Last Wednesday in the State of the Union address, the president announced a three-year freeze of non-defense, non-homeland security discretionary spending starting in fiscal year 2011. This freeze will apply to 16% of the fiscal year 2011 budget and is touted to save taxpayers $250 billion over ten years. This amounts to a savings of 0.58 percent of the total federal spending during this time period – a time period where CBO projects 10-year baseline deficits of $6 trillion. In addition, the freeze excludes the remaining $513 billion in unspent stimulus funds and the remaining $247 billion of the Troubled Asset Relief Program. Mercatus Center Senior Research Fellow Veronique de Rugy suggests that in order for America’s fiscal issues to be seriously addressed, broader measures will be required.
Read more about the federal budget at American.com.
Click here to download data.