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

Fiscal Year 2011

Budget

of the U. S. Government
Budget of the United States Government, Fiscal 

Year 2011 contains the Budget Message of the President, 

information on the President’s priorities, budget overviews organized by agency, and summary tables.

Analytical Perspectives, Budget of the United 

States Government, Fiscal Year 2011 contains analyses that are designed to highlight specified subject areas or provide other significant presentations of budget 

data that place the budget in perspective. This volume 

includes economic and accounting analyses; information 

on Federal receipts and collections; analyses of Federal 

spending; information on Federal borrowing and debt; 

baseline or current services estimates; and other technical presentations. 

The Analytical Perspectives volume also contains supplemental material with several detailed tables, including 

tables showing the budget by agency and account and by 

function, subfunction, and program, that is available on 

the Internet and as a CD-ROM in the printed document.

Historical Tables, Budget of the United States 

Government, Fiscal Year 2011 provides data on budget 

receipts, outlays, surpluses or deficits, Federal debt, and 

Federal employment over an extended time period, generally from 1940 or earlier to 2011 or 2015.

To the extent feasible, the data have been adjusted to 

provide consistency with the 2011 Budget and to provide 

comparability over time.

Appendix, Budget of the United States 

Government, Fiscal Year 2011 contains detailed information on the various appropriations and funds that 

constitute the budget and is designed primarily for the 

use of the Appropriations Committees. The Appendix contains more detailed financial information on individual 

programs and appropriation accounts than any of the 

other budget documents. It includes for each agency: the 

proposed text of appropriations language; budget schedules for each account; legislative proposals; explanations 

of the work to be performed and the funds needed; and 

proposed general provisions applicable to the appropriations of entire agencies or group of agencies. Information 

is also provided on certain activities whose transactions 

are not part of the budget totals.

AUTOMATED SOURCES OF 

BUDGET INFORMATION

The information contained in these documents is available in electronic format from the following sources:

Internet. All budget documents, including documents 

that are released at a future date, spreadsheets of many 

of the budget tables, and a public use budget database 

are available for downloading in several formats from the 

Internet at www.budget.gov/budget. Links to documents 

and materials from budgets of prior years are also provided. 

Budget CD-ROM. The CD-ROM contains all of the 

budget documents in fully indexed PDF format along with 

the software required for viewing the documents. The 

CD-ROM has many of the budget tables in spreadsheet 

format and also contains the materials that are included 

on the separate Analytical Perspectives CD-ROM.

For more information on access to electronic versions 

of the budget documents (except CD-ROMs), call (202) 

512-1530 in the D.C. area or toll-free (888) 293-6498. To 

purchase the budget CD-ROM or printed documents call 

(202) 512-1800.

THE BUDGET DOCUMENTS

GENERAL NOTES

1. All years referenced for budget data are fiscal years unless otherwise 

noted. All years referenced for economic data are calendar years unless otherwise noted. 

2. Detail in this document may not add to the totals due to rounding.

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Table of Contents

The Budget Message of the President �������������������������������������������������������������������������������������������������������1

Rescuing the Economy ��������������������������������������������������������������������������������������������������������������������������������7

Reviving Job Creation and Laying a New Foundation for Economic Growth ���������������������������������������19

Restoring Responsibility ���������������������������������������������������������������������������������������������������������������������������37

Department of Agriculture �����������������������������������������������������������������������������������������������������������������������45

Department of Commerce �������������������������������������������������������������������������������������������������������������������������51

Department of Defense �����������������������������������������������������������������������������������������������������������������������������55

National Intelligence Program �����������������������������������������������������������������������������������������������������������������61

Department of Education �������������������������������������������������������������������������������������������������������������������������63

Department of Energy ������������������������������������������������������������������������������������������������������������������������������69

Department of Health and Human Services �������������������������������������������������������������������������������������������73

Department of Homeland Security ����������������������������������������������������������������������������������������������������������81

Department of Housing and Urban Development ����������������������������������������������������������������������������������85

Department of the Interior �����������������������������������������������������������������������������������������������������������������������91

Department of Justice �������������������������������������������������������������������������������������������������������������������������������95

Department of Labor ��������������������������������������������������������������������������������������������������������������������������������99

Department of State and Other International Programs ���������������������������������������������������������������������105

Department of Transportation ���������������������������������������������������������������������������������������������������������������109

Department of the Treasury �������������������������������������������������������������������������������������������������������������������113

Department of Veterans Affairs �������������������������������������������������������������������������������������������������������������117

Corps of Engineers —Civil Works �����������������������������������������������������������������������������������������������������������121

Environmental Protection Agency ���������������������������������������������������������������������������������������������������������125

National Aeronautics and Space Administration ����������������������������������������������������������������������������������129

National Science Foundation ������������������������������������������������������������������������������������������������������������������133

Small Business Administration��������������������������������������������������������������������������������������������������������������135

Social Security Administration ��������������������������������������������������������������������������������������������������������������139

Corporation for National and Community Service ��������������������������������������������������������������������������������143

Summary Tables �������������������������������������������������������������������������������������������������������������������������������������145

OMB Contributors to the 2011 Budget ��������������������������������������������������������������������������������������������������181

Page

1

THE BUDGET MESSAGE OF THE PRESIDENT

To the Congress of the United States:

We begin a new year at a moment of continuing challenge for the American people. Even as we 

recover from crisis, millions of families are still feeling the pain of lost jobs and savings. Businesses are 

still struggling to find affordable loans to expand and hire workers. Our Nation is still experiencing 

the consequences of a deep and lasting recession, even as we have seen encouraging signs that 

the turmoil of the past 2 years is waning. Moving from recession to recovery, and ultimately to 

prosperity, remains at the heart of my Administration’s efforts. This Budget provides a blueprint for 

the work ahead. 

But in order to understand where we are going in the coming year, it is important to remember where we started just 1 year ago. Last January, the United States faced an economic crisis 

unlike any we had known in generations. Irresponsible risk-taking and debt-fueled speculation—

unchecked by sound oversight—led to the near-collapse of our financial system. Our Gross Domestic 

Product (GDP) was falling at the fastest rate in a quarter-century. Five trillion dollars of Americans’ 

household wealth had evaporated in just 12 weeks as stocks, pensions, and home values plummeted. 

We were losing an average of 700,000 jobs each month, equivalent to the population of the State of 

Vermont. The capital and credit markets, integral to the normal functioning of our economy, were 

virtually frozen. The fear among economists—from across the political spectrum—was that we 

risked sinking into a second Great Depression.

Immediately, we undertook a series of difficult steps to prevent that outcome. We acted to get 

lending flowing again so that businesses could get loans to buy equipment and ordinary Americans 

could get financing to buy homes and cars, go to college, and start or run businesses. We enacted 

measures to foster greater stability in the housing market, help responsible homeowners stay in 

their homes, and help to stop the broader decline in home values. To achieve this, and to prevent an 

economic collapse that would have affected millions of additional families, we had no choice but to 

use authority enacted under the previous Administration to extend assistance to some of the very 

banks and financial institutions whose actions had helped precipitate the turmoil. We also took 

steps to prevent the rapid dissolution of the American auto industry—which faced a crisis partly of 

its own making—to prevent the loss of hundreds of thousands of additional jobs during an already 

fragile time. Many of these decisions were not popular, but we deemed them necessary to prevent 

a deeper and longer recession.

Even as we worked to stop the economic freefall and address the crises in our banking sector, our 

housing market, and our auto industry, we also began attacking the economic crisis on a broader 

front. Less than 1 month after taking office, we enacted the most sweeping economic recovery 

package in history: the American Recovery and Reinvestment Act. The Recovery Act not only 

provided tax cuts to small businesses and 95 percent of working families and provided emergency 

relief to those out of work or without health insurance; it also began to lay a new foundation for longterm economic growth and prosperity. With investments in health care, education, infrastructure, 

and clean energy, the Recovery Act both saved and created millions of jobs and began the hard work 

of transforming our economy to thrive in the modern, global marketplace and reverse the financial 
2 THE BUDGET MESSAGE OF THE PRESIDENT

decline working families experienced in the last decade. Because of these and other steps, we can 

safely say we have avoided the depression many feared, and we are no longer facing the potential 

collapse of our financial system. But our work is far from complete. 

First and foremost, there are still too many Americans without work. The steps we have taken 

have helped stop the staggering job losses we were experiencing at the beginning of last year. But the 

damage has been done. More than seven million jobs were lost since the recession began 2 years ago. 

This represents not only a terrible human tragedy, but also a very deep hole from which we have to 

climb out. Until our businesses are hiring again and jobs are being created to replace those we have 

lost—until America is back at work—my Administration will not rest and this recovery will not be 

finished. 

That is why this Budget includes plans to encourage small businesses to hire as quickly and 

effectively as possible, to make additional investments in infrastructure, and to jump-start clean 

energy investments that will help the private sector create good jobs in America.

Long before this crisis hit, middle-class families were under growing strain. For decades, 

Washington failed to address fundamental weaknesses in the economy: rising health-care costs, a 

growing dependence on foreign oil, and an education system unable to prepare our children for the 

jobs of the future. In recent years, spending bills and tax cuts for the wealthy were approved without 

paying for any of it, leaving behind a mountain of debt. And while Wall Street gambled without 

regard for the consequences, Washington looked the other way. 

As a result, the economy may have been working very well for those at the very top, but it was not 

working for the middle class. Year after year, Americans were forced to work longer hours and spend 

more time away from their loved ones, while their incomes flat-lined and their sense of economic 

security evaporated. Beneath the statistics are the stories of hardship I’ve heard all across America. 

For too many, there has long been a sense that the American dream—a chance to make your own way, 

to support your family, save for college and retirement, own a home—was slipping away. And this 

sense of anxiety has been combined with a deep frustration that Washington either didn’t notice, or 

didn’t care enough to act.

Those days are over. In the aftermath of this crisis, what is clear is that we cannot simply go back to 

business as usual. We cannot go back to an economy that yielded cycle after cycle of speculative booms 

and painful busts. We cannot continue to accept an education system in which our students trail their 

peers in other countries, and a health-care system in which exploding costs put our businesses at a 

competitive disadvantage and squeeze the incomes of our workers. We cannot continue to ignore the 

clean energy challenge and stand still while other countries move forward in the emerging industries 

of the 21st Century. And we cannot continue to borrow against our children’s future, or allow special 

interests to determine how public dollars are spent. That is why, as we strive to meet the crisis of the 

moment, we are continuing to lay a new foundation for the future. 

Already, we have made historic strides to reform and improve our schools, to pass health insurance 

reform, to build a new clean energy economy, to cut wasteful spending, and to limit the influence of 

lobbyists and special interests so that we are better serving the national interest. However, there is 

much left to do, and this Budget lays out the way ahead. 
THE BUDGET FOR FISCAL YEAR 2011 3

Because an educated workforce is essential in a 21st Century global economy, we are undertaking a 

reform of elementary and secondary school funding by setting high standards, encouraging innovation, 

and rewarding success; making the successful Race to the Top fund permanent and opening it up to 

innovative school districts; investing in educating the next generation of scientists and engineers; and 

putting our Nation closer to meeting the goal of leading the world in new college graduates by 2020. 

Moreover, since in today’s economy learning must last a lifetime, my Administration will reform the 

job-training system, streamlining it and focusing it on the high-growth sectors of the economy.

Because even the best-trained workers in the world can’t compete if our businesses are saddled with 

rapidly increasing health-care costs, we’re fighting to reform our Nation’s broken health insurance 

system and relieve this unsustainable burden. My Budget includes funds to lay the groundwork 

for these reforms—by investing in health information technology, patient-centered research, and 

prevention and wellness—as well as to improve the health of the Nation by increasing the number 

of primary care physicians, protecting the safety of our food and drugs, and investing in critical 

biomedical research.

Because small businesses are critical creators of new jobs and economic growth, the Budget 

eliminates capital gains taxes for investments in small firms and includes measures to increase these 

firms’ access to the loans they need to meet payroll, expand their operations, and hire new workers.

Because we know the nation that leads in clean energy will be the nation that leads the world, the 

Budget creates the incentives to build a new clean energy economy—from new loan guarantees that 

will encourage a range of renewable energy efforts and new nuclear power plants to spurring the 

development of clean energy on Federal lands. More broadly, the Budget makes critical investments 

that will ensure that we continue to lead the world in new fields and industries: doubling research 

and development funding in key physical sciences agencies; expanding broadband networks across 

our country; and working to promote American exports abroad.

And because we know that our future is dependent on maintaining American leadership abroad and 

ensuring our security at home, the Budget funds all the elements of our national power—including 

our military—to achieve our goals of winding down the war in Iraq, executing our new strategy in 

Afghanistan, and fighting al Qaeda all over the world. To honor the sacrifice of the men and women 

who shoulder this burden and who have throughout our history, the Budget also provides significant 

resources, including advanced appropriations, to care for our Nation’s veterans.

Rising to these challenges is the responsibility we bear for the future of our children, our 

grandchildren, and our Nation. This is an obligation to change not just what we do in Washington, 

but how we do it.

As we look to the future, we must recognize that the era of irresponsibility in Washington must end. 

On the day my Administration took office, we faced an additional $7.5 trillion in national debt by the 

end of this decade as a result of the failure to pay for two large tax cuts, primarily for the wealthiest 

Americans, and a new entitlement program. We also inherited the worst recession since the Great 

Depression—which, even before we took any action, added an additional $3 trillion to the national 

debt. Our response to this recession, the Recovery Act, which has been critical to restoring economic 

growth, will add an additional $1 trillion to the debt—only 10 percent of these costs. In total, the 

surpluses we enjoyed at the start of the last decade have disappeared; instead, we are $12 trillion 

deeper in debt. In the long term, we cannot have sustainable and durable economic growth without 

getting our fiscal house in order. 
4 THE BUDGET MESSAGE OF THE PRESIDENT

That is why even as we increased our short-term deficit to rescue the economy, we have refused to 

go along with business as usual, taking responsibility for every dollar we spend, eliminating what we 

don’t need, and making the programs we do need more efficient. We are taking on health care—the 

single biggest threat to our Nation’s fiscal future—and doing so in a fiscally responsible way that will 

not add a dime to our deficits and will lower the rate of health-care cost growth in the long run. 

We are implementing the Recovery Act with an unprecedented degree of oversight and openness so 

that anyone anywhere can see where their tax dollars are going. We’ve banned lobbyists from serving 

on agency advisory boards and commissions, which had become dominated by special interests. We 

are using new technology to make Government more accessible to the American people. And last 

year, we combed the budget, cutting millions of dollars of waste and eliminating excess wherever we 

could—including outdated weapons systems that even the Pentagon said it did not want or need. 

We continued that process in this Budget as well, streamlining what does work and ending programs 

that do not—all while making it more possible for Americans to judge our progress for themselves. 

The Budget includes more than 120 programs for termination, reduction, or other savings for a total 

of approximately $23 billion in 2011, as well as an aggressive effort to reduce the tens of billions of 

dollars in improper Government payments made each year. 

To help put our country on a fiscally sustainable path, we will freeze non-security discretionary 

funding for 3 years. This freeze will require a level of discipline with Americans’ tax dollars and a 

number of hard choices and painful tradeoffs not seen in Washington for many years. But it is what 

needs to be done to restore fiscal responsibility as we begin to rebuild our economy. 

In addition to closing loopholes that allow wealthy investment managers to not pay income taxes 

on their earnings and ending subsidies for big oil, gas, and coal companies, the Budget eliminates 

the Bush tax cuts for those making more than $250,000 a year and devotes those resources instead 

to reducing the deficit. Our Nation could not afford these tax cuts when they passed, and it cannot 

afford them now. 

And the Budget calls for those in the financial sector—who benefited so greatly from the 

extraordinary measures taken to rescue them from a crisis that was largely of their own making—

to finally recognize their obligation to taxpayers. The legislation establishing the Troubled Asset 

Relief Program (TARP) included a provision requiring the Administration to devise a way for these 

banks and firms to pay back the American taxpayer. That is why in this Budget we have included a 

fee on the largest and most indebted financial firms to ensure that taxpayers are fully compensated 

for the extraordinary support they provided, while providing a deterrent to the risky practices that 

contributed to this crisis.

Yet even after taking these steps, our fiscal situation remains unacceptable. A decade of irresponsible 

choices has created a fiscal hole that will not be solved by a typical Washington budget process that 

puts partisanship and parochial interests above our shared national interest. That is why, working 

with the Congress, we will establish a bipartisan fiscal commission charged with identifying additional 

policies to put our country on a fiscally sustainable path—balancing the Budget, excluding interest 

payments on the debt, by 2015.
THE BUDGET FOR FISCAL YEAR 2011 5

This past year, we have seen the consequences of those in power failing to live up to their 

responsibilities to shareholders and constituents. We have seen how Main Street is as linked to 

Wall Street as our economy is to those of other nations. And we have seen the results of building 

an economy on a shaky foundation, rather than on the bedrock fundamentals of innovation, small 

business, good schools, smart investment, and long-term growth. 

We have also witnessed the resilience of the American people—our unique ability to pick ourselves 

up and forge ahead even when times are tough. All across our country, there are students ready to 

learn, workers eager to work, scientists on the brink of discovery, entrepreneurs seeking the chance 

to open a small business, and once-shuttered factories just waiting to whir back to life in burgeoning 

industries. 

This is a Nation ready to meet the challenges of this new age and to lead the world in this new 

century. Americans are willing to work hard, and, in return, they expect to be able to find a good job, 

afford a home, send their children to world-class schools, receive high-quality and affordable health 

care, and enjoy retirement security in their later years. These are the building blocks of the middle 

class that make America strong, and it is our duty to honor the drive, ingenuity, and fortitude of the 

American people by laying the groundwork upon which they can pursue these dreams and realize the 

promise of American life. 

This Budget is our plan for how to start accomplishing this in the coming fiscal year. As we look 

back on the progress of the past 12 months and look forward to the work ahead, I have every confidence 

that we can—and will—rise to the challenge that our people and our history set for us. 

These have been tough times, and there will be difficult months ahead. But the storms of the past 

are receding; the skies are brightening; and the horizon is beckoning once more. 

Barack Obama

The White House,

 February 1, 2010.

7

When the President took office on January 20, 

2009, the economy was on the brink of a potentially severe depression. Real GDP fell at a 5.4 

percent annual rate in the fourth quarter of 2008 

and at a 6.4 percent annual rate in the first quarter of 2009 (see Figure 1, Real GDP). 

Employment, which had been falling by less 

than 150,000 jobs per month before September 

2008, declined by an average of 622,000 jobs per 

month from October through March. Altogether, 

in the fourth quarter of 2008, the country lost 

1.7 million jobs—the largest quarterly decline 

since the end of World War II and a number 

only to be exceeded by the next quarter, when 

2.1 million jobs were lost (see Figure 2, Nonfarm 

Payroll Employment). By January 2009, the 

underemployment rate, which measures all 

those out of work or underemployed for economic 

reasons, rose to 14 percent. Consumer confidence 

plummeted. Housing starts hit a record low, 

and the number of homes in foreclosure grew 

significantly. As financial markets collapsed, 

Americans lost their jobs, and the economy 

shrank, household net worth fell from the third 

quarter of 2007 to the first quarter of 2009 by 

$17.5 trillion or 26.5 percent, which is the 

equivalent to more than one year’s GDP.

This decline was not simply the result of a normal downturn in the business cycle; indeed, the 

more fundamental cause was a meltdown in our 

credit and capital markets precipitated by a perfect storm of excessive risk-taking, inadequate 

disclosure, non-existent or myopic oversight, 

market gatekeepers compromised by conflicts of 

interest, and irresponsible lending to hundreds 

of thousands of Americans. Through sophisticated financial engineering, these bad loans 

made their way onto the books of some on Wall 

Street, and were then sold to investors all over 

the world. Once the real estate market cooled, 

loans defaulted at alarming rates, and the credit 

boom unraveled. 

The resulting collapse laid low some of the 

most prominent financial institutions in the 

American economy, wiped out trillions of dollars 

in wealth and retirement savings, and created 

a level of uncertainty that brought our financial system to the brink of collapse. A lack of 

confidence in the economy and in the financial 

system effectively froze the credit markets, 

preventing businesses from expanding, and 

families from financing a new home or college 

education; and caused massive job loss and 

economic contraction. 

The Administration, consequently, entered 

office facing twin trillion-dollar deficits. The first 

was the gap between what the economy could be 

producing and what it was producing; this GDP 

gap totaled $1 trillion for 2009, or approximately 

7 percent of the economy. The second was the 

budget deficit, estimated to be $1.3 trillion on the 

day the President took office, or 9.2 percent of 

GDP. And the budget deficit over the following 

decade—driven by the previous Administration’s 

decisions not to offset three large domestic 

initiatives (the tax cuts of 2001 and 2003, as 

well as the Medicare prescription drug benefit) 

and the effects of the economic collapse and 

the efforts needed to combat it—produced this 

historically large 10-year deficit, totaling more 

than $8 trillion. 

RESCUING THE ECONOMY
8 RESCUING THE ECONOMY

Facing this economic crisis, the Administration 

moved swiftly to take a series of extraordinary, 

but necessary, steps to pull the economy back 

from the brink. Because of these efforts, the immediate crisis has passed, the economy is on the 

path toward recovery, and we are laying a new 

foundation for long-term economic 

growth.

Jumpstarting the Economy: 

The American Recovery and 

Reinvestment Act

When the Administration took 

office, it became clear that there 

was a substantial shortfall between 

what the economy could produce 

and what it was producing. Economists across the spectrum agreed 

that substantial steps needed to be 

taken to bolster macroeconomic demand, jumpstart economic activity, 

and break a potentially vicious recessionary cycle. With traditional 

monetary policy levers largely exhausted, the Administration moved 

rapidly to sign into law, just 28 days 

after taking office, the American Recovery and Reinvestment Act (the 

Recovery Act) to create and save 

jobs, as well as transform the economy to compete in the 21st Century.

The Recovery Act contains three 

parts. Approximately one-third—

or $288 billion—is dedicated to tax 

cuts for small businesses and 95 

percent of working families. Another third—or $224 billion—is for 

emergency relief for those who have 

borne the brunt of the recession; 

for example, more than 17 million 

Americans benefited from extended 

or increased unemployment benefits 

and health insurance was made 65 

percent less expensive for laid-off 

workers and their families who rely 

on COBRA. In addition, aid to State and local 

governments helped them to close budget shortfalls, saving the jobs of hundreds of thousands of 

teachers, firefighters, and police officers. The final 

third is for investments to create jobs, spur economic activity, and lay the foundation for future 

sustained growth. 

Nov-06 Nov-07 Nov-08 Nov-09

-800

-700

-600

-500

-400

-300

-200

-100

0

100

200

300

400

Monthly change of jobs in thousands

Figure 2. Nonfarm Payroll Employment

Source: CEA Notes on Employment and Unemployment, December 2009.

