Today at 8:00 AM ET: Discussing the Federal Budget on C-SPAN’s Washington Journal
Tune in!
This morning, I'll join C-SPAN’s Washington Journal alongside Emily Gee from the Center for American Progress to discuss the 2025 federal budget and how the Trump Administration’s decisions have influenced the economy. You can watch the discussion live on C-SPAN or stream it on its website.
Below is a recap of our pieces that provide context for today’s discussion, covering the latest stopgap funding bill, the risks of Congress relying on the executive branch for spending cuts, the problems of Congress adopting a current policy baseline, House and Senate budget resolutions, and our blueprint for the 119th Congress on addressing the 2025 fiscal deadlines.
Another Stopgap Funding Bill, Another Budget Failure
Congress is barreling toward a March 14 discretionary funding deadline with no agreement in sight. Republicans are aiming to pass yet another stopgap funding patch through the end of FY 2025, again failing to deliver a regular budget. With deficits at $2 trillion, Congress should be reining in discretionary spending, including
“By and large, the latest CR is more of the same, a feature of Washington’s budget dysfunction and the never-ending punting of deadlines. Rather than face the tough discussions of reducing and capping discretionary spending at pre-pandemic levels, Congress is eyeing another CR that locks in post-pandemic bloat. Credit to appropriators for cutting earmarks, but addressing this pork-barrel spending is a mere drop in the bucket.”
Don’t Rely on DOGE: Congress Needs to Own Spending Restraint
As government funding runs out by March 14, Democrats are attempting to use the appropriations process to block recent cost-cutting measures led by the Department of Government Efficiency (DOGE) and the Office of Management and Budget (OMB), raising questions about the possibility of a government shutdown. The executive’s ongoing …
”Enabling presidents to unilaterally make spending decisions, which are likely reversed by a future administration, will not resolve America’s rising debt burden, driven by statutorily authorized automatic spending increases in Social Security and Medicare. The governance risks, however, are clear. Eroding Congress’s power of the purse brings us closer to an all-powerful imperial presidency, weakening checks and balances that secure Americans’ freedoms.”
With All Eyes on DOGE, Congress Plays Budget Games with America’s Fiscal Future
While Americans fixate on Elon Musk’s Department of Government Efficiency (DOGE) to rein in wasteful spending, Congress is quietly plotting to make the nation’s fiscal situation worse. The …
“Enabling presidents to unilaterally make spending decisions, which are likely reversed by a future administration, will not resolve America’s rising debt burden, driven by statutorily authorized automatic spending increases in Social Security and Medicare. The governance risks, however, are clear. Eroding Congress’s power of the purse brings us closer to an all-powerful imperial presidency, weakening checks and balances that secure Americans’ freedoms.”
Debt Digest | House Budget Committee Boosts Spending Cuts in Resolution
Here are this week’s reading links and fiscal facts:
“[The House Budget Committee] adopted an amendment from Rep. Smucker (R-PA) that ties the size of the tax cut to spending cuts, including by increasing the minimum savings target from $1.5 trillion to $2 trillion. This change ensures any shortfall in spending cuts reduces tax cuts accordingly, while exceeding the target allows for larger cuts. While this move lessens the deficit impact of extending the 2017 tax cuts, the resolution's targets are still a far cry from stabilizing the US debt.”
The Senate’s Budget Shell Game
Last Friday, Senate Budget Committee Chairman Lindsey Graham (R-SC) released a budget resolution for fiscal year 2025. A budget resolution is meant to establish a responsible fiscal framework that sets priorities for federal spending and revenue. With this year’s deficit
“While unlikely to be the final reconciliation vehicle, the Senate resolution proposal sets the stage for $342 billion in new spending over four years, supposedly to be offset by unnamed spending cuts. Eagerly laying out plans for new spending without a real plan to offset the resulting deficits is hardly sound fiscal policy, especially as the national debt soars ever higher.”
2025: A Pivotal Year for America’s Fiscal Future
As a new Congress and administration descend on Washington, they will face critical decisions that will define our economic future. The choices made—or avoided—this year could determine whether the United States averts a fiscal crisis or plunges further into unsustainable territory. The time to act decisively by putting the US budget on a path to balanc…
“The stakes couldn’t be higher. The consequences of inaction—higher inflation, skyrocketing interest rates, and a fiscal crisis—are all too real. But by committing to responsible deficit reduction, Congress and the Trump administration can chart a path to economic prosperity.”
A Fiscal Agenda for the 119th Congress
“The 119th Congress faces a unique convergence of fiscal deadlines, including the debt limit and the expirations of a host of tax provisions, discretionary spending caps, and expanded health care subsidies. […] Congress should focus on establishing clear, enforceable fiscal targets; reforming entitlement programs, possibly by adopting an independent fiscal commission; cutting and capping discretionary spending; and pursuing deficit-neutral, pro-growth tax reform.”