Fiscal Year 2010 Budget of the United States Government

7/31/2019 Fiscal Year 2010 Budget of the United States Government

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A New Era of Responsibility

Renewing America’s Promise

O f f i c e o f M a n a g e m e n t a n d B u d g e t

w w w . b u d g e t . g o v



A A New Era of Responsibility

Renewing America’s Promise

O f f i c e o f M a n a g e m e n t a n d B u d g e t

w w w . b u d g e t . g o v



Table o Contents

Pesident’s Message ��1

Inheiting a Legac o Misplaced Pioities ��5

Jumpstating the Econom and Investing o the Futue ��17

Conclusion ��43

Depatment o Agicultue ��45

Depatment o Commece ��51

Depatment o Deense ��53

National Intelligence Pogam ��57

Depatment o Education ��59

Depatment o Eneg ��63

Depatment o Health and Human Sevices ��67

Depatment o Homeland Secuit ��71

Depatment o Housing and Uban Development ��73

Depatment o the Inteio ��77

Depatment o Justice ��81Depatment o Labo ��83

Depatment o State and Othe Intenational Pogams ��87

Depatment o Tanspotation ��91

Depatment o the Teasu ��93

Depatment o Veteans Aais ��95

Cops o Enginees—Civil Woks ��97

Envionmental Potection Agenc ��99

National Aeonautics and Space Administation ��103

National Science Foundation��105

Small Business Administation��107

Social Secuit Administation ��109

Copoation o National and Communit Sevice ��111

Summa Tables ��113

Page



U�S� GOVErNMENT PrINTING OFFICE

WASHINGTON, D�C� 2009

Fo sale b the Supeintendent o Documents, U�S� Govenment Pinting Oce

Intenet: bookstoe�gpo�gov Phone: (866) 512-1800 DC Aea: (202) 512-1800

Fax: (202) 512-2250 Mail: Stop IDCC, Washington, DC 20402-0001

ISBN: 978-0-16-082552-1

GENERAL NOTES

1� All eas eeenced o economic data ae calenda easunless othewise noted� All eas eeenced o budgetdata ae scal eas unless othewise noted�

2� At the time o this witing, onl thee o the appopiationsbills o 2009 had been enacted; theeoe, eeences to

2009 spending in the text and tables efect appoximateestimates o nal likel appopiations action that set totaldiscetiona unding at the level assumed to conomto the total level o appopiations in the Concuentresolution on the Budget o 2009� Adjustments ae alsomade to include the costs o the just-enacted Ameicanrecove and reinvestment Act o 2009�

3� Details in the tables ma not add to the totals due toounding�

4� Web addess: http://www.budget.gov



Thoughout Ameica’s histo, thee have beensome eas that appeaed to oll into the nextwithout much notice o anae� Budgets ae po-posed that oe some new pogams o eliminatean initiative, but b and lage continuit eigns�

Then thee ae the eas that come alongonce in a geneation, when we look at whee the

count has been and ecognize that we need abeak om a toubled past, that the poblems weace demand that we begin chating a new path�This is one o those eas�

We stat 2009 in the midst o a cisis unlikean we have seen in ou lietimes� Ou economis in a deep ecession that theatens to be deepeand longe than an since the Geat Depession�Moe than thee and a hal million jobs wee lostove the past 13 months, moe jobs than at antime since Wold Wa II� In addition, anothe 8�8

million Ameicans who want and need ull-timewok have had to settle o pat-time jobs� Manu-actuing emploment has hit a 60-ea low� Oucapital makets ae vituall ozen, making itdicult o businesses to gow and o amilies toboow mone to aod a home, ca, o college ed-ucation o thei kids� Man amilies cannot pathei bills o thei motgage paments� Tillionso dollas o wealth have been wiped out, leav-ing man wokes with little o nothing as theappoach etiement� And millions o Ameicansae unsue about the utue—i thei job will bethee tomoow, i thei childen will be able togo to college, and i thei gandchilden will beable to ealize the ull pomise o Ameica�

This cisis is neithe the esult o a nomaltun o the business ccle no an accident o his-to� We aived at this point as a esult o an eao poound iesponsibilit that enguled both

pivate and public institutions om some o oulagest companies’ executive suites to the seatso powe in Washington, D�C� Fo decades, tooman on Wall Steet thew caution to the wind,chased pots with blind optimism and little e-gad o seious isks—and with even less egado the public good� Lendes made loans withoutconcen o whethe boowes could epa them�

Inadequatel inomed o the isks and ove-whelmed b ne pint, man boowes took ondebt the could not eall aod� And those inauthoit tuned a blind ee to this isk-taking;the ogot that makets wok best when theeis tanspaenc and accountabilit and when theules o the oad ae both ai and vigoousl en-oced� Fo eas, a lack o tanspaenc ceateda situation in which seious economic dangeswee visible to all too ew�

This iesponsibilit pecipitated the intelock-

ing housing and nancial cises that tiggeedthis ecession� But the oots o the poblems weace un deepe� Govenment has ailed to ullconont the deep, sstemic poblems that eaate ea have onl become a lage and lagedag on ou econom� Fom the ising costs o health cae to the state o ou schools, om theneed to evolutionize how we powe ou economto ou cumbling inastuctue, policmakes inWashington have chosen tempoa xes ovelasting solutions�

The time has come to ushe in a new ea—a new ea o esponsibilit in which we act notonl to save and ceate new jobs, but also to laa new oundation o gowth upon which we canenew the pomise o Ameica�

This Budget is a st step in that joune� Itlas out o the Ameican people the extent o

PRESidENT’S MESSAGE



PrESIDENT’S MESSAGE 3

homeland, and expanding ou diplomatic eotsbecause to povide o the secuit o the UnitedStates we need to use all elements o ou powe�Moeove, to hono the sevice o those who havewon ou milita’s uniom, we will make the in-

vestments necessa to take cae o ou veteans�

Fo these initiatives to la a oundation olong-tem economic gowth, it’s impotant thatwe not onl change what Washington investsin, but how Washington does business� We mustushe in a new ea o esponsibilit in which weempowe citizens with the inomation the needto hold thei elected epesentatives accountableo the decisions the make� We need to put tiedideologies aside, and ask not whethe ou Goven-ment is too big o too small, o whethe it is the

poblem o the solution, but whethe it is wokingo the Ameican people� Whee it does not, wewill stop spending taxpae dollas; whee it haspoven to be eective, we will invest� This is theappoach, o example, we have begun in allocat-ing unds to education, health cae, and nationalsecuit� And as we continue the budgeta po-cess, we will identi moe cuts and eallocationso the ull Budget pesented this sping, and un-detake eots to eom how the pogams ouund ae managed so that oveuns ae avoided,waste is cut, and ou get the most eective and

ecient Govenment possible�

In the little moe than a month m Administa-tion has had in oce, we have not had the timeto ull execute all the budget eoms that aeneeded, and to which I am ull committed� Thosewill come in the months ahead, and next ea’sbudget pocess will look much dieent�

But this Budget does begin the had woko binging new levels o honest and ainessto ou Govenment� It looks ahead a ull 10eas, making good-aith estimates about whatcosts we would incu; and it accounts o itemsthat unde the old ules could have been letout, making it appea that we had billions moeto spend than we eall do� The Budget also be-gins to estoe a basic sense o ainess to thetax code, eliminating incentives o companiesthat ship jobs oveseas and giving a geneous

package o tax cuts to 95 pecent o wokingamilies�

Finall, while we have inheited ecod budgetdecits and needed to pass a massive ecove

and einvestment plan to t to jump-stat oueconom out o ecession, we cannot lose sight o the long-un challenges that ou count aces andthat theaten ou economic health—specicall,the tillions o dollas o debt that we inheited,the ising costs o health cae, and the gowingobligations o Social Secuit� Theeoe, whileou Budget will un decits, we must begin thepocess o making the tough choices necessato estoe scal discipline, cut the decit in hal b the end o m st tem in oce, and put ouNation on sound scal ooting�

Some ma look at what aces ou Nation andbelieve that Ameica’s geatest das ae behindit� The ae wong�

Ou poblems ae ooted in past mistakes, notou capacit o utue geatness� We should neveoget that ou wokes ae moe innovative andindustious than an on eath� Ou univesitiesae still the env o the wold� We ae still hometo the most billiant minds, the most ceative en-tepeneus, and the most advanced technolog

and innovation that histo has eve known� Andwe ae still the Nation that has ovecome geateas and impobable odds� It will take time, butwe can bing change to Ameica� We can ebuildthat lost tust and condence� We can estoe op-potunit and pospeit� And we can bing abouta new sense o esponsibilit among Ameicansom eve walk o lie and om eve cone o the count�

B arack OBama

The WhiTe hOuse,

FeBruary 26, 2009.



5

Ove the decades, the United States has gownand pospeed when all Ameicans have shaedin the oppotunities ceated b ou econom�Bottom-up gowth that empowes hadwokingamilies to climb the ladde o success and aisethei childen with secuit, oppotunit, andhope o the utue lies at the heat o the Amei-can deam� It is the esponsibilit o ou elected

leades to ceate the conditions o ou people toaim high, wok had, and ealize the ull pomiseo Ameican lie�

yet o a too long, the esilience, optimism,and industiousness o the Ameican people havebeen ustated b iesponsible polic choicesin Washington� Pudent investments in educa-tion, clean eneg, health cae, and inastuc-tue wee saciced o huge tax cuts o thewealth and well-connected� In the ace o thesetade-os, Washington has ignoed the squeeze

on middle-class amilies that is making it had-e o them to get ahead� Ou Govenment hasspent taxpae mone without making sue thenumbes add up and without making it clea andundestandable to the Ameican people wheethei mone was being spent� Tough choices havebeen avoided, and we have ailed to make thewise investments we need to compete in a global,inomation-age econom�

While middle-class amilies have been plaingb the ules, living up to thei esponsibilities asneighbos and citizens, those at the commandingheights o ou econom have not� The have tak-en isks and piled on debts that while seeminglpotable in the shot-tem, have now poven tobe dangeous not onl o thei individual msbut o the econom as a whole� With loosenedovesight and weak enocement om Wash-ington, too man cut cones as the acked up

ecod pots and paid themselves millions o dollas in compensation and bonuses� Thee’snothing wong with making mone, but theeis something wong when we allow the plaingeld to be tilted so a in the avo o so ew�

This is the legac that we inheit—a legaco mismanagement and misplaced pioities,

o missed oppotunities and o deep, stuctualpoblems ignoed o too long� It’s a legac o iesponsibilit, and it is ou dut to change it�

A Deep AnD Destructive recession

No one eading this epot needs to be toldthat ou econom is in cisis� We have lost jobso 13 consecutive months o a total o 3�6 mil-lion jobs lost� Accoding to the Bueau o LaboStatistics, moe jobs wee lost last ea than in

an ea since data collection o this kind beganin 1939 (see Figue 1, Annual Change in PaollEmploment, 1940-2008)� In pecentage tems,the job loss in the cuent ecession is the wostsince the eal 1980s (see Figue 2, Job Losses inFive recessions)�

Man newl unemploed wokes will be ac-ing long odds when the t to nd anothe good

job� Since the stat o the ecession, the numbeo those unemploed o 27 weeks o moe hasisen b 1�3 million including a 440,000-pesonincease in Decembe 2008 and Janua 2009�Inceasingl, wokes ae giving up looking owok o involuntail settling o pat-time wok;in act, the undeemploment ate, which mea-sues all those out o wok o undeemploed oeconomic easons, ose to 13�9 pecent in Janu-a 2009 (see Figue 3, The Undeemplomentrate)�

iNhERiTiNG A LEGACy O

MiSPLACEd PRiORiTiES



6 A NEW ErA OF rESPONSIBILITy

Eve secto o ou econom has been aect-ed b this ecession� The automobile indust,which equied a Govenment escue this pastwinte, has shed 204,000 jobs since the stat o this ecession� Ove the last ea, the Big Theeautomakes have seen sales plunge anwheebetween 39 and 55 pecent� Manuactuing as awhole has been had hit with emploment all-ing to a 60-ea low (see Figue 4, Manuactu-

ing Emploment)� Housing statsand pemits continue to all; inact, the U�S� Census epoted thathousing stats wee at the lowestlevels since monthl ecoding

o these data began in 1959 (seeFigue 5, Housing Stats)� At thesame time, motgages in the oe-closue pocess inceased 204 pe-cent between Octobe 2006 andOctobe 2008, and ove 1 millionpopeties went into oeclosuein 2008�

Unsupisingl, consumeconidence too is at an all timelow (see Figue 6, Consume

Conidence)� Some Ameicansae unable to keep up with themounting bills and dwindling

pospects: last iscal ea, pesonal bankupt-c ilings topped 1 million, an incease o al-most 30 pecent om 2007� The oveall pictueis bleak: GDP ell at a 3�8 pecent annualizedate in the last quate o 2008, the biggesteconomic contaction in moe than a quateo a centu�

A cental cause o this sudden downtun has

been a meltdown in ou capitaland cedit makets� The subpimemotgage cisis is the esult o apeect stom o excessive isk-taking b both investos and bo-owes, inadequate disclosue,non-existent o mopic ovesight,maket gatekeepes compomisedb conficts o inteest, and ie-sponsible lending to thousands o

Ameicans who, when oeed thechance to own thei own home,wee advised to thow caution tothe wind� Though sophisticatednancial engineeing, bad loansmade on Main Steet made theiwa onto the books o some o thelagest ms on Wall Steet, andthen wee sold to pension undsand individual investos aound

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46

-3.5

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0

0.5

Peak Months

APR 1960 JUL 1981 JUL 1990 MAR 2001 DEC 2007

Job Losses in Five Recessions

Source: Employment data from Bureau of Labor Statistics. Business cycle peak dates from National Bureau of Economic Research.

Percent decline from business cycle peaks

Months from Peak

Figue 2

1940 1948 1956 1964 1972 1980 1988 1996 2004-4

-3

-2

-1

0

1

2

3

4

5

Annual Change in Payroll Employment1940-2008

Millions of jobs

Source: Bureau of Labor Statistics.Note: Values reflect December to December changes in seasonally-adjusted payroll employment.

Figue 1



INHErITING A LEGACy OF MISPLACED PrIOrITIES 7

the wold� Once the eal estatemaket began to cool, loans de-aulted at alaming numbes, thesecomplex nancial poducts statedto lose thei value, and the cedit

boom unaveled, easing enomouswealth o both amilies and busi-ness as well as the jobs ueled bconsume spending�

The esulting collapse laid lowsome o the most pominent -nancial institutions in the Amei-can econom, and has wiped outtillions o dollas in wealth andetiement savings o millions o

Ameicans who thought the had

successull povided o theigolden eas� Uncetaint abouthow a and wide the contagionhas spead has bought ou nancial sstemto a nea standstill� Loans to consumes, smallbusinesses, and othe boowes ae had tocome b, and likewise, the motgage squeezeacts as a bake on the etun o housing de-mand� The injection o unpecedented amountso unds b the Fedeal reseve and thoughthe Toubled Asset relie Pogam (TArP) at-tempted to estoe condence in the nancial

makets to get capital fowingonce moe and has slowed o pe-haps halted the meltdown—but ithas not been enough to ull e-stoe condence and the smoothopeation o cedit makets� Alack o tust still pevades ma-kets� When that happens, inves-tos pull thei mone out o themaket, depositos make uns atbanks, and banks stop lendingto companies and to one anoth-e� Because o this lack o tust,ou cedit makets ae eectivelstill ozen� As a esult, business-es ae unable to expand, amiliesae unable to nance a new home,a new ca, o a college educationo thei kids; and ou economsues�

An Anemic recovery AlreADy H As Hurt

AmericAn F Amilies

Adding insult to inju, Ameican amilies haveenteed this ecession weakened b the anemicecove om the last downtun at the beginningo this decade� Fo millions o Ameicans, the e-cove om 2001 though 2007 was hadl one atall� Measued b job gains, the economic ecove

1994 1995 1997 1999 2001 2003 2005 2006 2008

0

2

4

6

8

10

12

14

16

The Underemployment Rate

Source: Bureau of Labor Statistics.

U-6—Underemployment Rate

U-3—Official Unemployment Rate

U-6—Total unemployed, plus discouraged

workers, plus all other marginally attached

workers, plus total employed part time for

economic reasons as a percent of the

civilian labor force plus discouragedworkers and all other marginally attached

workers.

Percent

Figue 3

1946 1953 1960 1967 1974 1981 1988 1995 2002 200911

12

13

14

15

16

17

18

19

20

Manufacturing Employment is Lower than atAny Time Since 1946

Millions of employees

Source: Bureau of Labor Statistics.

Figue 4




in the 2000s was the weakest one in a geneation�Fom 2001 to 2007, the peiod in which the econo-m was expanding as measued b the gowth inoutput, onl 99,000 jobs wee ceated each monthon aveage� The peiod began with an outightdecline in emploment that did not end until2003� Aveage job gains wee moe than twice aslage duing the expansions o the 1980s (228,000a month) and the 1990s (200,000 a month) (see

Figue 7, 2000s Economic recov-e Bought Weakest Job Gains)�real wages also showed ve littleimpovement in the latest expan-sion, ising on aveage at an annu-

alized ate o just 0�1 pecent eachmonth, compaed with 0�7 pecentduing the 1990s expansion�

On top o that, this was the steconomic ecove since WoldWa II whee eal median house-hold income did not ise above itspevious peak (see Figue 8, realMedian Household Incomes)� Be-tween 2000 and 2007, median in-come among households headed

b those unde 65 ell b $1,951�To keep up, moe and moe Ame-icans have tuned to cedit and

debt: b 2007, household debt as a pecentageo disposable pesonal income was 133�7 pe-cent� And some Ameicans have not been ableto keep up, alling out o the middle class andinto povet� Fom 2000 to 2007, the numbe o

Ameicans living in povet inceased b nea-l 5�7 million, and 1�7 moe childen lived inpovet in 2007 than in 2000� In act, 18 pe-cent o childen, about 13 million in total, lived

in povet in 2007�

ignoring our long-term

cHAllenges

As the tpical amil saw itsincome decline and the unde-pinnings o ou economic gowthbecome inceasingl unsustain-able, nothing was done to ad-dess these mounting poblems�These poblems then wee madewose b policies that beneitedthose at the top at the expenseo almost all Ameicans and ba ailue to tackle some o themost signiicant, stuctual im-pediments to long-tem economicgowth�

1960 1966 1972 1978 1984 1990 1996 2002 20080

0.5

1.0

1.5

2.0

2.5

3.0

Housing Starts have Reachedan All-Time Low

Millions of housing units per month

Source: U.S. Census Bureau.

Figue 5

1967 1972 1977 1982 1987 1992 1998 2003 20080

20

40

60

80

100

120

140

160

Consumer Confidence Has Fallen to aForty-Year Low1985 = 100

Source: Conference Board, monthly values interpolated 1966-1977.

Figue 6




Growing Imbalance: AccumulatingWealth and Closing Doors to the MiddleClass

Fo the bette pat o thee decades, a dispo-

potionate shae o the Nation’s wealth has beenaccumulated b the ve wealth� Technologicaladvances and gowing global competition, whiletansoming whole industies—and bithingnew ones—has accentuated the tend towad is-ing inequalit� yet, instead o using the tax code tolessen these inceasing wage dispaities, changesin the tax code ove the past eight eas exace-bated them�

Accoding to the Intenal revenue Sevice, theNation’s top 400 taxpaes made moe than $263

million on aveage in 2006, but paid income taxesat the lowest ate in the 15 eas in which thesedata have been epoted� In constant dollas, theaveage income o the top 400 taxpaes nealquadupled since 1992�

It’s no supise, then, that wealth began to beeve moe concentated at the top� B 2004, thewealthiest 10 pecent o households held 70 pe-cent o total wealth, and the combined net wotho the top 1 pecent o amilies was lage thanthat o the bottom 90 pecent� In act, the top 1

pecent took home moe than 22pecent o total national income,up om 10 pecent in 1980 (seeFigue 9, Top One Pecent o Ean-es)� And these dispaities ae elta beond one’s bank statementas seveal studies have ound adiect coelation between healthoutcomes and pesonal income�

Thee is nothing wong withpeople succeeding and makingmone� But thee is somethingwong when the oppotunit oall Ameicans to get ahead, to en-te the middle class, and to ceatea bette lie o thei childen be-comes moe and moe elusive� Thatis what has been happening: Theladde into the middle class and

beond has become hade and hade to climb�The Ameican deam has slowl slipped beondthe gasp o millions as we have delibeatel ig-noed the ve investments in ou people thatstengthen the middle class and neglected the

dives o economic gowth that will sustain oueconom o the long un�

Education

We know that the ke to success in the 21stCentu lies in investing in ou people—in giv-ing the chance to get a wold-class educationom cadle to caee� Economists om acoss thespectum agee that in this digital age, a highl-educated and skilled wokoce is citical not onlto individual oppotunit, but also to the oveall

success o ou econom� The moe people we edu-cate to the highest standads possible, the bet-te o all o us will be� yet too man childen aenot getting the wold-class education that thedeseve and that the need to thive in this ino-mation-age econom�

reseach has shown that thee is a high etuno investments made in high-qualit, compe-hensive pogams suppoting disadvantaged chil-den, and thei amilies, om bith� Some studiesshow that o eve dolla invested, thee is a $4

1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007-300

-200

-100

0

100

200

300

400

500

2000s Economic Recovery BroughtWeakest Job Gains in a Generation

Average Net Jobs Per Month, 1974-2008Thousand jobs per month

Source: Bureau of Labor Statistics, Establishment Survey, dates for expansions from National Bureau ofEconomic Research.

Average of 228,000

Jobs/Month During1980s Expansion

Average of 200,000Jobs/Month During1990s Expansion

Average of 99,000Jobs/Month During

2000s Expansion

Figue 7




to $9 etun to societ in highe eanings, highegaduation and emploment ates, less cime,deceased need o special education sevices,less use o the public welae sstem, and bettehealth� Howeve, we have et to make a seiouscommitment to ou oungest leanes�

Fom kindegaten though high school, tooman o ou students ae alling behind� Accod-

ing to the National Assessment o EducationalPogess, the Nation’s repot Cad, in 2007 onlone-thid o outh-gades was able to demon-state solid academic peomance in eading�Similal, onl 31 pecent o eighth-gades dem-onstated solid academic peomance, a pe-centage that has emained stagnant since 1992�

Achievement levels ae similal disappointingin mathematics�

We have not et ceated a cedible sstem o accountabilit o stong outcomes and a wa topovide teaches and pincipals with the toolsthe need to get esults� The poblem is exac-ebated b ou ailue to invest in the phsicalstuctues o ou schools� A 2004 epot b theNational Cente o Education Statistics oundthat 8�5 pecent o public schools have exceededthei capacit; in almost one out o ve schools,teaches have to teach in common aeas such as

gms and caeteias; and one inou schools epot that teachesdo not have thei own classoomsin which to teach�

Anothe pat o the poblem isthat when these students gadu-ate om high school and look to-wad continuing thei education,the ace high costs o collegeattendance� The aveage tuitionand ees at public, ou-ea in-stitutions between the 2000-2001school ea and 2008-2009 eainceased b moe than 26 pe-cent, ate adjusting o infationand inceases in tax cedits and

nancial aid (see Figue 10, Ave-age Annual Undegaduate Tu-ition)� It’s no supise, then, that

60 pecent o college students gaduate withdebt, and the tpical debt load is ove $20,000�Facing numbes like these, man students willsimpl decide that the cannot aod college,and man moe alead in college will decidethat the cannot aod to sta� While 94 pe-cent o high school students in the top quintileo socioeconomic status continue on to post-sec-onda education, onl 54 pecent o those in the

bottom quintile do so�

I all ou oung childen ae not able to go toa high-qualit school with moden acilities andgeat teaches and i olde students ae unableto aod to go to college and sta thee untilgaduation, thee is no wa that ou econom willbe able to expand oppotunit, stengthen themiddle class, and compete in a global econom�

Health Care

One o the othe big dains on amil bud-gets and on the peomance o the econom asa whole has been the inceasing costs o healthcae� yet the evidence suggests that substantialeductions in costs could be achieved without sac-icing the qualit o health cae deliveed� Andin pat because o the high costs o the cuentsstem, too man Ameicans emain uninsued

1967 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007

30

35

40

45

50

55

60

65

70

75

Real Median Household Incomes Have NotReturned to the Levels Reached in the 1990s

Source: U.S. Census Bureau.

Family Head Age 45 to 54



Dollars in thousands

Figue 8




o undeinsued—causing them toogo needed cae and to bea un-necessa nancial isks�

Since 2000, health insuance pe-

miums have inceased aste thanwoke’s eanings� Ate adjustingo infation, amil health insu-ance pemiums have inceased b58 pecent while wokes’ wageshave inceased onl 3 pecent (seeFigue 11, Famil Health InsuancePemiums)� In 2007, 17 million in-sued Ameicans spent moe than10 pecent o thei sala on healthcae, and 25 million Ameicans aeundeinsued, without enough cov-

eage to keep costs in check�

Ove the past eight eas, thenumbe o uninsued in Ameica has jumped b6�9 million and now totals 45�7 million Amei-cans� Moeove, the numbe o people who havegone without health insuance o at least somepotion o the pevious 12 months tops 60 mil-lion� Man o those ae people whom insueswill not cove because the have existing medi-cal poblems� Millions moe have insuance, butcould lose access as soon as the develop a sei-

ous medical poblem� These Ameicans sue, butthei lack o health cae options impacts all o us:eve time an uninsued peson walks into anemegenc oom because thee is nowhee else totun, a hidden tax is imposed on othe citizens aspemiums go up�

At the same time, health cae costs ae impos-ing lage budens on amilies—oten in unexpect-ed was� Wokes’ take-home pa is constainedb health insuance costs to a degee that isboth undeappeciated and unnecessail lage�Fo instance, as mentioned ealie, at the stategovenment level, evidence suggests that is-ing health cae costs have cowded out suppoto highe education—aising tuition levels andimpaiing the qualit o public highe educa-tion� Oveall, health cae is consuming an eve-inceasing amount o ou Nation’s esouces: in1970, health cae expenditues wee 7 pecent o

GDP; now, it’s 16 pecent; and at this ate will hitneal 20 pecent b 2017�

We have a substantial oppotunit to impovethe ecienc o ou health secto� Costs va wide-l acoss aeas o the United States, but evidencesuggests that the high-cost aeas do not geneatebette health outcomes than the lowe-cost ones�Costs ae twice as high at some o ou Nation’s

leading medical centes than at othes—andagain the high-cost centes do not geneate betteoutcomes than the lowe-cost ones� Academic e-seaches suggest that costs could be educed bas much as 30 pecent—o oughl $700 billion aea—while potecting the qualit o health caedeliveed i the high-cost aeas and hospitals ad-opted the pactices o the low-cost ones� Accod-ing to Institute o Medicine estimates, as man as100,000 Ameicans die each ea due to pevent-able medical eos� Onl ou cents o eve dol-la spent on health cae goes to peventive cae�

And while the United States leads the wold inhealth cae expenditues b a wide magin, ouhealth outcomes oten all shot o those achievedb othe developed counties�

The bottom line is that the cuent path o is-ing health cae costs is unsustainable, not onl

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

0

5%

10%

15%

20%

25%

Top One Percent of Earners Have BeenIncreasing Their Share

Source: Piketty and Saez (2003), updated by authors.

Share of total income accruing to top one percent

Figue 9




o the Fedeal Budget but also o amil bud-gets�

F Ailure to invest in tHe Future

Ameica’s pospeit has alwas isen omthe gound up, seeded b the had wok andingenuit o ou wokes, inventos, and en-

tepeneus� But gems o a good idea o anew wa o doing business cannot take ootand louish without the Nation pepaing theconditions o gowth� That takes sound man-agement o the econom; access to capital; andinvestments in science, technolog, and ina-stuctue� That’s wh we built the geat land-gant univesities as ou Nation expandedwest, sent the Geatest Geneation to collegeon the G�I� Bill, and invested in science andtechnolog at the height o the Cold Wa� It’swh pevious geneations built the Eie Canalat the stat o the 19th Centu, the tanscon-tinental aiload ate the Civil Wa, and theintestate highwa sstem in the 1950’s� It’swh we electiied ual Ameica duing thedepths o the Geat Depession and laid ibeoptic cables in ou own time�

Investing in the utue has beencitical to long-tem economicgowth and ceating high-paing

jobs o ou people thoughout ouhisto� yet, ove the past seveal

eas, we’ve been delinquent inmaking these down paments onutue gowth�

Infrastructure

As ou societ becomes moemobile and inteconnected, theneed o 21st Centu tanspo-tation netwoks has neve beengeate� As ou econom slows,epaiing and upgading ou in-

astuctue is an eective wato evive it and ceate new jobs�In the longe tem, inastuc-

tue investment will enable the United Statesto compete with the est o the wold and keepgood jobs hee at home� Ate all, in this daand age, businesses can now locate almost an-whee in the wold and bing the jobs the ce-ate with them—and a moden inastuctue iscitical i those jobs ae to come to and sta in

Ameica�

yet too man o ou Nation’s ailwas, high-was, bidges, aipots, and neighbohood steetsae not keeping up with the needs o ou Nationdue to lack o investment and stategic long-tem planning� The Ameican Societ o CivilEnginees gives ou count’s inastuctue thegade o a “D�” The unsatisacto condition andopeational peomance o ou oads and bidgescaies eal costs om billions o dollas in caepais to wasted uel and time� The Texas Tans-potation Institute 2007 Uban Mobilit repotestimates that dives expeienced ove 4�2 bil-lion hous o dela and wasted appoximatel 2�9billion gallons o uel in 2005�

Looking owad, we ae behind in buildingthe inastuctue that we need to compete inthe global, inomation-age econom and ae atisk o losing ou Nation’s scientic dominance�Ove the last thee decades, Fedeal unding

1994-95 1996-97 1998-99 2000-01 2002-03 2004-05 2006-07 2008-090

2

4

6

8

10

12

14

16List Price

Net Price (net of average grant and education tax benefits)

Average Annual Undergraduate Tuition, Room and Boardfor Public Four-Year Institutions (List and Net Prices)

Source: College Board.

Dollars in thousands

Figue 10




o the phsical, mathematical,and engineeing sciences hasdeclined as a pecentage o GDPat a time when othe countiesae substantiall inceasing thei

own eseach budgets� At onepoint not long ago, the UnitedStates led the wold in boadbanddeploment; now, that leadeshipis in question� Wieless netwoksin man counties aboad aeaste and moe advanced thanou own� Ou electical gid isstill constucted aound thesame model o 100 eas ago, andin some places is as old� Poweinteuptions and outages cost

Ameicans at least $80 billioneach ea� Finall, because o an insistence on putting dogmaahead o science, the United States has allenbehind in some o the most impotant, cutting-edge eseach such as stem-cell eseach�

Clean Energy

This lack o investment in the utue is mostglaing in the aea o clean eneg� Fo decades,we have talked about the secuit impeative we

have to wean ou Nation o oeign oil, which isoten contolled b those whose inteests ae in-imical to ous� And in ecent eas, a consensushas developed ove the need to limit geenhousegas emissions, which poduce global waming andincease the isk o sevee stoms and weatheconditions that might uin cops, devastate cities,and destabilize whole egions� All o these actsae eason enough to invest in clean eneg tech-nologies� But thee is an economic impeative toembace these investments as well�

The clean eneg secto pesents us with im-mense pomise—to develop and dominate a newindust secto and to ceate high-paing jobshee at home� Fom new, highl uel-ecient casto enewable souces o powe, thee ae a host o emeging technologies that can spu the gowtho new business while ceating millions o new

jobs� Ou economic competitos know that� That’s

wh the ae acing to dominate these industiesand to tansom thei economies�

yet, the last Administation appoached oueneg needs b ocusing on nding moe o theossil uels we use now� As a esult, we ae stilladdicted to ossil uels and moe dependent onoeign oil than eve beoe� We have et to makeimpotant polic changes and citical investments

in the clean eneg inastuctue that we’ll needto tansom ou econom� Beond clean eneg,we have not kept up with investing in the basicscience and eseach that will powe this sectoand the entie econom in decades to come� In act,as a shae o GDP, Ameican Fedeal investmentin the phsical sciences and engineeing eseachhas dopped b hal since 1970�

eroDing trust AnD AccountAbility

Govenment is able to wok on behal o thepeople and attend to thei immediate needs andlong-ange poblems when it tul is a goven-ment o, b, and o the people� Pat o what ailsou econom is a poound disconnect betweenou leades in Washington and the est o the Na-tion�

2000 2001 2002 2003 2004 2005 2006 2007 200890

100

110

120

130

140

150

160

170

Since 2000 Family Health Insurance Premiums Have

Increased Much Faster than Workers' Real EarningsIndex Levels 2000 = 100

Source: Kaiser Family Foundation / Bureau of Labor Statistics.

