The Crush June 2023 - 3

FEDERAL FOCUS
DEBT LIMIT RAISED:
FISCAL RESPONSIBILITY ACT OF 2023
On Saturday, June 3rd, President Biden signed H.R.
3746, the Fiscal Responsibility Act of 2023, to
raise the debt limit until January 2025. On May 31,
the bill passed in the House on a 314-117 vote while
the Senate passed the bill on a 63-36 vote one day
later on June 1. Both votes showed a decent display
of bipartisan support. The bill's passage followed
weeks of conversations between President Biden and
Speaker of the House Kevin McCarthy (R-CA) where
they negotiated a deal to raise the debt limit and to
cut spending, which Republicans had demanded as a
condition for increasing the nation's borrowing limit.
H.R.3746 increases the federal debt limit, establishes
new discretionary spending limits, rescinds unobligated
funds, and expands work requirements for federal
programs. The deal rescinds a total of $28 billion in
unspent pandemic funding and includes some reforms
to speed up the energy project permitting process.
President Biden took to Twitter to share the signing
of the bill. " I just signed into law a bipartisan budget
agreement that prevents a first-ever default while
reducing the deficit, safeguarding Social Security,
Medicare, and Medicaid, and fulfilling our scared
obligation to our veterans. " He ended his tweet saying,
" Now, we continue the work of building the strongest
economy in the world. "
Primary Budget Components
There are three primary components of the federal
budget:
* Discretionary spending: This refers to spending
on programs and initiatives that are not mandated
by law and can be adjusted or changed through
the annual appropriations process. Examples of
discretionary spending areas include defense,
education, research, and infrastructure.
* Mandatory spending: This component includes
spending on programs that are required by law,
such as entitlement programs like Social Security,
Medicare, and Medicaid. These programs have
eligibility criteria and benefit obligations that must
be fulfilled.
* Federal revenues: This component includes all the
sources of income for the government, such as taxes
(e.g., income tax, corporate tax, payroll tax), tariffs,
fees, and other forms of revenue.
Overall, mandatory spending represents the majority of
government spending in a given fiscal year.
As illustrated in this graphic of the FY2022 federal
budget, $4.1 trillion went to mandatory spending, and
$1.7 trillion to discretionary spending.
PHOTO: The Federal Budget in Fiscal Year 2022: An Infographic |
Congressional Budget Office (cbo.gov)
Spending Caps
The debt ceiling agreement has significant implications
for the budget, primarily through the caps on
discretionary funding. The bill's most significant cost
reduction measure is the establishment of NDD (NonDefense
Discretionary) spending caps for FY2024 and
FY2025. According to the Congressional Budget Office,
these caps are estimated to save approximately $1.33
trillion over a ten-year period, accounting for 87% of the
total cost reductions in the bill.
On top of the $1.3 trillion reduction from discretionary
outlays, mandatory spending is expected to decrease
by $10 billion, and net revenues will be reduced by $2
billion from 2023 to 2033.
The impact of the new discretionary spending caps on
federal food and farm policy is not yet determined,
as the specific reductions will be seen through the
appropriations process. CAWG and its federal lobbying
team at Cornerstone Government Affairs will actively
advocate for CAWG's priorities during the appropriations
process and keep its members informed about any
developments and updates regarding federal food and
farm policy.
www.cawg.org | Page 3
https://www.govinfo.gov/content/pkg/BILLS-118hr3746ih/pdf/BILLS-118hr3746ih.pdf https://www.govinfo.gov/content/pkg/BILLS-118hr3746ih/pdf/BILLS-118hr3746ih.pdf http://www.cbo.gov http://www.cawg.org

The Crush June 2023

Table of Contents for the Digital Edition of The Crush June 2023

The Crush June 2023 - 1
The Crush June 2023 - 2
The Crush June 2023 - 3
The Crush June 2023 - 4
The Crush June 2023 - 5
The Crush June 2023 - 6
The Crush June 2023 - 7
The Crush June 2023 - 8
The Crush June 2023 - 9
The Crush June 2023 - 10
The Crush June 2023 - 11
The Crush June 2023 - 12
https://www.nxtbook.com/cawg/cawg/the-crush-may-june-2024
https://www.nxtbook.com/cawg/cawg/the-crush-march-april-2024
https://www.nxtbook.com/cawg/cawg/the-crush-jan-feb-2024
https://www.nxtbook.com/cawg/cawg/the-crush-december-2023
https://www.nxtbook.com/cawg/cawg/the-crush-november-2023
https://www.nxtbook.com/cawg/cawg/the-crush-october
https://www.nxtbook.com/cawg/cawg/the-crush-august
https://www.nxtbook.com/cawg/cawg/the-crush-july
https://www.nxtbook.com/cawg/cawg/the-crush-june-2023
https://www.nxtbook.com/cawg/cawg/the-crush-march-2023
https://www.nxtbook.com/cawg/cawg/the-crush-february-2023
https://www.nxtbook.com/cawg/cawg/the-crush-december-2022
https://www.nxtbook.com/cawg/cawg/the-crush-november-2022
https://www.nxtbook.com/cawg/cawg/the-crush-october-2022
https://www.nxtbook.com/cawg/cawg/the-crush-september-2022
https://www.nxtbook.com/cawg/cawg/the-crush-august-2022
https://www.nxtbook.com/cawg/cawg/the-crush-july-2022
https://www.nxtbook.com/cawg/cawg/the-crush-may-2022
https://www.nxtbook.com/cawg/cawg/the-crush-april2022
https://www.nxtbook.com/cawg/cawg/the-crush-april-2022
https://www.nxtbook.com/cawg/cawg/the-crush-march2022
https://www.nxtbook.com/cawg/cawg/the-crush-january-2022
https://www.nxtbook.com/cawg/cawg/the-crush-december-2021
https://www.nxtbook.com/cawg/cawg/the-crush-november-2021
https://www.nxtbook.com/cawg/cawg/the-crush-october-2021
https://www.nxtbook.com/cawg/cawg/the-crush-september-2021
https://www.nxtbook.com/cawg/cawg/the-crush-june-2021
https://www.nxtbook.com/cawg/cawg/the-crush-may-2021
https://www.nxtbook.com/cawg/cawg/the-crush-march2021
https://www.nxtbook.com/cawg/cawg/the-crush-february2021
https://www.nxtbook.com/cawg/cawg/Jan2021
https://www.nxtbook.com/cawg/cawg/January2021
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https://www.nxtbook.com/nxtbooks/cawg/newsletter_2008
https://www.nxtbook.com/nxtbooks/cawg/newsletter_2007
https://www.nxtbook.com/nxtbooks/cawg/newsletter_2006
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https://www.nxtbook.com/nxtbooks/cawg/newsletter_2003
https://www.nxtbook.com/nxtbooks/cawg/newsletter_2002
https://www.nxtbook.com/nxtbooks/cawg/newsletter_2001
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