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  • 1440 Daily Digest

Biden Proposes Budget

The Biden administration yesterday proposed a $7.3T budget for fiscal year 2025, a roughly $300B increase over the current fiscal year's estimated expenses. The president's annual budget proposal is not binding, and Congress rarely enacts it as received but may use it as a starting point for negotiations if lawmakers so choose.

Roughly two-thirds of the proposed budget would fund mandatory programs that are not subject to annual appropriation bills by Congress, like Medicare and Social Security. The president's plan seeks $1.6T in discretionary spending for the year starting in October, over half of which is defense spending ($895B, a $9B increase). The proposal seeks to cut health care, housing, and child care costs for families and workers while raising taxes on high-income households and large corporations. The plan aims to reduce the deficit by $3T over 10 years. See takeaways here.

The proposal lays out President Joe Biden's policy priorities as he looks toward campaign season. Lawmakers have not fully approved appropriations bills for fiscal year 2024, which began nearly six months ago.


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