FY 2024 Budget Request

President Biden's full annual budget request to Congress for the upcoming fiscal year (FY 2024) is not expected to be released until March, but no specific date has been offered so far.

Some details, including significant proposals, could be strategically released before a full release, including during the President's State of the Union address before a joint session of Congress scheduled for February 7.

(posted: 1-31-23)

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FY 2023 Budget Request - Key Highlights

The President’s FY 2023 budget request was released on March 28, 2022. The budget provides $1.608 trillion in discretionary funding, which is $137 billion (9%) above the recently-enacted FY 2022 discretionary funding level ($1.471 billion). Defense would receive $85 billion of the increase, with the remaining $52 billion in increases for all other non-defense purposes of the Federal Government.

Spending in the “mandatory” budget, i.e., items guided by the provisions of law instead of annual funding actions by the Congress, would increase by $41 billion in FY 2023 and $413 billion over the next five years. There are a number of planned/proposed mandatory changes increasing or decreasing costs within the Federal budget, many of which may require legislative approval by the Congress to programs like Medicare, Medicaid, and Social Security, among others.

Tax changes, primarily for corporations and certain high-income earners, would raise substantial new revenue, including $131 billion in FY 2023, and $1.232 trillion over the next five years. Increasing the corporate tax rate to 28 percent would raise $632 billion over five years. Raising taxes on the highest income earners would raise $138 billion over five years.

If all spending and tax changes are enacted, the Federal budget deficit would drop from an estimated $758 billion in FY 2023 to $622 billion after five years. As a percentage of the U.S. economy, the deficit would remain at about 4.5% of U.S. gross domestic product (GDP).

(updated: 3-28-22)

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