How Deep Are the Government Spending Cuts?

Brian Riedl / February 25, 2011

House and Senate leaders are caught in a debate over real and phantom discretionary spending cuts. Senate leaders have proposed freezing 2011 discretionary spending at 2010 levels. Because this rejects the President’s proposed $39 billion increase, they are calling their yet-to-be-released proposal a $39 billion cut—essentially, claiming credits for “cuts” against a spending level that was never enacted in the first place.

By contrast, the House-passed bill not only rejected the President’s proposed $39 billion hike but actually $61 billion cut off the 2010 level. Thus, only the House bill reduces spending below the 2010 level.

House v. Senate Proposal

• Regular discretionary spending in 2010 totaled $1,089 billion.
• President Obama proposed a 2011 level of $1,128 billion—$39 billion more than in 2010.
• Senate leaders have proposed funding discretionary spending at the 2010 level of $1,089 billion—essentially rejecting the President’s $39 billion increase. They now claim this as a “spending cut.” (more…)