07:Q1 Q2 Q3 Q4 08:Q1 Q2 Q3 Q4 09:Q1 Q2 Q3

-8

-6

-4

-2

0

2

4

6

Percent change from preceding quarter (annual rate)

Figure 1. Real GDP

3.2

2.1

3.6

-0.7

1.2

-5.4

-2.7

1.5

-6.4

2.2

-0.7

Source: Bureau of Economic Analysis 12/22/2009.
THE BUDGET FOR FISCAL YEAR 2011 9

The Administration committed itself to implementing the Recovery Act with unprecedented 

accountability and transparency. In addition to 

an independent Recovery Board to monitor the 

program, the Act required recipients of Recovery 

funds to report quarterly on the amount of monies spent, the status of each project, the number 

of jobs created and/or saved, and other relevant 

details. This information is available for public 

scrutiny on the Recovery.gov website. 

The effects of the Recovery Act on families, 

businesses, and the economy as a whole have 

been significant. In the 10 months since the 

Recovery Act was signed into law, the Administration cut taxes for 95 percent of working families through the Making Work Pay Tax Credit, 

which amounted to $37 billion in tax relief for 

110 million working families over that time 

period. To help prevent cuts to Medicaid programs across the country, more than $40 billion 

was disbursed. Also, nearly $60 billion in funding for education was provided which helped 

to create or save more than 300,000 education 

jobs nationwide. 

To create jobs now and build the infrastructure 

needed to support the jobs of the 21st Century, the 

Recovery Act already has funded more than 12,000 

transportation construction projects nationwide, 

ranging from highway construction to airport 

improvement projects; begun or accelerated 

work at more than 50 Superfund sites from the 

Environmental Protection Agency’s National 

Priority List; and started more than 2,000 

construction and improvement projects at over 350 

military facilities nationwide. To build America’s 

competitiveness in the emerging industries of 

tomorrow, the Administration has made multibillion dollar investments in innovation, science, 

and technology including: $2.4 billion in grants 

to companies and educational institutions in 

over 20 States to fund 48 new advanced battery 

manufacturing, transportation electrification, 

and electric drive vehicle projects that will help 

power the next generation of advanced vehicles; 

$3.4 billion in grants to private companies, 

utilities, manufacturers, and cities to fund smart 

energy grid projects that will support tens of 

thousands of jobs and benefit consumers in 49 

States; and more than $5 billion in grants to fund 

12,000 cutting-edge medical research projects at 

research and educational institutions in every 

State across the country.

It is worth noting that in several cases, the 

Government Accountability Office has found 

that Recovery Act projects are coming in under 

budget, allowing funds to support more projects, 

assist more communities, and help create more 

jobs. For instance, the Federal Aviation Administration (FAA) initially committed $1.1 billion 

to 300 airport improvement projects; since those 

projects have come in $200 million below estimate, the FAA can now fund an additional 60 

airport projects. Similarly, Department of Defense construction contracts are coming in about 

12 percent under-budget, representing hundreds 

of millions of dollars in savings that will fund 

additional projects and further spur economic 

growth.

All told, as of the end of November 2009, about 

50 percent of Recovery Act funds—or $395 billion—has been either obligated or is providing 

assistance directly to Americans in the form of 

tax relief. By design, the bulk of the remaining 50 percent of Recovery Act funds will be deployed in the coming months of 2010 and during 

the beginning of 2011 to support additional job 

creation when our economy continues to need a 

boost. Many of the programs slated to receive additional funding in the near future are those with 

significant promise of job creation. These include 

more than $7 billion in broadband expansion, approximately $8 billion in funds to lay the foundation for a high-speed rail network, and continued 

funding for other transportation projects. All 

told, the Recovery Act is on track to meet the goal 

of disbursing 70 percent of its funds in the first 18 

months of its life.

Taken together, the fiscal relief, tax cuts and 

other direct assistance, and funding of critical 

infrastructure projects have had a substantial 

effect on the economy. Following implementation 

of the Recovery Act, the trajectory of the economy 

changed dramatically. Government and private-
10 RESCUING THE ECONOMY

sector estimates suggest that the Recovery Act 

added two to three percentage points to real 

GDP growth in the second quarter of 2009, and 

three to four percentage points to growth in the 

third quarter of that year. Considering that 

real GDP growth for the third quarter of 2009 

was 2.2 percent, many independent experts and 

forecasters agree that all the economic growth in 

that quarter was attributable—either directly or 

indirectly—to the Recovery Act. 

In addition, there is evidence that the Recovery Act helped prevent the unemployment rate 

from climbing even higher over the past year. 

The Council of Economic Advisers (CEA), Congressional Budget Office (CBO), and private 

forecasters estimate that the Recovery Act increased employment relative to what would have 

occurred without the Act by between 900,000 

and 1.5 million jobs over the second and third 

quarters of 2009. 

Health Insurance Reform

As part of the Recovery Act, the Administration made a down payment on one of the most 

important unmet challenges facing the Nation 

and burdening the economy: the rising costs of 

health care.

Health care is consuming an ever-increasing 

amount of our Nation’s resources: in 1970, health 

care expenditures were 7 percent of GDP; as of 

2008, they exceeded 16 percent; and at this rate 

are projected to hit 20 percent by 2017. For individuals with health insurance, there is a strain 

on their family budgets. In fact, the past decade 

saw dramatic increases in premiums that far outstripped gains in wages. Not only is this burden 

felt directly when these bills are due, but it also is 

felt indirectly as take-home pay is constrained by 

these increasing health insurance costs. Moreover, many with insurance run the risk that when 

they need care, their coverage could be dropped; 

that if they leave their job, they will not be able 

to find affordable coverage or any coverage at all 

because of a pre-existing condition; or that they 

will be forced into bankruptcy due to huge unpaid medical bills. Finally, those without any 

health insurance present both a moral burden 

and real financial cost on us all as every time an 

uninsured person walks into an emergency room 

because there is nowhere else to turn, a hidden 

tax is imposed on other citizens as premiums go 

up. For State governments, these rising costs 

crowd out expenditures on other vital services 

such as higher education and law enforcement.

While the United States spends more per capita 

on health care than any other developed nation, 

it is not always clear that we are receiving better care. On many metrics, other developed nations surpass us on health outcomes. In addition, 

several academic studies suggest that we spend 

as much as $700 billion a year on health care 

that does little or nothing to improve patients’ 

health. Wide variation in health care practices 

among regions, States, cities, and even among 

health care providers within these localities generates significant differences in health outcomes 

and costs—with the high-cost medical centers not 

necessarily generating better outcomes than the 

lower-cost ones.

Recognizing that the current situation is not 

sustainable for families, businesses, and the 

Nation as a whole and that our long-term fiscal 

and economic health depend on bringing down 

the costs of health care, the President launched a 

health insurance reform effort last year. 

First, in the Recovery Act itself, the Administration included funding critical to transforming the health care system into one that delivers 

better care, not just more care. Specifically, it 

included a program to spur an effort to computerize Americans’ health records in five years, and 

do so in a way that rigorously protects patient 

privacy and helps to reduce health care costs in 

the long run. Because in so many areas of medical care, providers lack basic data on which interventions work and which do not, the Act provided 

$1.1 billion for patient-centered health research. 

And since chronic diseases that are manageable 

and preventable contribute disproportionately to 

poor health and rising costs, the Administration 
THE BUDGET FOR FISCAL YEAR 2011 11

made an unprecedented $1 billion investment in 

prevention and wellness interventions.

Second, working with the Congress, the Administration has brought the Nation closer to 

health insurance reform than ever before. The 

bills passed by both chambers of Congress will 

give Americans with health insurance the stability and security they need by protecting consumers from being denied coverage based on 

pre-existing conditions or seeing it dropped or diluted once one falls ill. The legislation creates a 

health insurance exchange to increase consumer 

choice and provide affordable coverage for individuals and small businesses, and expands coverage to more than 30 million Americans. It will 

reduce the growth of health care costs for American families, seniors, and businesses. The bills 

also include important reforms that will end insurer abuses, hold insurance companies accountable, and enhance consumer rights. They include 

overdue reforms of the health care delivery system that will strengthen Medicare and improve 

quality of care for all Americans. And they put 

in place mechanisms to keep the system dynamic 

and responsive to changing market conditions. 

Finally, the legislation meets the President’s 

standard of changing the way Washington is doing business by paying for major new initiatives 

so they do not add to our Nation’s debt. Indeed, 

the legislation meets the President’s demand 

that health care reform not add to budget deficits in the first 10 years (and, in fact, it reduces 

them), and of reducing deficits thereafter. Deficit 

neutrality is accomplished by relying on tangible, 

accountable savings—as scored by the independent CBO—to pay for health insurance reform, 

such as savings from Medicare and revenue measures. The legislation also includes potentially 

more important cost-savings from transforming 

the health care delivery system, which will undoubtedly help to improve our long-term fiscal 

standing—even if it is challenging to quantify by 

precisely how much.

Fiscally-responsible health insurance reform 

is a critical part of the recovery of the Nation’s 

economy. Our fiscal future is so dominated by 

health care that if we can slow the rate of cost 

growth by just 15 basis points per year (0.15 percentage points per year), the savings on Medicare and Medicaid alone would equal the impact 

from eliminating Social Security’s entire 75-year 

shortfall. Undertaking health insurance reform 

at this moment is an important step toward putting the country on a more solid foundation for 

economic growth. 

Reviving the Financial System and 

Critical Sectors of the Economy

Along with reviving macroeconomic demand, 

the Administration was forced to take extraordinary, and sometimes understandably unpopular, 

steps to help revive the credit and capital markets and restore trust in the financial system. At 

the beginning of 2009, the financial system was 

extremely fragile. The viability of major financial 

institutions remained in doubt and vital aspects 

of the financial system were deeply impaired—

preventing the flow of credit that small firms 

need to grow and families need to buy a home or 

car, attend college, or start a business. With the 

risk that inaction could lead to an even deeper 

downturn, the Administration implemented a 

plan to restore financial stability that, in conjunction with fiscal stimulus, has helped to stabilize 

financial markets and the economy and pull the 

financial system back from the brink of systemic 

collapse. 

Financial Stabilization 

Upon taking office, the Administration undertook a comprehensive, forceful, and sustained 

commitment to stabilize the financial system, assist in the cleanup of legacy assets, jumpstart the 

provision of new credit for households and businesses, and support distressed housing markets. 

The Administration’s Financial Stability Plan 

helped to shore up confidence in our financial institutions and markets, while mobilizing private 

capital—especially in the wake of the “stress test” 

conducted of major financial institutions. The 

Administration also redirected the focus of the 
12 RESCUING THE ECONOMY

Troubled Asset Relief Program (TARP) from large 

financial institutions to households, small banks, 

and small businesses (see Figure 3, TARP Investments in Banks). Indeed, since the President took 

office, only $7 billion in TARP funds have been 

provided to banks—much of it to smaller institutions—while major banks subject to the “stress 

test” have raised more than $140 billion in highquality capital from the private sector.

As financial markets have stabilized and private capital has replaced Government capital, 

many of the initial programs created under TARP 

have become unnecessary, and institutions have 

begun to repay Federal money deployed through 

TARP programs. As of December 31, 2009, Treasury received $165 billion in TARP repayments, 

and taxpayers also have received about $17 billion 

in interest, dividends, and capital gains through 

the sale of warrants. 

At the height of the crisis, the Treasury guaranteed that Americans would get back at least what 

they had invested in money market funds that 

participated in its temporary guarantee program. 

The program achieved its purpose, and it was 

terminated in September 2009. Not only did it 

not cost the taxpayers a dime; it earned them $1.2 

billion in fees. 

As we move from rescue to recovery and as 

financial stabilization funds are being repaid, 

the Administration has developed a four-step 

exit strategy for modifying TARP to assist in rebuilding of the economy. First, we will continue 

winding down or terminating many of the Government programs put in place to address the 

crisis—a process that already is well underway. 

Second, we will limit future commitments to preserving home ownership, stimulating credit for 

small businesses, and supporting securitization 

markets which facilitate consumer and small 

business loans that promote job creation and economic growth. Third, beyond these limited new 

commitments, we will not use remaining stabilization funds unless necessary to respond to an 

immediate and substantial threat to the economy 

stemming from financial instability. Fourth, we 

will continue to carefully manage the equity investments acquired during this extraordinary period in a cost-effective manner, while protecting 

taxpayers and unwinding those investments as 

soon as practicable.

Housing

The steps taken to stabilize housing markets 

and help distressed homeowners represent another important element of the Administration’s 

policy response. For the thousands of responsible 

homeowners who are facing foreclosure or are 

at risk of losing their homes, the Administration 

undertook a number of efforts to help them. On 

Figure 3. TARP Investments in Banks

(In billions of dollars)

Commitments

Pre-Jan 20th

Jan 20- 

Present 1 Total 2 Repayments

Existing Programs:

 Large Banks 3 ....................................................................... 230 2 232 114

Small Banks 4 ........................................................................ 9 5 14 2

Total .............................................................................................. 239 7 246 116

Common Equity and Other Regulatory Capital Raised by the Largest 

 Banks Since “Stress Test” Results Were Announced in May ............................................................................................. 114

1

 Estimates as of December 9, 2009.

2

 Estimates may not sum to total due to rounding.

3

 CPP, AGP, TIP. Large banks are defined as banks with total assets of over $10 billion.

4

 CPP. Source: Department of the Treasury.
THE BUDGET FOR FISCAL YEAR 2011 13

February 18, 2009, the Administration announced the Homeowner 

Affordability and Stability Plan, a 

broad set of programs designed to 

stabilize the U.S. housing market 

and keep millions of homeowners 

in their homes. 

First, the Administration took 

action to stabilize the housing market, in part by making mortgages 

more affordable. Continued support for Fannie Mae and Freddie 

Mac and the Treasury’s Mortgage 

Backed Securities (MBS) purchase 

program, along with $1.1 trillion 

in MBS purchases by the Federal 

Reserve, have helped to keep interest rates at historic lows (see Figure 

4, Conventional 30-year Mortgage 

Rate). More than 3 million Americans have taken advantage of these lower rates 

in 2009 to save money through refinancing. In 

addition, the Federal Housing Administration 

has increased its market presence significantly to 

enable many Americans to purchase homes. 

Second, the Administration is working to provide 

increased access to financing for State 

and local housing finance agencies, 

which provide sustainable homeownership and rental resources, for working Americans in all 50 States. In 

addition, the $8,000 first-time homebuyer tax credit has helped hundreds 

of thousands of Americans purchase 

homes. The Recovery Act also supported the Low Income Housing Tax Credit 

market by creating an innovative Treasury Tax Credit Exchange Program 

and providing gap financing through 

the Department of Housing and Urban 

Development’s Tax Credit Assistance 

Program. In combination, these programs are estimated to provide over $5 

billion in support for affordable rental 

housing. In addition, the Recovery Act 

provided $2 billion in support for the 

Neighborhood Stabilization Program,

which is designed to rebuild value in areas hardest hit by foreclosures; this amount is on top of 

the $4 billion provided for the program in the 

Housing and Economic Recovery Act of 2008.

Third, the Administration initiated the Home 

Affordable Modification Program (HAMP), which 

provides eligible homeowners the opportunity to 

1985 1988 1991 1994 1997 2000 2003 2006 2009

4

5

6

7

8

9

10

11

12

13

14

Figure 4. Conventional 30-Year 

Percent Mortgage Rate

Indicates Recession

Source: Federal Reserve.

50,130

143,276

253,673

386,865

487,081

650,994

728,408

May and 

Prior June July August September October November

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Figure 5. HAMP Active Trial and 

Permanent Modifications, 2009 

Cumulative, by month

Source: http://www.financialstability.gov/docs/MHA%20Public%20121009%20Final.pdf
14 RESCUING THE ECONOMY

significantly reduce their monthly mortgage payment, remain in their homes, and prevent avoidable foreclosures (see Figure 5, HAMP Active 

Trial and Permanent Modification). Through 

November 2009, more than 725,000 borrowers 

are in active modifications, saving an average of 

more than $550 a month on their monthly mortgage payments. Servicers report that more than 

1 million borrowers have received offers to begin 

trial modifications. HAMP is designed to offer a 

second chance to as many as 4 million borrowers by the end of 2012, averaging more than 

20,000 trial modifications started per week. To 

facilitate this and other efforts, the Administration is working to improve the application process, develop operational measurements to hold 

servicers accountable for their performance, and 

enhance borrower resources to provide direct access to tools and housing counselors. Finally, the 

Administration is working with homeowners to 

help them through the process of converting temporary modifications into permanent ones.

More work needs to be done, and there are still 

market risks. But there are clear signs that our 

efforts are having an impact. We will continue to 

monitor this key component of the economy and 

work to keep responsible homeowners in their 

homes. 

Automobile Industry

The freezing up of the credits markets in the 

fall of 2008 made it hard for many households to 

finance the purchase of motor vehicles. This difficulty, exacerbated by the rapid deterioration in the 

broader economy, led to reduced demand for motor vehicles, causing considerable financial stress 

to automobile companies, particularly General 

Motors (GM) and Chrysler. Without Government 

intervention, GM and Chrysler would have liquidated, causing widespread and devastating effects 

throughout the auto industry. Importantly, the repercussions of such liquidations could have included immediate and long-term damage to the U.S. 

manufacturing/industrial base, a significant increase in unemployment with direct harm to those 

both directly and indirectly related to the auto sector, and further damage to our financial system, 

since automobile financing constitutes a material 

portion of overall financial activity. Facing what 

risked becoming the last straw for an economy already severely weakened, the President made the 

difficult decision to offer assistance to the auto industry in an effort to prevent a further economic 

meltdown that could have hurt millions of families. 

However, the President’s offer of financial assistance was coupled with a requirement that GM 

and Chrysler develop serious restructuring plans 

that would address prior business failings and 

put the companies on a path to financial viability 

without Government assistance. After rejecting 

GM and Chrysler’s initial plans and requiring all 

stakeholders to make additional sacrifices, the 

Administration accepted new restructuring plans 

from these two manufacturers. 

In exchange for the assistance provided, the 

Government obtained from GM $8.8 billion in debt 

obligations and preferred stock along with a 60.8 

percent share of the common equity in the new 

GM. From Chrysler, the Government obtained 

a $7.1 billion debt security note and 9.9 percent 

of Chrysler’s common stock. In November 2009, 

GM announced that it would begin repaying the 

U.S. Treasury faster than anticipated, and made 

its first $1 billion repayment in December 2009. 

To further assist the auto industry as well 

as the economy as a whole, the Administration 

also launched the Car Allowance Rebate System 

(CARS)—or “Cash for Clunkers”—program to accelerate demand for new automobiles. The program, signed into law by President Obama on June 

24, provided bonuses of $3,500 to $4,500 to buyers 

who traded in automobiles with mileage ratings 

of 18 miles per gallon or below, if they purchased 

a new car or truck with improved mileage ratings. 

The Cash for Clunkers program boosted auto sales 

by nearly 500,000 units between July and August 

2009, adding about $3.5 billion to the GDP. The CEA 

estimates that because of the program, employment in the second half of 2009 was about 70,000 

job-years higher than it would otherwise have been. 

As an additional benefit, the program accelerated 

the replacement of high-polluting “clunker” motor 
THE BUDGET FOR FISCAL YEAR 2011 15

vehicles with cleaner, higher-efficiency vehicles (see 

Figure 6, U.S. Light Motor Vehicle Sales).

While there is more to be done to assure financial stability, these steps have allowed us to move 

from the rescue phase to the next phase of rehabilitation and rebuilding. Even as we roll back 

emergency measures that are no longer needed, 

the Administration remains steadfast in its commitment to preserve the stability of the financial 

system. Some Government programs will stay in 

place to serve as a bulwark against unforeseen 

events and to provide confidence 

in our financial markets. Overall, 

however, the Administration believes that we are past the point of 

having to provide emergency relief, 

and looks forward to recouping the 

costs of these extraordinary efforts.

Rising to the Challenges 

Ahead

As a result of our steps to support 

the financial system, confidence 

has improved, credit is easing, and 

the economy is growing. Moreover, 

the Government is exiting from its 

emergency financial policies, and 

taxpayers are being repaid. Indeed, 

the ultimate cost of those policies is 

likely to be significantly lower than 

previously expected. The Administration now estimates that TARP will cost about 

$117 billion—$224 billion less than was projected in the 2010 Mid-Session Review (see Figure 7, 

Costs of Troubled Asset Relief Program Actions). 

For example, we now expect that there will be a 

positive return on $248 billion of investments in 

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

8

10

12

14

16

18

20

22

Millions of units, seasonally adjusted annual rate

Average Sales, 1998-2007

Figure 6. U.S. Light Motor Vehicle Sales

Monthly Sales

September 

 2001 CARS Employee Pricing,  Summer 2005

Source: Department of Commerce (Bureau of Economic Analysis) and CEA Report on Economic Impact of CARS.

Figure 7. Costs of Troubled Asset Relief Program Actions (Excluding Debt Service) 1

(In billions of dollars)

TARP Actions

2010 MSR 2011 Budget Change from 2010 MSR 

to 2011 Budget

TARP 

Obligations

Subsidy 

Cost

TARP 

Obligations

Subsidy 

Cost

TARP 

Obligations

Subsidy 

Cost

Equity Purchases ..................................................................................... 383.7 158.1 344.1 55.9 –39.6 –102.2

Structured & direct loans and asset-backed security purchases ............. 330.5 133.6 148.6 25.0 –181.9 –108.6

Guarantees of troubled asset purchases 2 .............................................. 12.5 –0.8 5.0 –3.0 –7.5 –2.2

Home Affordable Modification Program (HAMP) ..................................... 50.0 50.0 48.8 48.8 –1.2 –1.2

Total ............................................................................... 776.7 340.9 546.4 126.7 –230.3 –214.2

Memorandum:

Deficit impact before administrative costs and interest effects 3 �������������������� 340.9 116.8 –224.1

1 Total reflects estimated lifetime TARP obligations and costs through 2020.

2 The 2010 MSR reflected total face value of guarantees of $419 billion. The 2011 Budget reflects the actual face value of $301 billion.

3 The 2011 Budget total dficit impact includes interest on downward reestimates of $9.9 billion.
16 RESCUING THE ECONOMY

banks, about two-thirds of which have already 

been repaid over the past year. 

Confidence in the stability of our financial 

markets and institutions has improved dramatically over the past year. Interbank lending rates, 

which reflect stress in the banking system, have 

returned to levels associated with more stable 

times. For example, the spread of 

one-month LIBOR to the overnight 

index swap—a measure of liquidity 

in the banking system—has fallen from a peak of about 340 basis 

points in October 2008 to roughly 

10 basis points today (see Figure 

8, Interbank Lending: LIBOROIS Spread). Credit-default swap 

spreads for financial institutions, 

which measure investor confidence 

in their health, have also fallen significantly. An aggregate measure of 

credit-default swaps for the largest 

U.S. banks reached over 450 basis 

points in October 2008; it is roughly 

100 basis points today (see Figure 9, 

Credit-Default Swap Spreads for Financial Institutions).