Inflation Adjusted Family Health Insurance PremiumsHave Increased 58% Since 2000

While Real Hourly EarningsHave Increased Just 3% Since 2000

Figue 11




Ove the past eight eas, polic was made be-hind closed doos� In man cases, unpecedentedlevels o secec have been invoked to block pub-lic scutin� In such an envionment, the well con-nected and those who ae able to hie high-piced

lobbists wee able to cave out huge loopholes inou tax code, win massive subsidies that shitedthe tax buden to small businesses and the mid-dle class, and obtain exemptions om the basicules o the oad o themselves and thei clients�

And the did this all without paing o it o be-ing held to account� This must change�

Fiscal Irresponsibility

Anothe maniestation o iesponsibilit isthe lage budget decits we ae inheiting� These

decits, ove time, will ham economic gowthand impose budens on ou childen and gand-childen� Fo the past eight eas, in a time o eco-nomic gowth, the Govenment spent ecklesslon tax cuts o the ew and hand-outs o the well-o and well-connected, mismanaged billions o dollas in taxpae mone, and ailed to hono theesponsibilities we have to utue geneations�Massive new pogams have outinel been omit-ted om the Budget to mask thei tue cost, whilea new entitlement pogam and massive tax cutswee poposed and signed into law without an

attempt to pa o them� Between 2000 and 2008,eal Govenment outlas inceased at a 3�6 pe-cent annual aveage ate, thee times the 1�2 pe-cent annual aveage ate between 1992 and 2000�This has helped tun a suplus o $236 billion at

the end o the Clinton Administation, that waspojected to gow still lage ove time, into a de-icit o moe than $1 tillion in 2009� (see Figue12, Supluses Have Tuned to Decits)� Futhe-moe, the amount o debt held b the public hasneal doubled to $6�4 tillion om 2001 to 2008�We ae now living with the allout o this deep s-cal iesponsibilit�

Unotunatel, we ae also inheiting the wosteconomic cisis since the Geat Depession—which will oce us to incease decit spending

tempoail as we t to jumpstat economicgowth� This is an extaodina esponse to anextaodina cisis, and as we come out o thisecession, we must etun to the path o scal e-sponsibilit� It will mean tough choices—choicesthat ae toughe because o the legac o scaliesponsibilit let to us�

Erosion of Market Oversight

Ou Nation depends on pivate initiative andon ee makets� But the nancial cisis has e-

minded us that without a watchulee, the makets can spin out o contol� In ecent eas, a dogmaticdeegulato appoach to ou capi-tal makets, diven b ideologathe than pagmatism, has nowput those ve makets—the envo the wold—in thei most seiouscisis in decades� Policmakes o-got that makets wok when theeis tanspaenc o nancial ino-mation o investos and consum-es alike; independent ovesight;and accountabilit enoced b ac-tive and uncompomised egula-tos� Because o delibeate policdecisions, balance sheets did notaccuatel efect the isks thatms wee taking; lage pools o capital wee let unegulated while

1980 1984 1988 1992 1996 2000 2004 2008-14

-12

-10

-8

-6

-4

-2

0

2

4

Surpluses Have Turned to DeficitsSurpluses (Deficits) as share of GDP

Projected (2009)

Figue 12




moe and moe investos wee exposed to them;and conficts o inteest compomised the ceditating agencies upon which investos elied� In-

vestos and consumes ended up paticipatingin complex tansactions without ull disclosue

o the elevant isks, and eventuall these mot-gages, cedit cad debts, and othe loans ended upcosting man Ameicans deal�

Because ou egulato sstem atophied andits patchwok quilt o dieent egulatos andstandad-settes was let untouched, it ailed tokeep pace with nancial innovation� As a esult,investos wee led into investments that theneithe undestood no wee appopiate to theiisk pole, and man people took on debts thatthe neve could have hoped to pa� Cones wee

cut, and ules wee bent� At eve level, some o the most impotant maket actos ailed to live upto thei esponsibilities and ailed to do what in-

vestos need o them to invest thei had-eanedmone wisel�

An Unresponsive Government

It is no coincidence that the polic ailues o thepast eight eas have been accompanied b un-pecedented Govenmental secec and unpece-dented access b lobbists and the well-connected

to policmakes in Washington� Consequentl,the needs o those in the oom tump those o thei ellow citizens� We saw this with the EnegTask Foce convened in 2002� When a SupemeCout ode nall opened up its poceedings toeview, it became appaent that egulato deci-sions wee made that efected specic equestsb indust epesentatives with the Goven-ment’s ea�

The gowth o Fedeal contacting is anotheinstance whee special inteests beneted omspecial access� Fedeal spending on contactsmoe than doubled om about $208 billion in2000 to moe than $423 billion in 2006—and et

the numbe o contact oces oveseeing thesecontacts emained fat� The value o contactsnot subject to ull and open competition gewom $48�6 billion to $112�5 billion duing thesame peiod� Cost-tpe contacts that ae patic-ulal vulneable to waste since the povide noincentive to contol costs inceased moe than 75pecent unde the pevious Administation�

This special-inteest diven use o taxpaedollas shows up in the billions o dollas in im-pope ovepaments o Medicae and Medic-

aid, the billions that Fedeal taxpaes pa outto und copoate loopholes; and in the $4 billionin Iaq-elated spending auditos estimate is lostto waste and ineective pogams� Most ege-giousl, we see this iesponsibilit in the tens o thousands o Fedeal contactos and Medicaesevice povides who make mone o o the Gov-enment, but ail to pa all thei taxes—costingus billions�

Fo the Nation to move out o this economiccisis, and to put ou count on the path to

poductivit and gowth, the Ameican peopleneed its leades to live up to thei esponsibilities�That means opening the doos to citizen input;holding those entusted with taxpae dollasaccountable o thei use; and setting stong,enoceable ules o the oad to keep oumakets ee and ai� With a govenment that isaccountable to the people, we can jumpstat oueconom in a wa that is both quick and wise,and begin to make the long-tem investments inaeas long neglected�



17

Thee ae no quick and eas xes to the eces-sion plaguing ou econom� This cisis has beenman eas in the making, and it is likel to getwose beoe it gets bette� Thee is no doubtthat ou Nation has the ceativit, capabilit,and industiousness to lit ouselves out o thisdowntun and begin the pocess o tansom-ing ou econom o the 21st Centu� As we do

this, we need to emembe that thoughout ouhisto, the United States has gown and pos-peed when all Ameicans have shaed in theoppotunities ceated b ou econom� While oueconom has made the tansition om an aga-ian econom to an industial one and on to aninomation-age econom, this essential tuthhas not changed: Ameica thives when all oupeople have the chance to succeed�

The past eight eas have discedited once ando all the philosoph o tickle-down econom-

ics—that tax beaks, income gains, and wealthceation among the wealth eventuall will wokthei wa down to the middle class� In its place,we need economic oppotunit to tickle up� Weneed policies that will stengthen the middleclass and ceate the conditions to spu innova-tion and sustainable economic gowth� Somema sa that in this cuent envionment thisis aiming too high� Settling neve has been the

Ameican wa, and now is no time to lowe ousights� While we have inheited unpecedentedbudget decits and a weakened econom, nowis pecisel the time o the count to makethe long ovedue investments that will unda-mentall tansom ou econom so that we cancompete and thive in the decades ahead� As we

jumpstat ou econom out o this ecession, the Ameican people expect and demand that theiGovenment does so with unpecedented tans-paenc and accountabilit so that the know

whee thei tax dollas ae going and how theseunds ae being spent�

immeDiAte relieF AnD economic stimulus

As the ea stated, it became clea thee wasa wide and gowing shotall between what the

econom could poduce and what it was poduc-ing� I we kept on this couse, economists pe-dicted that the econom would shed millions o additional jobs, the unemploment ate could ex-ceed 10 pecent, and ove the next two eas, thecount would lose oughl $2 tillion in income�With taditional moneta polic leves lagelexhausted, the Congess passed and the Pesi-dent signed into law the Ameican recove andreinvestment Act o 2009 (the “recove Act”),a nationwide eot to ceate jobs and tansomou econom to compete in the 21st Centu�

Because speed is o the essence when it comesto acting to save ou econom and millions o

jobs, appoximatel thee-quates o the undsin this package will be spent out ove the next18 months� Man o the long-tem investmentswill stimulate the econom too as these elementso the package ae simultaneousl designed tospak economic gowth, save o ceate 3 to 4 mil-lion jobs, and help amilies though these toughtimes� To povide immediate elie and get theeconom moving again, the Administation will:

Make Permanent te $800 “Makng WorkPa” Tax Ct or Workers an Ter am-les. The recove Act ceated the Making WokPa tax cedit, a eundable income tax cedit,which will oset the paoll tax on up to thest $6,450 o eanings o about 95 pecent o all Ameican wokes while still peseving the

JuMPSTARTiNG ThE ECONOMy ANdiNvESTiNG OR ThE uTuRE

17




impotant pinciple o a dedicated evenue souceo Social Secuit� This helps small business own-es stuggling to meet expenses� And with ami-lies squeezed, this tax cut will put needed monein thei pockets o them to make ends meet and

cove the costs o necessities� This is the st-stage o a middle-class tax cut pomised duingthe pesidential campaign� The Budget will makeMaking Wok Pa pemanent�

Contne to Ct Taxes or te amleso Mllons o Clren Trog an Expan-son o te Cl Tax Cret. B expandingthe Child Tax Cedit, the recove Act povideda new tax cut and inceased the geneosit o theexisting cedit to millions o childen—ulllingthe pomise that a amil that woks had and

plas b the ules will be able to aise thei chil-den above the povet line� The Budget makesthis tax cut pemanent�

increase oo Stamp Benefts or Oer 30Mllon Amercans. Even in tough times, ouNation is a nation o plent, and no one shouldhave to go hung� The recove Act will spendneal $20 billion to incease ood stamp benetso ovestetched amilies, and povide additionalsuppot o ood banks, school lunch pogams,and the Special Supplemental Nutition Pogam

o Women, Inants, and Childen (WIC) pogam�

Proe Nearl 60 Mllon Retre andsable Amercans an immeate $250Trog Temporarl increasng Benefts.These vulneable populations ae the st onesto eel an economic downtun� Though the re-cove Act, we will spend almost $15 billion topovide neal 60 million etied Ameicans and

Ameicans with disabilities an immediate $250though tempoail inceasing Social Secuit,Supplemental Secuit Income, and Veteansbenets�

Exten, Expan, an Reorm unemplo-ment insrance (ui) Benefts. With unem-ploment on the ise and those out o wok goinglonge without new jobs, we have povided botha boost to ou econom and to these wokes’well-being b extending the Emegenc Unem-

ploment Compensation pogam though De-cembe 2009, inceasing weekl UI benets b$25, and poviding nancial incentives o Statesto modenize thei UI sstems to expand cove-age� Beond this ea, the Administation will

update the Nation’s UI sstem to bette addessthe challenges and ealities o the 21st Centuwokoce� The Budget poposes changes to makethe UI pogam a moe esponsive and eectivesocial saet net and economic stabilize� The Ad-ministation will popose to make the pemanentExtended Benet pogam moe esponsive tochanging economic conditions, making benetsavailable moe quickl and avoiding the delasassociated with special, tempoa extended un-emploment pogams� Finall, despite the eotso States to educe impope benet paments,

ove $3�9 billion in UI benets wee eoneouslpaid in 2008� The Administation will tackle thispoblem b inceasing unding o pogam integ-it and poposing legislative changes that wouldhave the diect and indiect eect o educing UIimpope paments b $3�9 billion and educingemploe tax evasion b almost $300 million ove10 eas�

Reorm Asset Tests. The Administationwould like to wok with the Congess to evisitasset limits o Fedeal means-tested pogams

in the wake o new and expanded eundable taxcedits� Cuent asset ules acoss a vaiet o pogams ae antiquated, inconsistent, and pes-ent obstacles o low-income individuals who as-pie to achieve sel-sucienc� The intesectiono the new cedits and outdated asset ules madisquali new and cuent individuals and ami-lies om Fedeal benets, including Medicaidand Supplemental Nutition Assistance Pogam(omel Food Stamps)�

creAting Jobs AnD investing in long-term

economic growtH

These tax and benet povisions o the e-cove plan will povide an immediate stimula-tive eect on the econom� The othe pat o thestimulus comes om expenditues on pojectsthat will pomote medium-tem economic activ-



JUMPSTArTING THE ECONOMy AND INVESTING FOr THE FUTUrE 19

it while also poviding some lit to the economin the nea tem—as homes ae weatheized, andhealth ecods ae digitized—to name just a ew�In addition to immediate hiing and expansionas these pojects begin, the Ameican people will

eap benets om these investments o eas tocome because the economic benets o moden in-astuctue, wold-class schools, investments ineseach and development, health cae eom,and clean eneg will be enjoed b geneationso Ameicans� The expenditues in man o theseaeas then seve a dual ole: to evive the econo-m in the shot tem and to estoe its health othe long tem� Though ambitious investmentsin clean eneg, health cae, education and otheke aeas, the plan will addess long-ignoed na-tional pioities and make a histoic down pa-

ment on ou Nation’s economic utue� The 2010Budget will suppot, and in some cases extend aswell as expand the down paments made in therecove Act�

Building a 21st Century Infrastructure

A centu ago, Theodoe roosevelt called to-gethe leades om business and govenmentto develop a plan o a 20th Centu inastuc-tue� Moe than 50 eas ago, republican DwightEisenhowe and Democat Al Goe, S� woked

togethe to launch the Intestate Highwa Ss-tem� Toda, howeve, too man o ou Nation’sailwas, highwas, bidges, aipots, and neigh-bohood steets ae aging and congested due tolack o investment and stategic long-tem plan-ning� In the shot tem, modenizing ou ina-stuctue will ceate new jobs and povide a boostto the econom� In the longe tem, inastuctueinvestment will povide ou Nation a oundationo long-tem economic gowth� The Budget will:

Establs a Natonal inrastrctre Bank.The Budget poposes to expand and enhance exist-ing Fedeal inastuctue investments though aNational Inastuctue Bank designed to delivenancial esouces to pioit inastuctue poj-ects o signicant national o egional economicbenet� The mission o this entit will be to notonl povide diect Fedeal investment but alsoto help oste coodination though State, munici-

pal, and pivate co-investment in ou Nation’smost challenging inastuctue needs� Thesepojects will diectl and indiectl suppot jobsand stimulate substantial long-tem economicgowth�

inest n Or Naton’s Roas, Brges,an Mass Transt. The Pesident is committedto instituting accountabilit o the $35�9 billionpovided in the recove Act and to esponsibleauthoizing the Nation’s highwa and masstansit pogams� The Administation intends towok with the Congess to eom suace tans-potation pogams both to put the sstem on asustainable nancing path and to make invest-ments in a moe sustainable utue, enhancingtansit options and making ou econom moe

poductive and ou communities moe livable�Futhe, ou suace tanspotation sstem mustgeneate the best investments to educe conges-tion and impove saet� To do so, the Administa-tion will emphasize the use o economic analsisand peomance measuement in tanspotationplanning� This will ensue that taxpae dollasae bette tageted and spent�

intate a New eeral Commtment tohg-Spee Ral. To povide Ameicans a 21stCentu tanspotation sstem, the Administa-

tion poposes a $1 billion-a-ea high-speed ailState gant pogam, in addition to the $8 bil-lion povided in the recove Act� This poposalmaks a new Fedeal commitment to give thetaveling public a pactical and envionmentallsustainable altenative to fing o diving� Di-ected b the States, this investment will lead tothe ceation o seveal high-speed ail coidosacoss the count linking egional populationcentes�

improe an Moernze Ar Trafc Con-trol. Because o an outdated ai-tac contolsstem and ove-scheduling at aipots aleadopeating at ull capacit, an odina tip to abusiness meeting o to visit amil can becomemaed b long delas� The Budget povides $800million o the Next Geneation Ai Tanspota-tion Sstem in the Fedeal Aviation Administa-tion, a long-tem eot to impove the ecienc,




saet, and capacit o the ai tac contol ss-tem� The 2010 Budget suppots moving om agound-based ada suveillance sstem to a moeaccuate satellite-based suveillance sstem; de-

velopment o moe ecient outes though the

aispace; and impovements in aviation weatheinomation�

Mantan Rral Access to te AatonSstem. The Administation is committed tomaintaining small communities’ access to theNational Aispace Sstem� The Budget povidesa $55 million incease ove the 2009 level to ul-ll cuent pogam equiements as demando subsidized commecial ai sevice inceases�Howeve, the pogam that delives this subsidis not ecientl designed� Though the budget

pocess, the Administation intends to wok withthe Congess to develop a moe sustainable po-gam model that will ulll its commitment whileenhancing convenience o taveles and impov-ing cost eectiveness�

Enance Secrt at Oer 90 Major Ports,to improe homelan Secrt, increase in-ternatonal Trae an Commerce, an Cre-ate Jobs. This investment will help make ouNation’s pots a vital and secue link to the globaleconom, not a vulneable ent point o those

who seek to ham us� The Administation is com-mitted to impoving the potection o ou citi-cal pot inastuctue� The Budget continues topovide isk-based unding though the Pot Se-cuit Gant Pogam and builds upon the ove$1�4 billion povided o pot secuit gants ovethe past ew eas� These awads can be used bgantees to puchase a wide vaiet o secuit-enhancing investments including watecat oinceased patolling o acilities, canine, bomb-sning units, and updating pot vulneabilitassessments� Additional unding will be used bCustoms and Bode Potection to puchase tech-nolog enhancements, such as non-intusive in-spection X-a equipment and adiation potalmonitos to detect nuclea mateials�

inest n Clean an Sae drnkng Water.The Budget equests $3�9 billion o the Envion-mental Potection Agenc’s Clean Wate State

revolving Fund and the Dinking Wate Staterevolving Fund (SrFs), in addition to the $6billion povided in the recove Act� With thishistoic incease, the pogams will und ove1,000 clean wate and neal 700 dinking wate

pojects annuall based on aveage poject costs�In addition, the recove Act will suppot ove1,300 new wastewate pojects and ove 700 newdinking wate SrF pojects� Though recove

Act unding o the Depatment o Agicultue’s(USDA’s) ual wate and wastewate gants andloans, the Administation will suppot a $3�8 bil-lion pogam level o the epai, upgade, andconstuction o 2,000 ual wate and sewe ss-tems, poviding new o impoved sevice to 3 mil-lion people� Togethe with unding inceases othe SrFs, the Administation will pusue SrF

pogam eoms that will put esouces o theseongoing needs on a me oundation�

Expan Access to Broaban. As a count,we have made signicant public investments sothat, egadless o economic status, Ameicanshave access to telephone sevice and electicit� Inthis da and age, we must do the same o boad-band� Like an netwok, the moe people who aea pat o it, the stonge we all ae� The moe com-munities that have access to high-speed Intenetconnections, the moe businesses can gow and

jobs can be ceated� When that happens, the en-tie Nation wins� That is wh the recove Act in-cluded $7�2 billion o boadband expansion andthe 2010 Budget includes $1�3 billion in USDAloans and gants o the Depatment o Agicul-tue to incease boadband capacit and impovetelecommunication sevice as well as educationand health oppotunities in ual aeas�

inest n te Scences. Investments in sci-ence and technolog oste economic gowth;ceate millions o high-tech, high-wage jobsthat allow Ameican wokes to lead the globaleconom; impove the qualit o lie o all Amei-cans; and stengthen ou national secuit� Therecove Act included a $5 billion investmentin ke science pogams, which is b itsel an al-most 50-pecent incease o these pogams ove2008 and epesents a signicant down-pamenttowad the Pesident’s plan to double the und-




ing o these agencies ove 10 eas� Unde thePesident’s doubling plan, the Budget povides a16-pecent incease ove 2008 unding levels othe National Science Foundation and similallage inceases o the Depatment o Eneg’s O-

ce o Science and the Depatment o Commece’sNational Institute o Standads and Technolog�The Budget also inceases suppot o pomising,but exploato and high-isk eseach popos-als that could undamentall impove ou unde-standing o climate, evolutionize elds o science,and lead to adicall new technologies� In addi-tion, the Budget unds cutting-edge, undamentaleseach in taditional and emeging disciplinesto help tansom the Nation’s ai tanspota-tion sstem and to suppot utue aicat� TheNational Aeonautics and Space Administation

(NASA) eseach in aeonautics will ocus on howto incease aispace capacit and mobilit, en-hance aviation saet, and impove aicat pe-omance while educing noise, emissions, anduel consumption�

Creating a Clean Energy Economy

The high gas pices o last summe onl unde-scoed what we have known o decades: we can-not aod to depend so heavil on oeign oil andothe ossil uels to powe ou econom� While the

national secuit implications have been cleao some time, the moe we lean about globalwaming, the moe we see that ailue to weanouselves o o ossil uels also jeopadizes oueconom and ou entie planet�

Counties and companies aound the wold ec-ognize this and ae woking da and night to de-

velop clean eneg technologies that will changeevething om how we geneate ou electicitto how we powe ou cas and tucks� While thechallenge is geat, the pomise o the moment isunpaalleled� I we lead the wold in the eseachand development o clean eneg technolog, wecan ceate a whole new indust with high-paing

jobs that cannot be shipped oveseas� Some com-pae the pomise o this secto to inomation tech-nolog� The dieence is that with clean eneg wecan bing new jobs to ual aeas long let behindin economic gowth� Moeove, i we take the time

now to stat tansoming ou econom, we willenjo the benets o a lowe cost and moe e-cient eneg suppl o eas to come� As a downpament on an eneg independent, clean enegeconom, in this Budget, the Administation will:

Begn a Compreense Approac toTransorm Or Energ Sppl an SlowGlobal Warmng. The Administation is devel-oping a compehensive eneg and climate changeplan to invest in clean eneg, end ou addictionto oil, addess the global climate cisis, and ce-ate new Ameican jobs that cannot be outsouced�

Ate enactment o the Budget, the Administa-tion will wok expeditiousl with ke stakehold-es and the Congess to develop an econom-wideemissions eduction pogam to educe geen-

house gas emissions appoximatel 14 pecentbelow 2005 levels b 2020, and appoximatel 83pecent below 2005 levels b 2050� This pogamwill be implemented though a cap-and-tadesstem, a polic appoach that damaticall e-duced acid ain at much lowe costs than the ta-ditional govenment egulations and mandates o the past� Though a 100 pecent auction to ensuethat the biggest pollutes do not enjo windallpots, this pogam will und vital investmentsin a clean eneg utue totaling $150 billion ove10 eas, stating in Fy 2012� The balance o the

auction evenues will be etuned to the people,especiall vulneable amilies, communities,and businesses to help the tansition to a cleaneneg econom�

Proe te Captal to doble RenewableEnerg Generatng Capact. renewable pow-e has gown damaticall ove the past sevealeas� Unotunatel, the cuent cedit cisis hasbought this dnamic pogess to a halt� The po-gams in the recove Act will help to evive theenewable indust, doubling the amount o e-newable eneg geneated� Collectivel, the loanguaantees povided in the ecove plan and inthis Budget ae expected to leveage tens o bil-lions o dollas in pivate capital� The recove

Act also extends the poduction tax cedit (PTC)to 2012 o wind and 2013 o othe enewablesouces o eneg� This extension ceates theeeas o cetaint o investos, eliminating the




delas histoicall associated with the PTC� The Act also expands authoit o clean enewableeneg bonds and ceates new manuactuing taxcedits to spu domestic manuactuing o cleaneneg equipment

deelop Low-Carbon Emsson Tecnolo-ges. The recove Act povides unding to meetthe Pesident’s campaign commitment to buildve commecial scale coal-ed plants with ca-bon captue and stoage technolog though pub-lic-pivate patneships� The Eneg Depatmentwill also scale up its demonstation pojects ogeologic stoage o cabon dioxide� Combined,this unding will set the oundation o signi-cant eots to mitigate geenhouse gas emissionsom coal-ed powe plants�

Moernze eeral Blngs an Slaste eeral Goernment’s Energ Bll b 25Percent. The Fedeal Govenment is the lagesteneg consume in the wold� Making substan-tial investments to educe Fedeal eneg con-sumption can spu job ceation while deliveinglong-tem Govenment savings though loweeneg bills� The Budget will build upon the moethan $11 billion povided o building modeiza-tion in the recove Act to achieve the Pesident’s25 pecent eneg ecienc impovement goal b

2013�

Weaterze Low-income homes, SangWorkng amles on Aerage $350 Per year. Acoss the Nation, amilies spend a signicantpotion o thei budget unning thei unacesand ai conditiones as well as keeping the lightson� B upgading a home’s unace, sealing leakducts, and adding insulation, a homeowne cancut thei eneg bills b 20 to 40 pecent, and thesubstantial savings accue in summe as well aswinte and o eas to come� B adding-enegecient appliances and lighting, the savings aeeven geate� The Depatment o Eneg’s weath-eization budget o $227 million in 2008 couldonl povide benets o 76,000 U�S� homes� Whilethe Nation has weatheized about six million low-income homes since 1976, moe than 28 millionemain eligible� The Budget will build upon the$5 billion povided in the recove Act o weath-

eization assistance in ode to spu developmento an indust that will have the capacit to meetthe Pesident’s goal o weatheizing one millionhomes annuall�

use Ttle Xvii Loan Garantee to ReceGreenose Gas Emssons. Loan guaantee volume unde Title XVII o the Eneg and Polic Act o 2005 will suppot innovative and advancedtechnologies that avoid, educe, o sequeste an-thopogenic geenhouse gas emissions o ai pol-lutants� The Budget will suppot a wide-ange o eligible pojects such as enewable eneg ss-tems, electic sstem tansmission pojects, andcabon captue and sequestation pojects thatwill esult in a cleane envionment and poten-tiall, a tansomed eneg secto�

help State an Local Goernments beMore Energ Efcent. Ate the Fedeal Gov-enment, State and local govenments ae someo the lagest uses o eneg� Facing budgetshotalls, man States and local govenmentsnow lack sucient nancial esouces to tap theull potential o clean eneg development anddeploment� This situation is exacebated b pi-

vate secto nancing ding up as a esult o theecent cedit cisis� The Budget will build upon$6�3 billion povided o clean eneg and eneg

ecienc gants to state and local govenmentsin the recove Act to help suppot thei eotsto educe thei eneg use�

Green Or Naton’s arms. The Budgetinceases unding levels ove those povided inpevious eas o pogams, such as the Conse-

vation Stewadship Pogam and the Envion-mental Qualit Incentives Pogam that povideincentives o ames to bette conseve theilands and educe pollution such as om animaleeding opeations� In addition, USDA intends towok with ames to help them take advantageo oppotunities to paticipate in emeging ma-kets o cabon cedits, altenative eneg andin othe envionmental sevices, such as wildliehabitat, clean wate, and clean ai�

Moernze te Electrc Gr. We knowthat the existing electicit gid toda is insu-




cient and outdated� In ode to bing signi-cant amounts o enewable eneg online, tens o thousands o miles o new, high-voltage nationaltansmission is necessa� Fo example, NothDakota—a State with signicant wind eneg

potential—cannot ca the eneg to the popu-lation centes that need the electicit withouta new tansmission supehighwa� The Budgetwill build on eots in the recove Act to ceatethis new, smate electic gid o the integationand use o geate amounts o enewable ene-g; inceased utilization o innovative ecienctechnologies; and a eduction in the electic con-gestion that costs atepaes billions o dollaseach ea� The recove Act includes unds tocomplete additional signicant wok in impov-ing the national gid with egional tansmission

planning and inteconnection based tansmissionplanning� Included is a $100 million wokocetaining pogam� To make the gid smate, mil-lions o Smat Metes—a ke st step to a SmatGid—will be deploed as well as investments ina host o othe smat gid technologies�

Preparing Our Children for the 21stCentury Economy

Ameica aces ew moe ugent challengesthan pepaing ou childen to compete in a glob-

al econom� The decisions ou leades make abouteducation in the coming eas will shape ou u-tue o geneations to come� The Administationis committed to meeting this challenge, and its

vision o a 21st Centu education begins withdemanding moe eom and accountabilit cou-pled with the esouces needed to ca out thateom; asking paents to take esponsibilit othei childen’s success; and ecuiting, etain-ing, and ewading an am o new teaches toteach at new, successul schools that pepae ouchilden o success in college and the wokoce�Thoughout ou histo, ou Nation’s schools omthe local elementa school to the lage unive-sit have been the gatewa into the middle classand a bette lie o millions� That is wh it’s soimpotant that the investments we make in ed-ucation ae ones that wok—that help childenlean and pusue thei deams� When it comesto ou childen’s utue, we cannot waste dollas

on methods, pogams, and initiatives that aenot eective and ecient� Consequentl, in thisBudget, the Administation makes signicantinvestments in appoaches that have poven todelive o ou childen and will eallocate unds

awa om and teminate pogams that do not�To estoe the pomise o Ameica’s public educa-tion and to help Ameica’s childen again lead thewold in achievement, ceativit, and success, theBudget will:

Make A New inestment in Earl Cl-oo Ecaton. We know that a dolla invest-ed in eal education will pa o handsomel asthese childen gow olde� That is wh the Admin-istation is poposing to help States stengthenthei eal education pogams� The Administa-

tion will boaden the each o these pogamsand boost thei qualit—encouaging new invest-ment, a seamless delive o sevices, and betteinomation o paents about pogam optionsand qualit� In addition, though unds om therecove Act and this Budget, the Pesident willpovide unding to double the numbe o childenseved b Eal Head Stat and expand HeadStat, both o which have poven to be successulwith ounge childen� Finall, the Depatmento Health and Human Sevices will begin a majoeot to amp up a new Nuse-Home Visitation

pogam� rigoous eseach has shown that awell-stuctued pogam can have lage and mea-suable impacts in helping at-isk expectant andnew paents give thei childen a health statin lie�

Spport hg Stanars an Rgoros Assessments Algne wt te demanso te Global Econom. Students need tomeet high standads, and tests need to mea-sue the ull ange o skills that childenmust lean� Building on investments madethough the recove Act, the Administationwill help States stengthen thei standadsso the ae igoous and elect eadiness osuccess in college and a caee� resouces willalso be available to impove the qualit o assessments, including assessments o stu-dents with disabilities and English languageleanes� Such eoms will la the gound-




wok o eauthoizing the Elementa andSeconda Education Act�

Prepare an Rewar Eecte Teacersan Prncpals. Almost all successul students

can emembe a teache who had an outsized im-pact on thei education� Indeed, the qualit o theeducation wokoce is a citical acto in educa-tional success� The Budget builds on the invest-ments unded unde the recove Act designedto signicantl upgade the skills and eective-ness o the education wokoce� The Adminis-tation will invest in eots to stengthen andincease tanspaenc aound esults o teacheand pincipal pepaation pogams, includingpogams in schools o education, altenative ce-tication pogams, and teache and pincipal

esidenc pogams� The Budget suppots addi-tional investments in State and local eots, de-

veloped in consultation with teaches and othestakeholdes, to implement sstems that ewadstong teache peomance and help less eec-tive teaches impove o, i the do not, exit theclassoom� resouces ae also included to developbette sstems and stategies o ecuiting, eval-uating, and suppoting teaches and othe educa-tos to povide a bette suppl and distibution o well-pepaed and eective education wokoce�

increase Spport or Eecte CarterScools. The Pesident’s Budget will pomotesuccessul models o school eom b takingthe st majo step to ullling its commitmentto double suppot o chate schools� The De-patment o Education will help ceate new,high-qualit chate schools, ensue that Statespopel monito and suppot these schools, and,in the case o chonic undepeomance, close ex-isting chate schools�

Expan Pell Grants an Pt te Programon Sre ootng. Because the Administationis committed to making college aodable o all

Ameicans, the 2010 Budget builds on the recov-e Act b suppoting a $5,550 Pell Gant maxi-mum awad in the 2010-2011 school ea� But it’snot enough just to make Pell Gants moe gene-ous and to put on a shot-tem patch� Fouteentimes since 1973, the maximum Pell Gant has

ailed to incease even in nominal dollas� Tomake sue that we have a highl educated wok-oce and that the oppotunit to go to college isnot detemined b how much mone ou have,the Budget puts the Pell Gant pogam on sue

ooting� The Administation will index Pell gantsto the Consume Pice Index plus 1 pecent in o-de to account o infation in this secto� In ad-dition, the Administation poposes to make thePell Gant pogam mandato to povide a egu-la steam o unding and eliminate the pacticeo “backlling” billions o dollas in Pell shotallseach ea�

Stablze te Stent Loan Program orStents an Sae Bllons o dollars orTaxpaers. right now, the subsidies in the

Govenment-guaanteed student loan pogamae set b the Congess though the political po-cess� That pogam has not onl needlessl costtaxpaes billions o dollas, but has also sub-

jected students to uncetaint because o tumoilin the nancial makets� The Pesident’s Budgetasks Congess to end the entitlements o nan-cial institutions that lend to students, and insteadto take advantage o low-cost and stable souces o capital so students ae ensued access to loans—while poviding high-qualit sevices o studentsb using competitive, pivate povides to sevice

loans� The appoach in the Budget, oiginating allnew loans in the diect lending pogam, savesmoe than $4 billion a ea, and einvests it inaid to students� The Budget also makes campus-based, low-inteest loans moe widel avail-able though a new modenized Pekins Loanpogam, ovehauling the inecient and inequi-table cuent Pekins pogam�

help At-Rsk Stents Complete College. It is not enough o ou Nation to enoll moe stu-dents in college; we also need to gaduate moestudents om college� A ew States and institu-tions have begun to expeiment with these eotsto accomplish this, but thee is much moe thecan do� The Budget includes a new ve-ea, $2�5billion Access and Completion Incentive Fund tosuppot innovative State eots to help low-in-come students succeed and complete thei collegeeducation� The pogam will include a igoous




evaluation component to ensue that we leanom what woks�

Make Permanent te New Amercan Op-portnt Tax Cret. I we do not make college

moe aodable, we un the isk o losing a wholegeneation o potential and poductivit� To helpstudents pa o college, the Administation ce-ated a new $2,500 Ameican Oppotunit TaxCedit in the recove Act� The cedit makes col-lege moe aodable o millions o middle-classamilies and o the st time makes college taxincentives patiall eundable� The Budget po-poses to make this tax cut pemanent�

