R E P O R T - House Budget Committee

1 1 House OF REPRESENTATIVES " ! 114 THCONGRESS 2nd Session report 114 470 CONCURRENT resolution ON THE Budget FISCAL YEAR 2017 r e p o r t OF THE Committee ON THE Budget House OF REPRESENTATIVES TO ACCOMPANY H. Con. Res. 125 ESTABLISHING THE Budget FOR THE UNITED STATES GOVERN-MENT FOR FISCAL YEAR 2017 AND SETTING FORTH APPRO-PRIATE BUDGETARY LEVELS FOR FISCAL YEARS 2018 THROUGH 2026 together with MINORITY VIEWS MARCH23, 2016. Committed to the Committee of the Whole House on the State of the Union and ordered to be printed VerDate Sep 11 2014 06:42 Mar 24, 2016 Jkt 099437 PO 00000 Frm 00001 Fmt 6012 Sfmt 6012 E:\HR\OC\ BJE:\Seals\Congress.

2 #13rfrederick on DSK6 VPTVN1 PROD with HEARINGCONCURRENT resolution ON THE Budget FISCAL YEAR 2017 VerDate Sep 11 2014 06:42 Mar 24, 2016 Jkt 099437 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 E:\HR\OC\ BJrfrederick on DSK6 VPTVN1 PROD with GOVERNMENT PUBLISHING OFFICEWASHINGTON : 1 99 437 House OF REPRESENTATIVES " ! 114 THCONGRESS 2nd Session report 2016 114 470 CONCURRENT resolution ON THE Budget FISCAL YEAR 2017 r e p o r t OF THE Committee ON THE Budget House OF REPRESENTATIVES TO ACCOMPANY H. Con. Res. 125 ESTABLISHING THE Budget FOR THE UNITED STATES GOVERN-MENT FOR FISCAL YEAR 2017 AND SETTING FORTH APPRO-PRIATE BUDGETARY LEVELS FOR FISCAL YEARS 2018 THROUGH 2026 together with MINORITY VIEWS MARCH23, 2016.

3 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed VerDate Sep 11 2014 06:42 Mar 24, 2016 Jkt 099437 PO 00000 Frm 00003 Fmt 4012 Sfmt 4012 E:\HR\OC\ BJE:\Seals\Congress.#13rfrederick on DSK6 VPTVN1 PROD with HEARING(II) Committee ON THE Budget TOM PRICE, Georgia, Chairman TODD ROKITA, Indiana, Vice Chairman SCOTT GARRETT, New Jersey MARIO DIAZ-BALART, Florida TOM COLE, Oklahoma TOM MCCLINTOCK, California DIANE BLACK, Tennessee ROB WOODALL, Georgia VICKY HARTZLER, Missouri MARLIN A. STUTZMAN, Indiana FRANK GUINTA, New Hampshire MARK SANFORD, South Carolina STEVE WOMACK, Arkansas DAVE BRAT, Virginia ROD BLUM, Iowa ALEXANDER X. MOONEY, West Virginia GLENN GROTHMAN, Wisconsin GARY J.

4 PALMER, Alabama JOHN R. MOOLENAAR, Michigan BRUCE WESTERMAN, Arkansas JAMES B. RENACCI, Ohio BILL JOHNSON, Ohio CHRIS VAN HOLLEN, Maryland, Ranking Minority Member JOHN A. YARMUTH, Kentucky BILL PASCRELL, JR., New Jersey TIM RYAN, Ohio GWEN MOORE, Wisconsin KATHY CASTOR, Florida JIM MCDERMOTT, Washington BARBARA LEE, California MARK POCAN, Wisconsin MICHELLE LUJAN GRISHAM, New Mexico DEBBIE DINGELL, Michigan TED LIEU, California DONALD NORCROSS, New Jersey SETH MOULTON, Massachusetts PROFESSIONALSTAFF RICHARDE. MAY, Staff Director THOMASS. KAHN, Minority Staff Director VerDate Sep 11 2014 06:42 Mar 24, 2016 Jkt 099437 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 E:\HR\OC\ BJrfrederick on DSK6 VPTVN1 PROD with HEARING(III) C O N T E N T S Page Introduction.