As borrowing costs have come 

down, businesses have raised 

substantial capital from private 

sources. Corporations have raised 

more than $900 billion in investment-grade debt and in excess of 

$100 billion in high-yield debt this 

past year. While much of the new 

issuance early this year was supported by Government guarantees, 

in recent months private investors 

have funded most new corporate 

debt without public support: only 

14 percent was guaranteed in October, whereas nearly 50 percent of 

new issuance was guaranteed by 

the Government in January 2009. 

The U.S. banking system is much 

better capitalized today than it was 

at the height of the crisis. Since 

the announcement of the stress 

test results, the largest banking institutions have 

raised over $140 billion in high-quality capital 

and over $60 billion in non-guaranteed unsecured 

debt in the private markets. Banks have used 

private capital to repay TARP preferred equity, 

allowing TARP to fulfill its function as a bridge to 

private capital.

2006 2007 2008 2009

0

50

100

150

200

250

300

350

400

1-Month 3-Month

Basis points

Figure 8. Interbank Lending: 

LIBOR-OIS Spread

Lehman FSP

Source: Bloomberg.

0

100

200

300

400

500

Basis points

Figure 9. Credit-Default Swap Spreads for 

Financial Institutions

Lehman FSP

2006 2007 2008 2009

Source: Bloomberg.
THE BUDGET FOR FISCAL YEAR 2011 17

The market for municipal bonds is also recovering from the financial crisis. The Recovery Act 

included an innovative new tool for municipal 

financing, Build America Bonds, which are taxable bonds for which Treasury pays a 35 percent 

direct subsidy to the issuer to offset borrowing 

costs. Build America Bonds are now providing 

State and local governments with access to lowcost financing that is providing them with a much 

needed economic boost.

Housing markets likewise are showing some 

signs of stabilizing, and wealth is recovering; these 

real improvements in individual-level finances 

should stimulate consumer spending, which is a 

vital component to American economic growth. 

For example, household net worth increased by 

$2 trillion in the second quarter of 2009, the first 

increase since the second quarter of 2007.

As credit conditions have improved and with 

the macroeconomic boost of the Recovery Act, the 

economy has started to grow again. The economy 

expanded at an annual rate of 2.2 percent in the 

third quarter of 2009, and the Blue Chip consensus is for 4 percent growth in the fourth quarter. 

Private economists generally expect moderate 

growth over the next year, and in line with their 

estimates the Budget assumes 

that the economy will grow by an 

annual rate of 3.0 percent in 2010, 

and accelerate to approximately 

4.25 percent annually over 2011 to 

2013. 

While the economy has turned 

a corner, there are still significant 

challenges that must be addressed.

Home foreclosure and delinquency rates remain too high 

(see Figure 10, Residential Mortgage Delinquency Rates), placing 

enormous pressure on American 

families and homeowners. Bank 

lending continues to contract 

overall, although the pace of contraction has moderated and some 

categories of lending are growing 

again. For example, commercial and industrial 

loans contracted at an annual rate of 27 percent 

in the third quarter, but 16 percent since then. 

Such loans are particularly important for small 

businesses, which generally cannot raise money 

by issuing debt in securities markets. Without 

access to capital, business expansion and job 

creation will be limited. 

Perhaps the biggest challenge facing the economy, as we move from rescue to recovery, is the 

weak labor market. Far too many workers who 

would rather be earning a paycheck are on unemployment, left worrying about how to pay their 

mortgage or the rent, keep their health insurance, and continue to provide for their families. 

In November 2009, the unemployment rate fell to 

10 percent and payrolls increased—for the first 

time since 2007—by 4,000 jobs. In December the 

unemployment rate remained constant at 10 percent, with a loss of 85,000 jobs. The fact that a 

single month of job gains, followed by a steady 

unemployment rate, is seen as progress points to 

the severe job loss the economy had experienced 

over the course of the recession (see Figure 11, 

Initial Claims for Unemployment Insurance).

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

10

12

14

16

18

20

22

24

26

28

2

3

4

5

6

7

Subprime (left)

Conforming (right)

Percent 

Figure 10. Residential Mortgage

Delinquency Rates Percent 

Source: Mortgage Bankers of America; NBER.
18 RESCUING THE ECONOMY

The typical progression in a recovery is, first, 

that worker productivity increases as firms try 

to do more with their existing staff. Then, the 

number of hours worked increases for already 

employed workers as the economy picks up. Finally, as growth is sustained, companies begin 

hiring again. There are signs that this process is 

beginning to happen with this recovery as well. 

In the third quarter of 2009, non-farm business 

sector labor productivity increased by 8.1 percent 

on an annualized basis, the largest gain in productivity since the third quarter of 2003. There 

are signs that hours worked began to rebound in 

the fourth quarter of 2009. And hiring of temporary workers—a reliable leading indicator of 

full-time hiring—increased substantially in the 

fourth quarter as well. 

Unfortunately, the progression to consistent 

and substantial job growth is not coming soon 

enough. Sparking job creation in the private sector is an urgent priority, one reflected throughout the Budget and in the policies put forth by 

the Administration. Americans are willing to 

work hard, and in return, they expect to be able 

to find a good job, afford a home, send their kids 

to a good school, receive high-quality and affordable health care, and enjoy retirement security in 

their later years. These are the building blocks 

of the middle class that makes America strong, 

and together they constitute the new foundation 

we seek for our economy. Our challenge is to put 

politics aside and take the steps now that will deliver on this promise for all Americans now and in 

generations to come.

Figure 11. Initial Claims for Unemployment Insurance

4-week moving average, week end 01/02/2010

Jan 90

 

Jan 94 Jan 98 Jan 02 Jan 06

 

 

300

360

420

480

540

600

660

720

Thousands (s.a.)

Indicates Recession

Source: CEA Notes 12/17/2009.
19

The economy has been rescued from disaster, 

and is on the road to recovery. We are no longer 

facing the potential collapse of our financial system, and the country has avoided the depression 

many feared just a year ago. Our economy is 

growing; our markets are returning to functionality; and some of the losses of the past year have 

been restored. These indicators may be heartening to economists, but they are cold comfort to 

the millions who are out of work, communities 

that have seen industries downsized and factories shuttered, and the cities and towns who 

are finding it hard to provide services to their 

residents. 

There are 7 million fewer jobs today than 

when the recession began in December 2007. 

The immediate effects of being unemployed are 

felt deeply by the unemployed and their families: 

bills that are not paid, college tuition payments 

that are not sent, and homes that are no longer 

affordable. Moreover, there is growing evidence 

that unemployment has a lasting effect on 

these workers’ children too. A range of studies 

have found that having a parent experience 

unemployment is closely tied with whether you 

graduate from high school, whether you go to 

college, whether you get a job after college, and 

how much you get paid in that job. And the 

effect is persistent—with higher high school 

dropout rates and lower college enrollment 

rates evident even years later. For those in 

college and graduating into a recession, studies 

suggest that it leads to depressed wages in the 

first year of employment and for years to come. 

There is also evidence that unemployment has a 

lasting negative effect on community and civic 

engagement, not only among the jobless but 

among their neighbors as well.

We cannot sit idly by and allow a generation 

of Americans to be knocked off course just as 

they are ready to come into their own. We cannot be content with a recovery that is felt on Wall 

Street, but not on Main Street. And we cannot be 

satisfied with business as usual, returning to an 

economy of boom and bust, easy credit, and reckless actions that only works for the wealthiest 

and the well-connected. We must lay a new foundation in which innovation and job creation are 

nurtured, the middle class is strengthened, and 

economic opportunity is available to all. Doing 

that entails using this moment of economic recovery to rebuild our Nation and transform our 

economy so that we can compete and thrive in 

the decades ahead.

Investing in Job Creation

In the short-term, it is critical that we take 

steps to jumpstart job creation so that the nascent economic recovery is one that lifts American workers and families. Looking to the future, 

we know that in the high-tech, interdependent 

economy of the 21st Century, two of the most precious resources for any nation are the know-how 

and creativity of its people. Basic research across 

the sciences leads to discoveries and technologies that create whole industries, thousands of 

businesses, and millions of jobs. From bio-technology to information technology, we have seen 

that happen in our own time. Yet this is not the 

moment to rest on our past accomplishments; we 

must support invention and innovation today so 

that our scientists, engineers, and entrepreneurs 

can grow these businesses of tomorrow. 

REVIVING JOB CREATION AND LAYING A NEW 

FOUNDATION FOR ECONOMIC GROWTH
20 LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

At the same time, we need to recognize that our 

economy is strongest when we tap the potential 

of all its participants. Small businesses, which 

over the past 15 years have created roughly 65 

percent of all new private sector jobs in America, 

are critical to the future of our economy. We need 

to create the conditions whereby if you have a 

good idea and the drive to act on it, you can open 

your own store or start your own company. Economic growth and job creation also must not be 

limited to our cities and suburbs; rural America 

too must be able to provide jobs and economic opportunities to its residents. Hard-working young 

people in small towns across America should be 

able to find good jobs and promising opportunities at home. Moreover, we need to recognize that 

competitive, high-performing regional economies 

are essential to a strong national economy. That’s 

why the President announced a broad-based initiative to review how Federal policies impact local 

communities and to better target and coordinate 

resources across agencies to promote job creation, 

environmental sustainability, and broad-based 

economic growth. Finally, all Americans should 

be able to balance the needs of their careers and 

their families and retire with security. To foster 

job growth across the economy, the Budget will:

Spur Job Creation. While we are no longer 

hemorrhaging jobs at the rate we were last year, 

unemployment is still unacceptably high. Looking to the future, the investments made in the 

Budget in education, clean energy, infrastructure, 

and in several other areas will lay a new foundation for economic growth and job creation. But in 

the short term, it is clear that the some targeted 

measures are required to spur private sector job 

creation. The Administration will work with the 

Congress to implement a jobs creation package 

along the lines the President announced in December of 2009. It will include immediate steps to 

help small businesses grow and hire, to upgrade 

and build infrastructure, and create jobs through 

energy efficiency and clean energy investments. 

In addition, to help those most affected by the 

recession, the Budget will extend emergency assistance to seniors and families with children, 

Unemployment Insurance benefits, COBRA 

tax credits, and relief to States and localities to 

prevent layoffs.

Provide Small Businesses Access to Credit. One of the biggest challenges facing the country as we recover from the economic crisis is giving 

small businesses access to credit. That is why the 

Budget provides funds to support $17.5 billion 

in SBA 7(a) loan guarantees that will help small 

businesses operate and expand. The Budget also 

supports $7.5 billion in guaranteed lending for 

commercial real estate development and heavy 

machinery purchases; $3 billion in Small Business Investment Company debentures to support 

new businesses and new jobs through early-stage 

and mezzanine small business financing; and $25 

million in direct microloans, for intermediaries to 

provide small loans to emerging entrepreneurs 

and other promising, but “un-bankable,” borrowers. In addition, the Budget proposes to significantly increase the maximum loan sizes on SBA 

loans, including an increase from $2 million to $5 

million for 7(a) business loans, to further improve 

small business access to credit.

Refocus Troubled Asset Relief Program 

(TARP) Funds to Assist Small Businesses.

As we move from rescue to recovery and financial 

stabilization funds are being repaid, the Treasury is redirecting TARP to focus on preserving 

homeownership and supporting small business 

lending. The Treasury is working with the Small 

Business Administration to refocus funds on a 

special initiative that—with the support of new 

legislation—is designed to encourage widespread 

participation by small banks in increasing lending to small businesses in their communities. 

The Administration has also announced a TARP 

program to increase small business lending in 

hard-hit areas by providing lower cost capital to 

Community Development Financial Institutions.

Eliminate Capital Gains Tax on Investments in Small Businesses. Opening up one’s 

own business is a critical part of the American 

dream; it is a hallmark of our economy’s vitality and an important creator of jobs. To create 

an incentive for long-term investments in the 

small business sector, the Budget eliminates 
THE BUDGET FOR FISCAL YEAR 2011 21

capital gains taxes on long-term investments in 

many small businesses. The American Recovery 

and Reinvestment Act (Recovery Act) temporarily increased the exclusion to 75 percent. The 

Budget proposes to raise this exclusion to 100 

percent, meaning that no income tax whatsoever 

would be paid on these investments in our Nation’s small businesses.

Extend the Making Work Pay Tax Cut. The 

Recovery Act created the Making Work Pay tax 

credit, a refundable income tax credit, which offsets the Social Security payroll tax on up to the 

first $6,450 of earnings for about 95 percent of 

all American workers. This helps small business 

owners struggling to meet expenses, and will put 

needed money in the pockets of families struggling to make ends meet and cover their costs. As 

part of its plan to restore health to the economy, 

the Budget proposes to extend the Making Work 

Pay tax cut for one year.

Promote American Exports to Fuel Economic Growth. A key component of stable, 

long-term economic growth is opening up foreign 

markets to American goods and services. The 

Budget provides $534 million, a 20-percent increase, to the Commerce Department’s International Trade Administration, to promote exports 

from small businesses, help enforce free trade 

agreements with other nations, eliminate barriers to sales of U.S. products, and improve the 

competitiveness of U.S. firms. The Budget also 

provides funding to the Export-Import Bank to 

expand U.S. small business use of the Bank’s financial export assistance. In addition, the Budget 

supports expanded action by the Department of 

Agriculture to overcome sanitary and phyto-sanitary public health and related technical barriers 

to trade and to assist overseas market development activities, and provides funds to better protect U.S. intellectual property rights overseas. 

Invest in Science Research and Development. Investment in science and basic research 

is critical to long-term economic growth. That’s 

why the Budget invests $61.6 billion in civilian 

research and development, an increase of $3.7 

billion, a 6.4 percent increase, and an amount 

that continues the commitment to double funding for three key basic research agencies—the 

National Science Foundation, the Department 

of Energy’s Office of Science, and the National Institute of Standards and Technology. This 

funding includes $1.8 billion for research in basic 

energy sciences to discover novel ways to produce, 

store, and use energy to address energy independence and climate change and $300 million for 

the Advanced Research Projects Agency-Energy, 

to accelerate game-changing energy technologies in need of rapid and flexible experimentation 

or engineering. The Budget includes increased 

funding for research to help create the foundation 

for the industries and jobs of the future, such as 

nano-manufacturing, advanced robotics, and new 

tools for the design of biological systems. 

Increase Funding for Biomedical Research. To accelerate progress in biomedical research, the Budget continues to support research 

both on the campuses of the National Institutes 

of Health (NIH) and for approximately 300,000 

scientists and other research personnel at institutions across the country. Investments will focus 

on priority areas including genomics, translational research, science to support health care reform, 

global health, and reinvigorating the biomedical 

research community. The Budget also includes 

$6,036 million to continue to expand research related to cancer, and $143 million to expand research related to Autism Spectrum Disorders. 

Finally, under the President’s Executive Order 

and subsequent NIH Guidelines for Human Stem 

Cell Research, NIH approved 40 responsibly-derived stem cell lines—nearly double the previous 

number of lines available—for path-breaking research. Additionally, NIH will pursue the discovery, development, and pre-clinical testing of novel 

compounds for the prevention and treatment of 

symptoms associated with Alzheimer’s disease.

Reinvigorate Space Science and Exploration. Leaving the boundaries of our planet has 

helped to spur innovation and push the boundaries of scientific knowledge across many fields. 

Recognizing the importance of space science 

and exploration, the Administration is proposing to cancel the National Aeronautics and Space 
22 LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

Administration’s (NASA’s) Constellation program—which is based largely on existing technologies and was over budget, behind schedule, 

and lacking in innovation—and replace it with 

a bold, new approach to human space flight that 

embraces commercial industry, forges international partnerships, and invests in the building 

blocks of a more capable approach to space exploration. This includes: research and development 

to support future cost-effective, heavy-lift rocket 

systems; a vigorous new technology development 

and test program that aims to increase the capabilities and reduce the cost of future exploration 

activities; and the development of precursor robotic exploration missions to scout locations and 

demonstrate technologies to increase the safety 

and capability of future human missions and provide scientific dividends. To support this effort, 

the Budget adds $6 billion to NASA’s budget over 

the next five years. 

Enhance Regional Economic Competitiveness. Competitive, high-performing regional economies are essential to national growth. 

The Budget supports growth strategies based on 

stronger regional clusters of economic activity 

through funding across many agencies. The Budget provides $75 million in regional planning and 

matching grants within the Commerce Department’s Economic Development Administration 

to support the creation of regional innovation 

clusters. The SBA will support enhanced small 

business participation in clusters by awarding 

competitive grants to promote greater coordination of resources. Recognizing that labor markets 

are typically regional, yet the workforce system 

is designed around State and local boundaries, 

the Department of Labor’s Workforce Innovation Fund will support these efforts by facilitating regional collaboration and close linkages with 

employers so that relevant training leads to good 

jobs. 

Foster Job Creation and Economic Growth 

in Rural America. The country as a whole cannot prosper if we do not tap the potential of all 

Americans—including those who call rural America home. That’s why the Budget includes several 

investments to promote economic growth and job 

creation in rural communities. First, to support 

the Rural Innovation Initiative, the Department 

of Agriculture (USDA) plans to set aside funding 

to foster rural revitalization through a competitive grant program. Second, the Budget supports 

local and regional food systems through many 

USDA programs including the Business and Industry guaranteed loan program and the Federal 

State Marketing Improvement Program. Third, 

the Budget funds a variety of USDA renewable 

energy programs including support for bio-refineries to utilize advanced biomass crops, research 

designed to create cellulosic and other advanced 

biofuels, and assistance to help transition fossil 

fuel-dependent electric utilities to renewable energy—all of which can help a clean energy economy take root in rural America. In addition, the 

Administration proposes more than $700 million 

to restore ecosystems and manage public lands, 

which will increase employment in rural areas, 

produce new sources of renewable energy, and develop recreational opportunities, including fishing 

and hunting, for local residents and tourists. Finally, the Budget fully funds the Voluntary Public 

Access and Habitat Incentive Program, which encourages private landowners to voluntarily open 

their land to the public for hunting and fishing.

Aid Working Adults in Caring for Their 

Families. In today’s economy, working Americans struggle to find time and money to provide 

their children and their own parents with the care 

they deserve. That is why the Budget provides 

tax relief of up to $2,100—an increase of $900 relative to current law—for middle-class families to 

pay for the costs of caring for a child or a relative. 

The Budget also provides a $1.6 billion increase 

in child care funding for working families with 

low incomes—not only extending the funding 

provided in the Recovery Act, but also providing 

new funding for new slots. In addition, the Budget includes $103 million for the Administration 

on Aging’s Caregiver Initiative, which will help 

family caregivers better manage their multiple 

responsibilities and help seniors and people with 

disabilities live in the community for as long as 

possible. 
THE BUDGET FOR FISCAL YEAR 2011 23

Help Americans Prepare for a Secure 

Retirement. Too many families have seen their 

IRAs and their 401(k)s lose value during the 

recent downturn, and far too many lack retirement 

savings at all. The Budget includes a series of 

steps to shore up saving including enhancing 

transparency and consumer protections, requiring 

employers who do not offer a retirement plan to 

give employees the option of making deposits 

into retirement accounts, doubling the small 

employer pension plan startup credit for firms 

that establish a retirement plan, expanding the 

Saver’s Credit, and reducing barriers to saving 

for recipients of means-tested programs.

Revitalize Distressed Urban Neighborhoods. The Budget reflects an integrated and 

performance-driven approach to distressed urban 

neighborhoods, where the challenges tied to jobs, 

education, public safety, and other needs intersect 

and compound each other. The Budget includes 

$250 million for the Department of Housing and 

Urban Development’s (HUD’s) Choice Neighborhoods program, which will target neighborhoods 

anchored by distressed public or assisted housing 

with physical and social revitalization grounded 

in promising, measurable, and evidence-based 

strategies. Choice Neighborhoods also will coordinate with the Department of Justice, which is 

requesting $40 million for targeted, innovative 

programs to assist neighborhoods and has a variety of other programs to prevent gang violence 

and assist prisoners re-integrate into the job 

market and community life. The Budget also includes $2.5 billion for health centers to provide 

affordable high-quality primary and preventive 

care to underserved populations, including the 

uninsured. 

Promote Responsible and Affordable 

Homeownership. The President’s Budget 

proposes important reforms to the Federal 

Housing Administration’s (FHA’s) core mortgage 

finance programs, including its widely used 

single-family mortgage insurance product. These 

reforms will protect taxpayers by replenishing 

the FHA’s capital reserves, while continuing to 

promote affordable homeownership and support 

the recovery of the housing market, which is 

central to the broader economic recovery. At the 

same time, these changes will better manage 

credit risk to the Federal taxpayer. In addition, 

the Budget supports increased funds for housing 

counseling. To mitigate the threat of foreclosure 

for responsible homeowners, the Administration 

is continuing to implement the Home Affordable 

Mortgage Program, which will commit up to $50 

billion through the Department of the Treasury 

along with approximately $25 billion through 

the Government-Sponsored Enterprises. These 

funds will offer relief to an estimated 3 to 4 

million at-risk homeowners struggling to make 

their mortgage payments, while preventing 

communities from suffering the spillover effects 

of foreclosures. Treasury is also implementing 

the recently extended and expanded homebuyer 

tax credit, which supports demand for home sales 

in markets nationwide.

Building the Infrastructure for Job 

Creation

For too long, our Nation avoided making the 

necessary investments in the roads, bridges, levees, waterways, communications networks, 

and transit systems needed to keep pace with 

the times. Outdated infrastructure burdens our 

communities in a number of ways: longer commutes, businesses choosing to locate elsewhere 

including overseas, and growth and job creation 

held back. Through the Recovery Act, we made 

the largest investment in our Nation’s infrastructure since President Eisenhower called for the 

creation of the national highway system half a 

century ago. In just 10 months since it became 

law, the Act funded—for example—more than 

12,000 transportation projects, and more than 

500 new or improved waste and water systems in 

rural America. This year, funds from the Act will 

help bring broadband Internet access to remote 

corners of our country, lay the foundation for a 

high-speed rail network, and jump-start innovative transportation projects through competitive 

awards. In the 2011 Budget, the Administration 

will: 
24 LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

Create a National Infrastructure Innovation and Finance Fund. The Budget includes 

$4 billion to create a National Infrastructure Innovation and Finance Fund to invest in projects 

of regional or national significance. This marks 

an important departure from the Federal Government’s traditional way of spending on infrastructure through grants to specific States and 

localities. The Fund will allocate resources based 

on demonstrable merit and analytical measures 

of performance. The Fund will provide planning, 

feasibility, and analytical capacity to help sponsors identify high-value projects from around the 

country and then carefully select the most worthwhile projects.

Expand Access to Broadband. During 

2011, the Department of Commerce and USDA 

will focus on administering the $7.2 billion program to expand broadband deployment, as well 

as programs to improve broadband adoption and 

data collection, which were funded by the Recovery Act. In addition, the Budget expands access 

to broadband services by offering $418 million in 

USDA loans and grants to move rural communities into the modern information economy.