Elmnate or Ct Ecaton Programswt Recors o Low Perormance. When it

comes to educating ou childen, we cannot aodto waste a dolla� The Administation poposes toeliminate, cut, o place unde intensive eviewEducation Depatment pogams that ae nothelping to impove educational outcomes o stu-dents� These ae eots that lack stong evidenceto justi taxpae suppot and that, in mancases, could be unded in competitive undingsteams that equie evidence o esults�

inest n innoatons an n Wat Works.While it is impotant to incease suppot o

education, it is also citical to invest in leaningwhich pogams ae eective and in gowing theones that ae� Though the Innovation Fund, the

Administation will invest in school sstems andnon-pot oganizations with demonstated tackecods o success in aising student achievementto expand thei wok o implement new innova-tive appoaches� Fo instance, the Halem Chil-den’s Zone aims to impove college-going atesb combining a igoous K-12 education with aull netwok o suppotive sevices—om ealchildhood education to ate school activities tocollege counseling—in an entie neighbohoodom bith to college� It has ielded encouagingesults, and the Pesident’s Budget povides undsto expand this concept b suppoting “PomiseNeighbohoods,” a new eot to test innovativestategies to impove academic achievement andlie outcomes in high-povet aeas� The Budgetalso inceases unding o igoous evaluation in

a st step towad doubling the Depatment o Education’s suppot o education eseach� TheDepatment’s Institute o Education Scienceswill use this unding to conduct igoous evalu-ations o appoaches to impove student leaning

and achievement with a ocus on evaluating andscaling up pomising innovative pactices�

Trple te Nmber o Graate ellow-sps n Scence to help Spr te NextGeneraton o home-Grown Scentfc in-noaton. The industies o tomoow will be-gin with ideas deamed up in the classooms andlaboatoies o toda� Without investments inhuman capital toda, we will not be able to eapthe benets o scientic innovation� That is whthe Administation povided in the recove Act

unds to be used as a down-pament towad thegoal o tipling the numbe o gaduate ellows inscience�

Lowering Health Care Costs and Ensuring Broader Health Care Coverage

One o the biggest dains on Ameican pocket-books is the high cost o health cae� Man ami-lies ae one illness o accident awa om nancialuin� Health insuance costs educe wokes’take-home pa to a degee that is both undeap-

peciated and unnecessail lage� At the sametime, health cae costs ae consuming a gowingshae o Fedeal and State govenment budgets�The United States spends ove $2�2 tillion onhealth cae each ea—almost $8,000 pe peson�That numbe epesents appoximatel 16 pe-cent o the total econom and is gowing apidl�B 2017, almost 20 pecent o the econom—moethan $4 tillion—will be spent on health cae�

Acoss ou Nation, health cae costs va sub-stantiall, et the highe-cost aeas do not gen-eate bette health outcomes than the lowe-costaeas� Even among ou Nation’s leading medicalcentes, costs va signicantl—with costs atsome centes twice as high as othes—but thehighe-cost centes do not achieve highe qualitthan the lowe-cost centes� Some eseaches be-lieve that health cae costs could be educed ba stunning 30 pecent—o about $700 billion a




ea—without haming qualit i we moved as aNation towad the poven and successul pactic-es adopted b the lowe-cost aeas and hospitals�

Captuing this oppotunit would help to boost

amil take-home pa and put the Nation on asounde scal path� It will equie man steps,including expanding the use o health inoma-tion technolog, moe aggessivel studing whatwoks and what doesn’t, expeimenting withdieent pament sstems to health cae po-

vides, and pomoting pevention and health liv-ing—man o which ae advanced damaticallthough the recove Act�

At the same time that we stive to containcosts, we cannot stand b as tens o millions o

Ameican lack health cae coveage� An un-health wokoce leads to an unhealth econom,and moving to povide all Ameicans with healthinsuance is not onl a moal impeative, but itis also essential to a moe eective and ecienthealth cae sstem�

The Pesident has alead begun the pocess o eoming health cae b:

instttng Temporar Prosons to Makehealt Care Coerage More Aorable or

Amercans Wo hae Lost Ter Jobs. Aspat o the recove Act o 2009, the Administa-tion will povide Ameicans who lose thei jobs ohave ecentl lost thei jobs a tax cedit to keepthei health insuance though COBrA� Thesesteps ae estimated b the Joint Committee onTaxation to help povide coveage o appoxi-matel seven million Ameicans�

increasng healt Care Coerage or Cl-ren. In one o his st ocial acts, the Pesi-dent signed into law the eauthoization o theChilden’s Health Insuance Pogam (CHIP)—bipatisan legislation vetoed twice b the pevi-ous Pesident� It povides the suppot, options,and incentives o States to povide coveage oan additional ou million childen on aveage inCHIP and Medicaid who ae now uninsued� ThePesident is committed to implementing this lawquickl and aggessivel to help amilies whose

childen ae at isk o losing coveage in thisweak econom�

Compterzng Amerca’s healt Recorsn e years. The cuent, pape-based medical

ecods sstem that elies on patients’ memoand epoting o thei medical histo is pone toeo, time-consuming, costl, and wasteul� Withigoous pivac standads in place to potectsensitive medical ecod, we will embak on an e-ot to computeize all Ameicans’ health ecodsin ve eas� This eot will help pevent medi-cal eos, and impove health cae qualit, andis a necessa step in stating to modenize the

Ameican health cae sstem and educe healthcae costs�

deelopng an dssemnatng inorma-ton on Eecte Mecal interentons.Medicine is changing so apidl it is almost impos-sible o an individual phsician to keep abeasto all the latest eseach studies� Without themost ecent inomation on eective teatments,it is inceasingl moe dicult o a docto to givea patient the tpe o individualized teatment heo she deseves� Each month, o instance, neal500 aticles ae published on beast cance alone�Despite this pousion o eseach, thee ae otengaps especiall an absence o data that compaes

how well dieent diagnostic tests and teatmentswok o the ve same conditions and diseases�To help phsicians get the inomation the needto povide the highest qualit cae o patients,the recove Act o 2009 devotes $1�1 billion tocompaative eectiveness eseach—the eviewso evidence on competing medical inteventionsand new head-to-head tials� The inomationom this eseach will impove the peomanceo the U�S� health cae sstem�

inestng n Preenton an Wellness. Ovea thid o all illness is the esult o poo diet, lack o execise, and smoking� Indeed, obesit alone leadsto man expensive, chonic conditions includinghigh blood pessue, heat disease, diabetes, andeven cance� Futhemoe, thee ae impotant

vaccines that can pevent diseases, and sceeningtests that can detect cance and othe diseases atan eal stage when the ae moe cuable� yet




man Ameicans ae not getting these eectiveinteventions� Fo instance, accoding to the Cen-tes o Disease Contol and Pevention ewethan 75 pecent o women get mammogams, andewe than 50 pecent o Ameicans eceive an

tpe o colon cance sceening� The Pesident hasdevoted in the recove Act an unpecedented $1billion o pevention and wellness inteventions�This will damaticall expand communit-basedinteventions poven to educe chonic diseases�

These investments made in the recove Actwill help, in the long-un, to slow health cae costgowth which is the ke dive o the Nation’soveall long-tem scal gap� Specicall, the in-

vestments in inomation technolog will povidenot onl highe qualit o cae and less hassle

o patients, but also the data necessa to ex-amine what woks and what doesn’t—which, intun, will be the ocus o the eseach on eectivemedical inteventions� The emphasis on peven-tion and wellness will help educe the incidenceo diseases and chonic conditions and lead to ahealthie, moe poductive Ameica� All in all,these investments will ceate the undepinningso a moe ecient health cae sstem—one thatdelives bette cae athe than just moe cae—and will put the Nation on a much sounde long-tem scal path�

trAnsForming AnD moDernizing AmericA’s

HeAltH c Are s ystem

To build on these steps, the Budget sets asidea eseve und o moe than $630 billion ove 10eas that will be dedicated towads nancing e-oms to ou health cae sstem� The Pesidentecognizes that while a ve lage amount o mone and a majo commitment, $630 billion isnot sucient to ull und compehensive eom�But this is a st cucial step in that eot, andhe is committed to woking with the Congess tond additional esouces to devote to health caeeom� The Administation will exploe all sei-ous ideas that, in a scall esponsible manne,achieve the common goals o constaining costs,expanding access, and impoving qualit� Thispast ea, o instance, the Pesident poposed to

use escission o the high-income tax povisions�Othes have poposed dieent ideas to nanceexpanded health coveage such as capping thetax exclusion o emploe-sponsoed health in-suance, a value-added tax, o additional osets

in existing health cae pogams� To achieve thesegoals and nance eom, the Pesident looks o-wad to woking with the Congess ove the com-ing ea, and as he does, the Pesident will adheeto the ollowing set o eight pinciples:

• Protect Families’ Financial Health. The planmust educe the gowing pemiums and oth-e costs Ameican citizens and businessespa o health cae� People must be potectedom bankuptc due to catastophic illness�

• Make Health Coverage Aordable. The plan

must educe high administative costs, un-necessa tests and sevices, waste, and oth-e ineciencies that consume mone withno added health benets�

• Aim or Universality. The plan must put theUnited States on a clea path to cove all

Ameicans�

• Provide Portability o Coverage. Peopleshould not be locked into thei job just tosecue health coveage, and no Ameicanshould be denied coveage because o pe-

existing conditions�• Guarantee Choice. The plan should povide

Ameicans a choice o health plans and ph-sicians� The should have the option o keep-ing thei emploe-based health plan�

• Invest in Prevention and Wellness. The planmust invest in public health measues pov-en to educe cost dives in ou sstem—suchas obesit, sedenta liestles, and smok-ing—as well as guaantee access to povenpeventive teatments�

• Improve Patient Saety and Quality Care.The plan must ensue the implementationo poven patient saet measues and po-

vide incentives o changes in the delivesstem to educe unnecessa vaiabilit inpatient cae� It must suppot the widespeaduse o health inomation technolog and thedevelopment o data on the eectiveness o




medical inteventions to impove the qualito cae deliveed�

• Maintain Long-Term Fiscal Sustainability. The plan must pa o itsel b educing thelevel o cost gowth, impoving poductivit,

and dedicating additional souces o evenue�

nancng healt Care Reorm. The e-seve und is nanced b a combination o e-balancing the tax code so that the wealthiestpa moe as well as specic health cae savingsin thee aeas: pomoting ecienc and account-abilit, aligning incentives towad qualit, andencouaging shaed esponsibilit (see Table 1)�Taken togethe, the health cae savings wouldtotal $316 billion ove 10 eas while impovingthe qualit and ecienc o health cae, without

negativel aecting the cae Ameicans eceive�These savings include:

• Reducing Medicare Overpayments to Private Insurers Through Competitive Payments.Unde cuent law, Medicae ovepas Medi-cae Advantage plans b 14 pecent moeon aveage than what Medicae spends obeneciaies enolled in the taditional ee-o-sevice pogam� The Administationbelieves it’s time to stop this waste and willeplace the cuent mechanism to estab-

lish paments with a competitive sstem inwhich paments would be based upon an av-eage o plans’ bids submitted to Medicae�This would allow the maket, not Medicae,to set the eimbusement limits, and savetaxpaes moe than $175 billion ove 10eas, as well as educe Pat B pemiums�

• Reducing Drug Prices. Pesciption dugcosts ae high and ising, causing too man

Ameicans to skip doses, split pills, o nottake needed medication altogethe� The Ad-ministation will acceleate access to make

aodable geneic biologic dugs availablethough the establishment o a wokableegulato, scientic, and legal pathwa ogeneic vesions o biologic dugs� In odeto etain incentives o eseach and devel-opment o the innovation o beakthoughpoducts, a peiod o exclusivit would beguaanteed o the oiginal innovato pod-

uct, which is geneall consistent with thepinciples in the Hatch-Waxman law o ta-ditional poducts� Additionall, band biolog-ic manuactues would be pohibited omeomulating existing poducts into newpoducts to estat the exclusivit pocess,

a pocess known as “eve-geening�” The Ad-ministation will pevent dug companiesom blocking geneic dugs om consum-es b pohibiting anticompetitive agee-ments and collusion between band nameand geneic dug manuactues intended tokeep geneic dugs o the maket� Finall,the Budget will bing down the dug costso Medicaid b inceasing the Medicaid dugebate o band-name dugs om 15�1 pe-cent to 22�1 pecent o the Aveage Manu-actue Pice, appl the additional ebateto new dug omulations, and allow Statesto collect ebates on dugs povided thoughMedicaid managed cae oganizations� Allthe savings would be devoted to the healthcae eseve und�

• Improving Medicare and Medicaid Payment Accuracy. The Govenment AccountabilitOce (GAO) has labeled Medicae as “high-isk” due to billions o dollas lost to ove-paments and aud each ea� The Centeso Medicae and Medicaid Sevices (CMS)

will addess vulneabilities pesented bMedicae and Medicaid, including Medicae

Advantage and the pesciption dug benet(Pat D)� CMS will be able to espond moeapidl to emeging pogam integit vul-neabilities acoss these pogams thoughan inceased capacit to identi excessivepaments and new pocesses o identiingand coecting poblems�

• Improving Care ater Hospitalizations and Reduce Hospital Readmission Rates. Nea-

l 18 pecent o hospitalization o Medicaebeneciaies esulted in the eadmission o patients who had been dischaged in the hos-pital within the last 30 das� Sometimes theeadmission could not have been pevented,but man o these eadmissions ae avoid-able� To impove this situation, hospitalswill eceive bundled paments that cove not

just the hospitalization, but cae om ce-




tain post-acute povides the 30 das atethe hospitalization, and hospitals with highates o eadmission will be paid less i pa-tients ae e-admitted to the hospital withinthe same 30-da peiod� This combinationo incentives and penalties should lead tobette cae ate a hospital sta and esultin ewe eadmissions—saving oughl $26billion o wasted mone ove 10 eas� Themone saved will also be contibuted to the

eseve und o health cae eom�• Expanding the Hospital Quality Improve-

ment Program. The health cae sstemtends to pa o quantit o sevices notqualit� Expets have ecommended thathospitals and doctos be paid based on de-liveing high qualit cae, o what is called“pa o peomance�” The Pesident’sBudget will link a potion o Medicae pa-ments o acute in-patient hospital sevicesto hospitals’ peomance on specic qualit

measues� This pogam will impove thequalit o cae deliveed to Medicae ben-eciaies, and the highe qualit will saveove $12 billion ove 10 eas� Again, themone saved will be contibuted to the re-seve Fund o health cae eom�

• Reorming the Physician Payment System to Improve Quality and Efciency. The Admin-istation believes that the cuent phsician

pament sstem, while it has seved to limitspending to a degee, needs to be eomed togive phsicians incentives to impove qual-it and ecienc� Thus, while the baselineefects ou best estimate o what the Con-gess has done in ecent eas, we ae notsuggesting that should be the utue polic�

As pat o health cae eom, the Adminis-tation would suppot compehensive, butscall esponsible, eoms to the pament

omula� The Administation believes Medi-cae and the count need to move towada sstem in which doctos ace bette incen-tives o high-qualit cae athe than sim-pl moe cae�

• Reducing Itemized Deduction Rate or Fam-ilies With Incomes Over $250,000. Lowe-ing health cae costs and expanding healthinsuance coveage will equie additionalevenue� In the health eom polic discus-sions that have taken place ove the past

ew eas, a wide ange o evenue optionshave been discussed—and these optionsae all woth o seious discussion as the

Administation woks with the Congess toenact health cae eom� The Administa-tion’s Budget includes a poposal to limitthe tax ate at which high-income taxpa-es can take itemized deductions to 28 pe-cent—and the initial eseve und would be

Table 1.

Reserve for Health Reform

$ in billions 2010 2011 2012 2013 2014 2010-14 2010-19

Federal Health Savings �� -1.8 -5.1 -18.0 -24.5 -34.3 -83.7 -316.0

Aligning incentives toward quality ............................. 0.0 -0.4 -1.3 -1.7 -2.1 -5.4 -20.5

Promoting efciency/accountability .......................... -1.8 -4.3 -16.2 -22.2 -31.5 -75.9 -287.4

Encouraging shared responsibility ............................ 0.0 -0.4 -0.6 -0.7 -0.8 -2.4 -8.1

New Revenues....................................................... ........ -11.1 -30.8 -33.5 -35.5 -110.8 -317.8

Subtotal: Reserve or Health Reorm .......... -1.8 -16.2 -48.8 -58.0 -69.8 -194.6 -633.8

Additional resources and new benefts, tobe determined with Congress

Net Cost—Reserve Fund .................................. 0.0 0.0 0.0 0.0 0.0 0.0 0.0




unded in pat though this povision� Thispovision would aise $318 billion ove 10eas�

Restoring America’s Place in the Worldand Keeping America Safe

Just as a stong econom bolstes ou stand-ing in the wold and enhances ou national se-cuit, stong leadeship in the wold helps usthive in an intedependent, global econom� Theline between economic polic and oeign polic isnow ve had to daw� In the past, ou geatesttheats came om distant counties with amiesand navies who engaged us in diect battle� Now,ou open, intedependent wold that makes it soeas to do business, tavel, o communicate withpeople om all ove the globe also makes us vul-

neable to new theats and secuit challenges� As we all leaned on Septembe 11th, a smallband o teoists has the abilit to kill thousandso civilians who ae just going about thei lives�Dangeous weapons, including nuclea matei-als, could all into the hands o teoists� Po-gammes sitting in thei local coee shop couldlaunch cbe-attacks on the Pentagon, the CIA, oke pats o ou secuit inastuctue� A smallnation thousands o miles awa which slips intochaos and anach could become a ailed statethat incubates teoists and egional confict� An

outbeak o a deadl inectious disease in a u-al, undeveloped cone o the wold can quicklmake its wa to ou biggest cities�

Ameica alone cannot deeat these theats, butneithe can the wold deeat them without Ame-ica� That is wh the Administation will investin ou Amed Foces and ou wounded waiosto ease the budens o two was and multipledeploments, while also asking moe o ou al-lies in Aghanistan and elsewhee� And it is whthe Administation will incease investments inothe elements o ou national powe—like diplo-mac, economic development, and education—sothat we end the eliance on ou milita alone todeeat emeging theats� In addition, the Admin-istation will make citical investments o Ame-ica’s veteans to make sue that the eceive theunding and the cae the deseve o deendingthis count�

Taken togethe, this will estoe Ameica’sleadeship ole in the wold ate eas o dise-gading ou allies and ignoing the values thathave eaned Ameica espect the wold ove� Al-ead, the Pesident has pledged to close the de-

tention acilit at Guantanamo Ba, Cuba withina ea and has ovehauled detention and inteo-gation pactices� He is committed to esponsibledeploing ou combat bigades om Iaq whilebinging all the elements o Ameican poweto bea on the theat posed b extemists om

Aghanistan and Pakistan� The Pesident willwok with ou allies to ensue that Ian lives upto its esponsibilities to the wold communit, andededicate Ameica to the ageement at the heato the Nuclea Nonpolieation Teat to woktowad a wold without nuclea weapons while

woking ove the next ou eas to lock down allloose ssile mateial�

These ae big challenges, and while we ecog-nize the peils we ace, we must not oget that itis also a time o immense pomise� We can ebuildou alliances and all the wold to tackle thesetul tansnational challenges, eplace despaiwith hope, and keep Ameica secue, pospeous,and ee� To achieve these goals, we need to al-locate ou esouces to efect the ealit o thetheats we ace toda and do so in a wa that lim-

its waste� The Administation will:

increase nng or te department o deense (dOd). As we look to the challengesacing ou Nation, it’s impeative that we investou deense dollas eectivel and wisel� To thatend, the Pesident is committed to suppotingthe men and women who make ou milita thebest in the wold� He wants to incease the size o the Am and Maine Cops, impove the pa oou men and women in uniom, and impove themedical teatment o wounded sevicemembes�

At the same time, the Pesident will pusue aeom o the acquisition pocess to make suethat unds ae not being wasted on expensive andoutdated weapon sstems� To und these eots,the Administation equests o DOD an inceaseo $20�4 billion, o 4 pecent, om the 2009 enact-ed level o $513�3 billion excluding unding in therecove Act� This unding incease allows DOD




to addess the Pesident’s highest pioities� Inaddition, the Administation will equest su-cient unding to enable the Depatment to caout the ecommendations o the 2005 DeenseBase Closue and realignment Commission and

meet the mandated Septembe 2011 implemen-tation deadline, which will help to align DOD’sdomestic bases and medical acilities with opea-tional needs—and will go a long wa to pevent-ing the misteatment epoted at Walte reed

Am Medical Cente ove the past ew eas�

Responsbl Remoe Combat orces romiraq an ocs on te gt n Aganstan.The Budget ecognizes and unds the Pesident’sstateg to incease ou esouces in Aghanistanwhile esponsibl emoving combat bigades om

Iaq� To addess the costs o milita opeationsin Iaq and Aghanistan, the Administation e-quests $75�5 billion o the emainde o 2009 and$130 billion o 2010� The Administation willpovide the details o the 2009 supplemental ap-popiations equest to the Congess in the nextew weeks, and will tansmit the detailed 2010equest with the Pesident’s 2010 Budget�

increase te Sze o te Arm an MarneCorps. While the best technolog and up-to-dateequipment ae impotant to maintaining the

pedominance o ou milita, ou Amed Focesultimatel el on the commitment and skill o the men and women who wea its uniom� rec-ognizing this, the Budget suppots additionalpemanent oces in the Am and Maine Cops,which will incease to 547,400 and 202,000, e-spectivel, b the end o 2010� This gowth is twoeas ahead o schedule and will educe stess onsevicemembes and thei amilies, while povid-ing heightened eadiness o a ull spectum o milita opeations anwhee in the wold�

increase Pa or Men an Women n un-orm. Ate eas o asking moe and moe omou toops and thei amilies, this Budget e-fects the pioities o an Administation thatis committed to caing o the sevicemembeswho potect ou secuit and the amilies whosuppot them� The Budget includes unding oa 2�9 pecent pa aise o men and women in

uniom, an amount that will impove thei pu-chasing powe�

improe Mental healt Care or Solersan veterans. The Budget unds expanded e-

ots at DOD to addess mental health needs�Post-taumatic stess disode, taumatic baininju (TBI) and associated ailments ae, andwill continue to be, ke milita medical chal-lenges acing the Amed Foces o eas to come�DOD will ull implement a compehensive TBIegist including a single point o esponsibil-it to tack incidents and ecove� The amedsevices will expand the numbe o integatedmental health poessionals with thei deploedunits to bette channel medical attention to thosewho need help quickl� In addition, the National

Intepid Cente o Excellence o PschologicalHealth and TBI will be dedicated in the late allo 2009� This will seve as the clinical eseachand educational am o DOD’s Cente o Excel-lence o pschological health and TBI� The Bud-get expands the mental health sceening andteatment sevices oeed b the Depatment o

Veteans Aais (VA) and ocuses on eaching vet-eans in ual aeas� The VA also will incease thenumbe o Vet Centes and mobile health clinicsto expand access to mental health sceening andteatment in ual aeas� In addition, new und-

ing ensues that veteans and thei amilies aeinomed o these esouces and ae encouagedto pusue needed cae�

Reorm deense department Acqston.When it comes to the deense o ou Nation, it’scitical that eve dolla is spent in the most e-ective wa possible� Funds need to be allocatedin was that take into the account the needs o to-da as well as the theats o tomoow� Moeove,we must make sue that the men and women whoseve ou Nation in its deense have the tain-ing, esouces, mateial, and suppot the needto do the job� We know that DOD’s new weaponspogams ae among the lagest, most expensive,and technicall dicult that the Depatment haseve tied to develop� Consequentl, the ca ahigh isk o peomance ailue, cost inceases,and schedule delas� With this in mind, the Ad-ministation is committed to eoming the de-




ense acquisition pocess so that taxpae dollasae not wasted� The Administation will set eal-istic equiements and stick to them and incopo-ate “best pactices” b not allowing pogams topoceed om one stage o the acquisition ccle to

the next until the have achieved the matuitto signicantl lowe the isk o cost gowth andschedule slippage�

Pt te unte States on a Pat to dobleoregn Assstance. It has become clea ovethe past decade that all the elements o Ameicanpowe must be developed to potect ou people,inteests, and values� That is wh the Admin-istation is committed to placing the Nation ona path to double oeign assistance to $50 bil-lion� Doing so, the United States will each out

to the global communit, la the goundwok ostabilit and secuit at home and aboad, andstengthen its ole as a leade in global develop-ment and diplomac� These ae impotant invest-ments that will help bing stabilit to othe patso the globe and geate secuit o ou Nation�Though inceased oeign assistance unding,the United States will embak on seveal newinitiatives that will give childen in the pooestcounties access to education; oste global oodsecuit though sustainable agicultue; expandgoodwill and inspie sevice b inceasing the

size o the Peace Cops; and help stabilize post-confict states, ceating oom o them to plantthe seeds o democac�

Expan te Sze o te oregn Serce.To ace the theats o the 21st Centu, we needto use all the instuments o ou powe, includ-ing diplomac, to ensue the saet and secuito the United States� The 2010 Budget includesunding o the st ea o a multi-ea eot tosignicantl incease the size o the Foeign Se-

vice at both the Depatment o State and the U�S� Agenc o Intenational Development (USAID)� An inceased cade o State and USAID FoeignSevice oces will help advance ou citical o-eign polic goals and delive on ou expandingU�S� oeign assistance commitments�

increase nng or Global healt Pro-grams. Boosting the qualit o health aound

the wold is not onl a moal consideation; it isalso in the count’s inteest as pandemics andpoo health cae can destabilize whole egionsas well as tavel aound the globe� In the Bud-get, the United States will continue to build on

its commitment to save lives though inceasinginvestments in global health pogams, includ-ing in aeas such as matenal and child health,amil planning and othe coe health pogams,while also emphasizing a commitment to HIV/

AIDS, malaia, and tubeculosis though success-ul pogams such as the Pesident’s EmegencPlan o AIDS relie and the Malaia Initiative�In addition, togethe with ou multilateal pat-nes, the Administation will continue to povideglobal leadeship to impove the health status o the wold’s pooest populations�

Rengorate Conter-Proleraton, Ant-Terrorsm, an Transnatonal Crme-gt-ng Eorts. The Budget will und einvigoatedeots to counte nuclea polieation, teoism,and tansnational cime� Specicall, the Bud-get includes st-ea unding o a multi-eacounteteoism and law enocement assis-tance pogam that stengthens the capabilitieso ou intenational patnes in the WestenHemisphee and othe citical egions aound thewold� The Budget also povides additional non-

polieation and counte-polieation unding tohelp secue nuclea mateials and pomote saecivilian uses o nuclea eneg�

Meet Or Callenges n Aganstan, Pak-stan, an iraq. The 2010 Budget eocuses U�S�esouces towad addessing the esugence o alQaeda and the Taliban in Aghanistan and Paki-stan� The Administation inceases non-militaassistance to both counties, poviding additionalunding o govenance, econstuction, counte-nacotics, and othe development activities thatwill help counte extemists� It expands thenumbe o civilian pesonnel in Aghanistan andPakistan in an eot to stabilize stategic aeaso the counties, build govenment capacit, andsuccessull manage expanded assistance po-gams� In Iaq, the Administation stengthensou assistance to those who have been displacedom thei homes because o the wa, and ealigns




ou assistance eots in Iaq to ensue that Iaq-is can assume moe esponsibilit o thei ownpolitical and economic utue�

Boost Compensaton to dsable Mltar

Retrees. The Budget contains a poposal to ex-pand concuent eceipt o milita etied paand Veteans Disabilit Compensation to etieeswho wee medicall etied om active sevice�Unde cuent law, these benets ae oset� Dis-abled milita etiees would eceive signicantlgeate compensation when the oset is emoved�

improe te Qalt o Le or Or Armeorces. The Administation is committed to im-poving the qualit o lie o Ameican militapesonnel� Theeoe, the Budget continues to

sustain and modenize baacks and domitoieshousing sevice membes aound the wold andwoks to end all inadequate housing o militaamilies� It povides unds to build o enovatebase acilities at a ate sucient to ensue thesaet and unctionalit o all stuctues whilemeeting the needs o uses�

Care or Wone, ill, an injre Ser-cemembers. DOD will continue its eots toimpove the medical cae and housing o wound-ed, ill, and injued sevicemembes� DOD will

add 21 moe Waio in Tansition Complexes atposts thoughout the continental United States,as well as sites in Alaska, Hawaii and Geman�DOD and the VA will expand pilot pogams toexpedite pocessing o injued toops though theDisabilit Evaluation Sstem� The expedited ss-tem substantiall educes the time equied todetemine disabilit ating and, moe impotant-l, alleviates ustation caused b a needlesslcomplex pocess�

increase nng or vA b $25 BllonOer te Next e years. The Pesident’s Bud-get inceases unding o VA b $25 billion ovethe next ve eas in ode to hono ou Nation’s

veteans and expand the sevices the eceive�Some o these unds will be used to tansom

VA into a 21st Centu oganization, includinginvestments in inomation technolog that di-ectl benet veteans in the aeas o both health

cae and benets� Though impoved electonicmedical ecods, VA will moe ecientl etieveactive dut health ecods om DOD and enableall VA cae sites to access the ecods o veteansneeding cae� The VA will also invest in the de-

velopment o ules-based electonic pocesses toincease accuac, consistenc, and timeliness in veteans’ eceipt o benets�

dramatcall increase nng or vAhealt Care. The Pesident’s Budget unds VAmedical cae with the esouces it needs to po-

vide 5�5 million veteans with timel and highqualit cae� This unding also enables VA to ce-ate Centes o Excellence o heaing and visionimpaiment and to povide additional vetean-oiented specialt cae in aeas including pos-

thetics, spinal cod inju, aging, and women’shealth�

Restore healt Care Elgblt or Mo-est-income veterans. Fo the st time sinceJanua 2003, the Pesident’s Budget estoeseligibilit o VA health cae to non-disabled vet-eans eaning modest incomes� B 2013, this ini-tiative will bing ove 500,000 additional veteansinto the VA health cae sstem while maintaininghigh qualit and timel cae o the lowe-incomeand disabled veteans who cuentl el on VA

medical cae�

Combat homelessness b Saegarng vlnerable veterans. The Administation ex-pands VA’s cuent sevices to homeless vete-ans though a collaboative pilot pogam withnon-poit oganizations� This pilot will helpmaintain stable housing o veteans who ae atisk o alling into homelessness while helping

VA to continue poviding them with suppotivesevices�

acltate Tmel implementaton o teCompreense Ecaton Benefts veter-ans Earn Trog Ter decate Serce. This Budget suppots VA’s pompt, accuate, andecient implementation o the Post-9/11 GI Bill--poviding unpecedented levels o educationalassistance to the men and women who haveseved ou count though active milita dut�




cHAnging tHe w Ay w AsHington Does

business

Just as impotant as changing what Washing-ton does is to change how it does it� We cannot

begin to tackle the challenges we ace in the shottem to evive ou econom and in the long temto put us on the path to gowth without estoingesponsibilit and accountabilit to Govenment�Being entusted with Ameicans’ tax dollas isa huge esponsibilit, and o a too long, theehas been insucient egad o how those undsae spent; a high toleance o waste, aud, andabuse; and a passive acceptance o inecienciesand ineectiveness� Changing this will take time,and in the ew weeks that the Administation hasbeen in oce, it has stated that length pocess�

Restoring Fiscal Discipline and Planning for the Future

Ove the past eight eas, scal ecklessnesseplaced scal esponsibilit� Huge tax cuts andspending inceases wee undetaken without be-ing paid o� Lage exta-budgeta expenses puta venee on ou scal situation� Special inteest-diven spending gew out o contol� Long-temchallenges to ou count and ou scal situationwee ignoed� Taken togethe, this has put the

Nation in an even moe pecaious scal positionas we conont this economic cisis� In light o thisinheitance o iesponsibilit, the Administa-tion in its st weeks has taken the initial stepsto estoe scal discipline b equesting andsigning into law an economic ecove bill thatis ee o all eamaks and b instituting a ss-tem wheeb the public will be able to tack howand whee ecove unds ae actuall used� Tocontinue this pogess in the months and easahead, the Administation will:

Ct te defct n hal b En o te Pres-ent’s rst Term. The cuent economic cisishas esulted in a $1 tillion a ea gap betweenwhat the econom can poduce and what it is ac-tuall poducing� With all the moneta policleves alead emploed, the Govenment hadto step in to stimulate the econom and avoid aneconomic catastophe� While the recove Act

has entailed inceasing decit spending—sincethat is the astest and suest wa to ceate jobs ina ecession—we cannot see this as a new nom� Itis an extaodina esponse to an extaodinacisis� So while this Budget will add to ou na-

tional decit in the shot-tem, the Pesident iscommitted to cutting in hal b the end o his sttem in oce the decit he inheited on Janua20, 2009�

