WaterSMART.

o $127 million for Indian Water Rights Settlements. o $35 million for California Bay Delta Restoration. o $62 million for the Central Valley Project Restoration Fund. o $8 million to expand Invasive Mussel Prevention. o $119 million for construction of water delivery systems for tribes and local communities.

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o $88.1 million for the Dam Safety Program. o Proposes legislation to better facilitate title transfer of Reclamation facilities to non-

federal entities when the transfers are beneficial to all parties. o Cuts the main operating account, titled Water and Related Resources, from the 2018

enacted level of $1.14 billion to a proposed level of $891 million. Of this, the 2019 Budget includes a total of $447.0 million for construction, planning, and management of water and energy projects and programs. Funding for these activities supports water supply, drought preparedness and response, land management including recreation areas, and promotes water reliability by addressing the impacts of Reclamation projects on fish and wildlife. The Budget also provides a total of $444.0 million for water and power facility operations, maintenance, and rehabilitation activities.

$1 billion for the Bureau of Land Management.

$18 million to help initiate DOI’s internal reform plan, which would move away from the current bureau and state-based regional system of management toward an integrated federal land and water management approach organized around watersheds.

$257 million to help address the $11 billion National Park Service deferred maintenance backlog.

$4 billion for land management operations.

Reduces land acquisition funding to $8 million.

$34 million for the North American Wetlands Conservation Act grants program.

$133.9 million for Fish and Aquatic Conservation.

Proposes a new Public Lands Infrastructure Fund to help pay for repairs and improvements in national parks, wildlife refuges, and at Bureau of Indian Education schools, which have more than $12 billion in deferred maintenance. The fund would be derived from 50 percent of incremental energy leasing receipts over 2018 budget projections that are not otherwise allocated for other purposes. As DOI works to expand federal energy development on Federal lands and waters, this initiative has the potential to generate up to $18 billion over 10 years for parks and other public lands infrastructure.

Increases funding for DOI programs that support safe and responsible development of energy on public lands and offshore waters.

Proposes to streamline permitting and reviews by reducing inefficiencies. For example, the Budget maintains core funding for Fish and Wildlife Service Endangered Species Act consultations and related activities; these consultations help facilitate the delivery of infrastructure projects while ensuring the protection of imperiled species. The Budget also strengthens the Bureau of Land Management’s ability to efficiently facilitate and administer development of energy transmission projects.

Funds 100 percent of the rolling 10-year average cost for wildfire suppression in the Departments of Agriculture and the Interior within discretionary budget caps. Proposes a separate fund that would include an annual cap adjustment appropriation for wildfire suppression operations, in order to ensure that adequate resources are available to fight wildland fires, protect communities, and safeguard human lives during the most severe wildland fire seasons.

The Addendum would provide an additional $339 million for DOI, including $271 million to the National Park Service (NPS) for the Operation of the National Park System account; and $68 million for Payments in Lieu of Taxes (PILT) account.

Eliminated Programs: Abandoned Mine Land Grants Program; Centennial Challenge Fund; Heritage Partnership Program; and National Wildlife Refuge Fund.

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The FY 2019 DOJ Budget provides $28 billion in discretionary budget authority, a $345 million or 1.2 percent decrease from the FY 2018 Annualized CR level. Highlights include:

$2.2 billion for the Drug Enforcement Administration (DEA), including an additional $41 million over the $26 million currently provided for specialized efforts to end the opioid epidemic.

$421 million in fee-funded resources for DEA’s Diversion Control Fee Account to combat the diversion of licit drugs and precursor chemicals.

$103 million for opioid-related state and local assistance including: $20 million for the Comprehensive Opioid Abuse Program to support a variety of activities such as treatment and recovery support services, diversion, and alternative to incarceration programs.

$59 million for Drug Courts, Mental Health Courts, and Veterans Treatment Courts.

$12 million for Residential Substance Abuse Treatment.

$12 million for Prescription Drug Monitoring Programs.

$333 million for the Byrne Justice Assistance Grants Program.

$70 million is provided for the Violent Gang and Gun Crime Reduction/Project Safe Neighborhoods program.

$230 million for state and local juvenile justice programs, including programs aimed at delinquency prevention, intervention, and making improvements to the juvenile justice system.

$5 million is set aside to support the National Public Safety Partnership program, which leverages the Department’s resources to reduce violence in cities with the highest violent crime rates.

$14.2 billion to federal law enforcement agencies, including the Federal Bureau of Investigation (FBI), the DEA, the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Organized Crime and Drug Enforcement Task Forces. This represents an increase of 2.4 percent from the 2017 enacted level.

An increase of $148 million for the FBI.

$7.1 billion for the Bureau of Prisons (BOP), approximately equal to the 2017 enacted level.