Invest in a Smart, Energy-Efficient, and 

Reliable Electric Grid. The Budget continues 

to support modernization of the Nation’s electric 

grid by investing in the research, development, 

and demonstration of smart-grid technologies 

that will spur the Nation’s transition to a smarter, stronger, more efficient, and reliable electric 

system. The end result will promote energyand cost-saving choices for consumers, increase 

efficiency, and foster the growth of renewable energy sources like wind and solar. In addition, the 

Budget supports the Power Marketing Administrations’ ability to reliably operate, maintain, 

and rehabilitate the Federal hydropower and 

transmission systems.

Support Clean Water Infrastructure Investments. The 2011 Budget requests $3.3 

billion for the Clean Water and Drinking Water 

State Revolving Funds (SRFs). The Federal SRF 

funding provides grants to States for low-interest 

loans to communities through a combination of 

Federal capitalization, State matches, State leveraging, interest, and loan repayments. Since loan 

interest and principal payments are returned to 

the program, the SRFs continue to generate funding for new loans even without continued Federal 

funding. For 2011, the Environmental Protection 

Agency proposes a new approach to helping small 

drinking water systems, as well as reforms to improve the long-term financial, managerial, and 

environmental sustainability of the SRFs. 

Reform Surface Transportation Programs 

and Put the System on a Viable Financing 

Path. Surface transportation programs are at 

a crossroads. The current framework for financing and allocating surface transportation investments is not financially sustainable, nor does it 

effectively allocate resources to meet our critical 

national needs. The Administration recommends 

extending the current authorization through 

March 2011, during which time it will work with 

the Congress to reform surface transportation 

programs and put the system on a viable financing 

path. Careful consideration is needed to design 

a Federal surface transportation program that 

leads to higher-performing investments, increases people’s transportation options, and makes our 

economy more productive. Further, the Federal 

program must generate the best investments to 

reduce congestion and improve safety. To do so, 

the Administration seeks to integrate economic 

analysis and performance measurement in transportation planning so that taxpayer dollars are 

better targeted and spent.

Establish a New Federal Transit Safety 

Program. Unlike other mode of transportation, closed-system rail transit services (generally, metro area subways and light rail systems) 

are not overseen by Federal safety regulators, 

but rather are subject to review by a patchwork 

of State safety organizations. Recent deadly accidents—including tragedies in Washington D.C., 

Boston, and San Francisco—underscore the 

need for common nationwide safety standards 

and for Federal enforcement of these standards. 

The Budget includes $30 million for a new transit safety oversight program within the Federal 

Transit Administration (FTA). This will enable 
THE BUDGET FOR FISCAL YEAR 2011 25

FTA to implement a comprehensive safety oversight strategy, as proposed in legislation. 

Modernize the Air Traffic Control System.

The Budget provides $1.14 billion, more than a 

30-percent increase from 2010, for the Next Generation Air Transportation System, the Federal 

Aviation Administration’s long-term effort to improve the efficiency, safety, and capacity of the 

aviation system. The 2011 Budget will help move 

from a national ground-based radar surveillance 

system to a more accurate satellite-based surveillance system; aid in the development of more 

efficient routes through the airspace; and fund 

improvements in aviation weather information.

Sustain Multi-Year Support for HighSpeed Rail. Building on the historic $8 billion 

down payment provided through the Recovery 

Act, the President’s Budget includes $1 billion for 

high-speed rail, which supports the President’s 

five-year, $5 billion pledge from the 2010 Budget. 

High-speed rail promises to give the traveling 

public a practical alternative to flying or driving, 

particularly where there is congestion in the skies 

and on the roads. With trains efficiently connecting city and business centers, travelers would enjoy a new level of convenience not available in most 

parts of the country today. The Administration 

is dedicated to working with States and project 

sponsors to identify high-speed rail projects that 

will provide the greatest transportation, social, 

and environmental benefits, while maximizing 

the return on taxpayer dollars. 

Invest in America’s Water Resources 

Infrastructure. It is critical that sound 

investments be made in the Nation’s water 

resources infrastructure to assure the safe 

and reliable operation and maintenance of key 

facilities of the Army Corps of Engineers and 

Bureau of Reclamation. The Administration 

will allocate funds to those ongoing commercial 

navigation and flood and storm damage 

reduction projects with the highest economic and 

environmental returns while achieving public 

safety objectives for communities. Resources 

are also focused on the restoration of significant 

ecosystems and initiatives that would allow 

greater conservation of water in the West. The 

Budget also emphasizes a new direction for water 

infrastructure projects by updating the 25-yearold procedures for planning future Federal water 

resources infrastructure projects to incorporate 

modern planning procedures and methods, assure 

adequate consideration of ecosystem values, and 

promote non-structural solutions. In addition, the 

Corps of Engineers is updating its estimates of 

the benefits and costs of its ongoing construction 

projects to help assure that funding decisions are 

based on the most current information available 

on the return to the Nation of these investments. 

The Administration also intends to develop a 

set of water resources reforms for the Corps of 

Engineers for consideration as part of the next 

Water Resource Development Act legislation.

Educating a Workforce for the Jobs of 

the 21st Century

From unlocking the cures of tomorrow to creating clean energy industries, from growing our 

economy and creating jobs to securing our Nation 

in the years to come, there is one constant in addressing these challenges: they all depend on having a highly-educated workforce. More than ever 

before, success in the global economy and among 

the nations of the world is rooted in providing a 

world-class education to all our children. It is a 

fundamental element of the new foundation we 

must lay for our economy. 

The Administration made a significant down 

payment in our schools and schoolchildren 

through the Recovery Act by including the largest 

one-time investment in education in our Nation’s 

history. The Recovery Act saved and created 

hundreds of thousands of education-related jobs 

during a time of acute State budget shortfalls. It 

also included a $4 billion Race to the Top fund, a 

competitive source of education funding and one 

of the largest investments in reforming our Nation’s schools in history. At the same time, the 

Recovery Act made significant investments in 

expanding early childhood programs, addressed 

college affordability by expanding Pell Grants 

and the American Opportunity Tax Credit, 
26 LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

and enhanced job training and referrals for the 

millions of workers coming through the doors of 

the Nation’s one-stop career centers. Building on 

these commitments, the Budget proposes to:

Reform Elementary and Secondary 

School Funding by Setting High 

Standards, Encouraging Innovation, and 

Rewarding Success. The Budget supports the 

Administration’s new vision for the Elementary 

and Secondary Education Act (ESEA). The 

reauthorized law would encourage States to adopt 

higher, clearer standards that set the expectation 

that every student will graduate from high school 

ready for college and a career. The new law would 

support dramatic improvements in the quality 

of assessments to measure complex skills and 

help teachers identify and respond to students’ 

strengths and needs. The reauthorization would 

also recognize and reward schools for helping 

students make important gains, even if they are 

not yet at grade-level, and offer new flexibility 

for successful States and districts to pursue new 

solutions to help all students meet high standards. 

At the same time, the law would require vigorous 

efforts to turn around persistently low-performing 

schools, applying comprehensive strategies that 

put children first. In support of these efforts, the 

Budget provides a $3 billion increase in funding 

for K-12 education programs authorized in the 

ESEA and the Administration will request up to 

$1 billion in additional funding if the Congress 

successfully completes a fundamental overhaul 

of the law. Together, these measures would 

represent the largest funding increase for ESEA 

programs ever requested. 

Expand the Race to the Top and Open the 

Competition to School Districts. The $4 billion Race to the Top, created by the Recovery Act, 

began a competition among States to spur systemic and innovative reform across four areas: 

supporting high academic standards; improving 

teacher effectiveness and distributing effective 

teachers more equitably; using data to improve 

achievement; and turning around low-performing 

schools. Not all States will receive Race to the 

Top grants, but the competition itself has galvanized key stakeholders across the Nation to 

reform State laws and to develop new plans for 

lifting student achievement. The Budget provides 

$1.35 billion to continue the President’s Race to 

the Top challenge and to expand the competition 

from States to school districts that are ready for 

comprehensive reform. 

Increase the Number of Effective Teachers and Principals. Great teachers are the 

key to a high-quality education. Increasing the 

number of great teachers, especially in disadvantaged schools, will require major new efforts to 

help all teachers improve their skills; recognize 

and reward excellence in the classroom; and help 

struggling teachers improve or, if need be, exit 

the classroom. Today, taxpayers invest nearly $3 

billion a year in a teacher quality block grant that 

heavily supports investments with little evidentiary support or impact on increasing learning. 

As part of the overhaul of ESEA, the Administration will require States taking formula funds to 

develop the preconditions for an effective human 

capital system, beginning with strong evaluation 

systems. At the same time, the Administration 

will invest $950 million in a new competitive 

fund for States and districts that supports bold 

approaches to recruiting, developing, retaining, and rewarding more effective teachers and 

principals, particularly in the lowest-performing 

schools. The Administration is also investing 

$405 million to support successful and innovative 

pathways into teaching and school leadership. 

Invest in Supports for Student Success, 

Including Promise Neighborhoods. Students need to be safe and healthy, and they need 

a complete education that extends beyond the 

traditional hours. As part of a $1.8 billion investment in the Supporting Student Success initiative, the Budget funds comprehensive supports 

so that students are mentally and physically 

healthy and ready to learn. The Budget provides 

$210 million for Promise Neighborhoods, modeled after the Harlem Children’s Zone, that aim 

to improve college enrollment rates by combining 

vigorous school reform with strong family supports and effective community services across an 

entire neighborhood. The initiative also reforms 

the 21st Century Community Learning Centers 
THE BUDGET FOR FISCAL YEAR 2011 27

program to focus funding on models that redesign 

and extend the school day, week or year to provide additional time for students to engage in academic activities, additional time for enrichment 

activities, and time for educators to collaborate 

and improve instruction.

Grow High-Performing Charter Schools 

and Other Innovative Public Schools. Effective charter schools have achieved impressive 

results in closing achievement gaps. The Budget 

will invest $490 million to grow these schools and 

other autonomous public schools that achieve results, develop new approaches, and give parents 

more choices. The Budget will support new options for students to transfer to high-performing 

public schools, support successful magnet schools, 

and require States and districts accepting these 

funds to create the conditions for effective schools 

to grow and ineffective schools to be restructured 

or shut down. 

Expand and Reform Early Childhood Education. Quality early education is an investment 

that pays off for years by preparing the youngest 

children for a lifetime of learning. To this end, 

the Administration has provided the funds to 

nearly double the number of children served by 

Early Head Start and expand Head Start. The 

Budget continues the Recovery Act expansions in 

these programs while focusing their new funds in 

2011 on improving program outcomes. And the 

Budget provides a historic $1.6 billion increase in 

child care funding that can support not only an 

expansion in slots, but also an improvement in 

quality, safety, and outcomes. Finally, the Budget 

supports pending legislation that will establish 

a new Early Learning Challenge Fund administered by the Department of Education and 

the Department of Health and Human Services 

(HHS), to help States improve the quality of early 

childhood programs.

Increase Pell Grants and Put Them on 

a Firm Financial Footing. Pell Grants have 

helped millions of Americans afford college, yet in 

recent decades, growth in their value has fallen 

far behind the growth in college costs. The Recovery Act and 2009 appropriations bill increased 

the maximum Pell Grant by more than $600 for 

a total award of $5,350, and the maximum award 

will increase to $5,550 in 2010. The Budget proposes to make that increase permanent and put 

them on a path to grow faster than inflation every 

year. The Budget also addresses a second concern: Pell Grants currently function much like 

an entitlement, yet they are funded through an 

annual appropriations process that can fall behind actual demand for the grants. The Budget 

proposes to make Pell Grant funding mandatory 

so that adequate Pell Grant funding is available 

every year.

Expand Financial Aid for Students and 

Reduce the Burden of Student Loans. The 

Budget supports legislation that has passed the 

House of Representatives and is pending in the 

Senate that would reform student lending to 

eliminate tens of billions of dollars in wasteful 

subsidies to financial institutions, and instead 

provide loans directly to students more efficiently and reliably by hiring private and non-profit 

companies through competitive contracts. This 

measure would then use the savings to make 

historic investments in increasing college access 

and success (as well as in early childhood education). In addition to expanded Pell Grants and 

a simplified student aid system, the legislation 

includes a new American Graduation Initiative 

that will strengthen and support America’s community colleges, focus on college completion, and 

help graduate 5 million more students by 2020. 

Moreover, the Budget proposes an effort to assist 

overburdened student loan borrowers by reducing monthly payments and shortening the repayment period so that these borrowers will pay only 

10 percent of their discretionary income in loan 

repayments and can have their remaining debt 

forgiven after 20 years.

Reform the Job-Training System to Encourage Innovation and Empower Workers.

Our job-training system is critical to giving all 

workers the opportunity to succeed in a changing economy, yet too often workers looking for 

good training cannot find it. As a complement 

to reauthorization of the Workforce Investment 

Act (WIA), the Budget increases total funding for 
28 LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

major funding streams, including a $101 million 

increase targeted to youth. But because reform 

is essential and the current system’s fragmentation must end, the Budget also sets aside $261 

million in the Department of Labor and $60 million in the Department of Education for innovation funds. They will support competitive grants 

for the most promising, research-based strategies, including regional approaches and sectoral 

partnerships for adults and the combination of 

summer or year-round employment with education for youths. The Departments will cooperate 

in the administration of the innovation grants 

as a part of a Workforce Innovation Partnership 

that will create new incentives for States to break 

down silos, streamline service delivery, and eliminate duplication. The Partnership will be supported by new cross-program waivers, which will 

be accompanied by new tools for measuring program performance and sharing information with 

both policymakers and customers. Finally, the 

Budget targets high-growth sectors of the economy and workers often left behind through $85 

million for green job training and $40 million for 

transitional jobs programs.

Restructure Narrow and Constrained 

Education Programs Into Broad and Flexible Competitions that Fund What Works. 

The Department of Education funds dozens of 

programs that narrowly limit what States, districts, and schools can do with funds. Some of 

these programs have little evidence of success, 

while others are demonstrably failing to improve 

student achievement. The President’s Budget 

eliminates six discretionary programs and consolidates 38 K-12 programs into 11 new programs 

that emphasize using competition to allocate 

funds, giving communities more choices around 

activities, and using rigorous evidence to fund 

what works. The Administration will make sure 

that, under these competitions, there is equitable geographic distribution of funds nationwide, 

including to rural communities. Building on the 

Recovery Act, the Administration proposes $500 

million to expand the Investing in Innovation 

Fund, which will expand proven models—and 

fund and evaluate promising ones—for achieving 

student success. Finally, the Budget dedicates 

funds for the rigorous evaluation of education 

programs so that we can scale up what works and 

eliminate what does not. 

Creating the Clean Energy Economy of 

Tomorrow

From the consumer who sees the costs of 

filling his gas tank or heating her home go up, 

to the scientists who track how climate change is 

affecting our planet, we all know that we cannot 

afford to maintain our reliance on oil and other 

fossil fuels to power our economy. Failure to act 

jeopardizes our Nation’s security, our economy, 

and our future. That is why in the Recovery 

Act, the Administration invested more than $90 

billion in clean energy technologies to begin the 

transformation of the economy. Building on this, 

the President worked with foreign leaders at the 

Copenhagen climate change talks in December 

2009, where for the first time in history, all of 

the leaders of the world’s major economies came 

together to accept their responsibility to take 

action to confront the threat of climate change. 

The international negotiations made a strong step 

towards the commitments and the transparency 

necessary to work together to solve this global 

challenge.

As we work to slow climate change internationally, we also must continue our efforts to build a 

clean energy economy here at home. Doing so has 

the potential to create millions of new jobs, which 

cannot be shipped overseas, in the new industries 

of the future. Around the globe, countries and 

companies see the job-creating potential of clean 

energy and are moving aggressively to lead the 

way. Our challenge is to be at the head of that 

pack. If we lead the way in developing clean energy, we will grow our economy, create new jobs, 

and leave a stronger and more secure country to 

our children. To bring about this transformation, 

the Administration will:

Undertake a Comprehensive Approach 

to Transform Our Energy Supply and Slow 

Global Warming. The Administration will 

work to enact and implement a comprehensive 
THE BUDGET FOR FISCAL YEAR 2011 29

market-based policy that will reduce greenhouse 

gas emissions in the range of 17 percent in 2020 

and more than 80 percent by 2050. Businesses will 

have the flexibility to seek out the most profitable 

and least costly ways of achieving greenhouse gas 

emission reductions, from making investments 

in energy efficiency and low-carbon or zerocarbon fuels to offsetting their emissions through 

agricultural activities that remove carbon dioxide from the atmosphere, and developing export 

markets for American clean energy technologies 

through investments in emission offset activities abroad. The policy will address the needs of 

vulnerable families, communities, and businesses 

to facilitate the transition to a clean energy economy. To prepare for the reduction in emissions, 

the Government will invest in climate registries 

to account for greenhouse gas emissions; implement regulations that improve energy efficiency, 

lower energy bills, and reduce emissions; plan 

for the effects of a changing climate in the stewardship of our natural resources; and undertake 

the research and development of next-generation 

energy technologies that will promote our energy 

and climate security.

Develop the Market for Clean Energy 

Technologies. The Budget substantially expands support for construction of new nuclear 

power plants by increasing the Department of 

Energy loan guarantees authority for such projects by $36 billion, to a total of $54.5 billion, and 

provides credit subsidy funding of $500 million 

to support $3 to $5 billion of loan guarantees for 

energy efficiency and renewable energy projects. 

The loan guarantee program will encourage new 

nuclear facilities and a range of renewable energy 

projects that reduce greenhouse gases and pollutants, while simultaneously creating jobs and 

contributing to long-term economic growth. The 

Budget also supports research, development, and 

demonstration activities to accelerate deployment 

and commercialization of nuclear power, carbon 

capture and storage, renewable energy, and energy efficiency technologies. To reduce greenhouse 

gas emissions in developing countries, the United 

States will help them adopt clean energy technologies and low-carbon development strategies.

Spur Investment in Domestic, Clean 

Energy Manufacturing. The Section 48(c) 

Advanced Energy Manufacturing Tax Credit 

was created by the Recovery Act to spur private 

investment in facilities that manufacture 

advanced energy technologies in fields like 

renewable energy, energy storage, advanced 

energy transmission, energy conservation, and 

greenhouse gas emissions abatement. The 

program provides a 30 percent tax credit to 

qualified investments in new, expanded, or 

re-equipped advanced energy manufacturing 

projects, allocating a total of $2.3 billion to clean 

energy manufacturers. The Budget expands this 

successful program, providing an additional $5 

billion to provide this tax credit to many more 

advanced energy manufacturing projects. This 

will help spur private investment in clean energy 

manufacturing and create jobs, helping to lay the 

groundwork for American leadership in the new 

clean energy economy.

Advance the Development of Carbon Capture and Storage Technologies. The Budget 

supports a balanced research and development 

portfolio of carbon capture and storage technologies. The $545 million in funding provided in 

the 2011 Budget for fossil energy climate change 

technology will help reduce greenhouse gas emissions by focusing resources to develop carbon 

capture technologies with broad applications to 

advanced power systems, existing power plants, 

and industrial sources.

Eliminate Funding for Inefficient Fossil 

Fuel Subsidies. As we work to create a clean 

energy economy, it is counterproductive to spend 

taxpayer dollars on incentives that run counter 

to this national priority. To further this goal, the 

Budget eliminates tax preferences and funding 

for programs that provide inefficient fossil fuel 

subsidies that impede investment in clean energy 

sources and undermine efforts to deal with the 

threat of climate change. We are eliminating 12 

tax breaks for oil, gas, and coal companies, closing loopholes to raise nearly $39 billion over the 

next decade. 
30 LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

Boost Development of Clean Energy on 

Federal and Tribal Land. Already, public 

lands and offshore resources managed by the 

Federal Government constitute about one-third of 

the domestic supply of fossil fuel resources. The 

Administration will promote the development 

of clean, renewable energy on Federal lands. To 

that end, the Budget adds $14 million—on top of 

$50 million in 2010 increases—to build agency 

capacity to review and permit renewable energy 

projects on Federal lands. This includes conducting the environmental evaluations and technical 

studies needed to spur development of renewable 

energy projects, assessing available alternative 

resources, and mitigating the impacts of development. In addition, the Administration is assisting Indian Tribes in overcoming the unique 

hurdles in developing renewable resources on 

Native American lands. Up to 15 percent of our 

potential wind energy resources are on Native 

American land, and the potential for solar energy 

is even higher.

Invest in the Understanding of Climate 

Change and Its Impacts. While climate policies are developed and investments in clean 

energy technologies are made, investments to understand the impacts of climate change are also 

crucial. Coastal areas, floodplains, and water systems will all be affected by the changing climate, 

and it is vital that we understand the potential 

effects of climate change so businesses, farmers, ranchers, and the entire Nation can prepare 

for them now. That is why the Budget invests 

$2.6 billion to deepen our understanding of climate change and its impact. The United States 

also will take prompt, substantial action to help 

the least developed and most vulnerable countries adapt and build resilience to the impacts of 

climate change.

Providing More Health Security and 

Bringing Down Its Cost

One of the biggest drains on the future growth 

of our economy is skyrocketing health care costs. 

For families who have health insurance, years of 

premiums that far and away out-paced income 

gains have taken their toll on family budgets. 

For businesses, rising health care costs hurt their 

competitiveness. For the Federal Government, 

there is no greater threat to our long-term fiscal future than the current rate of health care 

cost growth. That is why the President laid out 

a strategy in the 2010 Budget to reform health 

care in a fiscally responsible way and has worked 

closely with the Congress to bring about this long 

overdue change. At this writing, we are closer to 

health insurance reform than ever before. The 

bill before Congress will empower Americans 

who are insured with cost and quality information about doctors and hospitals and give them 

the stability and security they deserve by ending many discriminatory and capricious insurance industry practices; expand coverage to more 

than 30 million Americans who lack insurance, 

improving health and in some cases saving lives; 

cut waste and reform how medicine is practiced 

so that we get better quality care; and do this all 

without adding a dime to the deficit and while 

reducing the rate of health care cost growth over 

time. To lay the groundwork for these reforms 

and to improve the health of the Nation, the 

Budget will:

Build on Health Information Technology (IT) Adoption Momentum. Digitizing the 

health care sector is a critical part of creating 

a health care system that is more effective and 

efficient. The Budget includes $110 million for 

continuing efforts to strengthen health IT policy, 

coordination, and research activities. Combined 

with the Recovery Act’s Federal grant and incentive programs designed to assist providers with 

adoption and meaningful use of electronic health 

records, these efforts will improve the quality of 

health care while protecting privacy and security 

of personal health information. 

Increase Investment in Patient-Centered 

Health Research. To get the best care, doctors and patients need to know what works and 

what doesn’t. The Budget includes $286 million 

for research that compares the effectiveness of 

different medical options, building on the expansion of this research begun under the Recovery 

Act. Disseminating the results of this research is 
THE BUDGET FOR FISCAL YEAR 2011 31

expected to lead to higher quality, evidence-based 

medicine, arming patients and physicians with 

the best available information to allow them to 

choose the medical option that will work the best 

for them. 