Reew te Bget Lne-B-Lne orWaste. The Pesident believes that we shouldbe investing taxpae dollas in eots and po-gams with poven ecods o success and eal-locating o cutting pogams that do not wok owhose benets ae not woth thei cost� To thisend, the Administation has begun an exhaus-

tive line-b-line eview o the Fedeal Budget, thest stage o which will be patiall efected inthe sping elease o the ull Fy 2010 Budget andwill continue in subsequent eas� Howeve, al-ead the Administation has identied cuts andsavings that include:

• Increasing Federal Health Savings. Asdiscussed in detail above, the Pesidentis poposing substantial savings in healthcae b aligning incentives towad qual-it, pomoting eicienc, and encouaging

esponsibilit�• Eliminating Cotton Storage Credits. The

Pesident’s Budget poposes to eliminate theequiement o the Govenment to pa thestoage costs o cotton that is put unde loanwith USDA� Cotton is the onl commodito which this assistance is povided with-out exception� Stoage cedits o cotton havebeen ound to have a negative impact on theamount o cotton on the maket� Becausecotton stoage is coveed b the Govenment,poduces ma stoe thei cotton o longe

than necessa� Thee is no eason the Gov-enment should be paing o the stoage o cotton, paticulal since it does not povidethis assistance o most othe commodities�

• Eliminating Mine Clean-Up Payments to States that Have Completed Clean-Up. Aban-doned Mine Lands (AML) paments om theOce o Suace Mining ae made to States




with abandoned coal mines equiing cleanup� These AML paments wee oiginall in-tended to be used onl o clean-up eots�In 2006, a povision was added that povidedpaments, available o unesticted use, oStates that have completed clean-up o all o

thei abandoned coal mines� This poposalwould eliminate these unesticted pa-ments to States that have completed clean-up, saving close to $200 million in 2014�

• Eliminating the Resource Conservation and Development (RC&D) Program. The Budgeteliminates unding o rC&D� Fist begunin 1962, the pogam was intended to buildcommunit leadeship skills though the es-tablishment o rC&D councils that wouldaccess Fedeal, State and local pogams o

the communit’s benet� Ate 47 eas, thisgoal has been accomplished� These councilshave developed sucientl stong State andlocal ties that the Administation believesthe ae now able to secue unding o theicontinued opeation without Fedeal assis-tance�

• Reorming the Market Access Program(MAP). The Budget eoms MAP b educ-ing pogam unding o oveseas bandpomotion and minimizes the benets thatlage o-pot entities ma indiectl gainas membes o tade associations who patic-ipate in MAP� An annual unding eductiono 20 pecent will impove the pogam bplacing geate emphasis on pomoting ge-neic Ameican agicultual poducts ove-seas and assisting small business entities�

• Reducing Direct Payments to Farmers. ThePesident wants to maintain a stong saetnet o am amilies and beginning ameswhile encouaging scal esponsibilit� Aspat o a boad eot to move ames om

a pogam o diect paments to a pogamwhee agicultual poduces ean pamentsom envionmental impovements, thePesident’s Budget phases out diect pa-ments ove thee eas to ames with salesevenue o moe than $500,000 annuall�Pesentl, diect paments ae made to evenlage poduces egadless o cop pices, in-

come, and pots o whethe the land is stillamed�

• Increasing Collection o Delinquent Tax From Federal Contractors. Fedeal contactos owebillions o dollas in unpaid Fedeal taxes�

IrS cuentl collects some o this debt bleving Fedeal paments made to thesedebtos� In some cases, administative poce-dues pevent IrS om collecting this debt�In act, IrS loses the oppotunit to collectappoximatel $114 million pe ea in taxdebt because o administative delas� TheBudget poposes to addess this poblem bsteamlining administative pocesses in o-de to make it easie o IrS to collect taxdebt owed b Fedeal contactos�

• Eliminating or Reorming Small, Ineec-

tive Housing and Urban Development Pro- grams. Pogams that ae eithe ineec-tive o duplicative divet us om achievingthei ultimate polic goals and ae a wasteo taxpae dollas� The Administationpoposes eliminating a list o pogamsthat includes: the Ameican Deam Down-pament Initiative, which is too small toopeate eectivel and the CommunitDevelopment Loan Guaantee pogam,which is not stuctued eectivel to en-couage communities to nance lage-scaledevelopment; plus eom the rual Hous-ing and Economic Development pogam sothat it is not duplicative o simila USDApogams�

• Eliminating Education Programs With Re-cords o Low Perormance. When it comes toeducating ou childen, we cannot aod towaste a dolla� The Administation popos-es to immediatel teminate, o intensiveleview with an expectation o ovehaulingo teminating, a seies o small Education

Depatment pogams� Man o these po-gams have long povided unding o na-owl ocused cuicula, stang choices, oschool tpes� None has stong evidence to

justi this suppot; the pogams eithehave neve been seiousl evaluated o haveeceived weak evaluations; and the po-gams oten could be unded in competitive




unding steams that could equie evidenceo esults�

• Retrn to honest Bgetng. Too otenin the past seveal eas, budget ticks weeused to make the Govenment’s books seem

stonge than the actuall wee� I thisBudget used the gimmicks emploed in ecentbudgets, it would show in excess o anothe$250 billion annuall in available unds eachea, and a bottom line that would appeaappoximatel $2�6 tillion bette ove 10eas� Petending that the Budget has thismone available ma be gatiing, but it’san accounting sleight-o-hand, not ealit�We should not toleate these kinds o tickswhen it comes to accounting o the public’stax dollas� This Budget, theeoe, povides

a pojected cost o the was in Iaq and Aghanistan; does not assume that all o the2001 and 2003 tax legislation magicall dis-appeas at the end o 2010; does not allowthe altenative minimum tax to take ovethe tax code, which almost eve obseveagees is unealistic; ecognizes the statis-tical likelihood o natual disastes insteado assuming that thee will be no disastesove the next decade; includes a contingenteseve as a placeholde in case uthe leg-islative action becomes necessa to stabi-

lize the nancial sstem; and povides a 10-ea athe than a 5-ea look into ou scalsituation�

Accont or tre Emergences. One canneve know what kind o disaste o unexpectedemegenc ma occu that will equie the helpo the Fedeal Govenment� I we do not accounto these costs as we poject the Fedeal Goven-ment’s utue scal health, we un the isk o allowing these unoeseen events to cause evenmoe economic pain and deail ou long-temgowth� In the past, budgets assumed that theewould not be an natual disastes in ou Nationthat would necessitate Fedeal help—no majoeathquakes, huicanes, foods, o man-made di-sastes� This omission is iesponsible, and haspemitted past Administations to poject decitsthat wee lowe than wee likel to occu� Beak-ing with past pactice, the Pesident’s Budget

puts moe than $20 billion annuall (the statisti-cal pobabilit o the costs o dealing with theseemegencies) in its budget pojections�

Retrn to Pa-As-yo-Go Bgetng.

While the economic cisis we have inheited is aonce-in-a-geneation meltdown, it should not beseen as an oppotunit to abandon the scal dis-cipline that we owe each and eve taxpae inspending thei mone� This discipline is citicalto keeping the United States stong in a global,intedependent econom� Moving owad, weneed to etun to pa-as-ou-go budgeting thatwe had in the 1990s o all non-emegenc mea-sues� The Pesident and his economic team lookowad to woking with the Congess to developbudget enocement ules that ae based on the

tools that helped ceate the supluses o a decadeago, including statuto pa-as-ou-go ules�

Create a Resere or nancal Stablza-ton Eorts. The Nation has inheited deeppoblems in its nancial sstem� Additional ac-tion is likel to be necessa to stabilize the -nancial sstem and theeb acilitate economicgowth� Although the Administation is not e-questing additional unds om the Congess atthis point and although it is not et possible topovide a pecise estimate o how much addi-

tional Fedeal action ma be involved should the Administation need to equest such unds, thePesident’s Budget nonetheless includes a $250billion contingent eseve o uthe eots tostabilize the nancial sstem� The appoach othis nancial stabilization eseve is simila inspiit to the one adopted with egad to utuewa costs; the Budget includes a placeholde outue wa costs even though such costs i an aedicult to pedict� Estimates o the value o thenancial assets acquied b the Fedeal Goven-ment to date suggest that the Govenment willget back appoximatel two-thids o the monespent puchasing such assets—so the net cost tothe Govenment is oughl 33 cents on the dol-la� These tansactions ae tpicall efected inthe budget at this net cost, since that budgetaappoach best efects thei impact on the Gov-enment’s undeling scal position� The gueecoded in this Budget as a placeholde simi-




lal efects this net cost concept� The $250 bil-lion eseve would suppot $750 billion in assetpuchases�

The existence o this eseve in the Budget does

not epesent a specic equest� rathe as eventswaant, the Administation will wok with theCongess to detemine the appopiate size andshape o such eots, and as moe inomation be-comes available the Administation will dene anestimate o potential costs� In addition, should aequest become necessa, the Administation iscommitted to woking with the Congess so thatto the maximum extent possible, taxpaes aepaid back ove time o an additional emegencassistance povided to the nancial sstem� Thecompensation to taxpaes could include equi-

ing dividend paments, waants, equit and oth-e oms o upside oppotunities om those mseceiving assistance� The compensation couldalso include a ee o assessment on nancial in-stitutions o nancial activit, which would haveto commence onl when the nancial sstem hadstabilized and which would be designed to mini-mize advese eects on the long-tem ecove o ou nancial sstem�

Lmt Pa increases n te eeral Work-orce. As amilies ae tightening thei belts in

this economic cisis acoss the count, the Pesi-dent odeed a eeze o White House senio sta pa� In this Budget, Fedeal emploees also willbe asked to do thei pat: the 2010 pa inceaseo Fedeal civilian emploees, 2�0 pecent, is e-sponsive to the cuent economic climate, bing-ing Fedeal pa and benet pactices moe in linewith the pivate secto�

Makng Sang or Retrement Easer aste Econom Recoers. Ove the long-temamilies need pesonal savings, in addition toSocial Secuit, to pepae o etiement andto all back on duing tough economic times likethese� Howeve, 75 million woking Ameicans—oughl hal the wokoce—cuentl lack accessto emploe-based etiement plans� In addition,the existing incentives to save o etiement aeweak o non-existent o the majoit o middle-and low-income households� The Pesident’s 2010

Budget las the goundwok o the utue es-tablishment o a sstem o automatic wokplacepensions, on top o and cleal outside Social Se-cuit, that is expected to damaticall inceaseboth the numbe o Ameicans who save o e-

tiement and the oveall amount o pesonal sav-ings o individuals� reseach has shown that theke to saving is to make it automatic and simple�Unde this poposal, emploees will be automati-call enolled in wokplace pension plans—andwill be allowed to opt out i the choose� Em-ploes who do not cuentl oe a etiementplan will be equied to enoll thei emploees ina diect-deposit IrA account that is compatiblewith existing diect-deposit paoll sstems� Theesult will be that wokes will be automaticallenolled in some om o savings vehicle when

the go to wok—making it eas o them to savewhile also allowing them to opt out i thei amilo individual cicumstances make it paticulaldicult o unwise to save� Expets estimate thatthis pogam will damaticall incease the sav-ings paticipation ate o low and middle-incomewokes to aound 80 pecent�

Creating a More Ethical and TransparentGovernment and Improving Oversight

Washington cannot be esponsive to the Amei-

can people i the doos o Govenment ae shutto eveone except those with lobbists and infu-ence� An unesponsive Govenment not onl o-ends ou democatic sensibilities; it also leads todisastous polic outcomes—initiatives and po-gams that ae constucted to seve a select ewand not the public inteest�

That is wh in his st das in oce, the Pes-ident signed an executive ode that: pohibitsexecutive banch emploees om accepting gitsom lobbists; closes the evolving doo that al-lows Govenment ocials to move to and ompivate secto jobs in was that give that sectoundue infuence ove Govenment; and equiesthat Govenment hiing be based upon qualica-tions, competence, and expeience—not politicalconnections� The Pesident has odeed eve oneo his appointees to sign a pledge abiding b thesetough new ules as a down pament on the change




he has pomised to bing to Washington� In theesepaate Pesidential Memoanda, the Pesidentinstucted all membes o his Administation toopeate unde pinciples o openness, tanspa-enc, and o engaging citizens with thei Goven-

ment; and ended the pactice o having othesbesides the Pesident asset executive pivilegeo ecods ate an administation ends�

Building on his caee woking o a moe ethi-cal and tanspaent Govenment, the Pesidentwill:

Sne a Brgt Lgt on Wasngton Lob-bng. The Administation will take steps tomake sue that the public has specic, useul,and meaningul inomation about how lobbists

ae ting to infuence Fedeal spending and taxpolic� A centalized, online database will containlobbing epots, disclose how much mone Fed-eal contactos ae spending on lobbing, andpovide othe elevant inomation�

Let Amercans Track how Ter Tax dol-lars Are Spent. Ameicans have a ight to knowhow the Govenment spends thei tax dollas, butthat inomation is usuall had to nd and otennot made available at all� The Pesident is com-mitted to changing that b making this data eas

to nd and eview� He will:

• Maintain Recovery.gov, an unpecedented e-ot to bing tanspaenc and accountabil-it to the mone spent in the Ameican re-cove and reinvestment Act� This site willallow taxpaes lean whee ecove undsae going, o what pupose, and to what e-sult�

• Give the public ve das to eview all non-emegenc bills beoe the ae signed intolaw�

• Disclose each eamak and the name o thelegislato who asked o each eamak, andmake this inomation available on a seach-able public website�

• Clean up milita contacting b establish-ing the epoting equiements, accounting,and accountabilit needed o good gove-

nance and cost savings, and b scutinizingno-bid contacting�

increase Transparenc n Earmarks. Fom 1994 until 2006, the cost and numbe o Congessional eamaks expanded damati-

call, aising concens that lawmakes weeunneling Fedeal mone home to pojects thatma not be the best use o taxpae dollas� In2007 and 2008, the Congess took impotantsteps to shine light on the allocation o conges-sional eamaks b equiing membes’ namesto be listed next to equests unded in appo-piations bills and epots, while also educingthe total unding o eamaks� Howeve, moewok needs to be done� The Administation willcontinue to wok with the Congess to povidegeate tanspaenc and accountabilit o ea-

maks, and to ensue that the Ameican peopleae made well awae o how and whee Fedealmone is spent�

Bolster Oersgt o te nancal Mar-kets. robust makets depend on clea ules o the oad enoced b stong, impatial egulatos�This past ea, the consequences o poo maketovesight became abundantl clea� The Budget,theeoe, will incease esouces o the Secu-ities and Exchange Commission (SEC) b ove13 pecent and the Commodit Futues Tading

Commission (CFTC) b ove 44 pecent ela-tive to 2008 levels� In 2010, the SEC will buildits sta and technolog esouces and pusue aisk-based, ecient egulato stuctue thatwill bette detect aud and stengthen makets�The CFTC will implement new pogam espon-sibilities pomulgated in the Fam Bill—llinggaps in egulato ovesight o eneg and ove-the-counte deivatives tading, as well as o-eign exchange�

Making Government More Effective

Fo decades, the agument in Washington hasbeen between those who sa that govenment isthe cause o eve poblem and those who sathat it’s the answe� What has become clea ovethe past eight eas, especiall in light o theFedeal Govenment’s esponse to Huicane Ka-tina, is that what bothes Ameicans is bad gov-




enment—govenment that does not to do its jobeectivel and ecientl� To make Govenmentmoe eective, the Administation will:

Elmnate Wastel Renanc. Too oten,

Fedeal depatments take on unctions o sevic-es that ae alead being done o could be doneelsewhee within the Fedeal Govenment moeeectivel� The esult is unnecessa edundancand the inabilit o the Govenment to benetom economies o scale and integated, steam-lined opeations� The Administation will conductan immediate and peiodic public invento o administative oces and unctions and equieagenc leades to wok togethe to oot out e-dundanc� Whee consolidation is not the ightstateg to impove ecienc, the Administation

will impove inomation-shaing and use o com-mon assets to minimize wasteul duplication�

Streamlne Goernment Procrement. The Pesident will implement the GAO’s ecom-mendations to educe eoneous Fedeal pa-ments, educe pocuement costs with puchasecads, and implement bette management o su-plus Fedeal popet�

Reorm eeral Contractng an Acqs-ton. The Administation will take seveal steps

to make sue that taxpaes get the best dealpossible o Govenment expenditues� We willeview the use o sole souce, cost-tpe contacts;impove the qualit o the acquisition wokoce;and use technolog to ceate tanspaenc aoundcontacting� We will eview acquisition pogamsthat ae on the GAO high-isk list o being ove-budget and pone to abuse� The Administationalso will clai what is inheentl a govenmen-tal unction and what is a commecial one; citicalGovenment unctions will not be peomed bthe pivate secto o puel ideological easons�

Pt Perormance rst. The Pesident isceating a ocused team within the White Housethat will wok with agenc leades and the Oceo Management and Budget (OMB) to impove e-sults and outcomes o Fedeal Govenment po-gams while eliminating waste and inecienc�This unit will be composed o top-peoming and

highl-tained Govenment poessionals andwill be headed b a new Chie Peomance O-ce (CPO)� The CPO will wok with Fedeal agen-cies to set tough peomance tagets and holdmanages esponsible o pogess� The Pesident

will meet egulal with cabinet oces to eviewthe pogess thei agencies ae making towadmeeting peomance impovement tagets�

Enorce Stanars n Aton to Measr-ng Perormance. The Administation will un-damentall econgue the Pogam Assessmentrating Tool� We will open up the insula peo-mance measuement pocess to the public, theCongess and outside expets� The Administa-tion will eliminate ideological peomance goalsand eplace them with goals Ameicans cae

about and that ae based on congessional intentand eedback om the people seved b Goven-ment pogams� Pogams will not be measuedin isolation, but assessed in the context o othepogams that ae seving the same population omeeting the same goals�

increase use o Tecnolog. Meeting 21stCentu challenges will equie a Govenmentthat leveages 21st Centu technologies andkeeps up with the pivate secto� The Pesidentwill appoint the Nation’s st Chie Technolog

Oce (CTO) to ensue that ou Govenment andall its agencies have the ight inastuctue, pol-icies and sevices o the 21st Centu� The CTOwill wok with each o the Fedeal agencies, to en-sue that the use best-in-class technologies andshae best pactices�

Make Sre tat Taxpaer dollars AreSpent Wsel n Or Large EnttlementPrograms. With billions o dollas being spentin pogams such as Social Secuit, Medicae,and Medicaid upon which so man Ameicansel, it is impotant that the ae un ecientland eectivel� The Administation will makesignicant investments in activities to ensuethat taxpae dollas will be spent coectl,expanding ovesight activities in the lagestbenet pogams and inceasing investmentsin tax compliance and enocement activities�




The Administation poposes a signicantincease in pogam integit activities at theSocial Secuit Administation (SSA), the De-patment o Health and Human Sevices (HHS),the Depatment o Labo (DOL), and the Inte-

nal revenue Sevice (IrS)� The Administationpoposes a multi-ea stateg, which will pemitthe agencies to pa close attention to the isko impope paments, commensuate with thelage and gowing costs o the pogams adminis-teed b these agencies, including Social Secuit,Medicae, Medicaid, and Unemploment Insu-ance (UI)� As an example, the unding povidedo SSA will enable the agenc to wok down abacklog o Continuing Disabilit reviews, whichdetemine whethe an individual continues toquali o Disabilit Insuance o Supplemental

Secuit Income� The numbe o these eviewshas allen in ecent eas even as the DisabilitInsuance pogam has gown�

Thee is solid and igoous evidence that theseinvestments can signicantl decease the ate o

impope paments and ecoup man times theiinitial investment� Fo eve $1 spent b SSA ona disabilit eview, $11 is saved in eoneous pa-ments� Similal, o eve $1 spent b HHS toght health cae aud, appoximatel $1�60 issaved o aveted, and the IrS activities ecoup $5o eve $1 spent� As shown in Table 2, the ini-tial ve-ea investment o $13�5 billion o 2010though 2014 is estimated to esult in neal $50

billion in lowe spending and additional tax ev-enue ove the next 10 eas, with additional sav-ings accuing ate the 10-ea peiod�

In addition to the initiatives descibed above,

the Administation will launch a new Fede-al-State patneship to educe eo and im-pope paments in Fedeal means-testedpogams administeed b States� Man State-administeed pogams—such as Medicaidand the Supplemental Nutition AssistancePogam (omel Food Stamps)—opeateindependentl o each othe et seve similalow-income populations� Integating and mod-enizing pocesses will povide oppotunitiesto impove sevices to beneiciaies, impoveeligibilit detemination, and educe eos�

Though this initiative, the Fedeal Goven-ment will collaboate with States to identithe most pomising appoaches and und de-

velopment and igoous testing to deteminewhich ones have a high etun on investmentthat could be eplicated on a boade scale�

OMB will ovesee the development o igoousmethodologies o measuing the potential sav-ings om these investments, including bothadministative eicienc gains and eductionsin eoneous paments� No pojects would beunded unless the demonstate thei poten-tial to esult in moe than one dolla in admin-istative and pogam savings o each dollainvested once the poject is ull in eect� The

Table 2�

Program Integrity Savings rom Increased Investment in Years 2010 through 2014

(in billions o dollars) 2011 2012 2013 2014 2010-2014 2010-2019

SSA �� –1.7 –2.5 –3.4 –4.4 –12.1 –27.9

HHS �� –0.5 –0.5 –0.6 –0.6 –2.7 –2.7

UI �� –0.2 –0.2 –0.3 –0.3 –1.1 –1.2

IRS �� –1.1 –2.3 –3.9 –5.7 –13.3 –16.6

Total Savings �� –3.5 –5.6 –8.1 –11.0 –29.2 –48.5

Increased revenue due to IRS enorcement unding is shown as a negative or consistency. Numbers may not add to totalsdue to rounding.




esults o the pilots will be epoted to theCongess and used to inom administativeand legislative policies o achieving pogam-matic savings in utue eas�

Budget Mechanism or Improving Program Integrity

The Administation poposes to potect the dol-las equested o these activities in the appopi-ations pocess though allocation adjustments, amechanism that has been used b past adminis-tations and Congesses� Allocation adjustmentsae inceases in the ceiling o allocation o annual

appopiations, but these inceases ae gantedonl i appopiations bills incease unding othe specied pogams integit puposes abovespecied base levels� This budget mechanism will

ensue that this unding will not supplant otheFedeal spending on these activities o be divetedto othe puposes� The base level o unding as-sumed in each appopiations equest and the al-location adjustment o each agenc is listed in thetable�

Table 3�

Program Integrity Allocation Adjustment Requests(budget authority in millions o dollars)

2010 2011 2012 2013 20142010-2014

SSA Program IntegrityBase 273

Allocation adjustment 485 722 837 1,020 1,225 4,289

HHS Health Care Fraud and AbuseControl Program

Base (mandatory) 1,179

Allocation adjustment 311 327 343 361 381 1,723

DOL Unemployment InsuranceImproper Payments

Base 10

Allocation adjustment 50 55 60 65 70 300

IRS EnforcementBase 7,100*

Allocation adjustment 890 1,115 1,357 1,724 2,105 7,191

Federal-State Partnership Allocation adjustment 175 175

Total Allocation Adjustment Request 1,911 2,219 2,597 3,170 3,781 13,678

* The IRS enorcement base total should be considered a placeholder pending fnal approval and will be updated in subsequent Budget documents.



43

At this moment o economic cisis and un-cetaint, ou count is being tested� We cancontinue the iesponsible was o the past andpetend that ou poblems ae not thee� We canput o o tomoow what must be done toda�

And we can just concen ouselves with ou-selves—pusuing pots without an egad opinciples� O we can take a new path, ushe in

a new ea o esponsibilit, and enew Ameica’spomise� We can jumpstat ou econom and ce-ate o save millions o jobs� We can invest nowto addess the long-tem dags on ou economiccompetitiveness� And we can ceate a goven-ment that is open and esponsive to the peopleit seves�

Especiall now, this ma seem like a dicultcouse to take� But it is pecisel in these toughtimes that Ameica has alwas come though�Though Depessions and disastes, wold was

and the Cold Wa, ou Nation has tuned mo-ments o advesit into oppotunities o geatpogess� Once again, we ace such a moment,and it is up to each o us to oll up ou sleevesand show, once again, that we ae equal to thetask at hand; that we ae committed to the hadwok o getting Ameica moving again�

This Budget las out a plan o ou Nation toget back on its eet and estoe ou competitive-ness in this new centu� It details how we aegoing to stee the United States out o this deepecession, and begins laing the goundwok olong-tem gowth� It makes ovedue investmentsin impoving ou schools and opening up oppo-tunities to lean o all ou childen� It explainshow we ae going to build the inastuctueupon which ou entepeneus and inventos willbuild the industies and ceate the jobs o tomo-ow� The Budget includes a bold commitment to

impoving ou health cae sstem and eomingit so that it no longe is a weight on ou econom�recognizing how citical it is to tackle climatechange as well as the immense oppotunit thatinvestments in clean eneg technolog pesentto ou econom, the Budget invests in this pom-ising secto� Finall, the Budget efects howimpotant it is that we keep ou people sae and

keep Ameica leading in the wold, with invest-ments in ou amed sevices and intenationalcapabilities�

This Budget also efects the belie that Ame-icans deseve a govenment that is open, honest,and accountable� New tanspaenc and pogamintegit initiatives will be stated that will openthe doos o the Govenment to the public andhelp make sue that taxpae dollas ae spentwisel and caeull� Moeove, the Budget it-sel does not use budget gimmicks o accounting

sleights-o-hand to hide ou plans o the statuso ou econom� It is othight in the challengeswe ace and the sacices we must make� It ishonest in evaluating what pogams wok andwhich do not; shiting esouces om the latteto the ome�

Ovecoming the poblems we have inheit-ed will not be completed in one budget, in onemonth, o in one ea� It will take months andeas o ingenuit and innovation, couage andcommitment� It will take all Ameicans, includ-ing those in Washington and beond living upto the esponsibilities we have to each othe asneighbos and citizens� But i we come togetheand pull togethe, thee is little doubt that Ame-ica will be gowing, innovating, and ceating jobso geneations to come�

CONCLuSiON



45

Funding Highlights:

• Providesover$20billioninloansandgrantstosupportandexpandruraldevelopmentactivities,includingsmallbusinesses,renewableenergy,andtelecommunications.

• Includesa$50millionincreasetoaddressdeferredmaintenanceonthemostcriticalhealthandsafetyinfrastructurewithinournationalforests.

• Supportstheimplementationofa$250,0001commodityprogrampaymentlimit.Thepaymentlimitwillhelpensurethatpaymentsaremadetothosewhomostneedthem.

• Reects the President’s commitment to wildre management andcommunity protection byfullyfundingsuppressioncostsatthe10-yearaverage,establishingadiscretionarycontingentreserveforwildres,andincludingprogramreformstoensureremanagementresourcesarefocusedwheretheywilldothemostgood.

• FullyfundstheSpecialSupplementalNutritionProgramforWomen,Infants,andChildren(WIC)toservealleligibleindividuals.

• Includes$1billionperyearfortheChildNutritionreauthorization.

• Supports apilotprogram tohelp increaseseniorparticipationin the Supplemental NutritionAssistanceProgram.

• ReectsthePresident’scommitmenttosupportingindependentproducersthroughimprovedenforcementofthePackersandStockyardsActandinvestinginthefulldiversityofagriculturalproduction,includingorganicfarmingandlocalfoodsystems.

• Reects the President’s commitment toscal responsibilityby reducing direct payments tothe largest farmers, reducing crop insurance subsidies, eliminating cotton storage credits,eliminatingfunding for theResourceConservationandDevelopmentprogram,andreducingprogramfundingforoverseasbrandpromotion.

1 This page corrects an amount erroneously included in the printed version o A New Era of Responsibility.

Department of agriculture

The United States Department o Agriculture(USDA) provides leadership on ood, agricul-ture, natural resources, and related issues basedon sound public policy, the best available sci-ence, and efcient management. USDA ocuseson urther developing alternative markets oragricultural products and activities, providing f-

nancing needed to help expand job opportunitiesand improve housing, utilities and inrastructurein rural America, enhancing ood saety by tak-ing steps to reduce the prevalence o oodbornehazards rom arm to table, improving nutri-tion and health by providing ood assistance andnutrition education and promotion, supporting



46 A New erA o reSpoNSibiliTy

ntnatna agcutua and cnmc dv-mnt, and managng and tctng Amca’suc and vat ands kng catvth th vs gvnmnt and th -

vat sct. Ths budgt vds $26 n ndsctna udgt autht t sut thsmssn.

Suots Ston fm nd ru eco-

nomic Dvomnt. Th psdnt’s budgttagts am gams t am ams andvds th stat and dctat thnd. Th budgt as vd Amcanams th tctn m makt dsu-tns and ath dsasts. At th sam tm,gam ctvnss mvd thughstctns n cmmdt amnts t athams. Th psdnt suts th m-mntatn a $250,0001 cmmdt gamamnt mt, hch h nsu that a-mnts a mad n t ths that mst ndthm. T su th dvmnt sma usnssand vau-addd agcutu n ua Amca,th psdnt’s budgt vds $61 mn fv rua Dvmnt gams: th uamcntnu assstanc gam, uacatv dvmnt gants, vau-adddduc gants, gants t mnt ducs,and catv sach agmnts.

1 Ths ag ccts an amunt nus ncudd n th ntd

vsn A New Era of Responsibility.

Dvos ru Bodbnd Svics.Mdn tchng s ctca t th xansn usnss, ducatn, and hath ca -tunts n ua aas and th cmttvnss th Natn’s sma tns and ua cmmun-ts. Th budgt vds $1.3 n n ansand gants t ncas adand caact andmv tcmmuncatn svc and duca-tn and hath tunts n ua aas.

pomots ru amic’s ldshi inDvoin rnwb eny. Amca’sams hav n n th nt th n-a us mvmnt. Th psdnt has na stng nnt ncasng th natnasu hm-gn Amcan na u-s. Ths budgt nsus that th Natn’s uaaas cntnu th adsh n ths ana sutng an addtna $250 mn n ansand gants. rua Amca s sd t ducand fn m Amcan us; vd mnd than v ; and cat mns n js acss th cunt.

Suots ru rvitiztion, educ-tion, nd lnd gnt poms. Th budgtncuds an addtna $70 mn ua a-as, cmttv sach gants that vdncntvs tachs kng n ua aas

2006 2007 2008 2009 20100

5

10

15

20

25

30

Actuals, including emergencies

Projections

Discretionary budget authority in billions of dollars

22.5

25.326.1

24.626.0

Department of Agriculture

In addition, the Recovery Act includes $6.9 billion.

Note: Includes international food aid.



