TCS President Steve Ellis Statement on the Fiscal Year 2025 President’s Budget Request

Over a month past the legal deadline, and following the House Budget Committee’s adoption of its FY2025 Budget Resolution, the President has released a $7.3 trillion budget request for Fiscal Year 2025. This release typically signals the start of the annual budget process, but this year is different. Congress is preoccupied, as over half of the federal government continues to operate under a continuing resolution, deep into fiscal year 2024. A “regular” budget process is not at hand.

Lawmakers need to wrap up the 2024 budget bills and proceed to those for fiscal year 2025. Budgets reflect more than just financial figures; they represent values. In an era of significant deficits and record debt, budgets offer a chance for lawmakers to develop a plan rooted either in economic reality or illusion. This planning is crucial for the well-being of our economy and democracy.

The overall budget cap for Fiscal Year 2025 was set last summer as part of the Fiscal Responsibility Act. However, as this year’s appropriation challenges show, this cap is not as firm as it may seem.

We commend the President’s commitment to further deficit reduction. However, the context is important. The Congressional Budget Office predicts that the total deficits for the next decade will surpass $20 trillion. While any deficit reduction is positive, the President’s proposal to cut the net deficit by $3 trillion makes only a modest impact. Moreover, many of the suggested revenue raisers are unlikely to be enacted, especially in an election year.

We also commend the White House for recognizing the need to strengthen Medicare before expenses exceed income. However, the lack of a strategy for Social Security makes this approach incomplete. TCS looks forward to policymakers debating how to manage both Medicare and Social Security, because doing nothing as they ramble toward insolvency is legislative malpractice.

We are keen to learn more about the budget’s specifics and are ready to collaborate with lawmakers during the legislative process, particularly in the House, which has indicated a desire to return to regular procedural order.

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