Bolster Prevention and Wellness Activities. The Budget bolsters core prevention activities by expanding community health activities, 

strengthening the public health workforce, and 

enhancing surveillance and health statistics to 

improve detection and monitoring of chronic disease and health outcomes. The Budget funds a 

new effort in as many as 10 of the largest cities in 

the United States to reduce the rates of morbidity and disability due to chronic disease through 

effective policy and environmental change strategies. The Budget also supports a new health prevention workforce to improve capacity of State 

and local health departments, as well as investments to improve the health and wellness of the 

Federal workforce. 

Expand Affordable High-Quality Primary 

and Preventive Care. The Budget includes 

$2.5 billion for health centers to provide affordable high-quality primary and preventive care 

to underserved populations, including the uninsured. This will allow health centers to continue 

to provide care to the 2 million patients added 

through Recovery Act funding and support approximately 25 new health center sites. The 

Budget also includes funding to expand the integration of behavioral health with primary health 

care, enhancing the availability and quality of 

addiction care.

Combat Childhood Obesity. Nearly onethird of children in America are now overweight 

or obese, and our Nation now spends $150 billion 

a year treating obesity-related diseases, or nearly 

10 percent of all medical spending. To improve 

children’s access to healthy meals and help to 

reduce childhood obesity rates, the Budget proposes investing an additional $1 billion per year 

as part of the reauthorization of the school meals 

program and other child nutrition programs. 

The Administration also will take steps to bring 

grocery stores and other healthy food retailers to 

“food desert” communities.

Fund Innovative Efforts to Improve Services for Seniors and People with Disabilities. The Budget includes new Medicare and 

Medicaid demonstration projects that evaluate 

reforms to provide higher quality care at lower 

costs, improve beneficiary education and understanding of benefits offered, and better align provider payments with costs and outcomes. Special 

emphasis will be placed on demonstrations that 

improve care coordination for beneficiaries with 

chronic conditions, that better integrate Medicare 

and Medicaid benefits, and that provide higher 

value for dollars spent. The Budget will also support the Year of Community Living Initiative to 

promote collaboration between HHS and HUD 

to expand access to housing and community supports to enable people with disabilities to live 

in the community, as opposed to in institutional 

settings.

Fight Waste and Abuse in Medicare, Medicaid, and the Children’s Health Insurance 

Program (CHIP). Reducing fraud, waste, and 

abuse is an important part of restraining spending growth and providing quality service delivery 

to beneficiaries. In November 2009, the President 

signed an Executive Order to reduce improper 

payments by boosting transparency, holding agencies accountable, and creating incentives for compliance. This Budget puts forward a robust set 

of proposals to strengthen Medicare, Medicaid, 

and CHIP program integrity efforts, including 

proposals aimed at preventing fraud and abuse 

before they occur, detecting it as early as possible 

when it does occur, and vigorously enforcing all 

penalties and recourses available when fraud is 

identified. It proposes $250 million in additional 

resources that, among other things, will help expand the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, a joint 

effort by the Departments of Health and Human 

Services and Justice. As a result, the Administration will be better able to minimize inappropriate 

payments, close loopholes, and provide greater 

value for beneficiaries and taxpayers.
32 LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

Improve the Access to, and Quality of, 

Health Care in Rural Areas. The Budget includes $79 million for an initiative to strengthen regional and local partnerships among rural 

health care providers, increase the number of 

health care providers in rural areas, and improve 

the performance and financial stability of rural 

hospitals.

Increase the Number of Primary Health 

Care Providers. The Budget invests $169 million in the National Health Service Corps (NHSC) 

to place providers in medically underserved areas 

to improve access to needed health care services. 

Under the NHSC, primary health professionals—

such as physicians, nurse practitioners, and dentists—agree to serve in a medically underserved 

community in exchange for having a portion of 

their student loans paid off. In 2011, the requested increase will add nearly 400 NHSC clinicians 

to the more than 8,100 that will be providing essential primary and preventive care services in 

health care facilities across the country.

Expand and Focus HIV/AIDS Treatment, 

Care, and Prevention Activities. The Budget 

expands access to HIV/AIDS prevention and treatment activities consistent with the President’s 

pledge to develop a National HIV/AIDS Strategy that will focus on reducing HIV incidence, 

increasing access to care and optimizing health 

outcomes, and reducing HIV-related health disparities. The Budget focuses HIV testing among 

high-risk groups, and increases resources for the 

Ryan White program to support the care and 

treatment needs for persons living with HIV/

AIDS who are unable to afford health care and 

related support services. The Budget aims to 

reduce HIV-related health disparities by expanding HIV/AIDS medical services within populations disproportionately affected by the epidemic. 

The Budget also enhances funding for collaboration and integration activities to improve overall health outcomes for those with HIV/AIDS 

and co-infections with tuberculosis, hepatitis, or 

sexually transmitted diseases.

Continue Efforts to Increase Access to 

Health Care for American Indians and 

Alaska Natives (AI/ANs). The Budget includes 

$4.4 billion for the Indian Health Service (IHS) to 

expand investments initiated in 2010. Increases 

for IHS will strengthen existing Federal, tribal, 

and urban programs that serve 1.9 million AI/

ANs at approximately 600 facilities nationwide, 

and will expand access to Contract Health Services to cover health care services provided outside of the Indian health system when services 

are not available at IHS-funded facilities. The 

Budget will also fund staff and operating costs 

at new and expanded facilities to increase access 

to health care services and enhance the Indian 

health system. The efforts supported in the Budget to expand health services in Indian communities also include an analysis of how IHS can 

improve distribution of resources throughout the 

Indian health system.

Keeping America Safe and Maintaining 

Our Global Leadership 

Just as a strong economy bolsters our standing 

in the world and enhances our national security, 

strong global leadership helps protect the American people while allowing the United States to 

thrive in an interdependent, global economy. The 

economic and financial crises of the past year 

demonstrated how market problems in one nation can affect businesses the world over and how 

inextricably linked the world’s economies are. 

That’s why we needed other major economies to 

join with the United States in taking action to 

stimulate economic demand. And that’s why the 

President worked with G-20 nations to agree to 

continue their cooperation as the global economy 

recovers in order to reduce the likelihood of a future crisis, and to build a “Framework for Strong, 

Sustainable and Balanced Growth.” 

Over the past year, the President has worked 

to repair our alliances and restore America’s 

standing in the world. His effort has been 

driven by the fact that we face a range of global 

challenges that demand global action—from 

disrupting, dismantling, and defeating al Qaeda 
THE BUDGET FOR FISCAL YEAR 2011 33

to stopping the spread of nuclear weapons and 

strengthening global health. In the last year, 

the President has taken a number of steps to 

meet these challenges while restoring American 

leadership. He has built new partnerships, and 

used all elements of American power to increase 

the pressure on al Qaeda worldwide. He laid out 

a plan to responsibly end the war in Iraq. He 

put forward a new strategy—with additional 

resources—to succeed in Afghanistan, and rallied 

NATO allies and partners to join us in committing 

additional resources. He signed executive orders 

that required the closure of the detention facilities 

at Guantanamo Bay, established a special task 

force to review detainee policy, and closed all 

CIA detention facilities as well as required all 

interrogations to follow the procedures of the 

Army Field Manual. And the President put 

forward a global agenda to stop the spread of 

nuclear weapons, reduce nuclear stockpiles, 

and to secure all loose nuclear materials from 

terrorists within four years.

Building on these efforts, the Budget invests 

in all elements of our national power: diplomacy, 

economic development and other foreign assistance, our Nation’s armed forces, and intelligence. 

In addition, recognizing the extraordinary commitment and sacrifice of our men and women in 

uniform, the Administration continues its efforts 

to support servicemembers and their families 

and to provide our veterans with the support 

and resources that they deserve. Specifically, the

Administration will:

Support Missions in Afghanistan, Pakistan, and Iraq. In the coming months, 30,000 

additional troops will deploy to Afghanistan while 

U.S. combat forces continue drawing down in Iraq, 

consistent with the U.S. commitment for all U.S. 

troops to withdraw from Iraq by the end of 2011. 

As U.S. forces leave Iraq, the Administration will 

fund assistance to the Iraqi government and fund 

security and logistic support for U.S. civilians deployed around the country. To address the costs of 

increasing military and intelligence operations in 

Afghanistan and Pakistan while drawing down in 

Iraq, the Administration is requesting $33.0 billion for the Department of Defense (DOD) in 2010 

supplemental funding on top of the $129.6 billion 

already provided, and a total of $159.3 billion for 

DOD’s 2011 overseas contingency operations activities. The Budget also requests $4.5 billion in 

2010 supplemental funding and $11.6 billion in 

2011 for Department of State activities in these 

countries. In particular, funding for Afghanistan 

and Pakistan increases assistance and civilian 

personnel, and provides additional resources for 

governance, reconstruction, and other development activities to counter extremists’ influence. 

The Budget also increases security assistance for 

Pakistan and for the Afghan Security Forces. In 

an effort to be as transparent as possible about 

future costs, the Budget includes placeholder estimates of $50 billion per year for 2012 and beyond. These estimates do not reflect any policy 

decisions about specific military or intelligence 

operations, but are only intended to indicate that 

some as yet unknown costs are anticipated.

Strengthen Homeland Security. As the 

failed attack on Christmas Day 2009 reminded 

us, al Qaeda and like-minded terrorists still 

seek to harm the American people. That is why 

the Budget continues important investments 

in our homeland defenses that are targeted to 

meet priority needs. The Budget, for example, 

increases funding for the Transportation Security 

Administration by 9 percent: to fund checkpoint 

and baggage screening equipment that will 

replace magnetometers with up to 1,000 new 

Advanced Imaging Technology screening systems 

for passengers; more accurate and efficient inline baggage screening; additional international 

Federal Air Marshals; and more than 2,000 

Transportation Security Officers to operate new 

screening equipment, employ enhanced screening 

techniques, and handle canine teams. The 

Administration also is requesting funds for 300 

new Customs and Border Protection officers for 

passenger and cargo screening at ports of entry, 

additional new intelligence officers, and expanded 

pre-screening operations at foreign ports. Finally, 

the Budget will strengthen the early detection and 

reporting of terrorists and other threats and will 

continue the expansion of the Administration’s 

efforts to target and remove criminal aliens.
34 LAYING A NEW FOUNDATION FOR ECONOMIC GROWTH

Stand by Our Nation’s Troops and Their 

Families. The strength of our troops relies on 

the stability of the families that support them, 

and the Budget supports these military families 

as our servicemembers answer our country’s call 

to service. First, the Budget includes funding 

for a 1.4 percent basic pay raise that will keep 

military pay increases in line with those in the 

private sector. Second, the Budget also includes 

an average housing allowance increase of 4.2 percent, as well as a variety of monthly special skillbased payments, enlistment and reenlistment 

bonuses, and other benefits. Third, the Budget 

invests in Coast Guard-owned family housing 

to help alleviate housing shortages. Fourth, the 

Administration increases funding for family support programs by over 3 percent above the 2010 

enacted level. This includes $1.3 billion (an increase of $87 million over the 2010 enacted level) 

to expand availability for affordable, high-quality 

child care services; $1.9 billion ($37 million over 

the 2010 enacted level) for expanded counseling 

and assistance services to help families meet the 

challenges brought on by repeated deployments 

and family separations; and $84 million (an increase of $12 million over the 2010 enacted level) 

for enhanced career and educational opportunities for military spouses through tuition assistance and Federal internship programs.

Increase Funding for the Department of 

Defense. Giving our military the material and 

support they need to accomplish their missions 

is the least we can do, given the sacrifices they 

make. The Administration requests $548.9 

billion, an increase of $18.2 billion, or 3.4 percent, 

over the 2010 enacted level of $530.8 billion. This 

will provide our troops with the most effective 

and modern equipment possible and the support 

they need.

Prevent the Proliferation of Nuclear 

Weapons. Following on the vision the President 

outlined this past year, the Budget funds significant steps that will help stop the spread of 

nuclear weapons and seek the goal of a world 

without them. The Administration requests $2.7 

billion—a 26-percent increase over the 2010 enacted level—for the Department of Energy’s Defense Nuclear Nonproliferation program. Robust 

funding is also requested for nonproliferation 

efforts across the Government, and especially 

in the Intelligence Community and the Departments of Defense, State, Homeland Security, and 

Justice. These agencies will lead international 

efforts to secure all vulnerable nuclear material around the world in four years; deter and 

interdict the trafficking of nuclear material; and 

strengthen international nonproliferation treaties, regulatory controls, and safeguards. As the 

United States reduces the role of nuclear weapons in the national security strategy, this Budget 

fully funds efforts to maintain a safe, secure, and 

effective arsenal.

Care for Wounded, Ill, and Injured 

Servicemembers. Last year, DOD added 18 

more Warrior-in-Transition Complexes at posts 

around the world as part of its efforts to care for 

the health of the men and women who serve. The 

Budget sustains ongoing efforts to provide highquality medical care to servicemembers, their 

families, and retirees. This includes support for 

wounded warrior transition units and centers of 

excellence in vision, hearing, traumatic brain injury, and other areas to continuously improve the 

care provided to wounded, ill, and injured servicemembers.

Increase Funding for the President’s 

Global Health Initiative. The Administration 

will build on its commitment to save millions of 

lives while strengthening the public health infrastructure that can help disease from crossing borders—including our own. The Budget includes 

increased funding to combat the HIV/AIDS crisis 

by focusing on increasing treatment and expanding access to prevention; ramping up maternal 

and child health programming to reduce mortality 

of mothers and children under five and decrease 

the prevalence of malnutrition; expanding investments in family planning activities, malaria, tuberculosis, and neglected tropical diseases; and 

strengthening local health systems to enhance 

capacity and long-run sustainability. Alongside 

our multilateral partners, the United States will 

continue to provide global leadership to fulfill our 

shared responsibility and our common promise to 
THE BUDGET FOR FISCAL YEAR 2011 35

improve the health of the world’s poorest populations. 

Fight Global Hunger and Expand Food 

Security Efforts. The Budget increases funding 

for agricultural development as part of a multiyear plan to lift a significant number of people 

out of poverty and reduce malnutrition for millions of children under five years old by 2015. The 

Budget provides assistance to countries that commit to address their internal food security needs 

and provides a significant contribution to a new 

multi-donor facility administered by the World 

Bank. The Budget also maintains strong support 

for food aid and other humanitarian assistance. 

Increase the Number of Peace Corps Volunteers. The Administration funds the second 

year of the President’s initiative to significantly 

increase the number of Peace Corps volunteers, 

and puts the Peace Corps on track to grow by 50 

percent so it reaches 11,000 volunteers by 2016. 

Continue Advance Appropriations for Department of Veterans Affairs (VA) Medical 

Care. The 2011 Budget requests $50.6 billion in 

advance appropriations for the VA medical care 

program so that care for the Nation’s veterans 

is not hindered by budget delays. This funding 

will enable the Department to have timely and 

predictable funding from year to year, ultimately 

making it easier for veterans to rely on accessible 

VA care.

Enroll More than 500,000 Previously Ineligible Veterans into VA Health Care by 

2013. Last year, for the first time since January 

2003, non-disabled veterans with moderate income were made eligible for VA health care. The 

President’s Budget allows for the continued enrollment of more than 500,000 moderate-income 

veterans into the VA health care system by 2013 

while maintaining high-quality and timely care 

for the lower-income and disabled veterans who 

also rely on VA.

Boost Compensation to Military Disability Retirees. For the first time, highly-disabled 

veterans who are medically retired from service will be eligible for concurrent receipt of disability benefits from the VA in addition to DOD 

retirement benefits. Previously, these benefits 

were offset. All medically retired servicemembers will be eligible for concurrent receipt of VA 

and DOD benefits by 2015. 

Respond to the Unique Needs of Today’s 

Veterans. Today’s veterans have different needs 

due to their experiences in service, the composition of the armed forces, and the unique challenges that many face. Recognizing that, the Budget 

strengthens VA’s ability to provide veterans the 

best possible care for Post-Traumatic Stress, 

Traumatic Brain Injury, and other mental health 

conditions by investing $5.2 billion in specialized 

care, and increases collaboration between joint 

DOD and VA programs that target psychological 

health. To combat homelessness among veterans, 

the Budget expands collaborative partnerships 

with local governments, non-profit organizations, 

and the Departments of Housing and Urban Development, Justice, and Labor. And responding to 

the growing number of women veterans, the Budget provides funding for their unique needs, from 

an appropriate environment of care to specialized 

medical and counseling services. 

Improve Quality of Health Care Through 

Electronic Records for Our Troops and 

Veterans. Too often, important patient information is unavailable to VA health care providers, 

yet that information was acquired by doctors and 

hospitals that may have treated the veteran while 

still in uniform. That is why the VA and DOD are 

jointly implementing the Virtual Lifetime Electronic Record, which will enable VA to maintain 

a complete health record for each veteran and 

to deliver care and benefits to veterans with increased efficiency and improved accuracy. The 

President’s Budget also invests over $200 million in automated processing to directly improve 

the accuracy and timeliness of veterans benefits, 

particularly disability compensation and the new 

Post-9/11 GI Bill benefit. 

37

Laying a new foundation for economic growth 

and prosperity for working families will take a 

change in policies and programs to unleash the 

creativity and hard work of the American people. 

But to prevent our country from backsliding into 

the irresponsibility of the past, we need to change 

how Washington works. We have seen the consequences of fiscal recklessness, of tolerance for 

programs that no longer work or are outdated, 

and of a government that is most open to those 

with access and influence. The deficits, wasted 

resources, and special treatment squandered 

funds that could have been used to help Americans gain or retain a foothold in the middle class 

and enjoy what every family wants: a good job, a 

roof over their heads, excellent schools for their 

children, affordable and high-quality health 

care, and a secure retirement.

Over the past year, the Administration has 

begun the hard work of changing Washington. 

On his first full day in office, the President issued an Executive Order that: prohibits executive branch employees from accepting gifts from 

lobbyists; closes the revolving door between Government and the private sector that had given 

the latter undue influence; requires that Government hiring be based on competence and qualifications and not political connections; and orders 

every one of his appointees to sign a pledge abiding by these tough new rules. As the Administration undertook its efforts to rescue the economy, 

it issued restrictions on lobbying for financial 

stabilization and American Recovery and Reinvestment Act (Recovery Act) funds. In addition, 

the President also banned lobbyists from serving on agency advisory boards and commissions, 

bodies which had become dominated by special 

interests.

Believing that sunlight is the best disinfectant, the Administration opened up the doors 

of Government to the scrutiny of the American 

people. The President signed an Executive Order expanding public access to presidential records, decided voluntarily to disclose the names 

of visitors to the White House, and used new 

media technologies—from video feeds at previously closed-door meetings to web chats with 

high-ranking officials—to let the American 

people monitor the Government at work and 

interact with its leaders. In implementing the 

Recovery Act, the Administration continues to 

insist on an unprecedented level of transparency 

so that Americans can see where Recovery dollars are going as they are spent and the effect 

they are having. In addition, the Administration 

launched a comprehensive Open Government 

Initiative that is breaking down long-standing 

barriers between the American people and their 

Government. This drive to a more open government is speeding information to citizens, saving 

taxpayers’ dollars, and erasing frustrating red 

tape.

While the economic crisis forced the President 

to add temporarily to an already record-setting 

deficit, he laid out a commitment to cut in half 

the deficit he inherited upon taking office. Moreover, he did so while being open and honest about 

our fiscal situation. The Administration’s first 

Budget eliminated previous budget gimmicks 

that would have made the 10-year deficit number $2.6 trillion smaller. Instead, the President 

insisted on presenting an honest budget to the 

American people. Thus, the 2010 Budget—for 

example—accounted for the costs of wars in Iraq 

and Afghanistan and provided a 10-year look 

into the future rather than a five-year one and 

RESTORING RESPONSIBILITY
38 RESTORING RESPONSIBILITY

acknowledged the full costs associated with preventing the Alternative Minimum Tax from taxing more middle-class families. This same desire 

to evaluate Government performance accurately 

also motivated the Administration’s line-by-line 

review of the Federal budget for programs that 

were ineffective, duplicative, or obsolete. Working with the military leadership and Secretary of 

Defense Gates, the President identified billions of 

dollars in defense savings for this year, canceling 

the new presidential helicopter and additional 

F-22 fighter jets. 

The Administration also undertook a comprehensive effort to reform Government contracting—ending unjustified sole-source and 

cost-reimbursement contracts and pursuing other 

steps that will save $40 billion a year by 2011—

and the President issued an Executive Order 

cracking down on the $100 billion in improper 

payments that go out from the Government. 

The President also made a major change in 

the way Washington has done business in recent 

years by demanding that all entitlement and tax 

legislation be fully paid for (with the exception of 

temporary measures to address the economic crisis). He put this into practice, for instance, by insisting on fiscally-responsible health reform that 

not only did not add a dime to our deficits, but also 

reduced the rate of health care cost growth—the 

main driver of our long-term fiscal future. Finally, the President has championed Pay-As-You-Go 

legislation, which would require the Congress to 

fully offset the costs of any entitlement increases 

or tax cuts by finding savings elsewhere—helping 

to make this change in practice the law of the 

land.

Taken together, these steps to streamline what 

works and eliminate what doesn’t, to open government to the American people, and to end special interest access are critical to instilling a new 

sense of responsibility for taxpayer dollars, rebuilding the connection between Americans and 

their Government, and putting the Nation back 

on a fiscally responsible path. 

Restoring Fiscal Discipline

When the President took office he faced a 

deficit of $1.3 trillion for that first fiscal year, a 

far cry from the budget surpluses predicted at 

the start of the previous administration. Since 

the 2010 Budget was released in February of 

2009, unfavorable economic conditions and 

technical re-estimates have worsened the 

deficit outlook by $2 trillion through 2019—the 

equivalent of 1 percent of GDP per year—with 

a deterioration of about $200 billion in 2015 

alone. 

Looking out over the next decade, we are $12 

trillion deeper in debt than we were in 2001 

because of three specific developments. The national debt is $7.5 trillion larger by the end of this 

decade because of the failure to pay for two large 

tax cuts, primarily for the wealthiest Americans, 

and a new entitlement program. An additional 

$3 trillion in debt is the result of inheriting the 

worst recession since the Great Depression. Our 

response to this recession, the Recovery Act, which 

has been critical to restoring economic growth, 

added an additional $1 trillion to the debt—only 

10 percent of the total. 

Now, as we turn the corner from rescuing the 

economy to rebuilding it, it’s time to once again 

take responsibility for our fiscal future. While it’s 

essential that we do not stifle the momentum of 

our recovery from the current recession, we also 

cannot adequately grow the economy and spur 

job creation in the long term if we allow these 

deficits to persist. That is why, as the economy 

recovers, the Administration will take the steps 

necessary to restore discipline to our Nation’s finances to put our country on firm fiscal footing. 

The Administration will:

Freeze Non-Security Discretionary Spending for the Next Three Years. Over the past 

year, an extraordinary surge in tax cuts and 

Federal spending helped stimulate macroeconomic demand and bring the economy back from 

the brink of a second Great Depression. Expanding the short-term deficit during a moment of 

economic crisis is widely recognized as necessary 
THE BUDGET FOR FISCAL YEAR 2011 39

by economists from across the ideological spectrum. Nonetheless, the ramifications of the large 

deficits we inherited and the response that was 

required to stop the economic freefall has repercussions both in the near term and in years to come 

in the form of higher debt and interest payments. 