DEPArTMENT OF AGrICULTUrE 47

to pusue poessional development, and to en-hance existing ual eseach and extensionpogams at land gant and minoit-sevinginstitutions�

Protects te Naton’s orests. The Bud-get efects the Pesident’s commitment topotecting and estoing ou national oestsas a conestone o a health, sustainable en-

vionment� The Budget povides a $50 millionincease (plus infation) o national oest ope-ations to potect natual esouces and maintainacilities, including those that ae estoed with2009 Ameican recove and reinvestment Actinvestments�

Responsbl Bgets or Wlfres. The

Budget ull unds the 10-ea aveage sup-pession costs, establishes a discetionaunding eseve, and ensues e managementesouces ae used in a cost-eective mannein high-pioit aeas� The $282 million disce-tiona contingent eseve povides unding oeghting when the $1�1 billion appopiated10-ea aveage is exhausted� This poposal willensue that e management esouces ae su-cient to allow o othe citical Foest Seviceactivities�

Conseres New Lans. The Budget in-cludes $119 million, a $34 million incease, inFoest Sevice unding though the Land andWate Consevation Fund to acquie easementson oested lands unde signicant developmentpessues� These consevation easements willpotect ai and wate qualit, povide access tonational oests, and povide habitat o theat-ened o endangeed wildlie and sh�

Spports Conseraton. The Administa-tion ull suppots patneing with landownesto conseve land, potect wetlands, impovewildlie habitat, expand hunting and shingoppotunities, and pomote othe consevationinitiatives� In this vein, the Administationunds seveal vital consevation pogams in-cluding the Consevation Stewadship Pogam,the Consevation reseve Pogam, and the En-

vionmental Qualit Incentives Pogam and

consevation tax incentives that wee povidedin the 2008 Fam Bill�

Strengtens Ntrton Assstance. ThePesident’s Budget suppots a stong Child Nu-

tition and WIC eauthoization package thatwill ensue that low-income childen eceive thenutition assistance the need and help ulllthe Pesident’s pledge to end childhood hungeb 2015� The Budget povides an incease o $1 billion annuall o pogam eoms aimedat impoving pogam access, enhancing thenutitional qualit o school meals, expandingnutition eseach and evaluation, and impov-ing pogam ovesight� Funding is also povidedto suppot ove 9�8 million paticipants in theWIC pogam, which is citical to the health o

pegnant women, new mothes, and thei in-ants�

Respons to te Nees o Low-income Amercans. The Pesident suppots the nu-tition povisions incopoated in the Ameicanrecove and reinvestment Act, including atempoa incease in the Supplemental Nuti-tion Assistance Pogam (SNAP), omel FoodStamps, to help stengthen the ood puchasingpowe o low-income amilies duing these tougheconomic times� The Pesident also suppots

additional esouces o ood banks and com-munit-based ood povides, which help manamilies put ood on the table� Additionall,the Budget povides unding o an innovativepilot initiative to incease paticipation amonglow-income senios, who ae among the most

vulneable and hadest-to-each populations inSNAP, to ensue the eceive the benets owhich the quali�

Enances oo Saet. The Pesident’sBudget takes steps to impove the saet o theNation’s suppl o meat, poult and pocessedegg poducts and to ensue that these poductsae wholesome, and accuatel labeled and pack-aged� The Budget povides additional esoucesto impove ood saet inspection and assess-ment and the abilit to detemine ood saetisks� This will lead to a eduction in oodboneillness and impove public health and saet�




Spports inepenent Procers. Po-tecting poduces against unai, deceptive, andaudulent pactices is essential to a ai and e-cient maketing sstem� Additional esoucesae povided to impove the enocement o the

Packes and Stockads Act to help accomplishthis� The Budget also poposes inceased und-ing to enhance the National Oganic Pogamthough additional education and outeach, aswell as enocement to maintain labeling ced-ibilit�

Prses scal Responsblt. Aspat o the Pesident’s commitment to scalesponsibilit, the Budget includes sevealsignicant osets� The poposals includepogammatic changes that:

•Rece drect Paments. As pat o aneot to tansition lage ams om diectpaments povided to ownes o base acesto inceased income om evenue deivedom emeging makets o envionmentalsevices, the Pesident’s Budget phases outdiect paments ove thee eas to ameswith sales evenue o moe than $500,000annuall� Pesentl, diect paments aemade to even lage poduces egadlesso cop pices, losses, o whethe the land

is still unde poduction� The pogamwas intoduced in the 1996 Fam Bill as atempoa pament scheduled to expie, butwas included in the 2002 and 2008 FamBills� The Pesident wants to maintaina stong saet net o am amilies andbeginning ames while encouaging scalesponsibilit� Lage ames ae wellpositioned to eplace those paments withaltenate souces o income om emegingmakets o envionmental sevices,such as cabon sequestation, enewableeneg poduction, and poviding clean ai,clean wate, and wildlie habitat� USDAwill incease its eseach and analticalcapabilities and conduct Govenment-widecoodination activities to encouage theestablishment o makets o these ecosstemsevices�

•Rece Crop insrance PremmSbses an unerwrtng Gans. Thispoposal would educe the Fedeal subsidto both insuance companies and ames�Ove the last seveal eas, subsidies o

cop insuance companies have gownapidl without impoving pogam coveageo custome sevice o ames� Cuentsubsid levels exceed what is necessa toencouage ame paticipation and the donot constitute a sound value to taxpaes�

•Elmnate Cotton Storage Crets. ThePesident’s Budget poposes to eliminate theequiement o the Govenment to pa thestoage costs o cotton that is put unde loanwith USDA� Cotton is the onl commodit o

which this assistance is povided� Stoagecedits o cotton have been ound to have anegative impact on the amount o cotton onthe maket� Because cotton stoage is coveedb the Govenment, poduces ma stoe theicotton o longe than necessa�

•Elmnate te Resorce Conseratonan deelopment (RC&d) program. TheBudget eliminates unding o the rC&Dpogam� Fist begun in 1962, the pogamwas intended to build communit leadeship

skills though the establishment o rC&Dcouncils that would access Fedeal, Stateand local pogams o the communit’sbenet� Ate 47 eas, this goal has beenaccomplished� These councils have developedsucientl stong State and local ties that the

Administation believes the ae now able tosecue unding o thei continued opeationwithout Fedeal assistance�

•Reorm te Market Access Program(MAP). The Budget eoms MAP b educingpogam unding o oveseas band pomotionand minimizes the benets that lage o-potentities indiectl gain as membes o tadeassociations who also paticipate in MAP� Anannual unding eduction o 20 pecent willeduce Fedeal spending and place a geateemphasis on pomoting geneic Ameicanpoducts oveseas�



DEPArTMENT OF AGrICULTUrE 49

Spport Economc Recoer. The recove Act povides USDA with a total o $27�6 billion,most o which will und inceased benets tolow income amilies though the SupplementalNutition Assistance Pogam ($20 billion)� In

addition, the Act povides $6�9 billion in disce-tiona appopiations o ual development

activities such as constuction and enovation o ual wate and wastewate sstems, low incomehousing loans, boadband inastuctue in ualaeas, ual business pogams, and constuctiono Foest Sevice acilities� Finall, the Act po-

vides $700 million in mandato am disasteassistance�



51

Funding Highlights:

• Mobilizesresourcestoconductthe2010DecennialCensus.

• Improves prediction and monitoring of the planet’s weather and climate and sustainablemanagementofmarinesheriesandoceanresources.

•

InvestsinAmerica’seconomiccompetitivenessbypromotinginnovationinU.S.manufacturing,deployingbroadband,andadvancingmeasurementscience,standards,andtechnology.

• Expandseconomicdevelopmentthroughthepromotionofregionalinnovationclustersandthecreationofanationalnetworkofpublic-privatebusinessincubators.

• PromotesopportunitiesforU.S.exportersinnewmarketsandeliminatesbarrierstoU.S.salesabroad.

• Protectsintellectualpropertyrightscreatedthroughpatentsandtrademarks.

Concts te decennal Censs. The Pes-

ident’s Budget ensues the Census Bueau willhave the esouces it needs to complete the 2010Decennial Census eectivel, ecientl, and on-time b poviding ove $4 billion o additionalunding� These unds ae in addition to the $1 bil-lion ecentl povided b the Ameican recoveand reinvestment Act� The decennial census isthe Nation’s lagest peacetime mobilization, andwill entail the hiing o appoximatel hal o amillion tempoa wokes, as well as extensiveadvetising and patneship activities to encou-age paticipation b had-to-each populationsand completion o an accuate count�

improes Weater orecastng, ClmateMontorng, seres Management anOcean Programs. The Budget helps ensuecontinuit o National Oceanic and Atmosphe-ic Administation (NOAA) satellite coveageneeded o weathe oecasting and climate

data ecods b poviding ove $1�3 billion to

und the development and acquisition o vitalweathe satellites and climate sensos� Fundingis also povided to advance climate and oceaneseach, including eots to undestand andmonito ocean acidication� In addition, theBudget ull suppots implementation o theMagnuson-Stevens Act and its equiement toeliminate oveshing b 2011� All o these activ-ities build upon the ecentl enacted recove

Act, which povides $600 million o the con-stuction and maintenance o NOAA eseachacilities, vessels, and satellites, as well as $230million o habitat estoation, hdogaphicsevices, eseach, and management opeations�

inests n Amerca’s Competteness.The Budget suppots the Nation’s technolog in-astuctue b unding advanced measuementand standads development at the National In-stitute o Standads and Technolog (NIST)�

dEPARTMENT O COMMERCE




These activities will build upon the recove Act,which includes $240 million o NIST’s scienticeseach activities and lab equipment and $180million o constuction o NIST acilities� The2010 Budget also povides $70 million o theTechnolog Innovation Pogam, which investsin high-impact eseach that will addess citicalnational needs and advance innovation� The Hol-lings Manuactuing Extension Patneship will

eceive $125 million to enhance the competitive-ness o the Nation’s manuactues b acilitatingthe adoption o moe ecient manuactuingpocesses� In addition, Commece’s National Tele-communications and Inomation Administationwill be ocused on administeing the $4�7 billionpovided b the recove Act o pogams to ex-pand boadband deploment, adoption, and datacollection�

Sprs Regonal Economc deelopmentan Creaton o New Bsnesses. The Bud-get povides $50 million in egional planningand matching gants within the Economic De-

velopment Administation (EDA) to suppot theceation o egional innovation clustes that le-

veage egions’ existing competitive stengths

to boost job ceation and economic gowth� TheBudget also launches a $50 million initiative inEDA that will ceate a nationwide netwok o public-pivate business incubatos to encouageentepeneuial activit in economicall dis-tessed aeas� The recove Act povides EDA$150 million to distibute as economic adjust-ment assistance and inastuctue unding, withpioit o aeas expeiencing sevee job losses�

Promotes Opportntes or AmercanExporters n New Markets. The Budgetull suppots the Intenational Tade Admin-istation’s eots to pomote expots om smallbusinesses and eliminate baies to sales o U�S�poducts�

Promotes innoaton. The Pesident’s Bud-get gives the U�S� Patent and Tademak Oceull access to its ee collections, which will po-

vide esouces to stengthen the Oce’s abilit toencouage innovation and saeguad the value o intellectual popet though moe ecient andhighe qualit patent and tademak examina-tions�

2006 2007 2008 2009 20100

2

4

6

8

10

12

14 Actuals, including emergencies

Projections


6.6 6.6

7.9

9.3

13.8

Department of Commerce

Note: The increase in 2010 includes approximately $4 billion of additional funding, above the 2009 level,provided to conduct the 2010 Decennial Census.




53

Funding Highlights:

• Provides$533.7billion for theDepartmentofDefensebasebudget in2010,a four-percentincreaseover2009.

• Includes$75.5billioninsupplementalappropriationsfor2009and$130.0billionfor2010tosupportongoingoverseascontingencyoperations,whileincreasingeffortsinAfghanistanand

drawingdowntroopsfromIraqresponsibly.

• Supports a transparent budget process, which simultaneously and separately requestsestimatedbasebudgetandoverseascontingencyoperationscosts.

• ExpandsconcurrentreceiptofmilitaryretiredpayandVeteransDisabilityCompensationforthosedisableduponretirementfromactiveduty.

• Improveseffortstocareforwoundedservicemembersandtotreatmentalhealthneeds.

The U�S� milita, the stongest and most ca-pable in the wold, aces a host o extenal andintenal challenges� Meeting these challenges e-quies evaluating the count’s stategic pioi-ties and aligning scace esouces to accomplishthe highest o those pioities ecientl and e-ectivel�

Extenal challenges include undetaking aesponsible dawdown o toops om Iaq, andocusing the appopiate esouces on achievingU�S� objectives in Aghanistan� In addition, wemust leveage allied suppot to help stugglingstates such as Pakistan, which ae the kestoneo egional stabilit� The milita must also vigi-lantl anticipate and meet theats om asm-metical and non-conventional attacks, such asthose posed b cbe, biological, adiological, andnuclea waae, whethe instigated b nation-states o non-state aggessos�

The milita’s intenal challenges ocus onthee geneal aeas: continuing to estuctuethe Nation’s oces to bette addess long-temwaae challenges; continuing to suppot, caeo, and compensate milita poessionals com-mensuate with thei sevice while seeking e-oms that will impove sevice and potect abenet package that is sustainable and aod-able; and eoming the costl and inecientweapon development and acquisition pocess�

How the count should meet its stategicgoals will be addessed in an upcoming Deensereview, which will identi and pioitize goalsand assess how best to achieve them withinavailable esouces�

Finall, this Budget will tanspaentl pes-ent the ull costs o poviding national secuit�The Budget will cleal show the costs o the

dEPARTMENT O dEENSE




base deense budget and the incemental costs o ongoing milita opeations in Iaq and Aghani-stan o 2010� Fo the eas beond, the Budgetincludes placeholde numbes with the unde-standing that these should be consideed subjectto change as polic decisions ae made�

2010 Base nng

The 2010 Budget o the Depatment o De-ense (DOD) equests $533�7 billion, o an in-cease o ou pecent om the 2009 enactedlevel o $513�3 billion (excluding unding omthe Ameican recove and reinvestment Acto 2009)� This unding incease allows DOD toaddess its highest pioities, such as the Pesi-dent’s commitment to meet the milita’s goalto incease the size o the Am and MaineCops, to continue to impove the medical teat-ment o wounded sevicemembes, and to eomthe acquisition pocess� In addition, the Budgetwill incopoate into the base those items pevi-ousl unded in emegenc supplementals thatshould be consideed base o ongoing activities,including cetain medical sevices, amil sup-pot initiatives, secuit assistance to oeigngovenments, and enhancements to intelligence,suveillance, and econnaissance�

increases te Sze o te Arm an MarneCorps. The 2010 Budget suppots additional pe-manent oces in the Am and Maine Cops,which will incease to 547,400 and 202,000, e-spectivel, b the end o 2009� This gowth is twoto thee eas ahead o schedule and will educestess on sevicemembes and thei amilies,while ensuing heightened eadiness o a ullspectum o milita opeations�

Cares or Men an Women n unorm. The Administation is committed to caing o thesevicemembes who potect Ameican eedomand the amilies who suppot them� To that end,the Budget poposes pa and benets that keeppace with o exceed those o the pivate secto�The 2010 Budget includes unding o a 2�9 pe-cent pa aise o men and women in uniom, anamount that will impove thei puchasing powe�

The Budget also contains a poposal to expandconcuent eceipt o milita etied pa and Vet-eans Disabilit Compensation to all etiees e-ceiving disabilit etied pa� Unde cuent law,the pohibition on concuent eceipt means thatthese benets oset each othe so that disabledmilita etiees cannot eceive ull DOD etie-ment and Veteans disabilit paments� When

2006 2007 2008 2009 20100

100

200

300

400

500

600

700

800

900

Overseas Contingency Operations Request

Overseas Contingency Operations & Other Enacted

Base Request

Base Enacted


534.5

600.9

666.0 654.7 663.7

Department of Defense

Note: Overseas contingency operations includes costs in support of operations in Iraq and Afghanistan. Otherfunding includes supplemental appropriations that supported responses to hurricanes and the 2004 Tsunamiand that funded base activiti es such as Base Realignment and Closure implementation. Also, 2009 includesamounts transferred to the Coast Guard.




DEPArTMENT OF DEFENSE 55

the oset is emoved, disabled milita etieeswould eceive additional monthl compensation�

Reorms Acqston. DOD’s new weaponspogams ae among the lagest, most expensive

and technicall dicult that the Depatment haseve tied to develop� As a consequence, the ca- a high isk o peomance ailue, cost inceas-es, and schedule delas� The Administation willset ealistic equiements and stick to them andincopoate “best pactices” b not allowing po-gams to poceed om one stage o the acquisi-tion ccle to the next until the have achieved thematuit to cleal lowe the isk o cost gowthand schedule slippage�

improes acltes. The Administation

is committed to impoving the qualit o lie o Ameican Soldies, Sailos, Aimen and Maines�Theeoe, the Budget continues to sustain andmodenize baacks and domitoies housing se-

vicemembes aound the wold and woks to endall inadequate housing o milita amilies� Inaddition, it builds o enovates base acilities at alevel sucient o sae opeation o all stuctueswhile meeting the needs o uses�

The Administation will equest sucientunding to enable the Depatment to continue its

eots to meet the equiements o the Base re-alignment and Closue 2005 Commission, whichwill help to align DOD’s domestic bases withmeeting opeational needs�

Cares or Wone, ill, an injre Ser-cemembers (Wii). The Depatment willcontinue its eots to impove the medical caeand housing o WII� DOD will complete addi-tional Am wounded waio complexes at poststhoughout the continental United States, as wellas sites in Alaska, Hawaii, and Geman� DODand the Depatment o Veteans Aais will ex-pand pilot pogams to expedite pocessing o injued toops though the Disabilit Evaluation

Sstem� The expedited sstem substantiall e-duces the time equied to detemine disabilitating and, moe impotantl, to alleviate usta-tion caused b a needlessl complex pocess�

Aresses Mental healt isses. The De-patment is also doing moe to addess mentalhealth needs� Post-taumatic stess disode,taumatic bain inju (TBI) and associated ail-ments ae, and will continue to be, the signatuemilita medical challenges acing the Depat-ment o eas to come� DOD will ull implementa compehensive TBI egist including a singlepoint o esponsibilit to tack incidents and e-cove� The Sevices will expand the numbe o integated mental health poessionals with theideploed units to bette channel medical atten-

tion to those who need help quickl� The NationalIntepid Cente o Excellence o pschologicalhealth and taumatic bain inju will be dedi-cated in the late all o 2009� This will seve as theclinical eseach and educational am o DOD’sCente o Excellence o pschological health andTBI�

nng or Oerseas ContngencOperatons

The Pesident is woking with his milita com-

mandes to incease the numbe o U�S� toops in Aghanistan while esponsibl emoving combatoces om Iaq� To addess the costs o militaopeations in Iaq and Aghanistan, the Adminis-tation equests $75�5 billion o the emainde o 2009 and $130�0 billion o 2010� The Administa-tion will povide the details o the 2009 supple-mental appopiations equest to the Congess inthe next ew weeks, and will tansmit the detailed2010 equest with the Pesident’s 2010 Budget�

The Budget includes placeholde estimates o $50 billion pe ea o 2011 and beond� Theseestimates do not efect an polic decisions aboutspecic milita o intelligence opeations�



57

Funding Highlights:

• StrengthensthecapabilitiesoftheNation’sintelligenceagenciestofurnishtimely,accurate,andinsightfulintelligenceonthecapabilitiesandintentionsofforeignpowers,includinginternationalterroristgroups.

• EnhancesFederalcybersecuritycapabilities.

• PrioritizesresourcestosupportaU.S.Government-widecounterterrorismactionplan.

• Improvesthesharingofterrorist-relatedinformationwithFederal,State,local,tribalandforeignpartners.

• Increasescollectioncapabilitiesandcontinuestransformingintelligenceanalysis.

The National Intelligence Pogam (NIP)unds intelligence activities in seveal Depat-ments and the Cental Intelligence Agenc (CIA)�

NIP’s budget is classied, so the 2010 Bud-get does not publicl disclose unding equestso intelligence activities� Howeve, since NIPsuppots ke elements o Ameica’s national se-cuit, this chapte highlights some NIP-undedactivities without detailing unding inomation�

To potect Ameica’s national secuit, theIntelligence Communit (IC) povides eec-tive intelligence collection, the analsis o thatintelligence, and the poduction o nished intel-ligence poducts� IC is esponsible o ensuingtimel and eective dissemination o intelligenceto those who need it, anging om the Pesident,to heads o Executive Depatments, militaoces, and law enocement agencies� To meetthis count’s national secuit challenges, IC isstengthening its components’ abilities to collectintelligence, inceasing the secuit o Fede-al cbe netwoks, and potecting against the

theat o intenational teoism in the UnitedStates�

The 2010 budget o NIP will suppot the Ad-ministation’s national secuit objectives� TheDiecto o National Intelligence, the Diecto o the CIA, and Depatment Secetaies with intel-ligence oganizations will use 2010 NIP undsto deeat teoist netwoks, pevent the speado weapons o mass destuction, penetate andanalze the most dicult tagets o U�S� oeignpolic, and anticipate developments o stategicconcen�

The Administation will equest unding oIC o the emainde o 2009 and o 2010 to cov-e the costs o global intelligence opeations� Thedetails o the 2009 supplemental appopiationsequest will be povided to the Congess in thenext ew weeks while the detailed 2010 equestwill be tansmitted with the Pesident’s 2010Budget equest�

NATiONAL iNTELLiGENCE PROGRAM




increases nng or Cbersecrt. Thetheat to Fedeal inomation technolog net-woks is eal, seious, and gowing� To addessthis theat, the Pesident’s 2010 Budget includessubstantial unding o cbesecuit eots;

such activities will take an integated and ho-listic appoach to addess cuent cbesecuittheats, anticipate utue theats, and continueinnovative public-pivate patneships� Theseeots encompass the homeland secuit, intelli-gence, law enocement, milita and diplomaticmission aeas o the U�S� Govenment�

implements Conterterrorsm Plan. TheNational Counteteoism Cente (NCTC) hasdeveloped a U�S� Govenment-wide counteteo-ism action plan� This plan las out boad stategic

objectives aligned with polic objectives to guidethe oveall implementation o this national stat-eg on counteteoism� The Administation willwok with NCTC, IC, and elevant Depatments

such as Deense, State, and Homeland Secuitto diect esouces in suppot o counteteoismimplementation objectives�

acltates inormaton Sarng. The

Pesident’s 2010 Budget will suppot initiativesto impove the shaing o intelligence, includingteoist-elated inomation, with Fedeal, State,local, tibal and oeign patnes� These eots in-clude advancing the National Suspicious Activitrepoting Initiative; establishing agenc-based,outcome-oiented peomance tagets o ino-mation shaing; and institutionalizing the use o eective business pactices�

improes Collecton an Analss Capa-bltes. The 2010 Budget povides unding to

impove mission peomance b inceasing intel-ligence collection capabilities and continuing totansom intelligence analsis in IC�



59

Funding Highlights:

• CreatesincentivesandsupportsforStatestobuildcomprehensive,coordinated,high-qualityearly childhood “Zero toFive” systems, buildingon the early childhood investments in theAmericanRecoveryandReinvestmentActof2009.

• Strengthensandreformspublicschoolstomeettheneedsofallstudents,byhelpingStatesto

develophighquality,rigorousstandardsandassessments,vigorouslysupportingandrewardingeffectiveteaching,andinvestinginandwidelydisseminatingeffectiveapproachestoimprovingstudentachievementtohelpallstudentsmakeprogresstowardhighstandards.

• Expandsopportunitiesforstudentstogotocollegeandgraduatebyexpandingstudentaid,shifting resources frombanks andmiddlemen towardstudents, creatingnewincentives forcollegestofocusonstudentcompletion,andexpandingaccesstolow-costFederalstudentloans.

Expans Access to hg-Qalt EarlCloo Ecaton. Decades o igoous

eseach demonstates that high-qualit ealchildhood education pogams help childensucceed in school and thoughout thei lives�Building on stong investments in the recov-e Act, the Pesident’s Budget also includesnew initiatives aimed at ensuing that ealchildhood pogams ield stong esults o chil-den� The Budget invests additional esoucesto encouage State and local investment ineal childhood education; suppot coodina-tion among local, State, and Fedeal patnesand a seamless delive o sevices; and povidebette inomation to paents about pogamoptions and qualit�

Spports hg Stanars an Rgoros Assessments Algne wt te demans o te Global Econom. Students must achieveto high standads in ode to be successul inthe global econom� Assessments must accu-

atel measue students’ knowledge and skills,including citical thinking skills� Building on

the recove Act, the new Administation willhelp States incease the igo o thei standadsso the pepae students o success in collegeand a caee� resouces will also be availableto impove the qualit o assessments, includ-ing assessments o students with disabilitiesand English language leanes� Such eomswill la the goundwok o eauthoizing theElementa and Seconda Education Act�

Prepares an Rewars Eecte Teac-ers an Prncpals. The Budget builds onthe investments unded unde the recove

Act designed to signicantl upgade the skillsand eectiveness o the education wokoce�The Administation will invest in eots tostengthen and incease tanspaenc aoundesults o teache and pincipal pepaationpogams, including pogams in schools o education, altenative cetication pogams,

dEPARTMENT O EduCATiON




and teache and pincipal esidenc pogams�The Budget suppots additional investmentsin State and local eots, developed in consul-tation with teaches and othe stakeholdes, toimplement sstems that ewad stong teachepeomance and help less eective teachesimpove o, i the do not impove, exit the class-oom� resouces ae also included to developbette sstems and stategies o ecuiting,

evaluating, and suppoting teaches and otheeducatos to povide a bette suppl and disti-bution o well-pepaed and eective educationwokoce�

Spports innoate an Eecte Strat-eges to improe Aceement. Though theInnovation Fund, the Administation will investin school sstems and non-pot oganizationswith demonstated tack ecods o success inaising student achievement to expand theiwok o implement new innovative appoaches�The Pesident’s Budget also povides unds tosuppot Pomise Neighbohoods, a new eot totest innovative stategies to impove academicachievement and lie outcomes in high-povetaeas� The pogam will be modeled ate theHalem Childen’s Zone, which aims to impovecollege-going ates b combining a igoousK-12 education with a ull netwok o suppot-

ive sevices—om eal childhood education toate-school activities to college counseling—inan entie neighbohood om bith to college�

ns Ecaton Researc to Ensretat Teacers an Scool Leaers haete Tools an inormaton Te Nee toPrepare Stents or te Global Econom.The Budget includes unds to caeull stud,

impove, and scale up pomising educationalinnovations that ocus on impoving studentleaning and achievement� The additional undswill also be used to igoousl evaluate Fedealeducation pogams so that Fedeal investmentsae pepaing students o success in college andthe wokoce�

Promotes Sccessl Moels or Trnng Aron Low-Aceng Scools. The Budgetbuilds on the recove Act’s ocus on stategicinvestments in scaling up educational pactic-es that show esults and cultivating pomisingnew pactices� The Pesident’s Budget commitsesouces to tun aound high-need, low-pe-oming schools with stong suppots, not justsanctions� The Administation’s new stategwill suppot State eots to diagnose and ad-dess the oot causes o schools’ low peomance�In addition, the Budget inceases unding o the

2006 2007 2008 2009 20100

10

20

30

40

50

60Actuals, including emergencies

Projections


43.5 43.845.0 46.2 46.7

Department of Education


Note: The discretionary budget authority amounts are adjusted for comparability to account for increases inadvance appropriations in prior years, and to exclude discretionary funding for Pell Grants inaccordance with the Budget’s policy to make the program mandatory. The Recovery Act total includes

$53.6 billion for State Stabilization Grants and excludes $15.6 billion for Pell Grants.



DEPArTMENT OF EDUCATION 61

Chate School pogam to suppot the expan-sion o successul chate school models, whileinceasing State ovesight to monito and shutdown low-peoming chate schools�

Expans Pell Grants an Pts teProgram on Sre ootng. Because the Ad-ministation is committed to making collegeaodable o all Ameicans, the 2010 Bud-get builds on the recove Act b suppoting a$5,550 Pell Gant maximum awad in the 2010-2011 school ea� But it is not enough just tomake Pell Gants moe geneous and to put ona shot-tem patch� Fouteen times since 1973,the maximum Pell Gant has ailed to inceaseeven in nominal dollas� To make sue that wehave a highl-educated wokoce and that the

oppotunit to go to college is not detemined bhow much mone ou have, we need to put thePell Gant pogam on sue ooting� The Admin-istation will index Pell gants to the ConsumePice Index plus 1 pecent in ode to addessinfation� In addition, the Administationpoposes to make the Pell Gant pogam man-dato to ensue a egula steam o unding andeliminate the pactice o “backlling” billions o dollas in Pell shotalls each ea� Finall, whileexpanding student aid, the Administation willalso simpli the student aid application pocess�

Stablzes te Stent Loan Programor Stents an Saes Bllons o dol-lars or Taxpaers. right now, the subsidiesin the Govenment-guaanteed student loan

pogam ae set b the Congess though thepolitical pocess� That pogam has not onlneedlessl cost taxpaes billions o dollas, buthas also subjected students to uncetaint be-cause o tumoil in the nancial makets� The

Pesident’s Budget asks the Congess to end theentitlements o nancial institutions that lendto students� The Administation will insteadtake advantage o low-cost and stable souces o capital so students ae ensued access to loans,while poviding high-qualit sevices o stu-dents b using competitive, pivate povidesto sevice loans� The appoach in the Budget,oiginating all new loans in the diect lendingpogam, saves moe than $4 billion a ea thatis einvested in aid to students� The Budget alsomakes campus-based, low-inteest loans moe

widel available though a new modenized Pe-kins Loan pogam, ovehauling the inecientand inequitable cuent Pekins pogam�

ocses on College Completon. It is notenough o the Nation to enoll moe students incollege; we also need to gaduate moe studentsom college� A ew States and institutions havebegun to expeiment with these appoaches, butthee is much moe the can do� The Budget in-cludes a new ve-ea, $2�5 billion Access andCompletion Incentive Fund to suppot innova-

tive State eots to help low-income studentssucceed and complete thei college education�The pogam will include a igoous evaluationcomponent to ensue that we lean om whatwoks�



63

Funding Highlights:

• Beginstobuildaneweconomythatispoweredbycleanandsecureenergythroughfundingprovidedinthe2010Budgetandthe$39billionprovidedforenergyprogramsintheAmericanRecoveryandReinvestmentActof2009.

• Providessignicant increasesinfundingforbasicresearchandworld-leadingscienticuser

facilitiestosupporttransformationaldiscoveriesandacceleratesolutionstoourNation’smostpressingproblems–includingthedevelopmentofcleanenergy.

• SupportseconomicinvestmentandpositionstheUnitedStatesastheworldleaderinclimatechangetechnology.

• Acceleratesthetransitiontoalow-carboneconomythroughincreasedsupportofthedevelopmentanddeploymentofcleanenergytechnologiessuchassolar,biomass,geothermal,wind,andlow-carbonemissioncoalpower.

• Buildsonthe$11billionprovidedintheRecoveryActforsmartgridtechnologies,transmissionsystemexpansionandupgrades,andotherinvestmentstomodernizeandenhancetheelectrictransmissioninfrastructuretoimproveenergyefciencyandreliability.

• Supports and encourages the early commercial deployment of innovative, clean energytechnologiesthroughloanguarantees.

• Reducessecurity risks through the detection,elimination, and securingofnuclearmaterialandradiologicalsourcesworldwidewhilemaintainingthesafety,security,andreliabilityofthenuclearweaponsstockpile.

• Continues the Nation’s efforts to reduce environmental risks and safely manage nuclearmaterials.

inests n te Scences. As pat o thePesident’s plan to double Fedeal investment inthe basic sciences, the 2010 Budget, along withthe $1�6 billion povided in the recove Act othe Depatment o Eneg’s basic science po-gams, povides substantiall inceased suppoto the Oce o Science� The Budget inceasesunding o impoving ou undestanding o cli-mate science and continues the United States’

commitment to intenational science and enegexpeiments� The Budget also expands gaduateellowship pogams that will tain students incitical eneg-elated elds�

Encorages te Earl Commercal use o New, innoate Energ Tecnologes tatWll Rece Greenose Gas Emssons.The Budget suppots loan guaantees o inno-

dEPARTMENT O ENERGy




vative eneg technologies including enewableeneg pojects, tansmission pojects, and ca-bon sequestation pojects that avoid, educe, osequeste ai pollutants and geenhouse gaseswhile simultaneousl ceating geen jobs andcontibuting to long-tem economic gowth andintenational competitiveness�

Aances te deelopment o Low-Car-

bon Coal Tecnologes. The Budget suppotsCabon Captue and Stoage technolog, andalong with the $3�4 billion povided in the recov-e Act o low-cabon emission coal powe andindustial pojects, these unds will help allowthe use o ou extensive domestic coal esoucewhile educing the impacts on climate change�

inests n Smart, Energ Efcent, Rel-able Electrct deler inrastrctres.The Budget povides suppot o the Oce o Elec-ticit Delive and Eneg reliabilit as pat o the Pesident’s investment plan to modenize theNation’s electic gid� It includes: eneg stoage;cbe-secuit and investments in eseach, thedevelopment and demonstation o smat gidtechnologies that will acceleate the tanso-mation o the Nation’s eneg tansmission anddistibution sstem; enhancement o secuit and

eliabilit o eneg inastuctue; and acilitat-ing ecove om disuptions to the eneg suppl�

inests n Clean Energ Tecnologes toRece depenence on oregn Ol an Ac-celerate te Transton to a Low-CarbonEconom. The Budget povides suppot oacceleating eseach, development, demon-station, deploment, and commecialization o

clean eneg technologies, including biouels,enewable eneg, and eneg ecienc poj-ects� These investments will educe dependenceon oeign oil and ceate long-tem, sustainableeconomic gowth in the geen industies o theutue�

Reces Proleraton Rsks an Ensreste Saet, Secrt, an Relablt o teNclear Weapons Stockple Wtot N-clear Testng. The Budget suppots inceasedeots to secue and dispose o nuclea mateialand invests in innovative science and technol-og to detect and dete nuclea smuggling andthe development o weapons o mass destuctionpogams� Development wok on the reliable re-placement Wahead will cease, while continuedwok to impove the nuclea stockpile’s saet,secuit, and eliabilit is enhanced with moeexpansive lie extension pogams�

2006 2007 2008 2009 20100

5

10

15

20

25

30

35


Projections


23.6 23.7 24.1

33.9

26.3

Department of Energy

Note: Included in 2009 is emergency funding for Advanced Technology Vehicles Manufactur ing Loan Program,$7.5 billion, and $250 million for Weatherization.




DEPArTMENT OF ENErGy 65

ocses on te Cleanp an Managemento Raoacte Waste an Nclear Materals.The Budget ocuses on impoved peomance andaccountabilit o the envionmental legac o theNation’s nuclea weapons pogam b addessing

health and saet isks acoss the count� The

yucca Mountain pogam will be scaled back tothose costs necessa to answe inquiies omthe Nuclea regulato Commission, while the

Administation devises a new stateg towadnuclea waste disposal�



67

Funding Highlights:

• Acceleratestheadoptionofhealthinformationtechnologyandutilizationofelectronichealthrecords.

• Expands research comparing theeffectiveness of medical treatments to give patients andphysiciansbetterinformationonwhatworksbest.

• Investsover$6billionforcancer researchattheNational InstitutesofHealthaspartoftheAdministration’smulti-yearcommitmenttodoublecancerresearchfunding.