5 3 Summary Tables Spending and Revenue: Table 1. Fiscal Year 2017 Budget resolution Total Spending and Rev-enue ..19 Table 2. Fiscal Year 2017 Budget resolution Discretionary Spending ..22 Table 3. Fiscal Year 2017 Budget resolution Mandatory Spending ..25 Comparison With the President s Budget ..29 Table 4. Summary of Fiscal Year 2017 Budget resolution ..34 Table 5. Fiscal Year 2017 House Budget resolution vs. the President s Budget ..34 The Economy and Economic Assumptions ..37 Table 6. Economic Projections: Administration, CBO, and Private Fore-casters ..43 Table 7. Economic Assumptions of the Fiscal Year 2017 Budget Resolu-tion ..44 Table 8. Tax Expenditure Estimates by Budget Function, Fiscal Years 2015 2019.

6 45 Macroeconomic Feedback Effects of Pro-Growth Policies ..55 Functional Presentation ..57 Principal Federal Responsibilities ..61 National Defense ..61 International Affairs ..66 Overseas Contingency Operations/Global War on Terrorism ..72 Veterans Benefits and Services ..73 Administration of Justice ..81 General Government ..84 Government-Wide Policy ..86 Domestic Priorities ..91 General Science, Space, and Technology ..91 Energy ..93 Natural Resources and Environment ..97 Agriculture .. 101 Commerce and Housing Credit .. 101 Transportation .. 104 Community and Regional Development .. 112 Education, Training, Employment, and Social Services .. 115 Health .. 120 Income Security .. 123 Other Discretionary Spending .. 125 Direct Spending.

7 127 Social Security .. 127 Medicare .. 131 Medicaid, the Affordable Care Act, and Related Programs .. 142 Income Support, Nutrition, and Related Programs .. 156 Farm Support and Related Programs .. 162 Banking, Commerce, Postal Service, and Related Programs .. 163 Student Loans, Social Services, and Related Programs .. 167 Federal Lands and Other Resources .. 171 Other Direct Spending .. 173 Financial Management .. 175 Net Interest .. 175 Allowances .. 176 Undistributed Offsetting Receipts .. 176 Revenue and Tax Reform .. 179 Direct Spending Trends and Reforms .. 183 VerDate Sep 11 2014 06:42 Mar 24, 2016 Jkt 099437 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 E:\HR\OC\ BJrfrederick on DSK6 VPTVN1 PROD with HEARINGPageIV Direct Spending Trends and Reforms Continued Table 9.

8 Historical Means-Tested and Non-Means-Tested Direct Spend-ing .. 186 Table 10. Projected Means-Tested and Non-Means-Tested Direct Spend-ing .. 187 The Long-Term Budget Outlook .. 189 Budget Process Reform .. 191 Regulatory Budgeting .. 199 Section-by-Section Description .. 201 The Congressional Budget Process .. 223 Table 11. Allocation of Spending Authority to House Committee on Ap-propriations .. 225 Table 12. resolution by Authorizing Committee (On- Budget Amounts) .. 226 Reconciliation .. 229 Statutory Controls Over the Budget .. 231 Enforcing Budgetary Levels .. 237 Accounts Identified for Advance Appropriations .. 243 Votes of the Committee .. 245 Other Matters Under the Rules of the House .

9 285 Minority Views .. 287 Concurrent resolution on the Budget Fiscal Year 2017 (legislative text) .. 289 VerDate Sep 11 2014 06:42 Mar 24, 2016 Jkt 099437 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 E:\HR\OC\ BJrfrederick on DSK6 VPTVN1 PROD with HEARING114 THCONGRESS report " ! House OF REPRESENTATIVES 2d Session 114 470 CONCURRENT resolution ON THE Budget FISCAL YEAR 2017 ESTABLISHING THE Budget FOR THE UNITED STATES GOVERNMENT FOR FISCAL YEAR 2017 AND SETTING FORTH APPROPRIATE BUDGETARY LEVELS FOR FISCAL YEARS 2018 THROUGH 2026 MARCH23, 2016.

10 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed MR. TOMPRICE OFGEORGIA, from the Committee on the Budget , submitted the following r e p o r t together with MINORITY VIEWS [To accompany H. Con. Res. 125] VerDate Sep 11 2014 06:42 Mar 24, 2016 Jkt 099437 PO 00000 Frm 00007 Fmt 6659 Sfmt 6659 E:\HR\OC\ BJrfrederick on DSK6 VPTVN1 PROD with HEARINGVerDate Sep 11 2014 06:42 Mar 24, 2016 Jkt 099437 PO 00000 Frm 00008 Fmt 6659 Sfmt 6659 E:\HR\OC\ BJrfrederick on DSK6 VPTVN1 PROD with HEARING(3) 1 Congressional Budget Office, The Budget and Economic Outlook: 2016 to 2026, January 2016, Table B 1, p. 119. 2 See the Conference report on the Taxpayer Relief Act of 1997 ( 2014), p.