As the economy recovers, we need to rebalance our 

spending priorities. That is why the President 

is proposing a three-year freeze in non-security 

discretionary funding in this year’s Budget. 

Establish a Bipartisan Fiscal Commission. To help put our Nation on a sustainable 

fiscal path, the Administration will work to create a fiscal commission charged with identifying policies to improve the fiscal situation in the 

medium term and to achieve fiscal sustainability 

over the long run. Specifically, the Commission 

is charged with balancing the budget excluding 

interest payments on the debt by 2015. The result is projected to stabilize the debt-to-GDP 

ratio at an acceptable level once the economy 

recovers. The magnitude and timing of the policy measures necessary to achieve this goal are 

subject to considerable uncertainty and will depend on the evolution of the economy. In addition, the Commission will examine policies to 

meaningfully improve the long-run fiscal outlook, 

including changes to address the growth of entitlement spending and the gap between the projected revenues and expenditures of the Federal 

Government.

Require the Financial Services Industry 

to Pay Back Taxpayers. The assistance given 

the financial services industry to weather the 

crisis of the past year represented an extraordinary step that no one wanted to take, but that 

was necessary to prevent deeper pain to the economy. Yet the largest Wall Street firms have been 

both the source of extraordinary costs throughout 

the economy due to their excessive risk-taking, 

and the beneficiaries of the extraordinary measures taken to prevent a deeper financial crisis. 

While the expected cost of the TARP program has 

fallen by $224 billion since the 2010 Mid-Session 

Review to about $117 billion, shared responsibility requires that the largest financial firms pay 

back the taxpayer as a result of the extraordinary 

action taken. Congress recognized that when 

it wrote the legislation authorizing TARP by 

requiring the President to propose a way for the 

financial sector to pay back taxpayers so that not 

one penny of TARP-related debt is passed on 

to the next generation. The Administration is 

therefore calling for a Financial Crisis Responsibility Fee on the largest Wall Street and financial 

firms that will last at least 10 years, but longer 

if necessary, to compensate taxpayers fully for 

the extraordinary support they provided. This 

fee would be limited to financial firms with over 

$50 billion in assets. As it would be based on an 

institution’s size and exposure to debt, it would 

also further the Administration’s financial reform 

goals by providing a check against the risky 

behavior that contributed to this crisis. 

Close the Carried Interest Loophole for 

Wealthy Investment Managers. The Administration supports reforming our tax code to ensure 

that the income earned by investment managers 

is treated the same way as income earned by middle-class families. Currently, a loophole in our tax 

system allows some investment managers to cut 

their tax bills by more than half by treating their 

earned income as capital gains—which is taxed at 

a 15 percent rate, far less than the marginal tax 

rate that would otherwise apply. By closing this 

loophole, we will recognize the “carried interest” 

earned by these investment managers for what it 

is—ordinary income that should be taxed at ordinary income tax rates. This measure would raise 

$24 billion over the next 10 years.

Allow the Bush Tax Cuts for Households 

Earning More Than $250,000 to Expire. In 

the last Administration, those at the very top enjoyed large tax breaks and income gains while 

almost everyone else struggled and real income 

for the middle class declined. Our Nation cannot 

afford to continue these tax cuts, which is why 

the President supports allowing those tax cuts 

that affect families earning more than $250,000 a 

year to expire and committing these resources to 

reducing the deficit instead. This step will have 

no effect on the 98 percent of all households who 

make less than $250,000.
40 RESTORING RESPONSIBILITY

Reduce the Itemized Deduction Write-off 

for Families with Incomes over $250,000.

Currently, if a middle-class family donates a dollar to its favorite charity or spends a dollar on 

mortgage interest, it gets a 15-cent tax deduction, 

but a millionaire who does the same enjoys a deduction that is more than twice as generous. By 

reducing this disparity and returning the highincome deduction to the same rates that were in 

place at the end of the Reagan Administration, 

we will raise $291 billion over the next decade. 

Reform the Taxation of International 

Income and Eliminate Other Corporate 

Loopholes. The American corporate tax code is 

riddled with inefficiencies and loopholes, including the fact that it allows companies to indefinitely defer the payment of U.S. taxes on foreign 

income while immediately benefiting from the 

tax deductions associated with these activities. 

It also allows many companies to take advantage 

of transfer pricing to shift income earned in the 

United States to lower-tax countries. The Budget 

will reform and end these practices.

Eliminate Funding for Inefficient Fossil 

Fuel Subsidies. As we work to create a clean 

energy economy, it is counterproductive to spend 

taxpayer dollars on incentives that run counter 

to this national priority. To further this goal and 

reduce the deficit, the Budget eliminates tax preferences and funding for programs that provide 

inefficient fossil fuel subsidies that impede investment in clean energy sources and undermine 

efforts to deal with the threat of climate change. 

We are eliminating 12 tax breaks for oil, gas, and 

coal companies, closing loopholes to raise nearly 

$39 billion over the next decade. 

Recommit to Cutting the Deficit in Half 

by the End of the President’s First Term.

Even though he entered office facing an historic 

economic and financial crisis, the President committed his Administration to cutting the deficit 

he inherited upon taking office in half by the end 

of his first term. Since then, it has become clear 

that the recession was worse than anyone thought 

at the beginning of 2009, costing the Government even more in assistance and lost revenue. 

Nonetheless, the President remains committed 

to cutting in half by the end of his first term the 

deficit he inherited on January 20, 2009.

Streamlining What Works, Eliminating 

What Doesn’t

Now more than ever, it’s critical that taxpayer 

dollars are not wasted on programs that do not 

work, are duplicative, or are out-of-date. Allowing taxpayer dollars to be wasted in this way is an 

irresponsible use of funds and an irresponsible 

abuse of the trust the American people put in its 

elected leaders. Instead of accepting business as 

usual, we need to streamline programs that work 

and fix or eliminate those that do not. We need to 

instill a new responsibility for taxpayer dollars, 

and modernize government to deliver better services to the American people for less. To accomplish this, the Administration will:

Terminate or Consolidate Outdated or 

Ineffective Programs. Too often programs 

and practices persist because of inertia. The 

President sought to change this mentality by 

having his Administration conduct a line-by-line 

review of the Federal budget. In his first Cabinet 

meeting, he challenged the assembled agency 

heads to find at least $100 million in collective 

cuts to their administrative budgets, separate 

and apart from those identified in the 2010 

Budget. They responded by identifying 77 costsaving measures—amounting to $243 million 

in savings through 2010. In addition, as part of 

the 2010 Budget, the President identified 121 

programs for reduction, termination, and other 

savings amounting to $17 billion in savings. 

While recent administrations have seen between 

15 to 20 percent of their proposed cuts approved 

by the Congress, this year we were able to see 

60 percent become law. Building on that, the 

President is proposing more than 120 savings 

proposals totaling approximately $23 billion. 
THE BUDGET FOR FISCAL YEAR 2011 41

Freeze Pay and Eliminate Bonuses 

for Senior Political Appointees. The 

Administration values the essential work of our 

talented Federal employees, but at a time when 

millions of Americans are without work and 

millions more are going without bonuses and 

raises, the Federal Government too must cut 

back. Last year, the President ordered a freeze of 

White House senior staff pay. And for 2011, the 

Administration proposes to extend this pay freeze 

to all senior political appointees throughout the 

Federal Government and continue the policy of 

no bonuses for all political appointees.

Reduce Improper Payments. Each year, 

taxpayers lose billions of dollars in wasteful, improper payments by the Federal Government to 

individuals, organizations, and contractors who 

inadvertently or deliberately overbill the Government. In 2009, the Administration was able 

to identify improper payments totaling $100 billion—a figure driven by improved detection and 

the significant increase in Federal outlays associated with the economic downturn and recovery. 

In response, agencies will be implementing an 

Executive Order the President signed at the end 

of 2009 to rein in improper payments. First, we 

will bring more transparency to these errors by 

creating an online dashboard of key indicators 

and statistics so that the public can access information on improper payments, view payment error rates by agency and program, and see a list 

of the most egregious actors. Second, we will 

hold agencies accountable for reducing improper 

payments while maintaining program access, 

through—among other steps—designating one 

Senate-confirmed appointee to be accountable to 

the President for meeting improper payment reduction targets and consolidating program integrity activities. Third, we will provide incentives 

for States, agencies, and recipients to report and 

reduce payment errors by using rewards—such 

as allowing States that reduce improper payments—to recoup more Federal grant dollars to 

cover administrative expenses, and use punishments, such as financial penalties on contractors 

who do not timely disclose an improper payment 

Lastly, the Administration is launching the Partnership Fund for Program Integrity Innovation, 

an initiative which focuses on improving service 

delivery, payment accuracy, and administrative 

efficiency in Federal assistance programs while 

reducing access barriers for beneficiaries.

Cut Waste in Contracting. Since 2002, 

Federal spending on contracts has more than 

doubled to more than $500 billion. From 2002 to 

2008, the value of contracts awarded without full 

and open competition increased by 129 percent—

from $82 billion to $188 billion. The President 

has charged Federal departments and agencies 

with saving $40 billion annually by 2011 through 

terminating unnecessary contracts, strengthening 

acquisition management, ending the overreliance 

on contractors, and reducing the use of high-risk 

contracts. In the first year of this effort, agencies 

have identified more than $19 billion of savings 

in 2010—on track to meet the $40 billion target. 

In 2011, the Administration will work with 

agencies on furthering their contracting reform 

efforts so that the $40 billion target is met. In 

addition, we will explore ways to gain additional 

savings through leveraging the purchasing power 

of the Federal Government. We are also making 

significant investments in the acquisition 

workforce to make sure agencies have adequate 

capacity to oversee and manage contracts—and 

ultimately to save money and provide better 

services to the American people. The Department 

of Defense also will further reduce its use of highrisk contracts by 9 percent and take steps to 

ensure that military requirements for weapons 

are reasonable, program costs and schedules are 

realistic, and acquisition funding is stable. 

Increase Accountability in, and Reduce 

the Number of, Earmarks. For too many years, 

the use of earmarks went virtually unchecked. 

Projects were inserted into legislation without 

any scrutiny or identifiable sponsor. Billions of 

taxpayer dollars were spent without examination 

by any committee or either branch of Congress. 

In 2007 and 2008, the Congress worked to end 

these abusive practices. Anonymous earmarks 

were eliminated and replaced with transparency 

measures so people can see who is spending their 

tax dollars and why. Yet, even with the changes, 

earmark overuse and abuse have continued. The 
42 RESTORING RESPONSIBILITY

President has put forward core principles for significant earmark reform: earmarks must have a 

legitimate public purpose and be subject to public 

scrutiny; members of Congress must disclose publicly their earmark requests; and any earmark for 

a for-profit private company should be subject to 

the same competitive bidding requirements as 

other Federal contracts. The 2010 appropriations 

bills showed progress, with earmarks reduced in 

cost by more than 23 percent or more than $3 

billion. The Administration will continue to work 

with the Congress to reduce earmark overuse 

and abuse. 

Rigorously Evaluate Program Performance. In order to drive evidence-based decisions about what works and what doesn’t, the 

Administration is aggressively expanding its 

program evaluation efforts. In response to the 

Office of Management and Budget (OMB) guidance, 17 agencies submitted a total of 61 specific 

proposals ranging from new efforts to evaluate 

the efficacy of new investments in early childhood education to a proposal to determine which 

approaches to foreign assistance are most effective in reducing poverty in poor countries. In the 

Budget, the Administration will fund 23 of the 

most promising new program evaluations and 

strengthen evaluation capacity in other agencies. 

All major evaluations planned or underway will 

be posted online from the time they are started, 

so that agencies cannot hide negative findings.

Close the Technology Gap. Twenty years 

ago, when people came to work for the Government, they had access to the world’s best technology. Today, Government employees often have 

better technology at home than at work. The 

Federal Government spends tens of billions of 

dollars on information technology (IT), but fragmentation, poor project execution, and the drag 

of legacy technology has not delivered the productivity and performance gains to government 

that are found when IT is deployed effectively in 

the private sector. Under the leadership of the 

Federal Chief Information Officer, the Administration is continuing its efforts to close the gap in 

effective technology use between the private and 

public sectors. Specifically, the Administration 

will continue to roll out less intensive and less 

expensive cloud-computing technologies; reduce 

the number and cost of Federal data centers; and 

work with agencies to reduce the time and effort 

required to acquire IT, improve the alignment of 

technology acquisitions with agency needs, and 

hold providers of IT goods and services accountable for their performance.

Centralize Provision of Information Technology Services for Non-Military Agencies. 

As technology and IT management practices 

continue to evolve rapidly, it is critical that the 

Government is able to adapt to these changes 

to achieve greater efficiency and effectiveness. 

Following examples set by the Department of 

Defense (DOD), several State governments, and 

best practices in private industry, the Administration will establish one or more efficient, centralized IT service providers for non-military 

agencies. Centralizing Federal IT services will 

reduce duplicative and wasteful spending; reduce 

facility space usage; increase security; improve 

service delivery; and reduce energy consumption. 

It is projected that this approach could prevent 

billions in increased costs across the Federal 

Government over the next few years.

Hold Agency Leaders Accountable for 

Specific Goals. Government leaders must 

make hard choices about the priorities that matter most to the American people and then do 

what it takes to deliver on those objectives. This 

has historically been difficult, however, because 

senior political leaders tend to focus on policy 

development rather than on management and 

implementation. To encourage senior leaders 

to deliver results against the most important 

priorities, the Administration launched the HighPriority Performance Goal initiative. Building on 

this effort in the 2011 Budget, the Administration 

is requiring agency heads to commit to a limited 

number of priority goals that matter to the public. The goals must have ambitious targets to 

be achieved within 24 months without the need 

for new resources or legislation, and have welldefined, outcomes-based measures of progress. 

OMB will work with agencies to help them to 
THE BUDGET FOR FISCAL YEAR 2011 43

achieve their goals and spread this management 

approach throughout their organizations.

Revamp the Federal Hiring Process. Highperforming companies and other forward-looking 

employers view their people as their key asset 

and are constantly re-evaluating and improving 

their approaches to attracting, motivating, and 

developing the best talent. However, the Federal 

hiring process currently takes over 150 days on 

average and requires far too many steps involving 

many different people. Often, government loses 

top talent to faster moving competitors. In the 

past year, most agencies have ended the “black 

box” of the Federal hiring process by notifying applicants of their status online at four steps in the 

process. To fix the hiring process, OMB and the 

Office of Personnel Management have initiated 

an effort to streamline hiring to achieve major reductions in the hiring times by the end of 2010. 

Going forward, we plan to increase the quality of 

applicants through innovative recruitment strategies, improved assessments of applicants, and 

proposing necessary regulatory and legislative 

changes to further streamline hiring processes 

while continuing to rely on the merit-based hiring 

system that has served the country so well.

Eliminate Unneeded Federal Real Estate 

from the Government Books. The Government Accountability Office in January 2003 identified Federal real property as a high-risk area of 

concern because of long-standing problems with 

excess and underutilized property, deteriorating 

facilities, unreliable real property data, over-reliance on costly leasing, and building security challenges. While the Government has made some 

progress to address these chronic challenges, the 

changes have been slow primarily because the 

Federal real property portfolio is based on an 

outmoded, outdated business model. Across the 

Government, billions of dollars in physical assets 

are not needed but remain on the Government’s 

hands. The Administration will pursue expanding the authority of agencies to retain sales proceeds while also proposing a five-year pilot to 

expedite the sale of real property by streamlining 

the process for select asset sales.

Opening Government Up to the 

American People 

The President has been clear from day one in 

office: the Federal Government must break down 

the barriers between it and the people it is supposed to serve. Through an unprecedented Open 

Government Directive, he put transparency, participation, and collaboration at the center of the 

Government’s operations. In response, every 

Cabinet agency, along with the White House, has 

taken a range of steps to open government up to 

the American people. These include the release of 

information, such as the White House visitor logs; 

efforts to get citizen input and comment on executive orders; and the use of online technologies so 

the public can ask questions of their Government 

leaders. In addition, the Administration has 

moved affirmatively to reduce special interest influence on the Federal Government through, for 

example, restrictions on lobbying related to the 

Recovery Act and financial stabilization efforts 

and a ban on lobbyists serving on agency advisory boards and commissions, bodies which had 

become dominated by special interests.

Transparency not only strengthens the bond 

between citizens and their Government, it also 

boosts performance by strengthening accountability, supporting the identification of effective 

practices, stimulating idea flow, and motivating 

better performance. Online posting of performance data—including agency goals, performance 

trends, improper payments and IT projects—represents an important step toward creating a culture of accountability in government. Openness 

also can improve the quality of the services delivered to citizens. Transparent processes allow citizens to offer feedback on service quality to make 

government better, improving satisfaction levels. 

To further open up the government to the American people, the Administration will:

Publish More Government Information 

Online. To increase accountability, promote 

informed participation by the public, and create 

economic opportunity, each Cabinet-level and 

independent agency is working to make openness 

standard. Timely publication of information is an 
44 RESTORING RESPONSIBILITY

essential component of transparency. Through 

the Data.gov portal—launched in May 2009 with 

just 47 sets of data—the public now can identify, examine, download, and cross-analyze more 

than 118,000 Government data sets. In 2011, 

the Government will expand Data.gov with previously unpublished, high-priority information, 

offered in open formats. Federal departments 

and agencies also will create open Government 

websites to serve as a gateway for access to their 

transparency activities.

Update Regulations to Allow the Use of 

New Technologies. Improvements in technology, in many places, have outpaced the regulations 

put in place to govern its use. In some cases, those 

regulations never anticipated the advances made. 

In response, OMB, in consultation with the Chief 

Technology Officer, will review Government-wide 

information policies, such as the Paperwork 

Reduction Act and the Federal cookies policy, 

which may need updating or clarifying to allow 

agencies to utilize new technologies that fully 

promote open government. 

Launch New Tools to Track Regulations.

The Federal regulatory process is opaque, yet 

critically important to the economy and lives of 

Americans. Greater transparency will help to 

break down barriers to participation in the government and understanding of its actions. The 

Administration will launch a new regulation 

tracking portal to make it easier to track specific 

regulations under review—where they are in the 

process, what the key deadlines are, and when 

the review will be completed. The public also will 

be able to track rules in the aggregate by agency, 

to see which have been identified as economically 

significant, and to link to sites where comments 

can be offered to help shape the final rule.

Make It Easier to Track How Taxpayer 

Dollars Are Spent. For too long, Americans 

have been in the dark about how their tax dollars are spent. They pay their taxes, but have 

no clear, concise way to track how and where the 

money is spent and what it accomplishes. The 

Administration is committed to pulling back the 

curtain on Government spending and will launch 

a new tracking tool with daily updates that will 

provide citizens with the ability to see aggregate 

spending by agency and also by geographic area. 

A new search engine will allow the public to customize their information by location, by agency, 

or by timeframe. This innovative development 

will allow people to have a greater understanding 

of how their Government works, and hold officials 

accountable for responsible spending decisions.

Create an Online Citizen Engagement 

Platform. With the growing number of social 

media tools available, citizens are demanding 

more engagement with their Government in 

new, innovative ways. The Citizen Engagement 

Platform (CEP), a joint collaboration between the 

General Service Administration and OMB, will 

increase the Government’s ability to interact and 

collaborate with citizens and provide a simple, 

cost-effective vehicle for agencies to access tools 

and guidance to be successful in those endeavors. 

The CEP will build on pilots launched last year 

by continuing to identify new technology applications to enable intra-agency and interagency 

collaboration and create a coordinated process for 

identifying tools and eliminating the redundant 

work presently carried out by agencies implementing new social media tools.
45

The U.S. Department of Agriculture (USDA) 

provides leadership on issues related to food, 

agriculture, rural development, and natural resources based on sound public policy, the best 

available science, and efficient management. 

USDA focuses on further developing alternative 

markets for agricultural products and activities, providing financing needed to help expand 

job opportunities and improve housing, utilities, 

and infrastructure in rural America. The Department also works to enhance food safety by 

taking steps to reduce the prevalence of foodFunding Highlights:

•	 Promotes economic and job creation opportunities for rural America by focusing on five core 

areas: access to broadband services, innovative local and regional food systems, renewable 

energy programs, climate change, and rural recreation.

•	 Provides $7.6 billion for the Special Supplemental Nutrition Program for Women, Infants, and 

Children (WIC) to serve all eligible individuals.

•	 Provides $10 billion over 10 years for a strong Child Nutrition and WIC reauthorization.

•	 Provides $50 million for a new “Healthy Food Financing Initiative” to bring grocery stores and 

other healthy food retailers to underserved communities. 

•	 Provides $429 million, the highest funding level ever, for competitive grants through the 

Agriculture and Food Research Initiative.

•	 Refocuses Forest Service resources to support watershed and ecosystem improvement 

efforts.

•	 Supports the Department’s effort to reduce foodborne illnesses from products inspected by 

USDA.

•	 Funds several important conservation efforts such as improving water quality, restoring and 

protecting almost 200,000 additional acres of wetlands, and reducing nutrient loading in the 

Chesapeake Bay.

•	 Enhances the Department’s efforts to promote U.S. agricultural exports by increasing 

assistance to develop and maintain overseas markets and reduce foreign trade barriers and 

other practices that hinder agricultural exports.

•	 Targets farm payments to those who need—and can most benefit from—assistance, and 

reforms the crop insurance program by renegotiating the Government’s agreement with crop 

insurance companies.

DEPARTMENT OF AGRICULTURE
46 DEPARTMENT OF AGRICULTURE

borne hazards, improve nutrition and health by 

providing food assistance and nutrition education and promotion, support international agricultural and economic development, and manage and protect America’s public and private 

lands by working cooperatively with other levels 

of government and the private sector. The President’s Budget provides $26 billion in discretionary budget authority to support this important 

mission.

Supports Growth and Job Creation in 

Rural America. The President’s Budget supports USDA’s Rural Innovation Initiative, which 

is designed to promote economic opportunity 

and job creation in rural communities. To support this innovative approach, USDA plans to 

set-aside roughly 5 percent of the funding from 

approximately 20 existing programs and allocate 

these funds competitively among regional pilot 

projects tailored to local needs and opportunities. 

This targeting effort will allow USDA to prioritize areas with the greatest need and potential 

by encouraging comprehensive and innovative 

approaches to foster rural revitalization. 

The Budget also helps lay the foundation for 

job creation and expanded economic opportunities 

throughout rural America by:

•	 Expanding access to broadband services by 

offering $418 million in loans and grants to 

transition rural communities into the modern information economy.

•	 Nurturing local and regional food systems 

and expanding access to healthy foods for 

low-income Americans in rural and urban 

food deserts.