• Strengthensthe IndianhealthsystemwithsustainedinvestmentsinhealthcareservicesforAmericanIndiansandAlaskaNativestoaddresspersistenthealthdisparitiesandfosterhealthyIndiancommunities.

• Invests$330milliontoincreasethenumberofdoctors,nurses,anddentistspracticinginareasofthecountryexperiencingshortagesofhealthprofessionals.

• Supports families by providing additional funding for affordable, high-quality child care,expandingEarlyHeadStartandHeadStart,andcreatingtheNurseHomeVisitationprogram

tosupportrst-timemothers.• StrengthenstheMedicareprogrambyencouraginghighqualityandefcientcare,andimproving

programintegrity.

• Investsover$1billion forFoodandDrugAdministration foodsafetyefforts toincreaseandimprove inspections, domestic surveillance, laboratory capacity and domestic response topreventandcontrolfoodborneillness.

The Depatment o Health and Human Sevic-es (HHS) is the Fedeal Govenment’s pincipalagenc o potecting the health o all Ameicansand o poviding essential human sevices� ThisBudget povides $76�8 billion in suppot o HHS’mission�

Makes a down Pament on healt CareReorm. The Budget establishes a eseve undo moe than $630 billion ove 10 eas to nanceundamental eom o ou health cae sstem

that will bing down costs and expand coveage�The eseve is unded hal b new evenue andhal b savings poposals that pomote ecien-c and accountabilit, align incentives towadqualit, and encouage shaed esponsibilit� Inaddition, the Budget calls o an eot beondthis down pament, to put the Nation on a pathto health insuance coveage o all Ameicans�Howeve, additional unding will be needed� Thiseot must be open, and must conside all kindso appoaches as pat o this pocess� Some majo

dEPARTMENT O hEALTh ANd huMAN SERviCES




stides have alead been made in the Ameicanrecove and reinvestment Act o 2009, includ-ing $19 billion o health inomation technolog,$1 billion o compaative eectiveness eseach,and subsidies o the newl unemploed to main-tain thei health insuance� These initiativesput the Nation on the path towad undamentalhealth eom�

Begn te doblng o nng or Can-cer Researc. The Budget includes ove $6billion within the National Institutes o Health(NIH) to suppot cance eseach� This unding iscental to the Pesident’s sustained, multi-eaplan to double cance eseach� These esouceswill be committed stategicall to have the geat-est impact on developing innovative diagnostics,teatments, and cues o cance� This initiativewill build upon the unpecedented $10 billionpovided in the recove Act, which will suppotnew NIH eseach in 2009 and 2010�

Accelerates te Aopton o healt in-ormaton Tecnolog (iT). Building on thehistoic $19 billion investment in the recove

Act, the Administation will continue eotsto uthe the adoption and implementation o health IT—an essential tool to modenize thehealth cae sstem� The recove Act oes phsi-

cians and hospitals paticipating in the Medicaepogam tempoa incentive paments stat-ing in 2011 o using a cetied electonic healthecod (EHr), ollowed b nancial penaltiesstating in 2015 o ailue to use such a sstem�It also oes incentive paments to Medicaidpovides, including phsicians and childen’shospitals, to assist with the puchase, implemen-tation, and use o cetied EHr technolog� These

incentives, coupled with othe activities autho-ized in the recove Act, ae expected to esultin a damatic incease in the pecentage o healthcae povides using health IT within ve eas�Computeizing health ecods—while potectingthe pivac and secuit o pesonal health ino-mation—is expected to acilitate impovementsin the qualit o health cae, pevention o unnec-essa health cae spending, and a eduction inmedical eos�

Lowers drg Costs an improes ooan Mecal Proct Saet. The Budget sup-pots the Food and Dug Administation’s (FDA’s)new eots to allow Ameicans to bu sae andeective dugs om othe counties and to estab-lish a new egulato pathwa to appove geneicbiologics� The Budget also includes a substantialincease to stengthen FDA’s eots to make oodand medical poducts sae�

2006 2007 2008 2009 20100

10

20

30

40

50

60

70

80

90


Projections


73.169.1 70.5

78.4 76.8

Note: Amounts appropriated to the Social Security Administration (SSA) from the Hospital Insurance and

Supplementary Medical Insurance accounts are included in the corresponding table in the SSA chapter.

Department of Health and Human Services




DEPArTMENT OF HEALTH AND HUMAN SErVICES 69

Strengtens Program integrt. reduc-ing aud, waste, and abuse is an impotant pato estaining spending gowth and povidingqualit health cae sevice delive to benecia-ies� The Budget poposes to dedicate additional

esouces that will initiall be tageted to impov-ing ovesight and pogam integit activities othe Medicae Pesciption Dug Pogam (PatD), Medicae Advantage, and the Medicaid Po-gam� These esouces will enable the Centeso Medicae and Medicaid Sevices to moeapidl espond to emeging pogam integit

vulneabilities, identi excessive paments, andestablish new pocesses o coecting poblems�

As a esult, the Administation will be betteable to minimize inappopiate paments, closeloopholes, and povide geate value o pogam

expenditues to beneciaies and taxpaes�

improes Mecare’s Sstanablt. The Administation is committed to stengtheningMedicae’s long-tem sustainabilit so that ben-eciaies can continue to el on this citicalpogam� The Budget stengthens the Medicaepogam b encouaging high qualit and ecientcae, and educing excessive Medicae paments�

Expans te Mecare an MecaResearc Agena. The Budget includes new

unding to boaden the Medicae and Medicaideseach agenda� The expanded agenda will takeadvantage o the obust data available o thesepogams� New Medicae and Medicaid demon-station and pilot pojects will evaluate pamenteoms, was to povide highe qualit cae atlowe costs, impove benecia education andundestanding o benets oeed, and bettealign povide paments with costs�

Proes healt Care Coerage toLow-income inals. Medicaid is a means-tested health cae entitlement pogam nancedb States and the Fedeal Govenment� On ave-age, the Fedeal Govenment pas 57 pecent o Medicaid costs� The recove Act potects healthcae coveage o millions o Ameicans duingthe ecession b tempoail inceasing FedealMedicaid unding to help States acing budgetshotalls maintain thei cuent pogams�

In addition, the Childen’s Health InsuancePogam reauthoization Act o 2009, signed bthe Pesident on Febua 4, 2009, extends thepogam though 2013 b poviding an additional$44 billion in allotments above baseline unding

levels o $25 billion� This unding povides accessto neal ou million newl insued childen b2013�

Enances hiv/AidS Preenton anTreatment. The Budget inceases esouces todetect, pevent, and teat HIV/AIDS domestical-l, especiall in undeseved populations�

Strengtens te healt Proessons Work-orce. The Budget invests $330 million to addessthe shotage o health cae povides in cetain

aeas� The Budget expands loan epament po-gams o phsicians, nuses, and dentists whoagee to pactice in medicall undeseved aeas�This unding will enhance the capacit o nusingschools to incease the numbe o nuses� It willalso allow States to incease access to oal healthcae though dental wokoce developmentgants� The Budget’s new esouces will sustainthe expansion o the health cae wokoce und-ed in the recove Act�

Expans Access to healt Care or Amer-

can inans an Alaska Nates (Ai/ANs).The Budget includes ove $4 billion o the IndianHealth Sevice (IHS) to suppot and expand thepovision o health cae sevices and public healthpogams o AI/ANs� Investments in the Indianhealth sstem will ocus on impoving the healthoutcomes o AI/ANs and pomoting health In-dian communities� The Pesident’s Budget buildsupon esouces povided in the recove Act oIHS�

Spports Amercans wt Atsm Spec-trm dsorers (ASd). The Pesident iscommitted to expanding suppot o individuals,amilies, and communities aected b ASD� TheBudget includes $211 million in HHS o eseachinto the causes o and teatments o ASD, sceen-ings, public awaeness, and suppot sevices�




improes Rral healt. The Budget in-cludes $73 million to impove both access to andqualit o health cae in ual aeas� This undingwill stengthen egional and local patneshipsamong ual health cae povides, expand com-

munit-based pevention inteventions, andpomote the modenization o the health cae in-astuctue in ual aeas�

Compares te Eecteness o Treat-ments. Building on the unpecedented $1�1billion included in the recove Act o compaa-tive eectiveness eseach, the Administationwill continue eots to poduce state-o-the-sci-ence inomation on what medical teatmentswok best o a given condition� When coupledwith electonic health ecods, these ndings can

om the basis o clinical decision suppot tools—distilling all available evidence on the outcomeso dieent teatment options into use-iendlpop-up alets o phsicians at the point o cae�These ndings can theeb enhance medical de-cision-making b patients and thei phsicians�

Makes a down Pament on te Present’s“Zero to e” Plan. The recove Act makesa down pament on the Pesident’s compehen-sive Zeo to Five plan, poviding $1�1 billion todouble the numbe o childen seved b Eal

Head Stat ove two eas, an additional $1 bil-lion to expand and impove Head Stat, and anadditional $2 billion in unding o the Child Caeand Development Block Gant� The Budget sus-tains citical suppot o oung childen and theiamilies b building on these investments�

The Budget also ceates the Nuse Home Visitation pogam, which will povide unds toStates to povide home visits b tained nusesto st-time low-income mothes and mothes-to-be� The pogam has been igoousl evaluatedove time and poven to have long-tem eectsincluding substantial eductions in child abuseand neglect, petem biths, and aests o bothpaents and adolescents who paticipated in the

pogam as childen, putting estimates o itsetun-on-investment between 3 to 6 dollas pedolla invested� This Budget builds the ounda-tion o a pogam that could ultimatel seve alleligible mothes who seek sevices�

Proes Energ Assstance to Low-in-come amles. The Budget povides $3�2 billiono the Low-Income Home Eneg Assistance Po-gam (LIHEAP) to help low-income amilies withthei home heating and cooling expenses� Thatis the highest level o LIHEAP unding o anea except o the most ecent, when the Nationwas theatened with an unpecedented inceasein eneg costs� In addition, the Administationpoposes ceating a new tigge mechanism topovide automatic inceases in eneg assistance

wheneve thee is a spike in eneg costs� Thenomal appopiations pocess cannot alwas e-spond to the volatile eneg maket on a timelbasis; the tigge will ensue a pompt and poten-tiall signicant incease in unds in esponse toa apid utue ise in costs�

Preents Teen Pregnanc. The Budget sup-pots State, communit-based, and aith-basedeots to educe teen pegnanc using evidence-based models� The pogam will und models thatstess the impotance o abstinence while po-

viding medicall-accuate and age-appopiateinomation to outh who have alead becomesexuall active�

Proes Spport or Oter Presentalintates. The Budget includes unding to e-duce domestic violence and enhance emegenccae sstems� It also expands the teatment ca-pacit o dug couts including sevices to potectmethamphetamine’s oungest victims� Substanceaddiction is a peventable and teatable choniccondition and this initiative helps addess themost ugent needs� The Budget also povides e-souces to educe health dispaities, which thePesident has identied as an impotant goal o his Administation�



71

Funding Highlights:

• SafeguardstheNation’stransportationsystemsthroughadditionalresourcestobolstercriticaltransportationsectorsandbyleveragingauserfeetominimizeoverallcosts.

• Enhancescybersecurityandtechnologyresearchanddevelopmentbysupportingpartnershipswithgovernment, industry,andacademiatostrengthentheNation’scyberinfrastructureand

increaseresearchanddevelopmentinkeyhomelandsecuritytechnologies.

• Strengthensbordersecurityandimmigrationservices.

• Supports State homeland security activities by increasing funding provided to States andlocalitiesto protectAmericansfromterroristattacksandnaturaldisasters, througheffectiveemergencyresponseplans,andimprovedinformationsharingandanalysis.

Saegars or Naton’s TransportatonSstems. The Budget unds ke investmentsto einoce public tanspotation, enhance

maitime tanspotation, and acceleate ailinesecuit� Funding o $50 million will povide15 new Visual Intemodal Potection responseteams at the Tanspotation Secuit Admin-istation to incease additional andom ocepotection capabilit b deploing to tansithubs unannounced� Anothe $25 million in newesouces will suppot integated planning atthe Depatment o Homeland Secuit and theDepatment o Tanspotation to inom devel-opment and modenization o intemodal eightinastuctue linking coastal and inland potsto highwa and ail netwoks� Additional und-ing suppots citical investments to stengthenthe secuit o U�S� aipots and adds 55 Bomb

Appaisal Oces who specialize in explosivesand impovised explosive device ecognition andesponse� The Budget also includes $64 millionto modenize the inastuctue used to vet tav-eles and wokes� These unds will stengthen

sceening in ode to educe the isk o poten-tial teoism o othe unlawul activities thattheaten the Nation’s tanspotation sstem�

To minimize oveall costs to taxpaes, theBudget poposes to incease the existing Avia-tion Passenge Secuit Fee beginning in 2012�Inceasing this ee will oset costs associatedwith Tanspotation Secuit Administationsceening o aviation passenges as the cuentee onl captues 36 pecent o the cost o avia-tion secuit� B inceasing the ee, osettingcollections om all aviation secuit ees wouldcove a majoit o the estimated costs o passen-ge and baggage sceening�

Enances Cbersecrt an Tecnol-og Researc an deelopment. Fundingo $355 million is tageted to make pivate andpublic secto cbe inastuctue moe esil-ient and secue� These unds will suppot thebase opeations o the National Cbe SecuitDivision, as well as initiatives unde the Com-

dEPARTMENT O hOMELANd SECuRiTy




pehensive National Cbesecuit Initiativeto potect ou inomation netwoks� Fund-ing o $36 million will suppot ongoing pojectsto impove suveillance technologies to detectenhanced, emeging and advanced biologicaltheats� Eots to develop next-geneation Bio-Watch sensos will continue in ode to detectbio-attacks at the ealiest possible instant� TheBudget also suppots the temination o outdated

sstems such as the teestial-based, long-angeadionavigation (LOrAN-C) opeated b the U�S�Coast Guad esulting in an oset o $36 millionin 2010 and $190 million ove ve eas�

Strengtens Borer Secrt an imm-graton Serces. The Budget unds $45 milliono the expansion o an exit pilot at ke land potso ent and othe bode secuit pioities�Funding o $368 million within existing Customsand Bode Potection unds suppot 20,000 Bo-de Patol agents potecting neal 6,000 miles o U�S� bodes� The Budget povides ove $1�4 bil-lion o Immigation and Customs Enocementpogams to ensue that illegal aliens who commitcimes ae expeditiousl identied and emovedom the United States� Funding o $110 millionis povided to continue expansion o E-Vei, an

electonic emploment eligibilit veication ss-tem� E-Vei helps U�S� emploes compl withimmigation law and ensues that U�S� jobs aeavailable to U�S� citizens and those authoized towok in the United States� The Budget also sup-pots stengthening the delive o immigationsevices b steamlining and modenizing immi-gation application pocesses�

Spports State homelan Secrt Act-tes. Making the Fedeal Govenment a bettepatne to States and localities on ke homelandsecuit initiatives is an Administation pioit�

Additional unding is povided to impove coodi-nation between all levels o govenment, suppotou st espondes, and ceate moe eectiveemegenc esponse plans� risk-based execiseassistance gants will assist State, local, and tib-al patnes in osetting costs o citical homelandsecuit activities and will expand thei MedicalSuge Capacit with the stockpiling and stoingo essential supplies� Funding o $260 millionwithin the existing Homeland Secuit Gantpogam will oti the Nation’s intelligencesstem b impoving inomation shaing andanalsis b adding thousands moe State and lo-cal level intelligence analsts�

2006 2007 2008 2009 20100

10

20

30

40

50

60 Actuals/Enacted, including emergencies/supplementals

Proposed


39.4

50.0

40.142.7

Department of Homeland Security

Note: 2006 excludes a -$15.8 billion supplemental rescission. 2008 includes $15.1 million in emergency andsupplemental funds appropriated under Public Laws 110-116, 110-161, 110-252, and 110-329.2009 excludes the one-time advance appropriation for Bioshield funding, $2.175 billion and includes a

$112 million transfer from DOD to Coast Guard.

30.7




73

Funding Highlights:

• ProvidesfullfundingfortheCommunityDevelopmentBlockGrantprogramat$4.5billion. Inaddition,theBudgetreformstheprogram’sformulatobettertargeteconomicallydistressed

communities. The program will also stimulate innovations in metropolitan sustainability,universitypartnerships,andruralhousingandeconomicdevelopment.

• Provides$1billiontocapitalizeandlaunchanAffordableHousingTrustFundthatwilldevelop,rehabilitate,andpreserveaffordablehousingtargetedtovery-lowincomehouseholds.TheFundwillhelptopreventhomelessnessandstrengthenfamilies.

• Increases funding for theHousingChoiceVoucherprogram,whichlikewisemakeshousingaffordabletoverylow-incomehouseholds.TheDepartmentofHousingandUrbanDevelopmentwillalsointroducelegislativereformstoaddresstheprogram’scostlyinefciencies.

• EnablestheDepartmenttopreserveapproximately1.3millionaffordablerentalunitsthroughincreasedfundingfortheDepartment’sassistedmultifamilyproperties.

• Combatsmortgagefraudandpredatoryloans.TheBudgetfundsenhancedenforcementoffairhousing,mortgagedisclosure,andsettlementrequirements.

• CreatesanewEnergyInnovationFundto catalyzeprivate sector investment intheenergyefciencyoftheNation’shousingstock.

• CreatesanewChoiceNeighborhoodsInitiativetomakearangeoftransformativeinvestmentsinhigh-povertyneighborhoodswherepublicandassistedhousingisconcentrated.

• Eliminatesfundingforineffectiveandduplicativeprograms,includingtheSection108CommunityDevelopmentLoanGuaranteesprogramandtheAmericanDreamDownpaymentInitiative.

The Depatment o Housing and Uban Devel-opment (HUD) is committed to ullling its mis-sion o inceasing homeowneship, suppotinginnovative and sustainable communit develop-ment, and inceasing access to aodable hous-ing ee om discimination� The Pesident’sBudget estoes and inceases unding o man

HUD pogams to achieve these impotant goalswhile eoming o eliminating duplicative andinecient pogams�

Proes ll nng or te Commn-t deelopment Block Grant (CdBG) Pro-gram. The Pesident is ullling his pledge to

dEPARTMENT O hOuSiNG ANd

uRBAN dEvELOPMENT




ull und CDBG� The Budget povides $4�5 bil-lion o 2010 to ensue that communities continueto invest in and expand economic oppotunitieso low-income amilies� In addition to the signi-cant unding incease, the Budget will modenizethe pogam though statuto eoms� Thougha moe eective omula, appopiate incentivesand accountabilit measues, and a new Sustain-able Communities Initiative, the Administation

will evamp the CDBG pogam to bette tagetunds to distessed communities and pomotesustainable and economicall viable communi-ties�

Proes nng or an Aorable hos-ng Trst n or te rst Tme. The Hous-ing Tust Fund was oiginall authoized in theHousing and Economic recove Act o 2008, witha dedicated unding steam om assessments onFannie Mae and Feddie Mac� Howeve, giventhei nancial diculties, the Fedeal HousingFinance Agenc has indenitel suspended theseassessments� The Budget estoes unding othe Housing Tust Fund b equesting $1 billionto nance the development, ehabilitation, andpesevation o aodable housing o ve lowincome esidents�

increases nng or te hosng Coce vocer Program. A obust Housing Choice Vouche pogam will help moe than two millionextemel low- to low-income amilies with entalassistance to live in decent housing in neighbo-hoods o thei choice� To addess the pogam’scostl ineciencies, the Administation will in-toduce legislative eoms to help ull utilizeavailable unding, alleviate the administative

budens on the Public Housing Authoities, andestablish a unding mechanism that is tanspa-ent and pedictable in ode to seve moe needamilies�

increases nng or te Project-BaseRental Assstance Program. The Poject-Based rental Assistance pogam will peseveappoximatel 1�3 million aodable ental unitsthough inceased unding o contacts withownes o multiamil popeties� This citicalinvestment will assist low- and ve low-incomehouseholds in obtaining decent, sae and sanitahousing in pivate accommodations�

Combats Mortgage ra an Preca-tonar Practces. The Budget povides undso HUD to combat motgage aud and pedatopactices and includes inceased unding o aihousing enocement� These esouces will allow

2006 2007 2008 2009 20100

10

20

30

40

50

60


Projections

Discretionary budget authority in billions of dollars, including emergency spending

51.1

37.0

47.1

40.1

47.5

Department of Housing andUrban Development

Note: Supplemental funding designated as emergency for disaster and/or housing crisis-related activities

is included in the totals -- $17.1 billion for 2006, $7 million for 2007, and $9.5 billion for 2008.

In addition, the Recovery Act

includes $13.6 billion.



DEPArTMENT OF HOUSING AND UrBAN DEVELOPMENT 75

HUD to incease enocement o motgage andhome puchase settlement equiements� Thisinvolves pope disclosue o motgage tems andpemissible business pactices and chages� En-hanced enocement will ceate an envionment

in which home-bues will be seved with mot-gage tems that ae moe easil undestood andeliabl honoed b lendes�

Creates a New Energ innoaton n. The Budget includes unds o HUD to divethe ceation o an eneg-ecient housing ma-ket—including “etotting” o olde, inecienthousing—and catalze pivate secto lending othis pupose in the esidential secto� Patne-ing with the Depatment o Eneg on this initia-tive, HUD will contibute to the Administation’s

boade eot to combat global waming, jump-stat the ceation o a geen econom, and educeutilit bills�

Creates a New Coce Negboroos in-tate. The Budget includes unds o HUD tosuppot a ange o tansomative inteventionsin neighbohoods o concentated povet� Thisnew initiative would challenge public, pivate

and nonpot patnes to identi neighbohoodinteventions that would have the lagest etunon Fedeal investments�

Elmnates nng or ineecte andplcate Programs. The Pesident’s Bud-get poposes to eliminate unding o two HUDpogams totaling $16 million� The Section 108Communit Development Loan Guaantees Po-gam and the Ameican Deam DownpamentInitiative ae duplicative o lage pogams thatachieve simila esults� B eliminating sepaate

unding o these pogams, HUD will steamlineits esouces and ocus its eots on pogamsthat ae moe successul� Section 108 Commu-nit Development activities will continue to beeligible unde CDBG�



77

Funding Highlights:

• Protects national parks with $100million in additional funds to operate andmaintain parkfacilitiesandresourcesand$25milliontoleverageprivatedonationsforparkprojects.

• ConservesnewFederalandStatelandsandprotectsendangeredspecieswithappropriationsofabout$420millionfromtheLandandWaterConservationFund,withannualincreasesto

reachfullfundingof$900millionby2014.

• AssistsStateandFederallandmanagementagencieswithover$130millioninadditionalfundingtomonitor,adaptivelymanageandassesstheimpactsofclimatechangeontheNation’slands,shandwildlife.

• Createseducationalandjobopportunitiesforyoungpeoplethroughexpandedenvironmentaleducationactivitiesandnewprogramstoencouragethemtohuntandshresponsibly.

• Strengthens Native American communities through an increase of over $100 million forenhancedlawenforcementandeducation.

• Anticipatesfuturecostsforcatastrophicwildreswithanewcontingentfundingreserveof$75

millionfortheDepartmentoftheInterior.• Investsover$50milliontopromoterenewableenergyprojectsonFederallandsandwaters.

• Encouragesresponsibledevelopmentofoilandgasresourcesandclosesloopholesthathavegivenoilcompaniesexcessiveroyaltyreliefforoffshoreleases.

The Pesident’s 2010 Budget includes $12 bil-lion o the Depatment o the Inteio (DOI) toundetake initiatives to potect and peseve

Ameica’s national paks and public lands, con-seve wetlands and wildlie habitat, stengthenNative Ameican communities, enhance outdoooppotunities o oung people, and pomote en-eg secuit with a ocus on clean enewablesouces and stategies to addess climate change�

Protects Natonal Parks. The Pesident iscommitted to peseving the Nation’s nationalpaks, with a $100 million incease in pak ope-

ations (plus infation) to potect the investmentsmade though the Ameican recove and re-investment Act o 2009, and maintain acilitiesand natual esouces� An additional $25 millionwill povide matching unds to leveage pivatedonations in pepaation o the 100th annive-sa o the National Pak Sevice�

Conseres New Lans. While Ameicanscan take geat pide in ou existing nationalpaks and othe public lands, thee ae manlandscapes and ecosstems that do not haveadequate potection� One wa to potect these

dEPARTMENT O ThE iNTERiOR




landscapes is to incease unding though theLand and Wate Consevation Fund (LWCF) toacquie and conseve new paks and public lands,with a ocus on ecosstems that do not et havethe potection the deseve� The Budget inceas-es LWCF unding o DOI b ove $80 million,binging the total equest o the Depatmentso Agicultue and the Inteio to appoximatel$420 million in 2010� This will put the Adminis-

tation on tack to ull und LWCF pogams at$900 million b 2014�

Assesses an Respons to te impact o Cl-mate Cange on Wlle. Climate change posesa theat to Ameica’s sh and wildlie, as natualhabitats ae modied moe apidl than plantsand animals can adjust� Scientic analses aeneeded to undestand the beadth o these chang-es� Fedeal land management agencies, States,and Tibes all need to update land managementand species ecove plans to efect the impactso climate change on wildlie� The also need tomonito how wildlie is adapting and acceleatepojects, such as potecting migation coidos, tohelp wildlie adjust� The Budget includes inceas-es o moe than $130 million, o which $40 millionis shaed with the States o wildlie adaptation�

Additionall, the Budget inceases unds b $10million o Noth Ameican Wetlands Conseva-

tion Act (NAWCA) activities to acquie, estoe, opotect wetlands used b migato wateowl andothe bids� This is the st step in ull undingNAWCA at $75 million b 2012�

Encorages yot Ecaton an in-olement. The Pesident is keenl awae o theimpotant ole that huntes and angles pla inthe consevation o the Nation’s wildlie and nat-

ual habitats� The Administation seeks to ogea boad coalition to addess geat consevationchallenges, and Ameica’s huntes and anglespla an impotant pat� To help peseve the na-tional taditions o hunting and shing shaed bamilies acoss the count, the Budget povidesunding to help States establish ceative po-gams and stategies to encouage oung peopleand minoit populations to esponsibl hunt andsh� The Budget also expands oppotunities oouth education including intenships to instillenvionmental awaeness� These pogams willeceive inceases o ove $50 million�

Strengtens Nate Amercan Commn-tes. The Administation suppots the pincipleo tibal sel-detemination and will wok to im-pove tibal law enocement and education� TheBudget includes ove $100 million in inceasedunding to the Bueau o Indian Aais o law

2006 2007 2008 2009 20100

2

4

6

8

10

12

14


Projections


11.2 11.011.7

11.312.0

Department of the Interior




DEPArTMENT OF THE INTErIOr 79

enocement and education� Additional unding isalso available though the Depatments o Jus-tice and Education� These unds will stengthentibal couts, detention centes, and police po-gams to help Native Ameicans potect thei

communities� The Budget also inceases undingo tibal colleges and scholaships and povidesunding ealie in the academic ea, giving thecolleges geate nancial secuit�

Establses a decate n to gtWlfres. The Budget establishes a dedicatedund o catastophic wildes and ull unds the10-ea aveage suppession costs, coupled withpogam eoms that ensue e managementesouces ae ocused whee the will do the mostgood� This $75 million discetiona contingent

eseve povides unding that is onl availableo ghting catastophic wildes ate the ap-popiated 10-ea aveage is exhausted� Thisunding and the associated eoms povided inthe Budget will impove wilde opeations andpomote sae, cost-eective and accountable e-sults om investments made in managing e onlandscapes�

inests n a Clean Energ tre. DOI willpla a cental ole in achieving the Pesident’s

vision o a clean eneg utue advancing ou

national secuit, envionmental secuit, andeconomic oppotunit� The Depatment will helplead the wa when it comes to enhancing the Na-tion’s domestic eneg suppl and moving towada clean eneg econom� Ou public lands, and theoshoe esouces that we contol alead povideclose to one-thid o ou entie domestic suppl o oil and gas esouces� The Budget includes ove$50 million in inceases to conduct the envion-mental evaluations and technical studies neededto spu development o enewable eneg poj-ects, assess available altenative esouces, andmitigate the impacts o development�

Ensres Responsble Procton o En-erg on eeral Lans. DOI will take steps toensue that oil and gas companies diligentl de-

velop thei oil and gas leases o isk losing them(“use o lose”)� One step is to chage a new ee onnon-poducing leases in the Gul o Mexico� This

povides an added incentive o oil companies toeithe stat poducing o elinquish the leases sothat othes ma bid on them�

Proes a Better Retrn to Taxpa-

ers rom Mneral deelopment. The publiceceives ove $12 billion annuall om ees, o-alties, and othe Fedeal paments elated to oil,gas, coal, and othe mineal development� yet,that etun could be impoved b closing loop-holes, chaging appopiate ees, and eominghow oalties ae set� The Budget poposes anumbe o actions to ensue that Fedeal taxpa-es eceive thei ai shae, such as:

•Using a new excise tax on oshoe oil andgas poduction in the Gul o Mexico to close

loopholes that have given oil companiesexcessive oalt elie� This new tax willbegin in 2011, ate the econom has had timeto ecove�

•Teminating paments to coal-poducingStates that no longe need unds to clean upabandoned coal mines�

•Chaging use ees to oil companies opocessing oil and gas dilling pemits onFedeal lands�

•Inceasing the etun om oil and gaspoduction on Fedeal lands thoughadministative actions, such as eomingoalties and adjusting ates�

Conseres Western Water. The Bueau o reclamation and the Bueau o Indian Aaissuppot the development, management and es-toation o wate and elated natual esouces in17 Westen States and tibal lands while balanc-ing competing uses o wate� Consistent with thisobjective, the Budget povides unding in 2010 oa westen wate consevation initiative, whichincludes the Bueau o reclamation’s wate e-use and eccling (Title XVI) pogam� The goalo this eot is to assist local communities’ avail-abilit o wate b encouaging volunta watebanks, wastewate teatment, and othe maket-based consevation measues�

—



81

Funding Highlights:

• Providessignicant increases toaddress theNationalSecurityandIntelligencechallengesconfrontingtheFBIandotherDepartmentofJusticecomponents.

• Begins funding 50,000 additional police ofcers through the CommunityOriented PolicingServicesprogram.

• Providesfundingtocombatnancialfraudandprotectthepublicinterest.

• ReinvigoratesFederalCivilRightsEnforcement.

• Providestheenforcement,connementandprosecutorialresourcesnecessarytohelpensuretheNation’sbordersaresecure.

• AddressesFederaldetentionandincarcerationprogramsandensuresthatreturningFederalprisonershavethesupportneededtosuccessfullyreintegrateintocommunities.

The Pesident’s Budget o the Depatment o

Justice (DOJ) is $26�5 billion� The Budget ad-desses the ke pioities o the Pesident andthe Attone Geneal, including those o Na-tional Secuit and cime ghting pogams inthe FBI and othe DOJ components, to includeesouces o combating nancial aud and po-tecting the public inteest� The Budget unds theCommunit Oiented Policing Sevices (COPS)hiing pogam, ensues that pison and deten-tion pogams ae adequatel unded, to includepisone eent pogams, einvigoates Fede-al civil ights enocement, and inceases bodesecuit�

Conters te Treat o Terrorsm anStrengtens Natonal Secrt. The Budgetpovides $8 billion o the FBI, including $425million in enhancements, and $88 million o theNational Secuit Division to addess the Pesi-dent’s highest pioit to potect the Ameican

people om teoist acts� Funding suppots

the detection and disuption o teoists, coun-teintelligence, cbe secuit, and othe theatsagainst ou National Secuit�

Proes nng to Begn to Pt 50,000More Cops on te Beat. Expanding COPSHiing Gants, the Budget includes unding tobegin hiing 50,000 additional police oces�Suppoting the hiing o police nationwide willhelp States and communities pevent the gowtho cime duing the economic downtun�

Combats nancal ra. The Budgetpovides esouces o additional FBI agentsto investigate motgage aud and white collacime and o additional Fedeal posecutos, civ-il litigatos and bankuptc attones to potectinvestos, the maket, the Fedeal Govenment’sinvestment o esouces in the nancial cisis,and the Ameican public�

dEPARTMENT O JuSTiCE




Rengorates eeral Cl Rgts En-orcement. The Budget includes $145 milliono the Civil rights Division to stengthen civilights enocement against acial, ethnic, sexualpeeence, eligious and gende discimination�

Strengtens immgraton Enorcementan Borer Secrt. The Budget includes ad-ditional unding o a compehensive appoach

to enocement along the Nation’s bodes thatcombines law enocement and posecutoial com-ponent eots to investigate, aest, detain, andposecute illegal immigants and othe ciminals�The initiative also enhances the Depatment’sabilit to tack ugitives om justice and combatgununnes and illegal dug tackes�

Spports eeral detenton an incar-ceraton Programs. The Budget povides $6billion o the Bueau o Pisons and $1�4 billiono the Oce o the Detention Tustee to en-sue that sentenced ciminals and detainees aehoused in acilities that ae sae, humane, cost-ecient, and appopiatel secue�

Expans Prsoner Reentr Programs. The

Budget includes $109 million o pisone eentpogams, including an additional $75 million othe Oce o Justice Pogams to expand gantpogams authoized b the Second Chance Actthat povide counseling, job taining, dug teat-ment, and othe tansitional assistance to omepisones�

2006 2007 2008 2009 20100

5

10

15

20

25

30


Projections


21.423.0 23.6

26.525.5

Department of Justice


Note: Agency totals do not include enacted or proposed rescissions from the Asset Forfeiture

or Crime Victims Funds.