$739 million for reentry programming in BOP.

$48 million for the Second Chance Act Grant program.

$486 million to reinforce efforts to combat and respond to violent crimes against women, including $215 million for Services, Training, Officers, and Prosecutors Grants.

Proposes to transfer the High Intensity Drug Trafficking Areas program from the Office of National Drug Control Policy to the DEA.

Provides funding for 75 additional immigration judge teams, as well as $25 million for information technology modernization, including the expansion of electronic case processing.

Increases the set-aside for research, evaluation, and statistics at the Office of Justice Programs. In addition, the Budget supports the National Crime Statistics Exchange Initiative to develop nationally representative crime statistics.

The Addendum would provide an additional $12.491 billion for DOJ, including establishing a $2.3 billion annual funding level for the Crime Victims Fund (CVF); $10 million for the Office of Justice Programs’ (OJP) Second Chance Act Program; $70 million for the Byrne Justice Assistance Grants program; and $70 million for the Violent Gang and Gun Crime Reduction/Project Safe Neighborhoods (PSN) Program.

Eliminated Programs: State Criminal Alien Assistance Program (SCAAP).

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The FY 2019 Corps Budget provides $4.785 billion for the Corps, a more than 20-percent decrease from the FY 2018 Annualized CR level of $6.038 billion. New federal funding in the Civil Works budget consists of $3.769 billion from the General Fund of the Treasury, $965.13 million from the Harbor Maintenance Trust Fund (HMTF), an estimated $45 million from Special Recreation User Fees, and $5.25 million from the Inland Waterways Trust Fund (IWTF). Highlights include:

$1.930 billion for the study, design, construction, operation and maintenance of inland and coastal navigation projects.

$2.077 billion for Operation and Maintenance (O&M) account o $965 million for the Harbor Maintenance Trust Fund

$871.733 million for Construction. o 26 projects

12 flood risk management 7 aquatic ecosystem restoration 7 commercial navigation (including two for sediment management)

$245 million for Mississippi River and Tributaries. $200 million for the Regulatory Program. $187 million for Expenses. $120 million for the Formerly Utilized Sites Remedial Action Program. $82.6 million for Investigations.

o 24 studies 14 navigation 9 flood risk management 5 ecosystem restoration

o $25 million to provide technical and planning assistance to enable local communities to reduce their flood risk in conjunction with state floodplain management authorities.

$27 million for Flood Control and Coastal Emergencies. $5 million allocated for construction from Inland Waterways Trust Fund. $224 million for the Aquatic Ecosystem Restoration program. $ 1.491 billion for the Flood Risk Management Program.

o $431 million for dam safety assurance, seepage control, and static instability correction work in the Construction account.

o $9.75 million for seven new dam safety modification studies in the Investigations account. o An additional $11 million for interim risk reduction measures at Corps dams in the O&M

account.

Navigation: Gives priority to coastal harbors and inland waterways with the most commercial traffic. Also provides priority for maintenance of channels at small ports that support significant commercial fishing, subsistence, or public transportation benefits.

Proposes establishing an annual fee to support infrastructure investment and economic growth by helping finance the users’ share of future capital investment, as well as 10 percent of the operation and maintenance cost, in the inland waterways.

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Proposes no “new starts” for construction and feasibility studies. The emphasis is on completing projects that are underway.

The commercial navigation allocation is a reduction from the FY 2018 budget level. The new budget also proposes to use from the Harbor Maintenance Trust Fund $375 million less than what the appropriations committees have planned for the current year.

Proposes to reduce the Harbor Maintenance Tax rate an unspecified amount to better align estimated annual receipts from this tax with recent appropriation levels for eligible expenditures from the Harbor Maintenance Trust Fund.

Proposes to divest the Washington Aqueduct, which is the wholesale water supply system for Washington, D.C.; Arlington County, Virginia; the City of Falls Church, Virginia; and parts of Fairfax County, Virginia, and is the only local water supply system in the nation owned and operated by USACE.

The FY 2019 DOL budget requests $9.4 billion for DOL in discretionary spending, a $2.6 billion or 21.6% decrease from the FY 2018 Annualized CR level. This includes funding for workforce development, Trade Adjustment Assistance, unemployment insurance, and the Occupational Safety and Health Administration (OSHA). Highlighting budget constraints, the Budget proposes to invest only in DOL’s highest priority functions and cut duplicative and ineffective programs. Highlights include:

Expands Access to Apprenticeship: the Budget invests $200 million in apprenticeships. As part of implementing the President’s Executive Order “Expanding Apprenticeships in America,” the Department is establishing a new industry-recognized apprenticeship system to modernize and expand the U.S. approach to apprenticeships

Develops a Plan to Reorganize and Consolidate the Nation’s Workforce Development Programs: the Federal Government has more than 40 workforce development programs spread across 14 agencies with a total annual cost of approximately $17 billion. The Secretaries of Labor and Education, who administer most of the programs, are working on a comprehensive plan to consolidate and reorganize Federal workforce development programs to ensure that American workers receive the highest quality services possible and are prepared to fill the high-growth jobs of today and tomorrow. The plan will be released as part of a spring 2018 Government reorganization package.