•	 Funding a variety of renewable energy programs across the Department, including 

support for biorefineries to utilize advanced 

biomass crops, research designed to create 

cellulosic and advanced biofuels, and assistance to help transition fossil fuel-dependent 

electric utilities to renewable energy. Taken 

together, these programs support the USDA’s 

effort to help America in achieving energy 

independence and reducing greenhouse gas 

emissions.

•	 Supporting the President’s climate change 

policy by promoting activities including carbon sequestration, renewable energy, and 

water conservation. In addition, the Budget 

supports a science-based, risk-management 

approach to mitigate the effects of climate 

change by stressing forest and watershed 

resiliency designed to minimize the loss of 

large carbon sinks.

•	 Developing rural recreation and employment opportunities, including fishing and 

hunting for local residents and tourists by 

proposing more than $700 million to restore and manage public lands. The Budget also fully funds the Voluntary Public 

Access and Habitat Incentive Program, 

which encourages private landowners to 

voluntarily open their land to the public 

for hunting and fishing.

Strengthens Nutrition Assistance and 

Promotes Healthy Eating. At a time of 

continued need, the President’s Budget provides 

$8.1 billion for discretionary nutrition program 

supports, which is a $400 million increase over the 

2010 enacted level. Funding supports 10 million 

participants in the WIC program, which is critical to the health of pregnant women, new mothers, and their infants. The Budget also supports a 

strong Child Nutrition and WIC reauthorization 

package so that schoolchildren have access to 

healthy meals and to help fulfill the President’s 

pledge to end childhood hunger. The Budget provides $10 billion over 10 years for program reforms aimed at improving program access, establishing high standards for the nutritional quality 

of food available in school, exploring new strategies for reducing hunger and improving children’s food choices, and strengthening program 

management. 

Responds to the Needs of Low-Income 

Americans. The President continues to support the nutrition provisions incorporated in 

the American Recovery and Reinvestment Act 

(ARRA). Participants in the Supplemental Nutrition Assistance Program (SNAP) will continue to 

receive enhanced benefits at an average value of 

about $20 per person per month. The Budget also 
THE BUDGET FOR FISCAL YEAR 2011 47

proposes to extend the ARRA provision in SNAP 

that temporarily eliminates the time limits for 

certain working-age, low-income adults without 

dependents for an additional fiscal year. This 

extension helps remove access barriers to SNAP 

and increase food purchasing power among some 

of the hardest-to-reach populations. 

Increases Funding for the Agriculture and 

Food Research Initiative. The Budget provides $429 million, the largest funding level ever, 

for competitive peer-reviewed research grants 

through the Agriculture and Food Research Initiative. This increase is designed to foster a more 

robust research program within USDA with 

special emphasis related to the following five 

core areas: climate change, bioenergy, childhood 

obesity, world hunger, and food safety.

Focuses Forest Restoration Resources.

The President’s Budget focuses Forest Service 

resources to support more watershed and ecosystem improvement efforts based upon a variety of 

management actions, including mechanical removal of timber, road decommissioning, and wildlife habitat improvement. The Budget adopts an 

ecosystem-based approach to forest management 

that focuses on enhancing forest and watershed 

resiliency, preventing the loss of large carbon 

sinks, and maintains jobs. To address the need 

to protect forest resources and wildlife habitat 

in an era of global climate change, the Budget 

establishes a pilot program for long-term, landscape scale restoration activities that emphasize resiliency, health, and sustainable economic 

development. 

Budgets Responsibly for Wildfires. The 

Budget fully funds the 10-year average cost of 

fire suppression and includes a $282 million discretionary funding reserve to be used only when 

the $1.2 billion in appropriated 10-year average 

funding is exhausted. The Budget also prioritizes hazardous fuels reduction activities in the 

wildland-urban interface where they are most effective—particularly in communities that are on 

track to meet Firewise standards, have identified 

acres to be treated in Community Wildfire Protection Plans (or the equivalent), and have made 

an investment in implementing local solutions to 

protection against wildland fire. 

Enhances Food Safety. The President’s 

Budget takes important steps to improve the 

safety of the Nation’s supply of meat, poultry, and 

processed egg products and works to make certain that these products are wholesome and accurately labeled and packaged. Consistent with the 

recommendations of the President’s Food Safety 

Working Group, the Budget supports increasing regulatory testing and baseline studies and 

strengthening USDA’s Public Health Epidemiology Program to support the inter-agency Federal-State Foodborne Disease Outbreak Response 

Team. These efforts will contribute toward a 

reduction in foodborne illness and improvements 

in public health and safety.

Supports Conservation on Private Lands.

The Budget will accelerate the protection of our 

natural resources by strategically targeting funding to high priority program areas. This includes 

funding the Wetlands Reserve Program at a level 

to enable the restoration and protection of almost 

200,000 additional acres of wetlands, providing 

over $1.2 billion for the Environmental Quality 

Incentives Program to help farmers comply with 

regulatory requirements and protect natural resources, providing a 67 percent increase in funding over the 2010 enacted level to reduce nutrient 

loading in the Chesapeake Bay, and enrolling 12 

million acres into the Conservation Stewardship 

Program to improve water quality and enhance 

energy efficiency. The Budget also provides funding to support the installation of high-impact targeted conservation practices on 1.5 million acres 

in priority landscapes, including the Bay-Delta 

region in California and the Upper Mississippi.

Promotes Agricultural Exports. The Budget includes $54 million in discretionary funding 

to enhance USDA’s efforts to promote the export 

of U.S. agricultural products. This funding will 

double the Department’s cost-share assistance 

to agricultural trade associations in support of 

overseas market development activities, such as 

technical assistance and market research ($35 

million); increase exporter assistance, in-country 
48 DEPARTMENT OF AGRICULTURE

market promotions, and trade enforcement activities to remove non-tariff trade barriers, such as 

unwarranted sanitary and phytosanitary standards placed on U.S. commodities by other countries ($10 million); and double a grant program to 

assist U.S. specialty crop producers in overcoming sanitary, phytosanitary, and other technical 

barriers to trade ($9 million).

Reforms Farm Payments and Delivery of 

Crop Insurance. The Budget proposes to limit 

farm subsidy payments to wealthy farmers by reducing the cap on direct payments by 25 percent 

and reducing the Adjusted Gross Income (AGI) 

payment eligibility limits for farm and non-farm 

income by $250,000 over three years. The Farm 

Bill currently precludes an individual or an entity 

from receiving any benefit in a year where their 

non-farm AGI exceeds $500,000 and precludes 

receipt of any direct payments when their farm 

AGI exceeds $750,000. This proposal would allow 

USDA to target payments to those who need and 

can benefit from them most, while at the same 

time preserving the safety net that protects farmers against low prices and natural disasters. The 

Budget also includes a proposal that will save 

billions of dollars by reforming how the Federal 

Government administers the crop insurance program. Crop insurance companies currently benefit from huge windfall profits due to the structure and terms of the Government’s contract with 

the companies, called the Standard Reinsurance 

Agreement (SRA). Through the SRA renegotiation process, which will occur in 2010, USDA will 

pursue reforms to the financial terms in the SRA 

that will allow the Department to offer the same 

program benefits to farmers and ranchers with 

significantly reduced costs—saving $8 billion 

over 10 years. 

Department of Agriculture

(In millions of dollars)

Actual

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Commodities and International ����������������������������������������������������������������� 3,240 4,253 4,099

Rural Development ����������������������������������������������������������������������������������� 2,597 2,983 2,646

Forest Service ������������������������������������������������������������������������������������������� 4,757 5,316 5,377

Conservation ��������������������������������������������������������������������������������������������� 968 1,009 964

Food and Nutrition Service ����������������������������������������������������������������������� 7,300 7,880 8,132

Research ��������������������������������������������������������������������������������������������������� 2,648 2,846 2,723

Marketing and Regulatory Programs �������������������������������������������������������� 2,012 2,095 2,057

Central Administration ������������������������������������������������������������������������������� 510 636 663

Subtotal, excluding items below ���������������������������������������������������������������� 24,032 27,018 26,661

Receipts ���������������������������������������������������������������������������������������������������� –58 –70 –71

Legislative proposal, Rural Housing receipts ������������������������������������������� — — –7

Mandatory savings proposals ������������������������������������������������������������������� — — –812

Total, Discretionary budget authority ��������������������������������������������������������������� 23,974 26,948 25,771

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ����������������� 6,892 — —

Budget authority from supplementals ������������������������������������������������������������� 1,366 400 —
THE BUDGET FOR FISCAL YEAR 2011 49

Department of Agriculture—Continued

(In millions of dollars)

Actual

2009

Estimate

2010 2011

Total, Discretionary outlays ����������������������������������������������������������������������������� 25,063 28,402 27,143

Memorandum: Outlays from American Recovery and Reinvestment Act ������� 507 1,831 1,499

Mandatory Outlays:

Food and Nutrition Service ����������������������������������������������������������������������� 66,210 78,406 82,393

Commodity Credit Corporation ����������������������������������������������������������������� 11,411 14,224 12,664

Crop Insurance ����������������������������������������������������������������������������������������� 7,889 6,954 7,555

Natural Resources Conservation Service ������������������������������������������������� 1,584 2,124 2,772

Agricultural Marketing Service ������������������������������������������������������������������ 1,106 1,276 1,270

Forest Service ������������������������������������������������������������������������������������������� 816 874 757

Rural Development including liquidating accounts ������������������������������������ –152 –933 –2,133

Receipts, reestimates and all other programs ������������������������������������������� –4,615 –1,980 –132

Total, Mandatory outlays ��������������������������������������������������������������������������������� 84,249 100,945 105,146

Memorandum: Outlays from American Recovery and Reinvestment Act ������� 4,626 10,843 11,966

Total, Outlays �������������������������������������������������������������������������������������������������� 109,312 129,347 132,289

Credit activity 

Direct Loan Disbursements:

Farm Loans ����������������������������������������������������������������������������������������������� 1,825 2,280 1,745

Commodity Credit Corporation ����������������������������������������������������������������� 8,291 8,593 8,346

Rural Utilities Service �������������������������������������������������������������������������������� 6,005 8,820 10,836

Rural Housing Service ������������������������������������������������������������������������������ 2,042 4,300 4,116

Rural Business Service ����������������������������������������������������������������������������� — 1 17

P.L. 480 ����������������������������������������������������������������������������������������������������� 32 62 —

All other programs�������������������������������������������������������������������������������������� 60 84 80

Total, Direct loan disbursements ��������������������������������������������������������������������� 18,255 24,140 25,140

Guaranteed Loan Commitments:

Farm Loans ����������������������������������������������������������������������������������������������� 2,594 2,759 2,439

Commodity Credit Corporation ������������������������������������������������������������������ 5,357 5,448 5,500

Rural Utilities Service �������������������������������������������������������������������������������� 5 22 32

Rural Housing Service ������������������������������������������������������������������������������ 14,166 14,200 13,627

Rural Business Service ����������������������������������������������������������������������������� 1,110 2,158 2,275

Total, Guaranteed loan commitments ������������������������������������������������������������� 23,232 24,587 23,873

51

The Department of Commerce (DOC) has a 

broad mandate to advance economic growth, 

jobs and opportunities for the American people. 

It has cross-cutting responsibilities in the areas 

of trade, technology, entrepreneurship, economic 

development, environmental stewardship, and 

statistical research and analysis. To support this 

important work, the 2011 Budget allocates $8.9 

billion to DOC.

Invests in America’s Innovation and 

Competitiveness. The Budget includes $712 

million for National Institute of Standards and 

Technology (NIST) laboratories as part of the 

President’s Plan for Science and Innovation. This 

funding will support advanced measurement and 

standards development at NIST that will facilitate 

the economy-wide development and adoption of a 

wide variety of new technologies, ranging from 

nanotechnology and computer security advances 

to energy conservation systems. The Budget also 

provides $80 million for the Technology Innovation 

Program, which invests in high-impact research 

that will address critical national needs and 

advance innovation. The Hollings Manufacturing 

Extension Partnership will receive $130 million 

to enhance the competitiveness of the Nation’s 

manufacturers by facilitating the adoption of 

more efficient manufacturing processes. In 

addition, the President’s Budget gives the U.S. 

Patent and Trademark Office (USPTO) full access 

to its fee collections and will strengthen USPTO’s 

efforts to improve the speed and quality of patent 

examinations through a fee surcharge. 

Funding Highlights:

•	 Invests in American economic competitiveness and job creation by promoting innovation in

manufacturing, advancing standards research and technology, protecting intellectual property

rights, and deploying broadband.

•	 Promotes opportunities for American exporters in new markets and reduces barriers to sales

abroad.

•	 Invests in smarter economic development through the promotion of regional innovation

clusters.

•	 Advances climate science and services and supports critical satellite programs to monitor the

Earth’s weather and climate as well as global sea-level change.

•	 Implements the President’s National Ocean Policy by supporting coastal zone management

and marine spatial planning, expanding catch-share based fisheries management, and

accelerating research on ocean acidification.

•	 Invests additional resources to improve economic and household statistics to analyze our

economic health more accurately and target Government funds more precisely.

DEPARTMENT OF COMMERCE
52 DEPARTMENT OF COMMERCE

Promotes American Exports. The Budget 

provides $534 million, a 20-percent increase, to 

the International Trade Administration (ITA), so 

it can help launch the National Export Initiative, 

a broader Federal strategy to increase American 

exports. ITA will strengthen its efforts to promote exports from small businesses, help enforce 

free trade agreements with other nations, fight to 

eliminate barriers to sales of U.S. products, and 

improve the competitiveness of U.S. firms. 

Expands Access to Broadband. Broadband 

is a central part of the infrastructure necessary 

for the economy to create jobs and thrive in this 

century. During 2011, Commerce’s National Telecommunications and Information Administration 

will focus on administering the $4.7 billion program to expand broadband deployment, as well 

as programs to improve broadband adoption and 

data collection, which were funded by the American Recovery and Reinvestment Act. The Budget 

will also achieve savings by eliminating the 

Public Telecommunications Facilities Program, 

consolidating support for public broadcasters into 

the Corporation for Public Broadcasting.

Enhances Regional Economic Competitiveness. Competitive, high-performing regional 

economies are essential to national growth. The 

Budget supports growth strategies based on stronger regional clusters of economic activity through 

funding in the Department’s Economic Development Administration (EDA), the Small Business 

Administration (SBA), as well as the Department 

of Labor with other agencies in key support roles. 

As part of the Administration’s place-based initiative, the Budget provides $75 million in regional planning and matching grants within EDA to 

support the creation of Regional Innovation Clusters that leverage regions’ competitive strengths 

to boost job creation and economic growth. 

Supports Improvements in Weather Forecasting, Climate Monitoring, Fisheries Management, and Ocean Programs. The Budget 

maintains continuity of National Oceanic and 

Atmospheric Administration (NOAA) satellite 

coverage needed for monitoring weather and 

climate by providing over $2 billion to fund the 

development and acquisition of NOAA’s polar 

orbiting and geo-stationary weather satellite 

systems, satellite-borne measurements of sea 

level and other climate variables, and other 

space-based observations. The Budget supports 

enhancements to climate science and services, including improved modeling and assessments at 

global and regional levels. The Budget advances 

the President’s National Ocean Policy with funding for coastal zone management and planning, 

competitive grants in support of regional ocean 

partnerships, integrated ecosystem assessments, 

catch-share based fisheries management, and 

research on ocean acidification.

Strengthens Key Statistical Programs.

The Budget provides $1.3 billion to the Census 

Bureau to process, tabulate, and release 2010 

Census data, conduct extensive evaluations of 

the census, improve the data collection methods 

of the American Community Survey, and begin a 

continuous update process of the Census Bureau’s 

geospatial and address data, which is expected to 

produce long-run cost savings. These initiatives 

will provide more accurate data for decision-makers at all levels of government and in the private 

sector. Funds are also provided to prepare for the 

2012 Economic and Government Censuses and to 

improve an important measure of poverty. Finally, the Budget provides additional funding for the 

Bureau of Economic Analysis to develop new data 

series on key economic sectors (such as manufacturing and retail trade) and household consumption, income, and expenses. These measures 

will provide policymakers more timely, detailed, 

and robust data on the state of the business and 

household sectors of the economy.
THE BUDGET FOR FISCAL YEAR 2011 53

Department of Commerce

(In millions of dollars)

Actual

2009

Estimate

2010 2011

Spending

Discretionary Budget Authority:

Departmental Management: 

Salaries and Expenses ������������������������������������������������������������������������ 53 58 66

Steel Loan Program ����������������������������������������������������������������������������� — — –43

Herbert C. Hoover Building Renovation ����������������������������������������������� 5 22 17

Office of the Inspector General ������������������������������������������������������������ 28 27 29

Subtotal, Departmental Management ������������������������������������������������������� 86 107 69

Economic Development Administration: 

Salaries and Expenses ������������������������������������������������������������������������ 37 38 40

Economic Development Assistance Programs ������������������������������������ 221 255 246

Regional Innovation Cluster Initiative (non-add) ���������������������������������� — 50 75

Subtotal, Economic Development Administration ������������������������������������� 258 293 286

Bureau of the Census: 

Salaries and Expenses ������������������������������������������������������������������������ 234 259 280

Periodic Censuses and Programs �������������������������������������������������������� 2,905 6,966 987

Decennial Census (non-add) ��������������������������������������������������������������� 2,689 6,751 740

Subtotal, Bureau of the Census ���������������������������������������������������������������� 3,139 7,225 1,267

Economics and Statistics Administration �������������������������������������������������� 91 97 113

International Trade Administration ������������������������������������������������������������� 420 446 534

Bureau of Industry and Security ��������������������������������������������������������������� 84 100 113

Minority Business Development Agency ��������������������������������������������������� 30 32 32

National Oceanic and Atmospheric Administration:

Operations, Research, and Facilities ��������������������������������������������������� 3,130 3,413 3,408

Procurement, Acquisition and Construction ����������������������������������������� 1,242 1,358 2,184

Other Accounts ������������������������������������������������������������������������������������ 82 82 –38

Subtotal, National Oceanic and Atmospheric Administration �������������������� 4,454 4,853 5,554

Patent and Trademark Office: 

Program Level �������������������������������������������������������������������������������������� 1,899 1,887 2,322

Fees ����������������������������������������������������������������������������������������������������� –1,901 –2,003 –2,322

Subtotal, Patent and Trademark Office ����������������������������������������������������� –2 –116 —

National Institute of Standards and Technology:

Scientific and Technical Research Services ����������������������������������������� 478 520 587

Industrial Technology Services ������������������������������������������������������������� 170 195 210

Technology Innovation Program (non-add) ������������������������������������������ 60 70 80

Manufacturing Extension Partnership (non-add) ���������������������������������� 110 125 130

Construction of Research Facilities ������������������������������������������������������ 172 147 125

Subtotal, National Institute of Standards and Technology ������������������������� 820 862 922
54 DEPARTMENT OF COMMERCE

Department of Commerce—Continued

(In millions of dollars)

Actual

2009

Estimate

2010 2011

National Telecommunications and Information Administration: 

Salaries and Expenses ������������������������������������������������������������������������ 16 20 22

Broadband Technology Opportunities Program Administration ������������ — — 24

Public Telecomm. and Facilities Planning and Construction ���������������� 18 20 —

Subtotal, National Telecommunications and Information Administration �� 34 40 46

All other ������������������������������������������������������������������������������������������������ –2 –7 –8

Total, Discretionary budget authority ��������������������������������������������������������� 9,412 13,932 8,928

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ����������� 7,845 –128 —

Budget authority from supplementals ������������������������������������������������������� 40 — —

Total, Discretionary outlays ����������������������������������������������������������������������� 8,967 13,535 8,953

Memorandum: Outlays from American Recovery and Reinvestment Act ���� 566 2,473 2,249

Mandatory Outlays:

Digital Television Transition and Public Safety Fund ����������������������������� 1,296 506 125

Grants to Manufacturers of Worsted Wool Fabrics:

Existing law ������������������������������������������������������������������������������������� 1 10 5

Legislative proposal ������������������������������������������������������������������������� — — –5

All other ������������������������������������������������������������������������������������������������ –101 191 176

Total, Mandatory outlays ��������������������������������������������������������������������������� 1,196 707 301

Total, Outlays �������������������������������������������������������������������������������������������� 10,163 14,242 9,254

Credit activity 

Direct Loan Disbursements:

Fisheries Finance Direct Loan Financing account ������������������������������������ 23 23 23

Total, Direct loan disbursements ��������������������������������������������������������������������� 23 23 23
55

While the U.S. military is addressing ongoing 

challenges—such as drawing down responsibly 

in Iraq and carrying out the President’s strategy 

in Afghanistan and Pakistan—the Department 

of Defense (DOD) is identifying long-term strategic needs and targeting resources toward its 

highest priorities. These priorities, developed 

in concert with DOD’s Quadrennial Defense Review, include taking care of our men and women 

in uniform, rebalancing our forces to address 

Funding Highlights:

•	 Provides $548.9 billion for the Department of Defense base budget in 2011, a 3.4 percent 

increase over the 2010 enacted level.

•	 Includes $33.0 billion for a 2010 supplemental request and $159.3 billion for 2011 to support 

ongoing overseas contingency operations, including funds to execute the President’s new 

strategy in Afghanistan and Pakistan.

•	 Maintains ready forces and continues efforts to rebalance military forces to focus more on 

today’s wars, and provides capabilities to deter or if necessary engage in future conflicts.

•	 Continues strong support for our men and women in uniform through a robust benefits 

package including pay increases that keep pace with the private sector.

•	 Supports access to medical care to the more than 9.5 million beneficiaries: active military 

members and their families, military retirees and their families, dependent survivors, and 

eligible Reserve Component members and families.

•	 Supports wounded warrior transition units and centers of excellence in vision, hearing, 

traumatic brain injury, and other areas to continuously improve the care provided to wounded, 

ill, and injured servicemembers.

•	 Continues to reform defense acquisition, reducing its use of high-risk contracts related to 

time-and-materials and labor-hours by 17 percent through the end of 2011, while modernizing 

key weapons systems to provide our troops with the best technology to meet battlefield 

needs, and eliminating or reconfiguring lower-priority acquisitions.

•	 Prioritizes resources by ending or reducing several programs, including the C-17 aircraft, the 

Joint Strike Fighter Alternate Engine program, the Third Generation Infrared Surveillance 

program, and the Net-Enabled Command Capability program.

•	 Supports a reconfigured ballistic missile defense strategy, in line with the President’s policy, to 

better address current threats.

DEPARTMENT OF DEFENSE
56 DEPARTMENT OF DEFENSE

both current and future conflicts, and reforming 

business practices, such as developing and purchasing weapons. 

The 2011 Budget for DOD requests an increase of $18.2 billion, or 3.4 percent, from the 

2010 enacted level of $530.8 billion. This funding increase allows DOD to address its highest 

priorities, such as the President’s commitment 

to reform defense acquisition, develop a ballistic missile defense system that addresses modern threats, and continue to provide high quality 

healthcare to wounded servicemembers. In addition, the Budget will continue to incorporate into 

the base those items previously funded in emergency supplemental appropriations that should 

be considered enduring activities that are not 

driven by specific conflicts.