83

Funding Highlights:

• BuildsonUnemploymentInsurancemodernizationintheAmericanRecoveryandReinvestmentActtomaketheprogramamoreeffectivesocialsafetynetandeconomicstabilizer.

• ProvidesstrongsupportforFederalworkforcetrainingprograms,andincreasestheirfocusongreentechnologiestraining.

• Strengthensenforcementoflaborstandards,includingworkplacesafetyandbenetsecurity,reversingyearsoferosioninfundingforlaborlawenforcementagencies.

• Establishesautomaticworkplacepensions.

Reorms te unemploment insranceSstem. The Administation seeks to unda-mentall eom the Nation’s unemploment

insuance (UI) sstem to bette addess the chal-lenges and ealities o the 21st Centu wokoce�Building on modenization eoms included inthe Ameican recove and reinvestment Act o 2009, the 2010 Budget will ocus on making theUI pogam moe accessible to unemploed wok-es, especiall in ecessions, and ensuing thenancial integit o the sstem so that emplo-es’ taxes ae well used� It will:

•improe ui as an atomatc stablzer. The 2010 Budget will popose changes tomake the UI pogam a moe esponsiveand eective social saet net and economicstabilize� While the egula State-undedUI pogam esponds eadil to isingunemploment, the same cannot be saido the pemanent Extended Benets (EB)pogam, which povides additional weekso benets when unemploment in a State

is high and ising� The Budget will poposelegislation to make the EB pogam moeesponsive to changing economic conditions�

These changes will make benets availablemoe quickl to long-tem unemploedwokes and avoid the delas associatedwith enactment o legislation to ceatespecial, tempoa extended unemplomentpogams�

•improe ui fnancal ntegrt. Despitethe eots o States to educe impopebenet paments, ove $3�9 billion in UIbenets wee eoneousl paid in 2008� The

Administation will tackle this poblem binceasing unding o pogam integitand poposing legislative changes thatwould educe UI impope paments b $3�9billion and emploe tax evasion b almost$300 million ove 10 eas� The poposalwould, among othe things, collect benetovepaments though ganishment o Fedeal income tax eunds and boost States’

dEPARTMENT O LABOR




esouces to go ate benet ovepamentsand UI tax evasion b allowing them to use apotion o ecoveed unds on aud and eoeduction�

Trans an Prepares te Naton’s Work-orce or Jobs n Emergng instres. ThePesident’s Budget povides stong suppot oFedeal wokoce taining pogams to help

Ameicans pepae o, nd, and etain stable,high-paing jobs� Building on the signicantsuppot in the recove Act o taining in “geen

jobs,” the Administation will diect existing po-gams to nd was to pepae wokes o jobsassociated with poducts and sevices that useenewable eneg esouces, educe pollution,and conseve natual esouces� The Pesident’sBudget will suppot new tansitional jobs andcaee pathwa pogams, testing innovative ap-poaches to helping low-income Ameicans gabhold o and climb the caee ladde� It will add tothe recove Act investments in youthBuild, ex-panding oppotunities o disadvantaged oungpeople to complete thei high school education,lean valuable skills, and build aodable hous-ing in thei communities� The Budget povidesadditional esouces to suppot job taining oex-oendes etuning to thei communities� TheBudget also honos the commitment to etun-

ing sevicemembes b suppoting taining andplacement sevices to ease thei tansition to ci-

vilian emploment�

Restores Labor Stanars. Fo the pasteight eas, the Depatment’s labo law enoce-ment agencies have stuggled with gowingwokloads and shinking sta� The Pesident’sBudget seeks to evese this tend, estoing the

Depatment’s abilit to meets its esponsibili-ties to woking Ameicans unde the moe than180 woke potection laws it enoces� The Bud-get will: incease unding o the OccupationalSaet and Health Administation, enabling itto vigoousl enoce wokplace saet laws andwhistleblowe potections, and ensue the saetand health o Ameican wokes; incease enoce-ment esouces o the Wage and Hou Divisionto ensue that wokes ae paid the wages thatae due them; and boost unding o the Oce o Fedeal Contact Compliance Pogams, whichis chaged with pusuing equal emploment op-potunit and a ai and divese Fedeal contactwokoce�

Establses Atomatc Workplace Pen-sons an Makes te Saer’s CretRenable. Cuentl, 75 million woking

Ameicans—oughl hal the wokoce—lack

2006 2007 2008 2009 20100

2

4

6

8

10

12

14

16


Projections


11.5 11.7 11.8

13.312.7

Department of Labor




DEPArTMENT OF LABOr 85

emploe-based etiement plans� The Pesident’s2010 Budget las the goundwok o utue es-tablishment o a sstem o automatic wokplacepensions, to opeate along side Social Secuit,that is expected to damaticall incease both the

numbe o Ameicans who save o etiementand the oveall amount o pesonal savings oindividuals� Unde this poposal, emploees willbe automaticall enolled in wokplace pensionplans� Emploes who do not cuentl oe aetiement plan will be equied to enoll theiemploees in a diect-deposit IrA account thatis compatible with existing diect-deposit paollsstems� Emploees ma opt-out i the choose�

Expets estimate that this pogam will inceasethe savings paticipation ate o low and middle-income wokes om its cuent 15 pecent levelto aound 80 pecent�

In addition, the Budget poposes to expandetiement savings incentives o woking ami-lies b modiing the existing Save’s Cedit topovide a 50-pecent match on the st $1,000o etiement savings o amilies that ean lessthan $65,000� The cedit would be ull eund-able to ensue that savings incentives ae ai toall wokes�



87

Funding Highlights:

• Reects the Administration’s commitment tostrengthen diplomatic andassistance tools toaddresscurrentandfuturechallengesthatimpactthesecurityoftheUnitedStates.

• PutstheUnitedStatesonapathtodoubleU.S.foreignassistance.Thisfundingwillhelpthe

world’sweakeststatesreducepoverty,combatglobalhealththreats,developmarkets,governpeacefully,andexpanddemocracyworldwide.

• SupportstheworldwideoperationsoftheDepartmentofStateandU.S.AgencyforInternationalDevelopment,providesnewresourcestohireadditionalForeignServiceofcers,andbuildsciviliancapacitytomeetthechallengesoftoday’sworld.

• Increasesnon-militaryaidtoAfghanistanandPakistantorevitalizeeconomicdevelopmentandconfronttheresurgenceoftheTaliban.RealignsU.S.assistancetoIraqtohelpresponsiblyendthewarandenableIraqistoassumemorecontroloftheircountry.

• ProvidesadditionalfundingforkeyprogramsthatadvanceU.S.foreignpolicygoals,includingsignicantly increasing funding for energy initiatives, programs addressing global climate

change,agricultureinvestments,andthePeaceCorps.

• Providesfullfundingofall2010scheduledpaymentstotheMultilateralDevelopmentBanksandaportionoftheoutstandingarrearstoreinforcetheU.S.commitmenttoplayaleadershiproleintheseinstitutions.IncreasestheU.S.quotasubscriptiontotheInternationalMonetaryFundaspartofthe2008agreementontheFund’sreform,whichwillpromoteastronginternationaleconomyandmaintaintheU.S.votingshareattheInternationalMonetaryFund.

• MeetsU.S.nancialcommitmentstotheUnitedNationsandotherinternationalorganizationsthatsupportawiderangeofU.S.nationalsecurity,foreignpolicy,andeconomicgoals.

• SupportsUnitedNationspeacekeepingactivitiesthathelprestoreandmaintainpeacearoundtheworld.

• RespondstoglobalsecuritythreatsbyincreasingcounterterrorismandlawenforcementaidtocriticalpartnernationsincludingthoseintheWesternHemisphere,aswellasincreasingfundingfornonproliferationactivitiestosecurenuclearmaterialatvulnerablesites.

• EnsuresthattheUnitedStatescontinuestobetheworld’sleaderinprovidingfoodaidandlife-sustainingsupportforrefugeesandotherconictanddisastervictims.

• Improvesscaldisciplineandtransparencybyshiftingfundingforrecurringprograms,previouslyfundedinsupplementalappropriations,intothe2010Budget.

dEPARTMENT O STATE ANd

OThER iNTERNATiONAL PROGRAMS




Pts te unte States on a Pat to do-ble oregn Assstance. B inceasing oeignassistance, the United States will each out to theglobal communit and enew its ole as a leadein global development and diplomac� Thoughinceased oeign assistance unding, the UnitedStates will embak on seveal new initiativesthat will give childen in the pooest countiesaccess to education ensuing the can paticipate

in the global maketplace; oste global ood se-cuit though sustainable agicultue; expandgoodwill and inspie sevice b inceasing thesize o the Peace Cops; and stabilize post-confictstates, ceating oom o them to plant the seedso democac�

increases nng or Global healt Pro-grams. The Administation will continue tobuild on its commitment to save lives though in-ceasing investments in global health pogams,including aeas such as matenal and childhealth, amil planning and othe coe healthpogams, while also emphasizing a commitmentto HIV/AIDS, malaia, and tubeculosis thoughsuccessul pogams, such as the Pesident’sEmegenc Plan o AIDS relie and the MalaiaInitiative� Togethe with ou multilateal pat-nes, the United States will continue to povide

global leadeship to impove the health status o the wold’s pooest populations�

Rengorates Conter-Proleraton, Ant-Terrorsm, an Transnatonal Crme-gtngEorts. The Budget will und einvigoated eotsto counte polieation, teoism, and tansna-tional cime� B osteing oppotunit and secuitwoldwide, this initiative will make the Ameican

people sae at home� This Budget includes st-ea unding o a multi-ea counteteoism andlaw enocement assistance pogam that stength-ens the capabilities o ou intenational patnes inthe Westen Hemisphee and othe citical egionsaound the wold� The Budget also povides ad-ditional nonpolieation and counte-polieationunding that will be used to help secue nucleamateials and pomote sae civilian uses o nucleaeneg�

Expans dplomatc an deelopmentOperatons. This initiative will stengthen theU�S� Govenment’s diplomatic and developmentopeations to suppot ou national secuit� The2010 Budget includes unding o the st eao a multi-ea eot to signicantl incease thesize o the Foeign Sevice at both the Depatmento State and the U�S� Agenc o Intenational De-

velopment (USAID)� An inceased cade o State

2006 2007 2008 2009 2010

0

10

20

30

40

50

60


Projections


34.337.0

40.9

47.2

51.7

Department of State andOther International Programs



Note: Excludes food aid and the Office of the U.S. Trade Representative.



DEPArTMENT OF STATE AND OTHEr INTErNATIONAL PrOGrAMS 89

and USAID Foeign Sevice oces will helpadvance ou citical oeign polic goals anddelive on ou expanding U�S� oeign assistancecommitments�

Reocses Resorces to Prortes n Aganstan, Pakstan, an iraq. The 2010Budget eocuses U�S� esouces towad ad-dessing the esugence o al Qaeda and theTaliban in Aghanistan and Pakistan� TheBudget inceases non-milita assistance toboth counties, poviding additional undingo govenance, econstuction, counte-nacot-ics, and othe development activities that willhelp counte extemists� The Budget expandsthe numbe o civilian pesonnel in Aghani-stan and Pakistan in an eot to stabilize

these counties, build govenment capacit,and successull manage expanded assistance

pogams� The Budget stengthens ou assis-tance to Iaqis who have been displaced omthei homes because o the wa� The Budget alsoealigns ou assistance eots in Iaq to ensuethat Iaqis can assume moe esponsibilit o

thei own political and economic utue�

imposes Transparenc on te Bget.The Budget educes eliance on emegencsupplemental appopiations b inceasingke accounts and pogams o which und-ing is pedictable and ecuing� Fo example,the Budget includes inceased unding ohumanitaian assistance accounts and U�N�Peacekeeping Missions that efect ongoingcosts� While emegenc supplementals mabe equied in the utue, the should ocus on

tul unanticipated events and not be used tound egula pogams�



91

Funding Highlights:

• CommitstobettertargetsurfacetransportationspendingandexploresoptionstomaketheNation’scommunitiesmorelivableandlesscongested,suchasthroughroadpricing.

• Increases funding for public transit to support commuters, improve air quality, and reducegreenhousegases.

• Supportsdevelopmentofhighspeedrailnetworksacrossthecountrytolinkregionalpopulationcenters.

• SupportstheNextGenerationAirTransportationSystemtomodernizetheairtrafccontrolsystem.

Commts to deelopng Sstanable Sol-tons or Srace Transportaton Programs

an to improng Program Perormance. Suace tanspotation pogams ae at a coss-oads� The cuent amewok o nancing andallocating suace tanspotation investments isnot nanciall sustainable; no does it eectivelallocate esouces to meet ou citical nationalneeds� The Administation intends to wok withthe Congess to eom suace tanspotationpogams both to put the sstem on a sustain-able nancing path and to make investments ina moe sustainable utue, enhancing tansit op-tions and making ou econom moe poductiveand ou communities moe livable� Futhe, theNation’s suace tanspotation sstem must gen-eate the best investments to educe congestionand impove saet� To do so, the Administationwill emphasize the use o economic analsis andpeomance measuement in tanspotationplanning� This will ensue that taxpae dollasae bette tageted and spent�

intates a New eeral Commtment tohg Spee Ral . To povide Ameicans a 21st

Centu tanspotation sstem, the Administa-tion poposes a ve-ea $5 billion high-speedail State gant pogam� Building on the $8 bil-lion down pament in the Ameican recoveand reinvestment Act o 2009, the Pesident’spoposal maks a new Fedeal commitment togive the taveling public a pactical and envi-onmentall sustainable altenative to fing odiving� Diected b the States, this investmentwill lead to the ceation o seveal high-speedail coidos acoss the count linking egionalpopulation centes�

Moernzes te Ar Trafc Control Ss-tem . The Budget povides appoximatel $800million o the Next Geneation Ai Tanspota-tion Sstem, a long-tem eot to impove theecienc, saet, and capacit o the ai taccontol sstem� The 2010 Budget suppots mov-ing om a gound-based ada suveillance

dEPARTMENT O TRANSPORTATiON

U N I T E D

S T AT ES O FA M E R

I C A

D E P A R T M E N

T O F T R AN S P

O R

T A T

I O N




sstem to a moe accuate satellite-based suveillance sstem; development o moe ecientoutes though the aispace; and impovementsin aviation weathe inomation�

improes Rral Access to te AatonSstem . The Administation is committed tomaintaining small communities’ access to theNational Aispace Sstem� The Budget povides

a $55 million incease ove the 2009 level tothe Depatment o Tanspotation (DOT) to ul-ll cuent pogam equiements as demando subsidized commecial ai sevice inceases�Howeve, the pogam that delives this subsidis not ecientl designed� Though the budgetpocess, the Administation intends to wok withthe Congess to develop a moe sustainable po-gam model that will ulll its commitment whileenhancing convenience o taveles and impov-ing cost eectiveness�

Makes Bgetar Treatment o Transpor-taton Programs More Transparent. Budget

authoit o highwa, tansit, highwa saet,and aipot impovement pogams usuall hasbeen dened as mandato contact authoitpovided in authoizing legislation� Howeve, thelevels o contact authoit have been, o themost pat, contolled b obligation limitations inappopiations acts� Outlas om the obligationlimitations have alwas been scoed as disce-tiona� To moe tanspaentl displa pogam

esouces, the Administation poposes changingthe budgeta teatment o tanspotation po-gams to show both budget authoit and outlasas discetiona� Fo 2009, the discetiona bud-get authoit top line would be inceased b ap-poximatel $53 billion, inceasing DOT budgetauthoit total om $17 billion unde the tpi-cal pesentation to $70 billion� Simila budgetauthoit adjustments would be made o eachoutea� The change would not aect outlas othe decit o suplus—just moe tanspaentlconve to the taxpae the eal costs o suppot-ing the tanspotation inastuctue ou Nationneeds�

2006 2007 2008 2009 20100

10

20

30

40

50

60

70

80


Projections

Discretionary budgetary resources in billions of dollars

65.3 66.870.6 72.570.5

Department of Transportation


Note: In 2010, and outyear estimates, surface transportation programs grow by baselineinflation factors. See above for a more detailed explanation of the administration’sposition regarding surface transportation reauthorization.



93

Funding Highlights:

• SupportstheAdministration’snewFinancialStabilityPlan,aswellasnancialregulatoryreformeffortsandtheeffective,transparentgovernanceoftheTroubledAssetsReliefProgramanditssuccessors.

• Expands funding for effective Internal Revenue Service (IRS) enforcement and invests in

high return-on-investment activities thatgenerate improved complianceand fairness in theapplicationoftaxlaws.

• Improvestheresponsivenessandefciencyof taxpayerservicesto improvetheaccuracyoftaxpayerlingandthequalityoftaxpayers’experiencewhentheyinteractwiththeIRS.

• Expands job-creating investments and access to credit in disadvantaged communities bydoublingfundingfortheCommunityDevelopmentFinancialInstitutionsFund.

The Depatment o the Teasu pomotesthe economic pospeit and nancial secuit

o the United States� Teasu opeates 13 bu-eaus with a vast aa o activities that aecitical to the coe unctions o govenment,including collecting evenue and disbusingpaments, managing Fedeal nances, andpotecting the nancial sstem om theats�Teasu also plas a ke ole in modenizingthe Ameican nancial egulato sstem andensuing eective, tanspaent administationo pogams designed to evive and stengthenthe econom�

Spports te New nancal Stabl-t Plan an te Amnstraton o teTroble Assets Rele Program (TARP).The Budget suppots the Administation’snew Financial Stabilit Plan as well as themanagement o the TArP, emphasizing eec-tive, tanspaent, and accountable pogammanagement�

In addition, as discussed in the main text o this document, the Pesident’s Budget includes

a $250 billion contingent eseve o utheeots to stabilize the nancial sstem� (Theeseve, which efects a net cost to the Gov-enment, would suppot $750 billion in assetpuchases�) The existence o this eseve in theBudget does not epesent a specic equest�rathe as events waant, the Administationwill wok with the Congess to detemine theappopiate size and shape o such eots, andas moe inomation becomes available the

Administation will dene an estimate o po-tential costs�

Collects Taxes Owe here an Abroa.The scope, complexit, and shee magnitudeo the intenational nancial sstem pose sig-nicant enocement challenges o the IrSin caing out its tax administation espon-sibilities� The 2010 Budget includes undingo a obust potolio o IrS intenational tax

dEPARTMENT O ThE TREASuRy




compliance initiatives, and sustains and im-poves IrS eots to naow the annual tax gapo ove $300 billion�

Enances iRS Serces to Taxpaers.The Administation will pusue plans to im-pove the qualit o taxpaes’ expeience whenthe inteact with the IrS� This stateg in-cludes impoving elationships with citical

thid-pat stakeholdes, such as tax pepaes, voluntees and pactitiones, as well as enhanc-ing electonic ling capabilities� The end goalenvisions an IrS that coectl answes a tax-

pae’s question the st time asked, thoughthe most ecient and taxpae-iendl means�

Expans Lenng n dsaantageCommntes. The Budget expands lend-ing in undeseved neighbohoods b doublingunding o the Communit Development Fi-nancial Institutions (CDFI) Fund� Thoughmeit-based gant pogams, the CDFI Fund

helps locall based nancial institutions oesmall business, consume and home loans incommunities and populations that lack accessto aodable cedit�

2006 2007 2008 2009 20100

2

4

6

8

10

12

14

16


Projections


11.4 11.512.2

13.312.7

Department of the Treasury




95

Funding Highlights:

• IncreasesfundingfortheDepartmentofVeteransAffairsby$25billionabovebaselineoverthenextveyears.

• Dramaticallyincreasesfundingforveteranshealthcare.

•

Expandseligibilityforveteranshealthcaretoover500,000veteransby2013.• Enhancesoutreachandservicesrelatedtomentalhealthcareandcognitiveinjuries,including

post-traumaticstressdisorderandtraumaticbraininjury,withafocusonaccessforveteransinruralareas.

• Investsinbettertechnologytodeliverservicesandbenetstoveteranswiththequalityandefciencytheydeserve.

• Providesgreaterbenetstoveteranswhoaremedicallyretiredfromservice.

• Combatshomelessnessbysafeguardingvulnerableveterans.

• Facilitatestimelyimplementationofthecomprehensiveeducationbenetsthatveteransearnthroughtheirdedicatedmilitaryservice.

increases nng or te departmento veterans Aars (vA) b $25 Bllon Aboe Baselne Oer te Next e years. The Pesident’s Budget takes the st step to-wad inceasing unding o VA b $25 billionove the next ve eas in ode to hono ouNation’s veteans and expand the sevices theeceive�

dramatcall increases nng or vAhealt Care.This incease will povide adequateesouces to give 5�5 million vetean patientstimel and high qualit cae� This unding alsoenables VA to ceate Centes o Excellence andpovides additional vetean-oiented specialtcae in aeas including posthetics, vision andspinal cod inju, aging, and women’s health�

Restores healt Care Elgblt orMoest-income veterans. Fo the st timesince Janua 2003, the Pesident’s Budgetexpands eligibilit o VA health cae to non-disabled veteans eaning modest incomes�This expansion will bing ove 500,000 eli-gible veteans into the VA health cae sstemb 2013 while maintaining high qualit andtimel cae o the lowe-income and disabled

veteans who cuentl el on VA medicalcae�

Enances Otreac an Serces Relateto Mental healt Care an Cognteinjres wt a ocs on Access or veteransn Rral Areas. Conditions such as post-tau-matic stess disode and taumatic bain inju

dEPARTMENT O vETERANS AAiRS




pesent challenges in caing o veteans o cu-ent conficts� The Pesident’s Budget expands themental health sceening and teatment sevicesoeed b VA and ocuses on eaching veteansin ual aeas� VA will incease the numbe o VetCentes and mobile health clinics to expand ac-cess to mental health sceening and teatmentin ual aeas� In addition, new unding will help

veteans and thei amilies sta inomed o these

esouces and encouage them to pusue neededcae�

inests n Better Tecnolog to delerSerces an Benefts to veterans wt teQalt an Efcenc Te desere. Totansom VA into a 21st Centu oganization,the Pesident’s Budget invests in inomationtechnolog that diectl benets veteans in theaeas o both health cae and benets� Thoughimpoved electonic medical ecods, VA willmoe ecientl etieve active dut health e-cods om the Depatment o Deense andenable all VA cae sites to access the ecods o

veteans needing cae� VA will also invest in thedevelopment o ules-based electonic pocessesto incease accuac, consistenc, and timelinessin veteans’ eceipt o benets�

Proes Greater Benefts or veteransWo Are Mecall Retre rom Serce.Fo the st time, highl disabled veteans whoae medicall etied om sevice will be eligibleo concuent eceipt o disabilit benets om

VA in addition to Depatment o Deense etie-ment benets�

Combats homelessness b Saegarng

vlnerable veterans. The Pesident’s Budgetexpands VA’s cuent sevices to homeless vete-ans though a collaboative pilot pogam withnon-pot oganizations� This pilot will helpmaintain stable housing o veteans who ae atisk o alling into homelessness while helping

VA to continue poviding them with suppotivesevices�

acltates Tmel implementaton o te Compreense Ecaton Benefts veterans Earn Trog Ter decateSerce. The Budget povides the esouceso eective implementation o the post-9/11 GIBill—poviding unpecedented levels o educa-tional suppot to the men and women who haveseved ou count though active milita dut�

2006 2007 2008 2009 20100

10

20

30

40

50

60

70 Actuals/Enacted, including emergencies

Proposed


36.1

40.4

46.1

55.950.4

Department of Veterans Affairs

Note: All totals include resources from medical care collections.




97

The Budget poposes $5�1 billion in disce-tiona budget authoit in 2010 o the AmCops o Enginees civil woks (Cops) pogam�

The Budget will be tanspaent and based onpeomance inomation o pojects and ac-tivities� The unding o the Cops in the 2010Budget, togethe with the $4�6 billion povidedo Cops pogams in the Ameican recoveand reinvestment Act o 2009, will signicantlimpove and stengthen the Nation’s wate e-souces inastuctue�

ocses Constrcton on hg-Retrninestments. The constuction pogam sup-pots high-etun investments in the theemain mission aeas o the Cops: 1) acilitatingcommecial navigation; 2) educing the isk o damage om foods and stoms; and 3) esto-ing signicant aquatic ecosstems� To assuethat investments in these missions povide theNation with both high economic and envion-mental benets, the Budget suppots activitiesthat complement multiple-poject puposes and

integate envionmental pinciples into tadi-tional inastuctue eots�

The Budget also will popose to phase outthe cuent excise tax on diesel uel o theinland watewas and eplace it with a lockusage ee, designed to impove economic e-cienc and peseve the landmak cost-shaingeom established b the Congess in 1986,while suppoting investments in constuction,expansion, eplacement, and ehabilitationwok�

Mantans Ke inrastrctre. TheBudget will emphasize unding to suppotmaintenance and sae and eliable opeation o those acilities that ae o cental impotance tothe Nation, and will addess deeed mainte-nance to maintain o impove the peomanceo aging Cops inastuctue� The Cops willcontinue to develop and implement an objectiveisk-based decision-making sstem o allocat-ing esouces to these activities�

CORPS O ENGiNEERS—CiviL WORKS

Funding Highlights:

• Focusesconstructionfundsonthoseinvestmentsthatprovidethebestreturnfromanationalperspectiveinachievingeconomic,environmentalandpublicsafetyobjectives.

• Supports the safe and reliableoperationandmaintenanceofkeyexistingwater resources

infrastructure.

• ImprovesCorpsprojectplanningandprogramperformance.

• Advancesaquaticecosystemrestorationefforts,includingrestorationofFlorida’sEvergladesandLouisiana’scoastalwetlands.




honors te Present’s Commtments tote Gl Coast. The Budget will und contin-ued wok to estoe coastal Louisiana wetlands,including a stud to identi the best was to e-stoe wetlands aected b the Mississippi riveGul Outlet, and the science needed to suppotthese eots� The Budget will also und continuedwok on planning sustainable methods to educethe isk o damage om huicane stom suges

to Gul coastal aeas�

improes Program Perormance. TheCops will ocus eots on developing new stat-

egies, along with othe Fedeal agencies andnon-Fedeal poject patnes, to bette manage,potect, and estoe the Nation’s wate and e-lated land esouces, including foodplain andfood-pone coastal aeas� The Cops will alsopusue management eoms that impove poj-ect cost and schedule peomance to ensue thegeatest value om invested esouces, whilestengthening the accountabilit and tanspa-

enc o the wa in which taxpae dollas aebeing spent�

2006 2007 2008 2009 20100

2

4

6

8

10

12

14


Projections


11.9

7.0

9.0

11.1

5.1

Corps of Engineers -- Civil Works

Note: Supplemental funding designated as emergency is included in the totals -- $6.6 billion for 2006,$1.6 billion for 2007, $3.4 billion for 2008, and $5.8 billion for 2009.




99

Funding Highlights:

• Provides$10.5billionintotalfortheEnvironmentalProtectionAgency,a34-percentincreaseoverthe2009likelyenactedlevel.

• Provides $3.9 billion for the CleanWater and DrinkingWater State Revolving Funds, anunprecedentedFederalcommitmenttowaterinfrastructureinvestmentintheUnitedStates.

• Provides$475millionforanewEnvironmentalProtectionAgency-led,interagencyGreatLakesrestoration initiative,whichwill target themostsignicantproblems in the region, includinginvasiveaquaticspecies,non-pointsourcepollution,andcontaminatedsediment.

• Funds the Agency’s operating budget, which comprises its core regulatory, research, andenforcementactivities,at$3.9billion,thehighestlevelever.

• Providesover$1.1billioningrantsforStatesandTribestoadministerenvironmentalprograms.

The Envionmental Potection Agenc(EPA) is esponsible o the abatement and

contol o pollution, which involves the popeintegation o eseach, monitoing, standadsetting, and enocement� The 2010 Budget e-quests a substantial incease ove the budgetequests o the last eight eas—$10�5 billion,a 34-pecent incease ove the 2009 likel en-acted budget� This includes $3�9 billion oEPA’s opeating budget, which is the heat o EPA’s envionmental potection unction andincludes unds o eseach, egulation, andenocement� EPA’s budget also povides Statepogam implementation gants, capitalizationgants to State evolving unds to help munici-palities pa o the cost o pollution contols,and the clean up o contaminated sites�

inests n Clean Water. The 2010 Bud-get equests $3�9 billion o the Clean WateState revolving Fund and the Dinking Wa-te State revolving Fund (SrFs)� With this

histoic incease, the pogam will und ove1,000 Clean Wate and neal 700 Dinking

Wate pojects annuall in the Nation’s States,Tibes, and teitoies, based on aveage poj-ect costs� The SrF pogams povide gantsto States to capitalize thei own evolvingunds, which nance wastewate and dink-ing wate teatment sstems� The SrFs usethe Fedeal capitalization, State matches (20pecent), State leveaging, inteest, and loanepaments to make low-inteest loans to com-munities� Because epaments and inteestae eccled back into the pogam, SrFs gen-eate unding o loans (evolve) even withoutFedeal capitalization� EPA estimates that oeve Fedeal dolla invested, at least two dol-las in nancing is povided to municipalities�In conjunction with the damatic incease inFedeal unding o local wate inastuctueneeds, the Administation will pusue pogameoms that will put esouces o these on-going needs on a me oundation� EPA will

ENviRONMENTAL PROTECTiON AGENCy




wok with State and local patnes to developa sustainabilit polic including managementand picing o utue inastuctue undedthough SrFs to encouage consevation and topovide adequate long-tem unding o utuecapital needs� The 2010 Budget also poposes towok with State and local govenments to ad-dess Fedeal dinking wate polic in ode topovide equitable consideation o small sstem

customes�

Accelerates te Restoraton o te GreatLakes. The 2010 Budget includes a new $475million inte-agenc initiative to addess e-gional issues that aect the Geat Lakes, suchas invasive species, non-point souce pollution,and contaminated sediment� This initiativewill use outcome-oiented peomance goalsand measues to taget the most signicantpoblems and tack pogess in addessingthem� EPA and its Fedeal patnes will coo-dinate State, tibal, local, and indust actionsto potect, maintain, and estoe the chemical,biological, and phsical integit o the GeatLakes�

Begns a Compreense Approac toTransorm Or Energ Sppl an SlowGlobal Warmng. The Administation is de-

veloping a compehensive eneg and climatechange plan to invest in clean eneg, end ouaddiction to oil, addess the global climate ci-sis, and ceate new Ameican jobs that cannotbe outsouced� Ate enactment o the Budget,the Administation will wok expeditiouslwith ke stakeholdes and Congess to developan econom-wide emissions eduction pogamto educe geenhouse gas emissions appoxi-

matel 14 pecent below 2005 levels b 2020,and appoximatel 83 pecent below 2005 lev-els b 2050� This pogam will be implementedthough a cap-and-tade sstem, a polic ap-poach that damaticall educed acid ain atmuch lowe costs than the taditional Goven-ment egulations and mandates o the past�Though a 100 pecent auction to ensue thatthe biggest pollutes do not enjo windall po-its, this pogam will und vital investments ina clean eneg utue totaling $150 billion ove10 eas, stating in scal ea 2012� The bal-ance o the auction evenues will be etuned tothe people, especiall vulneable amilies, com-munities, and businesses to help the tansitionto a clean eneg econom� The Budget in-cludes a $19 million incease o EPA wok on aGeenhouse Gas (GHG) emission invento andto wok with aected indust sectos to epothigh-qualit GHG emission data� This will also

2006 2007 2008 2009 20100

2

4

6

8

10


Projections


7.6 7.7 7.57.8

10.5

Environmental Protection Agency




ENVIrONMENTAL PrOTECTION AGENCy 101

allow o wok on the necessa steps towadimplementing a compehensive climate bill�

Secres te Naton’s Water Sppl. The2010 Budget povides $24 million to ull und

all ve Wate Secuit Initiative (WSI) pilotcoopeative ageements and Wate Alliance oTheat reduction activities begun in esponseto the Bioteoism Act o 2002� EPA launchedits WSI in 2006 to demonstate, test, and eval-uate a design o a contamination waningsstem at dinking wate utilities� Following

completion o these pilots, EPA will issue guid-ance and pomote adoption o eective dinkingwate contamination waning sstems�

Strengtens Spern. The 2010 Budget

poposes to einstate excise taxes that expiedin 1995 and will collect ove $1 billion to cleanup the Nation’s most toxic, contaminated siteswithin the Supeund pogam� The einstatedtaxes will not begin until 2011 ate the econo-m ecoves�



103

Funding Highlights:

• Provides$18.7billionfortheNationalAeronauticsandSpaceAdministration.Combinedwiththe$1billionprovidedtotheagencyintheAmericanRecoveryandReinvestmentActof2009,thisrepresentsatotalincreaseofmorethan$2.4billionoverthe2008level.

• Fundsaprogramofspace-basedresearchthatsupportstheAdministration’scommitmenttodeployaglobalclimatechangeresearchandmonitoringsystem.