Reduces Waste, Fraud, and Abuse While Getting Claimants Back to Work More Quickly: the Budget expands Reemployment Services and Eligibility Assessments, an evidence-based activity that saves an average of $536 per claimant in unemployment insurance (UI) benefit costs by reducing improper payments and getting claimants back to work more quickly and at higher wages.

Focuses Trade Adjustment Assistance on Apprenticeship and Other Work-Based Training: the Trade Adjustment Assistance (TAA) program, which provides cash benefits

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and training to workers who have been displaced by international trade, is in need of reform. The Budget proposes to refocus the TAA program on apprenticeship and on-the-job training, earn-as-you-learn strategies that ensure that participants are training for relevant occupations. States would also be encouraged to place a greater emphasis on intensive reemployment services for workers who are not participating in work-based training, getting those workers back into the workforce more quickly.

Secures Safe and Healthy Workplaces: the Budget maintains targeted investments in the Occupational Safety and Health Administration (OSHA) and Mine Safety and Health Administration aimed at preventing worker fatalities, injuries, and illnesses through enforcement, outreach, and compliance assistance. The Budget increases OSHA Federal Compliance Assistance to assist employers who want help protecting their workers through cooperative programs.

Rebuilds DOL’s Role in Overseeing Union Integrity: to help safeguard labor union democracy and financial integrity, the Budget takes steps to restore the Office of Labor-Management Standards’ investigative workforce, which has fallen by more than 40 percent during the past 10 years. The Budget would strengthen protections for union members by supporting more audits and investigations to uncover flawed officer elections, fraud, and embezzlement.

The Addendum would provide an additional $1.456 billion for DOL, including $1.336 billion for the Workforce Innovation and Opportunity Act (WIOA) Adult, Dislocated Worker, Youth, and Employment Service formula grants; and $120 million for two WIOA national programs: YouthBuild and the Dislocated Worker National Reserve.

Eliminated Programs: Indian and Native American Program; Migrant and Seasonal Farmworker Training program; OSHA Training Grants; and Senior Community Service Employment Program.

The Budget requests $37.8 billion for the Department of State and USAID, a 29 percent decrease from the FY 2018 Annualized CR level. The Budget also requests $12 billion as Overseas Contingency Operations funding for extraordinary costs, primarily in war areas such as Syria, Iraq, and Afghanistan, for an Agency total of $37.8 billion, which is a $191 million increase from the 2018 Budget. The Budget also requests $1.4 billion for Department of the Treasury international programs, a $354 million or 20 percent reduction from the from the FY 2018 Annualized CR level. Highlights include:

The Budget requests $8.2 billion for Diplomatic Programs and the Information Technology (IT) Central Fund, which would support the critical day-to-day operations of the Department’s overseas staff.

Prioritizes the Safety and Security of American Diplomats and Staff Overseas. The Budget requests $4.6 billion to protect overseas personnel and facilities.

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Counters the Proliferation of Weapons of Mass Destruction. The Budget prioritizes efforts to secure, eliminate, and prevent the proliferation of weapons of mass destruction and their delivery systems.

Helps Prevent Public Health Emergencies through the Global Health Security Agenda (GHSA) and Advances Maternal and Child Health. Containing the spread of deadly diseases overseas is a vital U.S. national security interest. To prevent, detect, and respond to infectious disease threats abroad, the Budget request supports an array of global health security activities through the GHSA.

Reforms International Affairs Agencies to Strengthen Implementation of their Strategic Missions. The Administration is committed to making the Federal Government more effective, more efficient, and more accountable. In 2019, the Department of State and USAID will continue to implement an in-depth redesign process to adapt U.S. diplomacy and development to the 21st Century, and better position each Agency for the future.

The Addendum would provide an additional $1.5 billion for the State Department, including: $1 billion to the U.S. Agency for International Development (USAID) International Disaster Assistance account for humanitarian assistance.

Eliminated Programs: Development Assistance; Earmarked Appropriations for Non-Profit Organizations; Global Climate Change Initiative; and P.L. 480 Title II Food Aid.

