Canadian Manufacturing

U.S. Congressional budget agreement breakdown: 14 changes to domestic and defence spending

by The Associated Press   

Canadian Manufacturing
Manufacturing budget

A proposed congressional budget agreement would avoid a government shutdown in January and set spending for defence and domestic programs

A proposed congressional budget agreement would avoid a government shutdown in January and set spending for defence and domestic programs. It would:

  • Establish overall non-war-related discretionary spending for the current fiscal year at $1.012 trillion and $1.014 trillion for fiscal 2015. Discretionary spending is the money approved by Congress each year for agency operations. The House budget level had been $967 billion and the Senate $1.058 trillion for the year that runs through next Sept. 30. Fiscal 2013 discretionary spending was $986 billion.
  • Ease the across-the-board “sequester” spending cuts by $63 billion over two years, split between defence and domestic programs. In the current fiscal year, defence would be set at a base budget of $520.5 billion and domestic programs at $491.8 billion.
  • Increase airline security fees from $5 to $11.20 for a typical round-trip ticket starting July 1, 2014. That would raise $13 billion over 10 years. Current fees are $2.50 per leg with a maximum fee of $10 for a round-trip with connecting flights or $5 for a nonstop round-trip fare.
  • Reduce retirement benefits for working-age military retirees. The cost-of-living adjustment would be modified equal to inflation minus 1 per cent. The changes would be phased in, with no change in the current year, a 0.25 per cent reduction in December 2014 and a 0.5 per cent decrease in December 2015. The change would not apply to retirees who left the service because of disability or injury. It would apply to retirees under the age of 62. The change would save $6 billion.
  • Increase by 1.3 percentage points the pension contributions paid by federal civilian workers hired after Jan. 1, 2014. Raises $6 billion.
  • Restrict access to Social Security death records to prevent identity thieves from filing fraudulent tax returns. Saves $269 million.
  • Raise premiums paid by corporations to the Pension Benefit Guarantee Corp. to guarantee pension benefits. Raises $8 billion.
  • Eliminate a requirement that the Maritime Administration reimburse other federal agencies for additional costs associated with shipping food aid on U.S. ships. Saves $731 million.
  • Cancel $1.6 billion in unobligated balances in Justice and Treasury Department funds that seize assets from criminals.
  • Cap the maximum government payment for contract employees at $487,000, indexed to inflation. Agencies could make exceptions for scientists, engineers and other specialists.
  • Give the Treasury Department greater access to prison data to prevent prisoners from claiming improper payments. Saves $80 million.
  • Approve a U.S.-Mexico agreement on oil and gas exploration in waters outside their exclusive economic zones.
  • Permanently extend a requirement that states receiving mineral lease payments contribute to the federal government’s administrative costs. Saves $415 million.
  • Extend Bureau of Customs and Border Protection user fees. Raises $7 billion.


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