• Fundsa robust program of spaceexploration involvinghumans and robots. The NationalAeronauticsandSpaceAdministrationwillreturnhumanstotheMoonwhilealsosupportingavigorousprogramofroboticexplorationofthesolarsystemanduniverse.

• FundsthesafeightoftheSpaceShuttlethroughthevehicle’sretirementattheendof2010.Anadditionalightwillbeconductedifitcanbecompletedsafelybeforetheendof2010.

• FundsthedevelopmentofnewspaceightsystemsforcarryingAmericancrewsandsuppliestospace.

•

FundscontinueduseoftheInternationalSpaceStationtosupporttheagencyandotherFederal,commercial,andacademicresearchandtechnologytestingneeds.

• Fundsaeronauticsresearchtoaddressaviationsafety,airtrafccontrol,noiseandemissionsreduction,andfuelefciency.

Aances Global Clmate CangeResearc an Montorng. The National Aeo-nautics and Space Administation’s (NASA’s)investment in Eath science eseach satellites,aibone sensos, compute models, and analsishas evolutionized scientic knowledge and pe-diction o climate change and its eects� Usingthe National reseach Council’s ecommendedpioities o space-based Eath science eseachas its guide, NASA will develop new space-basedeseach sensos in suppot o the Administa-tion’s goal to deplo a global climate eseachand monitoing sstem� NASA will wok todeplo these new sensos expeditiousl while co-

odinating with othe Fedeal agencies to ensuecontinuit o measuements that have long-temeseach and applications benets�

ns a Robst Program o Space Ex-ploraton inolng hmans an Robots. NASA’s astonauts and obotic spacecat havebeen exploing ou sola sstem and the uni-

vese o moe than 50 eas� The Agenc willceate a new chapte o this legac as it woks toetun Ameicans to the Moon b 2020 as pato a obust human and obotic space exploationpogam� NASA also will send a boad suite o obotic missions to destinations thoughout the

NATiONAL AERONAuTiCS ANd

SPACE AdMiNiSTRATiON




sola sstem and develop a bold new set o asto-nomical obsevatoies to pobe the msteies o the univese, inceasing investment in eseach,data analsis, and technolog development insuppot o these goals�

Completes te internatonal Space Sta-ton an Aances te deelopment o NewSpace Transportaton Sstems. NASA will f

the Space Shuttle to complete the Intenation-al Space Station and then etie the Shuttle in2010; an additional fight ma be conducted i itcan sael and aodabl be fown b the end o 2010� Funds eed om the Shuttle’s etiementwill enable the Agenc to suppot developmento sstems to delive people and cago to the In-tenational Space Station and the Moon� As pato this eot, NASA will stimulate pivate-sectodevelopment and demonstation o vehicles thatma suppot the Agenc’s human cew and cagospace fight equiements�

Contnes Spport o te internatonalSpace Staton. NASA will continue to assem-

ble and utilize the Intenational Space Station,the pemanentl cewed acilit obiting Eaththat enables the Agenc to develop, test, and

validate citical space exploation technologiesand pocesses� NASA also will continue to coo-dinate with intenational patnes to make thisplatom available o othe govenment entities,commecial indust, and academic institutionsto conduct eseach�

Renews NASA’s Commtment to Aero-natcs Researc. A stong national pogamo aeonautics eseach and technolog contib-utes to the economic well-being and qualit o lie o Ameican citizens� NASA will enew itscommitment to cutting-edge, undamental e-seach in taditional and emeging disciplinesto help tansom the Nation’s ai tanspo-tation sstem and to suppot utue aicat�NASA eseach will incease aispace capac-it and mobilit, enhance aviation saet, andimpove aicat peomance while educingnoise, emissions, and uel consumption�

2006 2007 2008 2009 2010

0

5

10

15

20

25


Projections


16.7 16.317.2

18.717.8

National Aeronautics andSpace Administration





105

Funding Highlights:

• Provides$7billionfortheNationalScienceFoundation,a16-percentincreaseoverthe2008level,aspartofthePresident’sPlanforScienceandInnovation.

• Increasessupportforgraduateresearchfellowshipsandforearly-careerresearchers.

• Increasessupportfortheeducationoftechniciansinthehigh-technologyeldsthatdrivetheNation’seconomy.

• Encouragesmorenovelhigh-risk,high-rewardresearchproposals.

• Increasessupportforcriticalresearchprioritiesinglobalclimatechange.

inests n te Scences. Investments inscience and technolog oste economic gowth,ceate millions o high-tech, high-wage jobs thatallow Ameican wokes to lead the global econo-

m, impove the qualit o lie o all Ameicans,and stengthen ou national secuit� Fo theseeasons, the Budget doubles unding o basic e-seach ove 10 eas, beginning with $3 billiono the National Science Foundation (NSF) in the

Ameican recove and reinvestment Act o 2009and a 2010 Budget that inceases NSF unding b$950 million ove 2008�

Spports Researcers at te Begnnngo Ter Careers. Ensuing Ameica’s econom-ic competitiveness equies that we develop theutue scientic and technical wokoce o ouunivesities, national labs, and companies� To helpaccomplish these goals, the Budget povides sub-stantial inceases o NSF’s pestigious Gaduatereseach Fellowship and Facult Eal Caee De-

velopment pogams�

Strengtens te Ecaton o Tecncansn hg-Tecnolog els. The Budget in-ceases suppot o the Advanced TechnologicalEducation pogam, which ocuses on two-ea col-

leges and suppots patneships between academicinstitutions and emploes to pomote impove-ment in the education o science and engineeingtechnicians�

Encorages Promsng hg-Rsk Re-searc. The Budget inceases suppot opomising, but exploato and high-isk eseachpoposals that could undamentall alte ouundestanding o natue, evolutionize elds o sci-ence, and lead to adicall new technologies�

Makes Clmate Cange Researc an E-caton a Prort. The Budget suppots eseachto impove ou abilit to pedict utue envion-mental conditions and to develop stategies oesponding to global envionmental change� TheBudget establishes a climate change educationpogam to help develop the next geneation o en-

vionmentall engaged scientists and enginees�

NATiONAL SCiENCE OuNdATiON




2006 2007 2008 2009 20100

2

4

6

8


Projections


5.65.9 6.1

7.06.9

National Science Foundation




107

Funding Highlights:

• Provides$28billioninloanguaranteestoexpandcreditavailabilityforsmallbusinesses.

• Supportsdisasterrecoveryforhomeowners,renters,andbusinesses.

• Sustainsfundingfortechnicalassistanceprograms.

• ImprovestargetingofFederalcontractingopportunitiesforsmallbusiness.

• Modernizes core Agency information systems, streamlines loan processes, and enhanceshumancapitalresources.

helps Small Bsnesses Weater teCret Crss . The Budget suppots: $17�5billion in guaantees unde the Section 7(a)Guaanteed Loan pogam, an impotant souceo cedit o small businesses; $7�5 billion inguaanteed debentues in the Section 504

Guaanteed Loan Pogam, poviding CetiedDevelopment Companies nancing to suppotcommecial eal estate development; $3 billionin authoit o the Small Business InvestmentCompan debentue pogam; and $25 millionin Micoloan volume, allowing intemediaies topovide small loans and technical assistance toentepeneus and othe stat-up businesses� Inaddition, the Administation’s Small Businessand Communit Bank Lending Initiative willexpand small business cedit availabilit andaodabilit b uneezing the secondamakets o small business loans—as pat o the lage plan to evive the fow o cedit in theNation’s econom�

Strengtens Tools to Make GoernmentMore Eecte as a Partner or Amerca’sSmall Bsnesses. SBA will leveage existingnetwoks to einvigoate small business lending

b deploing capital though guaanteedloans and investment poducts� This includestechnological impovements to SBA’s coeopeations, as outlined below, so that SBAbecomes moe tanspaent, accountable and intouch with entepeneus and othe patnes on

“Main Steet�”

These activities will build on the substantialunding o small business cedit pogamsecentl povided b the Ameican recoveand reinvestment Act� The recove Actpovides SBA authoit to incease guaanteepecentages on new 7(a) loans to 90 pecent, tohelp encouage lendes to make these loans� Therecove Act also povides unding to enableSBA to tempoail lowe ees on both 7(a) and504 loans, expand unding o the Micoloanpogam, and incease the size o bonds availableunde SBA’s suet bond pogam� In addition,the recove Act includes a vaiet o othepovisions intended to pomote cedit availabilitto small businesses�

Prepares or dsaster Assstance. TheBudget suppots $1�1 billion in diect disaste

SMALL BuSiNESS AdMiNiSTRATiON




loans, the nomalized 10-ea aveage� In addition,$101 million in new budget authoit o disastelending administative expenses is povided; anddisaste loan subsid unding is available thoughestimated unobligated balances� Futhemoe, in2010 the Agenc will implement a pilot pogamto test the Guaanteed Disaste Loan pogamsoutlined in Public Law 110–234, the Food,Consevation, and Eneg Act o 2008�

improes Tecncal an Contractng Assstance Capabltes to Ase SmallBsnesses. The Budget suppots esouceso non-cedit technical assistance pogams,poviding entepeneus access to counseling andbusiness development expetise� This includesimpovements to existing pogams such as

Small Business Development Centes, Women’sBusiness Centes, SCOrE, and micoloantechnical assistance, as well as incopoatingnew stategies� The Budget also suppots smallbusiness access to Fedeal pime and sub-contacting oppotunities, impovements tosmall business pocuement data, and continuedeviews o small business size standads�

Moernzes te Agenc or BetterPerormance. The Budget povides inceasedunding o coe Agenc sstems and humancapital impovements� This includes continuedpocuement o a moe eective loan accountingsstem, and a ocus on steamlining andautomating lende and contacting sstems�

2006 2007 2008 2009 20100

0.5

1.0

1.5

2.0

2.5Actuals, including emergencies

Projections


2.2

0.6

1.6

0.7 0.7

Small Business Administration

Note: 2006 and 2008 include $1.7 billion and $1.1 billion, respectively, in emergency supplemental

appropriations for the Disaster Loan program.




109

Funding Highlights:

• Provides$11.6billionfortheSocialSecurityAdministration,a10-percentincreasetargetedatcompletingcrucialworkloadsandprovidingtheAmericanpublicwithbetterservice.

• Enablesprocessingofarisingnumberofretirementanddisabilityclaims.

• Providesfundingforincreasingprogramintegrityeffortstoensurepaymentsaremadetotherightpersonandinthecorrectamount.

• Modernizesrulesforevaluatingdisability.

• LooksforwardtoworkinginabipartisanwaytopreserveSocialSecurityforfuturegenerations.

Protects Socal Secrt. The Pesidentecognizes that Social Secuit is indispensableto wokes, the disabled, senios, and suvivosand is pobabl the most impotant and mostsuccessul pogam that ou count has eve

established� Social Secuit can pa ull ben-ets until 2041� The Pesident is committedto ensuing that Social Secuit is solvent and

viable o the Ameican people, now and in theutue� He is stongl opposed to pivatizingSocial Secuit and looks owad to wokingin a bipatisan wa to peseve it o utuegeneations�

Proes a 10 Percent nng increaseto Target Crcal Workloas an Processa Rsng Nmber o Clams or dsabltan Retrement Benefts. The Social Secu-it Administation (SSA) is esponsible opaing benets to moe than 55 million peopleeach month� Each ea, SSA pocesses moethan 4�2 million etiement, suvivo, andMedicae claims; 2�6 million disabilit claims;and ove 300,000 Supplemental Secuit In-come (SSI) claims� The Budget poposes $11�6

billion o SSA, an incease o $1�1 billion, o10 pecent, above the 2009 likel enacted levelo $10�5 billion� This amount includes esouc-es to ensue inceased stang in 2010 andwill allow SSA to incease the level o wok

pocessed in ke sevice delive aeas to the Ameican public, such as pocessing initial e-tiement and disabilit claims, and disabilitappeals� In addition, this amount includes e-souces to enable SSA to moe eectivel andecientl vei hundeds o millions o SocialSecuit Numbes and issue about 18 millionSocial Secuit cads�

Sgnfcantl increases Program integ-rt Eorts. The Pesident’s 2010 Budgetpovides $759 million o SSA pogam in-tegit that will evese a decline in theseactivities� SSA’s pogam integit eots willbe pat o a stong amewok o making sueGovenment is spending tax dollas ecientland that benets ae paid onl to those ben-eciaies who ae eligible and ae paid in thecoect amounts� Continuing Disabilit re-

views ensue that Disabilit Insuance and

SOCiAL SECuRiTy AdMiNiSTRATiON




SSI ecipients continue to meet the medicalciteia� SSI edeteminations ensue that SSIecipients continue to meet the non-medicalactos o eligibilit�

Restrctres te eeral Wage Report-ng Process. The Pesident’s 2010 Budgetpoposes to estuctue the Fedeal wage e-poting pocess to incease the equenc with

which wages ae epoted to SSA� Cuentl,

wages ae epoted to the Fedeal Govenmentonce a ea� Inceasing the timeliness o wageepoting would enhance tax administa-tion, impove pogam integit o a angeo pogams, and acilitate implementation o automatic wokplace pensions� The Adminis-tation will wok with the States so that theoveall epoting buden on emploes is notinceased�

2006 2007 2008 2009 20100

2

4

6

8

10

12

14


Projections


9.2 9.49.9

10.5

11.6

Social Security Administration


Note: Amounts include funding from the Medicare trust funds for administrative expenses incurred by SSA.



111

Funding Highlights:

• Makesasubstantialinvestmentinnationalservice,settingtheprogramonapathforexpansionto250,000slots.

• CreatesanewSocial InnovationFund toinvestin and scaleup innovative non-protsandsolutionstoaddresstheNation’smostpressingsocialproblems.

• EngagesmoreretiringAmericansinservice,harnessingtheirskillsandknowledge.

• Expandsservice-learningintheNation’sschools,helpingstudentsbecomecontributingcitizensandcommunitymembersthroughservice.

The Copoation o National and Commu-nit Sevice (CNCS) povides oppotunities o

Ameicans to seve thei communit and coun-

t while meeting the Nation’s geatest nationalchallenges� Though CNCS pogams, Amei-cans o all ages can help stengthen ou countin dieent was, om tutoing at-isk outh toesponding to natual disastes to building thecapacit o communit oganizations� The Pesi-dent’s Budget poposes $1�13 billion o CNCS,an incease o $261 million om the 2009 likelenacted level, to give moe Ameicans the oppo-tunit to seve and to build the capacit o thenonpot secto to nd innovative solutions tosocial poblems�

Expans Natonal Serce. The Pesi-dent’s Budget makes a substantial investmentin National Sevice, giving moe individuals theoppotunit to make an intensive commitmentto giving back to thei communities� The Bud-get would set AmeiCops on a path to expandom its cuent 75,000 unded slots to 250,000,

and would ensue the availabilit o sevice op-potunities to achieve demonstable esults� TheBudget would also incease the amount o the Eli

Segal Education Awad, which has not been adjusted since the pogam’s inception in 1993�

Creates a New Socal innoaton n.Innovatos oten come up with geat ideas oaddessing citical national challenges, but toooten lack the capital to develop, evaluate, andscale up successul ideas� The Budget would ce-ate a new social innovation und, chaged withtesting pomising new appoaches to majo chal-lenges, leveaging pivate and oundation capitalto meet these needs, and scaling up eseach-poven pogams�

Engages Retrng Amercans n Serce.Olde Ameicans have a wide ange o skills andknowledge to contibute to the Nation’s commu-nities� New eots ae needed to tap the idealismand expeience o this “Bab Boome” geneation– the lagest and healthiest geneation to ente

CORPORATiON OR NATiONAL ANd COMMuNiTy SERviCE




etiement in histo� The Pesident’s Budgetwould expand and impove Senio Cops po-gams, which connect individuals ove the age o 55 to local voluntee oppotunities, allowing moeetiees to help meet the needs and challenges inthei communities�

Expans Serce-Learnng n te Naton’sScools. Sevice leaning is an appoach that

connects classoom lessons with meaningulcommunit sevice oppotunities� The Budget in-cludes additional esouces o Lean and Seve

Ameica, which suppots pogams in schools,

highe education institutions and communit-based oganizations that engage students, theiteaches, and othes in sevice-leaning�

Strengtens te Management Capact o te Corporaton. The Budget povides neededesouces to stengthen the capacit o CNCS tomanage its pogams, measue peomance, andconduct igoous evaluations o the impact o

CNCS pogams� Coupled with a stong Admin-istation commitment to management eom,the Budget will ensue that CNCS can suppotboth gowth and excellence in sevice�

2006 2007 2008 2009 2010

0

0.2

0.4

0.6

0.8

1.0

1.2

1.4Actuals, including emergencies

Projections


0.9 0.9 0.9

1.1

Corporation for National andCommunity Service

0.9




113

SuMMARy TABLES




T a b l e

S – 1 . B g e t T o t a l s

( I n b i l l i o n s o d o l l a s a n d a s a p e c e n t o G D P )

T

o t a l s

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 1 0 - 2 0 1

4 2 0 1 0 - 2 0 1 9

B g e t T o t a l s n B l l o n s o d o l l a r s :

r e c e i p t s � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

2 , 5 2 4

2 , 1 8 6

2 , 3 8 1

2 , 7 1 3

3 , 0 8 1

3 , 3 2 3

3 , 5 0 0

3 , 6 7 5

3 , 8 5 6

4 , 0 4 2

4 , 2 3 4

4 , 4 4 6

1 4 , 9

9 7

3 5 , 2 5 0

O u t l a s � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

2 , 9 8 3

3 , 9 3 8

3 , 5 5 2

3 , 6 2 5

3 , 6 6 2

3 , 8 5 6

4 , 0 6 9

4 , 2 5 8

4 , 4 9 3

4 , 6 7 8

4 , 8 6 8

5 , 1 5 8

1 8 , 7

6 4

4 2 , 2 1 9

D e c i t � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

4 5 9

1 , 7 5 2

1 , 1 7 1

9 1 2

5 8 1

5 3 3

5 7 0

5 8 3

6 3 7

6 3 6

6 3 4

7 1 2

3 , 7

6 7

6 , 9 6 9

D e b t h e l d b t h e p u b l i c � � � � � � � � � � � � � � � � � � � � � � � � � �

5 , 8 0 3

8 , 3 6 4

9 , 5 0 9 1

0 , 4 3 6

1 0 , 9 8 5

1 1 , 5 0 5

1 2 , 0 7 0

1 2 , 6 5 9

1 3 , 2 9 7

1 3 , 9 3 2

1 4 , 5 5 7

1 5 , 3 7 0

D e b t n e t o n a n c i a l a s s e t s

� � � � � � � � � � � � � � � � � � �

5 , 2 9 7

6 , 9 4 3

8 , 0 7 2

8 , 9 6 0

9 , 5 4 1

1 0 , 0 7 3

1 0 , 6 4 2

1 1 , 2 2 4

1 1 , 8 6 0

1 2 , 4 9 5

1 3 , 1 2 9

1 3 , 8 4 0

G o s s d o m e s t i c p o d u c t ( G D P )

� � � � � � � � � � � � � � � � � �

1 4 , 2 2 2

1 4 , 2 4 0

1 4 , 7 2 9 1

5 , 5 0 0

1 6 , 4 7 0

1 7 , 4 9 8

1 8 , 3 8 6

1 9 , 2 0 5

2 0 , 0 6 0

2 0 , 9 5 2

2 1 , 8 8 4

2 2 , 8 5 8

B g e t T o t a l s a s a P e r c e n t

o G d P :

r e c e i p t s � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

1 7 � 7 %

1 5 � 4 %

1 6 � 2 %

1 7 � 5 %

1 8 � 7 %

1 9 � 0 %

1 9 � 0 %

1 9 � 1 %

1 9 � 2 %

1 9 � 3 %

1 9 � 3 %

1 9 � 5 %

1 8 � 1 %

1 8 � 7 %

O u t l a s � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

2 1 � 0 %

2 7 � 7 %

2 4 � 1 %

2 3 � 4 %

2 2 � 2 %

2 2 � 0 %

2 2 � 1 %

2 2 � 2 %

2 2 � 4 %

2 2 � 3 %

2 2 � 2 %

2 2 � 6 %

2 2 � 8 %

2 2 � 6 %

D e c i t � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

3 � 2 %

1 2 � 3 %

8 � 0 %

5 � 9 %

3 � 5 %

3 � 0 %

3 � 1 %

3 � 0 %

3 � 2 %

3 � 0 %

2 � 9 %

3 � 1 %

4 � 7 %

3 � 9 %

D e b t h e l d b t h e p u b l i c � � � � � � � � � � � � � � � � � � � � � � � � � �

4 0 � 8 %

5 8 � 7 %

6 4 � 6 %

6 7 � 3 %

6 6 � 7 %

6 5 � 8 %

6 5 � 6 %

6 5 � 9 %

6 6 � 3 %

6 6 � 5 %

6 6 � 5 %

6 7 � 2 %

D e b t n e t o n a n c i a l a s s e t s

� � � � � � � � � � � � � � � � � � �

3 7 � 2 %

4 8 � 8 %

5 4 � 8 %

5 7 � 8 %

5 7 � 9 %

5 7 � 6 %

5 7 � 9 %

5 8 � 4 %

5 9 � 1 %

5 9 � 6 %

6 0 � 0 %

6 0 � 5 %




T a

b l e S – 2 . E e c t o B g e t P r o p o s a l s o n P r o j e c t e

d e c t s — C o n t n e

( D e c i t i n c e a s e s ( + ) o d e c e a s e s ( – ) i n b i l l i o n s o d o l l a s )

T o t a l s

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 1 0 – 2 0 1 4 2 0 1 0 – 2 0 1 9

M e m o r a n d u m , p r o p o s e d c h a n g e s i n a p p r o p r i a t e d

( “ d i s c r e t i o n a r y ” ) b u d g e t a

u t h o r i t y :

F u n d i n g o o v e s e a s c o n t i n

g e n c o p e a t i o n s � � � � � � � � � � � � � � � � � �

– 5 0 � 3

– 6 4 � 6

– 1 4 8 � 3

– 1 5 2 � 6

– 1 5 7 � 2

– 1 6 1 � 9 – 1 6 6 � 7

– 1 7 1 � 6

– 1 7 6 � 6

– 1 8 1 � 8

– 1 8 7 � 1

– 6 8 4 � 6

– 1 , 5 6 8 � 4

D e p a t m e n t o D e e n s e ( 0 5 1 ) e x c l u d i n g o v e s e a s

c o n t i n g e n c o p e a t i o n s � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

� � � � � �

1 0 � 3

6 � 9

3 � 1

� � � � � �

� � � � � �

� � � � � �

� � � � � �

� � � � � �

� � � � � �

� � � � � �

2 0 � 3

2 0 � 3

O t h e a p p o p i a t e d p o g a m

s � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

7 � 1

3 1 � 3

2 9 � 5

4 7 � 5

4 9 � 7

5 3 � 9

5 3 � 3

5 4 � 2

5 3 � 6

5 3 � 6

5 5 � 6

2 1 2 � 0

4 8 2 � 2

T o t a l , a p p o p i a t e d u n

d i n g ( b u d g e t a u t h o i t ) � � � � � � � �

– 4 3 � 2

– 2 3 � 0

– 1 1 1 � 9

– 1 0 2 � 0

– 1 0 7 � 4

– 1 0 7 � 9 – 1 1 3 � 3

– 1 1 7 � 4

– 1 2 3 � 0

– 1 2 8 � 2

– 1 3 1 � 6

– 4 5 2 � 3

– 1 , 0 6 5 � 9

1 S e e T a b l e s S – 3 a n d S – 5 o i n o m a t i o n o n t h e b a s e l i n e p o j e c t i o n o c u e n t p o l i c �

2 N o n – a d d i t i v e �

3 S

h o w n h e e a e t h o s e p o c

e e d s o m a u c t i o n i n g e m i s s i o n a l l o w a n c e s

t h a t a e e s e v e d o c l e a n e n e g t e c h n o l o g i n i t i a t i v e s a n d t o c o m p e n s a t e a m i l i e s t h o u g h t h e

M a k i n g W o k P a t a x c u t

� T h e s e p o c e e d s a e i n c l u d e d i n t h e g a n

d t o t a l s a s e c e i p t s , t h o u g h t h e c o u l d a l t

e n a t i v e l b e c o n s i d e e d o s e t s t o o u t l a s � A l l a d d i t i o n a l n e t

p o c e e d s w i l l b e u s e d t o u t h e c o m p e n s a t e t h e p u b l i c �

4 I n c l u d e s e u n d a b l e t a x c e

d i t s �




T a b

l e S – 3 . B a s e l n e P r o j e c t o n o C r r e n t P o l c b C a t e g o r 1 — C o n t n e

( I n b i l l i o n s o d o l l a s )

T o t a l s

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9 2 0

1 0 – 2 0 1 4 2 0 1 0 – 2 0 1 9

M e m o r a n d u m , f u n d i n g ( b u d g e t a u t h o r i t y ) f o r a p p r o p r i a t e d

p r o g r a m s :

D e p a t m e n t o D e e n s e

( 0 5 1 ) i n c l u d i n g u n d i n g o

o v e s e a s c o n t i n g e n c

o p e a t i o n s � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

6 6 6

7 1 2

7 1 8

7 3 3

7 5 0

7 6 8

7

8 6

8 0 5

8 2 5

8 4 5

8 6 5

8 8 7

3 , 7 5 6

7 , 9 8 3

O t h e a p p o p i a t e d p o

g a m s � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

5 5 4

8 2 6

5 6 8

5 7 9

5 9 2

6 0 6

6

2 0

6 3 4

6 4 9

6 6 4

6 8 0

6 9 6

2 , 9 6 5

6 , 2 8 8

T o t a l , a p p o p i a t e d u n d i n g � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

1 , 2 1 9

1 , 5 3 8

1 , 2 8 6

1 , 3 1 2

1 , 3 4 2

1 , 3 7 4

1 , 4

0 6

1 , 4 4 0

1 , 4 7 4

1 , 5 0 9

1 , 5 4 5

1 , 5 8 3

6 , 7 2 1

1 4 , 2 7 1

1 S e e T a b l e S - 5 o i n o m a t i o n o n a d j u s t m e n t s t o t h e B u d g e t E n o c e m e n t A c t ( B E A ) b a s e l i n e �

2 T

h e s e a m o u n t s e p e s e n t t h e s t a t i s t i c a l p o b a b i l i t o a m a j o d i s a s t e e q u i i n g e d e a l a s s i s t a n c e o e l i e a n d e c o n s t u c t i o n � S u c h a s s i s t a n c e m i g h

t b e p o v i d e d i n t h e

o m o d i s c e t i o n a o m

a n d a t o o u t l a s o t a x e l i e � T h e s e a m o u n t s a e i n c l u d e d a s o u t l a s o c o n v e n i e

n c e �




T a b l e S – 4 . P r o p o s e B g e t b C a t e g o r —

C o n t n e

( I n b i l l i o n s o d o l l a s )

T o t a l s

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4 2

0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9 2 0 1 0 – 2 0 1 4 2 0 1 0 – 2 0 1 9

O n - b u d g e t d e c i t � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

6 4 2

1 , 8 9 0

1 , 3 1 2

1 , 0 7 3

7 6 2

7 3 4

7 7 7

7 8 9

8 4 8

8 4 0

8 3 1

8 9 9

4 , 6 5 8

8 , 8 6 5

O - b u d g e t s u p l u s ( – ) � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

– 1 8 3

– 1 3 8

– 1 4 0

– 1 6 1

– 1 8 0

– 2 0 2

– 2 0 8

– 2 0 6

– 2 1 1

– 2 0 3

– 1 9 7

– 1 8 7

– 8 9 1

– 1 , 8 9 6

M e m o r a n d u m , f u n d i n g ( b u d g e t a u t h o r i t y ) f o r

a p p r o p r i a t e d p r o g r a m s :

D e p a t m e n t o D e e n s e

( 0 5 1 ) i n c l u d i n g

u n d i n g o o v e s e a s

c o n t i n g e n c

o p e a t i o n s � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

6 6 6

6 6 2

6 6 4

5 9 2

6 0 1

6 1 1

6 2 5

6 3 9

6 5 3

6 6 8

6 8 4

6 9 9

3 , 0 9 2

6 , 4 3 5

O t h e a p p o p i a t e d p o

g a m s � � � � � � � � � � � � � � � � � � � � � �

5 5 4

8 3 3

5 9 9

6 0 9

6 4 0

6 5 6

6 7 4

6 8 8

7 0 3

7 1 8

7 3 4

7 5 2

3 , 1 7 6

6 , 7 7 0

T o t a l , a p p o p i a t e d u n d i n g � � � � � � � � � � � � � � � � � � �

1 , 2 1 9

1 , 4 9 5

1 , 2 6 3

1 , 2 0 0

1 , 2 4 0

1 , 2 6 7

1 , 2 9 8

1 , 3 2 6

1 , 3 5 7

1 , 3 8 6

1 , 4 1 7

1 , 4 5 1

6 , 2 6 8

1 3 , 2 0 5

1 T

h e s e a m o u n t s e p e s e n t t h e s t a t i s t i c a l p o b a b i l i t o a m a j o d i s a s t e e q u i i n g e d e a l a s s i s t a n c e o e l i e a n d e c o n s t u c t i o n � S u c h a s s i s t a n c e m i g h t b e p o v i d e d i n t h e

o m o d i s c e t i o n a o m

a n d a t o o u t l a s o t a x e l i e � T h e s e a m o u n t s a e i n c l u d e d a s o u t l a s o c o n v e n i e

n c e �




T o t a l s

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 1 0 – 2

0 1 4

2 0 1 0 – 2 0 1 9

T o t a l , p o m o t i n g

e c i e n c a n d

a c c o u n t a b i l i t

� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

� � � � � � – 1 , 8 0 0

– 4 , 3 1 0 – 1 6 , 1 6 0 – 2 2 , 1 5 0 – 3 1 , 4 6 0 – 3 6 , 5 5

5 – 4 3 , 3 1 0 – 4 5 , 3 6 5 – 4 0 , 3 1 0 – 4 5 , 9 3 5

– 7 5

, 8 8 0

– 2 8 7 , 3 5 5

E n c o r a g n g S a r e

R e s p o n s b l t :

r e q u i e c e t a i n h i g h

e - i n c o m e b e n e c i a i e s

e n o l l e d i n t h e M e

d i c a e d u g b e n e t t o p a

h i g h e p e m i u m s ,

a s i s c u e n t l e q u i e d

o p h s i c i a n a n d

o u t p a t i e n t s e v i c e s � � � � � � � � �

� � � � � �

� � � � � �

– 4 0 0

– 5 9 0

– 6 8 0

– 7 7 0

– 8 7

0

– 9 9 0

– 1 , 1 2 0

– 1 , 2 7 0

– 1 , 4 4 0

– 2 , 4 4 0

– 8 , 1 3 0

T o t a l , M e c a r e / M e c a s a v n g s ( – ) a . . . . . . . . . . . .

. . . . . . – 1 , 8 0

0

– 5 , 1 1 0 – 1 8 , 0 0 0 – 2 4 , 5 1 0 – 3 4 , 3 2 0

– 3 9 , 9 8

5 – 4 7 , 1 1 0 – 4 9 , 5 1 5 – 4 4 , 8 2 0 – 5 0 , 8 3 5

– 8 3 , 7 4 0

– 3 1 6 , 0 0 5

L i m i t t h e t a x a t e a t w h

i c h i t e m i z e d d e d u c t i o n s

e d u c e t a x l i a b i l i t � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

� � � � � �

� � � � � � – 1 1 , 0 8 1 – 3 0 , 8 0 8 – 3 3 , 4 6 4 – 3 5 , 4 7 8

– 3 7 , 3 2

2 – 3 9 , 2 6 9 – 4 1 , 3 6 6 – 4 3 , 4 0 2 – 4 5 , 5 6 4

– 1 1 0 , 8 3 1

– 3 1 7 , 7 5 4

T o t a l , s p e c e s a v n g s ( – ) . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . – 1 , 8 0

0 – 1 6 , 1 9 1 – 4 8 , 8 0 8 – 5 7 , 9 7 4 – 6 9 , 7 9 8 – 7 7 , 3 0

7 – 8 6 , 3 7 9 – 9 0 , 8 8 1 – 8 8 , 2 2 2 – 9 6 , 3 9 9

– 1 9 4 , 5 7 1

– 6 3 3 , 7 5 9

A t o n a l s a v n g s n o t e t e t e r m n e . . .

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

B e n e t s n o t e t e

t e r m n e . . . . . . . . . . . . . . . . . . . . . . .

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

T B d

N e t t o t a l o e a l t r e o r m

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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. . . . . .

. . . . . .

a E s t i m a t e s e x c l u d e e e c t

s o M e d i c a e a n d M e d i c a i d p o v i s i o n s i n c l u d e d i n t h e A m e i c a n r e c o v e a n d r e i n v e s t m e n t A c t o 2 0 0 9 �

* S a v i n g s n e g l i g i b l e o u n

d e t e m i n e d a t t h i s t i m e �

T a b l e S – 6 . M a n a

t o r a n R e c e p t P r o p o s a l s — C o n t n e

( D e c i t i n

c e a s e s ( + ) o d e c e a s e s ( – ) i n m i l l i o n s o d o l l a s )



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NOTES

Fiscal Year 2010 Budget of the United States Government

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