The Budget requests $76.5 billion in discretionary budget authority for FY 2019, a $500 million decrease from the FY 2018 Annualized CR level. The Budget provides $60.9 billion in mandatory funds and obligation limitations, about $2.3 billion more than the FY 2018 Annualized CR level. DOT’s discretionary programs are funded at $15.6 billion, which is about $2.9 billion less than the FY 2018 Annualized CR level. For programs funded from the Highway Trust Fund, the Budget is consistent with the fourth year of the Fixing America’s Surface Transportation Act (FAST Act) of 2015. Highlights include:

$2.6 billion to the Federal Highway Administration’s (FHWA) Highway Safety Improvement Program, to assist States in the implementation of their safety plans.

Continues Investment in Surface Transportation: $57.4 billion in mandatory funds and obligation limitation to improve the Nation’s highways, bridges, and transit systems. The Budget includes $46 billion for highway infrastructure and safety programs, $9.9 billion for transit infrastructure, and $1.4 billion for NHTSA and FMCSA safety programs. These levels match the authorized amounts in the FAST Act.

Reforms Air Traffic Control: the Budget includes a multiyear reauthorization proposal to shift the air traffic control function of the Federal Aviation Administration to a non-governmental, independent air traffic services cooperative, making the system more efficient and innovative while maintaining safety.

Department of Transportation

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Reorganizes the Department of Transportation: the Budget includes proposals in response to Executive Order 13781, which requires each agency to prepare a plan to reorganize the agency, if appropriate, in order to improve its efficiency, effectiveness, and accountability.

The President’s Budget proposes to modernize and reform the Essential Air Service program.

The Addendum would provide an additional $300 million for DOT, specifically for the Maritime Administration's Operations and Training account for the School Ship Replacement Program.

Eliminated Programs: TIGER grants.

The Budget requests $12.3 billion in base discretionary resources for Treasury’s domestic programs, a $392 million or 3-percent decrease from the FY 2018 Annualized CR level. This program level excludes mandatory spending changes involving the Treasury Forfeiture Fund. The Budget also proposes a program integrity initiative to narrow the gap between taxes owed and taxes paid that is estimated to reduce the deficit by approximately $29 billion over the next 10 years. Highlights include:

Preserves Funding for Essential Revenue Collection Operations: the Budget proposes $11.1 billion in base funding for the IRS including $2.3 billion for running key tax filing and compliance IT applications and $110 million for IT modernization efforts. The Budget also requests additional funds for new and continuing investments to expand and strengthen the enforcement of tax law to ensure that all Americans are paying the taxes they owe. These additional investments proposed over the next 10 years are estimated to generate approximately $44 billion in additional revenue at a cost of $15 billion, yielding a net savings of $29 billion over 10 years.

Increases Treasury’s Efficiency and Effectiveness by Streamlining Operations: the Budget eliminates funding for the Community Development Financial Institutions (CDFI) Fund’s discretionary grant and direct loan programs, a savings of $234 million from the 2017 enacted level.

Eliminated Programs: Multilateral Agricultural Development Programs.

Department of Treasury

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The Budget requests $198.6 billion for the VA, a $12.1 billion from the FY 2018 Annualized CR level. $75.6 billion is requested for advance medical care appropriations for 2020 to ensure the Department has the resources to continue providing high-quality medical services to veterans. In addition, the Budget also requests new legislative authorities and $122.7 billion in mandatory budget authority, including $121 billion in 2020 advance appropriations, for other veteran and survivor benefits. Highlights include:

The Budget supports initiatives to modernize and reform VA: $4.2 billion to leverage emerging technology, modernize and maintain infrastructure, and provide greater choices and benefits to veterans; $172 million for the Office of the Inspector General to strengthen accountability, promote transparency, and reduce waste, fraud, and abuse.

Improves Veterans’ Access to Medical Care. The Budget provides $70.7 billion, a 9.6-percent increase above the 2017 enacted level, to provide high-quality healthcare services to veterans and eligible beneficiaries. The Budget also proposes $75.6 billion in advance appropriations for VA medical care programs in 2020, a 6.9-percent increase above the 2019 request.

Combats the Opioid Epidemic. The Budget provides $381 million in critical investments to reduce over-reliance on opioids for pain management and to promote the safe and effective use of opioid therapy.

Provides Critical Funding for Mental Health and Suicide Prevention. The Budget provides slightly more than $8.6 billion to expand and transform VA’s focus on mental health services to ensure veterans receive timely and appropriate care that is tailored to the unique needs of each person.

Streamlines Delivery of Veteran Benefits. VA provides veterans and eligible dependents with benefits including disability compensation, pension, GI Bill, educational assistance, vocational rehabilitation, and home loan guaranties among others. The Budget invests $2.9 billion, a 1-percent increase from the 2017 enacted level for these programs.

The Addendum would provide an additional $2.4 billion for the VA, including $1.9 billion to the Veterans Choice Fund account; and $500 million to increase funding for VA's Medical Services account due to delayed enactment of the Veteran CARE program.

Department of Veterans Affairs