Supports Missions in Iraq, Afghanistan, 

and Pakistan (OCO). The President has ordered 

his military commanders to send an additional 

30,000 troops to Afghanistan, which will bring 

the total number of U.S. forces in Afghanistan to 

almost 100,000 by 2011. Meanwhile, DOD will 

continue drawing down its combat forces from 

Iraq, and all U.S. forces will be withdrawn from 

Iraq by the end of 2011. To address the costs of 

increasing military and intelligence operations in 

Afghanistan and Pakistan and drawing down in 

Iraq and leaving Iraq’s security forces with the 

minimum essential capabilities to operate after 

U.S. forces depart, the Administration is requesting $33.0 billion in 2010 supplemental funding on 

top of the $129.6 billion already provided, and a 

total of $159.3 billion for its 2011 overseas contingency operations (OCO) activities. In addition 

to this DOD funding, the supplemental request 

will also include funding for Department of State 

activities in 2010. The Budget includes placeholder estimates of $50 billion per year for 2012 and 

beyond. These estimates do not reflect any policy 

decisions about specific military or intelligence 

operations, but are only intended to indicate that 

some as-yet unknown costs are anticipated.

Maintains Readiness for Today’s Challenges. The Administration is committed to 

providing its service members with the resources 

needed to be ready to respond to the multiple, 

complex, and sometimes unconventional threats 

posed by today’s security environment. The 

Budget includes robust funding for operations 

and maintenance, covering such crucial activities 

as training and operations, pay for a high quality civilian workforce, upkeep of equipment and 

facilities, repair parts, fuel, and supplies.

Supports Our Nation’s Troops and Their 

Families. The Budget continues the Administration’s commitment to caring for our Nation’s 

men and women in uniform and promoting the 

well-being of the families who support them. To 

meet this objective, the Budget includes funding 

for a 1.4 percent basic pay raise that will keep 

military pay increases in line with those in the 

private sector. In addition to this pay raise, the 

Budget also includes an average housing increase 

of 4.2 percent, as well as a variety of monthly 

special skill-based payments, enlistment and 

reenlistment bonuses, and other benefits. 

The strength of our troops relies on the strength 

and stability of the families that support them, 

and the Budget supports these military families as our servicemembers answer our country’s 

call to service. Overall, family support programs 

grow over 3 percent above the 2010 enacted level. 

Examples include: 

•	 $1.3 billion, an increase of $87 million 

over the 2010 enacted level, to expand 

availability for affordable, high-quality 

child care services at over 800 child development centers both in the United States 

and overseas.

•	 $1.9 billion, $37 million over the 2010 enacted level, for expanded counseling and 

assistance services, from financial counseling to transition and relocation assistance, to help families meet the challenges 

brought on by repeated deployments and 

family separations.

•	 $84 million, an increase of $12 million 

over the 2010 enacted level, for enhanced 

career and educational opportunities for 

military spouses through tuition assistance and Federal internship programs.
THE BUDGET FOR FISCAL YEAR 2011 57

Cares for Wounded, Ill, and Injured 

Servicemembers. The 2011 Budget sustains 

ongoing efforts to provide high quality medical care to the over 9.5 million servicemembers 

as well as military family and retiree beneficiaries. This includes support for wounded warrior 

transition units and centers of excellence in vision, hearing, traumatic brain injury, and other 

areas to continuously improve the care provided 

to wounded, ill, and injured servicemembers, including: 

•	 $30.9 billion overall for medical care, 

an increase of 5.8 percent over the 2010 

enacted level.

•	 $669 million to provide care for traumatic 

brain injury and psychological health. 

•	 $250 million for continued support of 

mental health and traumatic brain injury 

research, such as the development of tools 

to detect and treat post-traumatic stress, 

and enhancements to suicide prevention 

measures. 

•	 Support for DOD’s efforts to update its 

health information technology infrastructure, while partnering with the Department of Veterans Affairs and the private 

sector to pursue the Administration’s 

goal of building a Virtual Lifetime Electronic Record to deliver care and benefits 

to servicemembers and veterans with 

efficiency and accuracy.

Reforms Acquisition. DOD contracts account for approximately 70 percent of all Federal 

procurement spending, so DOD reform initiatives are critical to the Administration’s efforts 

to improve Government acquisition. The 2010 

Budget took important first steps to reform this 

process; in 2011, DOD will continue these efforts 

by terminating or delaying programs that are inadequately justified or not performing well. For 

example, the Budget ends the C-17 aircraft program because additional aircraft are not needed, 

saving $2.5 billion. It also eliminates the Joint 

Strike Fighter Alternate Engine program, saving $465 million, because this program raises 

logistical, management, and cost concerns. The 

Budget saves an additional $73 million by terminating the Third Generation Infrared Surveillance program, and instead procuring upgraded 

Space Based Infrared System Satellites in the 

future; it saves $8.5 million more by eliminating 

the Net-Enabled Command Capability program, 

which has been unable to meet its requirements 

on schedule. The Department will also further 

reduce its use of high-risk contracts in areas that 

relate to time-and-materials and labor hours by 

17 percent through the end of 2011, and take 

steps so that military requirements for weapons 

are reasonable, program costs and schedules are 

realistic, and acquisition funding is stable. 

Provides Ballistic Missile Defense to 

Address Modern Threats. The Administration 

is committed to a robust defense against emerging missile threats by deploying technology that 

is proven, cost-effective, and adaptable for countering an evolving security environment. Starting in 2011, the new Phased Adaptive Approach 

will guide missile defense architecture. It will 

feature incremental deployments of increasingly 

capable sea- and land-based missile interceptors and a range of sensors in Europe to defend 

against growing ballistic missile dangers. This 

phased approach will offer more effective defenses 

against near-term ballistic missile threats and 

augment the current defense of the U.S. homeland 

against long-range ballistic missile threats. It 

will provide for the defense of U.S. deployed forces, their families, and our Allies in Europe sooner and more comprehensively than the previous 

program, while reaffirming the U.S. commitment 

to strengthening NATO and integrating U.S. 

systems with Allied capabilities and networks.
58 DEPARTMENT OF DEFENSE

Modernizes Weapon Systems. A major goal 

of the Administration is to provide the troops 

with the most effective and modern equipment 

possible. To accomplish this, the 2011 Budget 

continues to develop and procure many advanced 

weapons systems that support both today’s wars 

and future conflicts. These include: the F-35 

Joint Strike Fighter, a new family of ground vehicles, new ships such as the next generation ballistic missile submarine, and the P-8 aircraft. The 

Budget also bolsters capabilities in Unmanned 

Aerial Vehicles, helicopters, and cyber capabilities and electronic warfare, which are key components in the ongoing task of rebalancing the 

military to focus on current and emerging threats.

Department of Defense

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Base budget authority:

Military Personnel ������������������������������������������������������������������������������������� 125,625 134,968 138,541

Operation and Maintenance ���������������������������������������������������������������������� 179,103 184,488 200,248

Procurement ��������������������������������������������������������������������������������������������� 100,886 104,803 112,873

Research, Development, Test and Evaluation ������������������������������������������ 79,392 80,097 76,131

Military Construction ��������������������������������������������������������������������������������� 21,898 21,022 16,924

Family Housing ����������������������������������������������������������������������������������������� 3,163 2,259 1,822

Revolving and Management Funds ���������������������������������������������������������� 3,155 3,118 2,380

Subtotal, Discretionary Base budget authority ������������������������������������������������ 513,222 530,755 548,919

Discretionary Overseas Contingency Operations (OCO) budget authority:

Enacted ����������������������������������������������������������������������������������������������������� 145,741 129,648 —

Requested (2011 includes $254 million in U.S. Coast Guard funding) ����� — 33,014 159,336

Subtotal, Discretionary OCO budget authority ������������������������������������������������ 145,741 162,662 159,336

Total, Discretionary budget authority (Base and OCO) ����������������������������������� 658,963 693,417 708,255

Memorandum: Budget authority from American Recovery and Reinvestment Act ����� 7,435 — —

Total, Discretionary Outlays (Base and OCO) ������������������������������������������������ 633,797 684,436 714,428

Memorandum: Outlays from American Recovery and Reinvestment Act ���������������������� 238 3,991 2,491

Mandatory Outlays:

 Existing law �������������������������������������������������������������������������������������������������� 2,740 3,605 3,959

 Legislative proposal ������������������������������������������������������������������������������������� — — 408

 Total, Mandatory outlays �������������������������������������������������������������������������������� 2,740 3,605 4,367

Total, Outlays ������������������������������������������������������������������������������������������������� 636,537 688,041 718,795
THE BUDGET FOR FISCAL YEAR 2011 59

Department of Defense—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Credit activity 

Total, Direct loan disbursements ��������������������������������������������������������������������� 172 195 200

61

The National Intelligence Program (NIP) 

funds intelligence activities in several Federal departments and the Central Intelligence 

Agency (CIA). NIP’s budget is classified, so the 

2011 Budget does not publicly disclose funding 

requests for intelligence activities. This chapter highlights key NIP-funded activities without 

detailing funding information.

Strengthens Capabilities of our Nation’s 

Intelligence Agencies. To protect America’s 

national security, the Intelligence Community 

(IC) provides effective intelligence collection, 

the analysis of that intelligence, and the production of finished intelligence products. The IC is 

responsible for timely and effective dissemination of intelligence to those who need it, ranging from the President, to heads of Executive 

Departments, military forces, and law enforcement agencies. To meet this country’s national 

security challenges, the IC is: strengthening 

its component agencies’ ability to collect intelligence; maintaining the security of Federal cyber 

networks; and protecting against the threat of international terrorism in the United States. The 

2011 Budget for NIP supports the Administration’s national security objectives and the new 

National Intelligence Strategy. The Director of 

National Intelligence, the Director of the CIA, 

and Department Secretaries with intelligence 

organizations will use 2011 funds to defeat terrorist networks, prevent the spread of weapons 

of mass destruction, penetrate and analyze the 

most difficult targets of interest to U.S. foreign 

policymakers, and anticipate geopolitical and 

economic developments of strategic concern.

Supports the President’s Strategy in 

Afghanistan and Pakistan. The Administration will request 2011 funding and supplemental 

funding for 2010 to cover the costs of global intelligence operations. In particular, the Budget will 

support the President’s strategy in Afghanistan 

and Pakistan and the additional U.S. forces being 

deployed there. IC collection and analysis play 

a key role in informing decision-makers at the 

strategic level and supporting the war fighter at 

a tactical level.

Funding Highlights:

•	 Strengthens the capabilities of the Nation’s intelligence agencies to furnish timely, accurate,

and insightful intelligence on the capabilities and intentions of foreign powers, including

international terrorist groups.

•	 Supports the President’s strategy in Afghanistan and Pakistan.

•	 Enhances Federal cybersecurity capabilities to protect a central part of our Nation’s and

economy’s infrastructure.

•	 Allocates resources in support of a U.S. Government-wide counterterrorism action plan.

NATIONAL INTELLIGENCE PROGRAM
62 NATIONAL INTELLIGENCE PROGRAM

Enhances Federal Cybersecurity Capabilities. The U.S. information infrastructure—

including telecommunications and computer 

networks and systems, and the data that reside 

on them—is critical to virtually every aspect of 

modern life. Threats to our information technology infrastructure endanger our national and 

economic security and our citizens’ privacy and, 

therefore, are an important policy focus of the 

Government. In 2009, President Obama directed 

a comprehensive review to assess U.S. policies 

and structures for cybersecurity. The 2011 Budget supports actions detailed in the Cyberspace 

Policy Review and continues activities begun as 

part of the Comprehensive National Cybersecurity Initiative.

Allocates Resources to Support a Counterterrorism Plan. The National Counterterrorism Center (NCTC) has developed a U.S. Government-wide counterterrorism action plan. This 

plan lays out broad strategic objectives aligned 

with policy objectives to guide the overall implementation of this national strategy on counterterrorism. The Administration is committed to 

integrating mission-based budgeting in the counterterrorism area with the annual budget process 

and will work with NCTC, IC, and relevant Departments, such as Defense, State, and Homeland 

Security, to direct resources in support of counterterrorism implementation objectives.
63

Funding Highlights:

•	 Provides a $3 billion increase in K-12 education programs, plus up to $1 billion in additional 

funding if Congress successfully completes a fundamental overhaul of the Elementary and 

Secondary Education Act (ESEA). Together, these measures would represent the largest 

funding increase for ESEA programs ever requested.

•	 Supports needed reforms of Federal K-12 programs to promote college- and careerreadiness, enhance teacher and principal effectiveness, deliver a rigorous and complete 

education, improve educational options, and prepare our children for the jobs of the future.

•	 Provides $1.35 billion to expand Race to the Top for school districts as well as States to carry 

out systemic reform, and $500 million to continue the Investing in Innovation program to test, 

validate, and scales up effective approaches to student learning.

•	 Increases the number, and improves the distribution of, effective teachers and principals, 

by investing $950 million in competitive grants to States and school districts that build 

comprehensive systems to recruit, prepare, retain, and reward effective teachers and 

principals.

•	 Invests $210 million in Promise Neighborhoods, an initiative that integrates school reform with 

strong family supports and effective community services across an entire neighborhood, so 

that youth successfully complete high school and continue on to college.

•	 Expands educational options and increases access to high-quality schools by investing $490 

million to grow effective charter schools and other effective, autonomous public schools that 

achieve results, develop new approaches, and give parents more choices.

•	 Consolidates 38 K-12 programs into 11 new programs that emphasize competitive funding, 

accountability for outcomes and flexibility in approaches, and use of evidence to get results. 

•	 Supports the next generation of scientists and engineers by helping States develop and 

implement math and science instructional practices that are aligned to rigorous college- and 

career-ready standards and by supporting districts and nonprofit organizations that develop, 

implement, and evaluate promising and effective programs.

•	 Increases aid for needy students, reforms Federal student aid programs, and simplifies the 

financial aid application process.

•	 Funds new reforms across the Nation’s early learning programs for children birth through age 

five, so they’re prepared to enter kindergarten ready for success.

•	 Creates a Workforce Innovation Partnership with the Department of Labor to test and validate 

effective strategies to improve services under the Workforce Investment Act. 

DEPARTMENT OF EDUCATION
64 DEPARTMENT OF EDUCATION

The President’s Budget proposes a bold strategy to achieve the Department of Education’s 

mission of fostering educational excellence, 

advancing equity and opportunity, improving student achievement, rewarding successful

outcomes, investing in innovation, and preparing 

our Nation’s children for global competitiveness. 

Reform Elementary and Secondary 

School Funding by Setting High Standards, 

Encouraging Innovation, and Rewarding 

Success. The Budget supports the Administration’s new vision for the Elementary and Secondary Education Act (ESEA). The reauthorized law 

would encourage States to adopt higher, clearer 

standards that set the expectation that every 

student will graduate from high school ready for 

college and a career. The new law would support 

dramatic improvements in the quality of assessments to measure complex skills and help teachers identify and respond to students’ strengths 

and needs. The reauthorization would also recognize and reward schools for helping students 

make important gains, even if they are not yet 

at grade-level, and offer new flexibility for successful States and districts to pursue new solutions to help all students meet high standards. 

At the same time, the law would require vigorous 

efforts to turn around persistently low-performing schools, applying comprehensive strategies 

that put children first. In support of these efforts, the Budget provides a $3 billion increase in 

funding for K-12 education programs authorized 

in the ESEA, including $900 million for School 

Turnaround Grants, and the Administration will 

request up to $1 billion in additional funding if 

Congress successfully completes a fundamental 

overhaul of the law. Together, these measures 

would represent the largest funding increase for 

ESEA programs ever requested. 

Expand the Race to the Top, and Open 

the Competition to School Districts. The $4 

billion Race to the Top, created by the American 

Recovery and Reinvestment Act (Recovery Act), 

began a competition among States to spur systemic and innovative reform across four areas: 

supporting high academic standards; improving 

teacher effectiveness and distributing effective 

teachers more equitably; using data to improve 

achievement; and turning around low-performing 

schools. Not all States will receive Race to the 

Top grants, but the competition itself has galvanized key stakeholders across the Nation to reform State laws and to develop new plans for lifting student achievement. The Budget provides 

$1.35 billion to continue the President’s Race to 

the Top challenge and to expand the competition 

from States to school districts that are ready for 

comprehensive reform. 

Increase the Number of Effective Teachers and Principals. Great teachers are the 

key to a high-quality education. Increasing the 

number of great teachers, especially in disadvantaged schools, will require major new efforts to 

help all teachers improve their skills; recognize 

and reward excellence in the classroom; and help 

struggling teachers improve or, if need be, exit 

the classroom. Today, taxpayers invest nearly $3 

billion a year in a teacher quality block grant that 

heavily supports investments with little evidence 

of or impact on increasing learning. As part of 

the overhaul of ESEA, the Administration will 

require States taking formula funds to develop 

the preconditions for an effective human capital 

system, beginning with strong evaluation systems. At the same time, the Administration will 

invest $950 million in a new competitive fund 

for States and districts that supports bold approaches to recruiting, developing, retaining, and 

rewarding more effective teachers, particularly in 

the lowest-performing schools. The Administration is also investing $405 million in supporting 

successful and innovative pathways into teaching 

and school leadership. 

Invest in Supports for Student Success.

While an isolated schoolhouse with limited hours 

was adequate in an earlier time, today’s competitive global marketplace requires more. Students 

need to be safe and healthy, and they need a complete education that extends beyond the traditional hours. As part of a $1.8 billion investment 

in the Supporting Student Success initiative, the 

Budget funds comprehensive supports so that 

students are mentally and physically healthy 

and ready to learn. The initiative also reforms 
THE BUDGET FOR FISCAL YEAR 2011 65

the 21st Century Community Learning Centers 

program to focus funding on models that redesign 

and extend the school day, week, or year to provide additional time for students to engage in academic activities, additional time for enrichment 

activities, and time for educators to collaborate 

and improve instruction.

Provides Expanded Support for Promise 

Neighborhoods. As part of a $1.8 billion investment in the Supporting Student Success initiative, the Budget includes dedicated support for 

Promise Neighborhoods, modeled after the Harlem Children’s Zone, which aims to improve college going rates by combining a rigorous K-12 education with a full network of supportive services 

in an entire neighborhood. This initiative would 

support comprehensive programs that address 

the needs of children and youth in a targeted 

area from before the time they are born to their 

attendance in college. The core principle behind 

this initiative is that combining both effective 

academic programs and strong health and socialservice systems can combat the effects of poverty 

and improve the education and life outcomes of 

children.

Grow High-Performing Charter Schools 

and Other Innovative Public Schools. Effective charter schools have achieved impressive 

results in closing achievement gaps. The Budget 

will invest $490 million to grow these schools and 

other autonomous public schools that achieve results, develop new approaches, and give parents 

more choices. The Budget will support new options for students to transfer to high-performing 

public schools, support successful magnet schools, 

and require States and districts accepting these 

funds to create the conditions for effective schools 

to grow and ineffective schools to be restructured 

or shut down.

Restructure Narrow and Constrained Education Programs Into Broad and Flexible 

Competitions that Fund What Works. The 

Department of Education funds dozens of programs that narrowly limit what States, districts, 

and schools can do with funds. Some of these programs have little evidence of success, while others are demonstrably failing to improve student 

achievement. The President’s Budget eliminates 

six discretionary programs and consolidates 38 

K-12 programs into 11 new programs that emphasize using competition to allocate funds, giving communities more choices around activities, 

and using rigorous evidence to fund what works. 

The Administration will make sure that, under 

these competitions, there is an equitable geographic distribution of funds nationwide, including to rural communities. Building on the Recovery Act, the Administration proposes $500 million 

to expand the Investing in Innovation Fund, 

which will expand proven models—and fund and 

evaluate promising ones—for achieving student 

success. Finally, the Budget dedicates funds for 

the rigorous evaluation of education programs so 

that we can scale up what works and eliminate 

what does not. 

Expand and Reform Early Childhood 

Education. Quality early education is an 

investment that pays off for years to come by 

preparing the youngest children for a lifetime of 

learning. The 2011 Budget enables the Administration to build on the expansion to early learning programs made through the Recovery Act, 

and realize the President’s plan to reform early 

childhood education, promote high standards of 

quality, and focus on results for children from 

birth through preschool. In the 2011 Budget, the 

Administration supports pending legislation that 

will establish a new Early Learning Challenge 

Fund administered by the Department of Education and the Department of Health and Human 

Services to help States improve the quality of 

early childhood programs to help children enter 

school ready to succeed.

Invest in the Next Generation of Scientists and Engineers. Our Nation’s eighth graders are scoring below their peers from many Asian 

and European countries, and we are neither adequately closing the achievement gaps in math 

and science nor providing adequate opportunities 

for many students from diverse backgrounds. The 

Budget reflects the Administration’s investment 

in improving science, technology, engineering, 

and mathematics (STEM) outcomes and creating 
66 DEPARTMENT OF EDUCATION

the next generation of scientists and engineers 

who can help drive economic growth in the coming decades. The Budget provides $300 million in 

new grants to States to develop and implement 

instructional practices and improve teaching and 

learning in science and math aligned to new high 

standards. The Budget also dedicates $150 million within the Investing in Innovation Fund to 

competitive grants for school districts, nonprofits, and other organizations to test, validate, and 

scale promising strategies to improve teaching 

and accelerate student learning in STEM subjects. The Department of Education will work 

with the National Science Foundation and other 

Federal agencies to identify the most effective 

interventions that can help States, schools, and 

teachers improve STEM outcomes. 

Increase Pell Grants and Put Them on 

a Firm Financial Footing. Pell Grants have 

helped millions of Americans afford college, yet in 

recent decades, growth in their value has fallen far 

behind the growth in college costs. The Recovery 

Act and 2009 appropriations bill increased the 

maximum Pell Grant by more than $600 for a 

total award of $5,350, and the maximum award 

will increase to $5,550 in 2010. The Budget proposes to make that increase permanent and put 

them on a path to grow faster than inflation every 

year. The Budget also addresses a second problem: Pell Grants currently function much like 

an entitlement, yet they are funded through an 

annual appropriations process that can fall behind actual demand for the grants. The Budget 

proposes to make Pell Grant funding mandatory 

so that adequate Pell Grant funding is available 

every year.

Expand Financial Aid for Students and 

Make Historic Investments in Improving 

Education, from Cradle Through College. 

The Budget supports legislation that has passed 

the House and is pending in the Senate that 

would reform student lending to eliminate tens of 

billions of dollars in wasteful subsidies to banks, 

and instead, provide loans directly to students on 

an efficient basis that uses private and nonprofit companies to deliver services. This measure 

would then use savings to make historic investments to increase college access and success, and 

would lay a foundation for success for America’s 

youngest children. In addition to expanded Pell 

Grants and a simplified student aid system, these 

investments include a new American Graduation 

Initiative that will strengthen and support America’s community colleges, focus on college completion, and graduate 5 million more students by 

2020. Finally, to help graduates overburdened 

with student loan debt, the Administration will 

strengthen income-based repayment plans for 

student loans by reducing monthly payments and 

shortening the repayment period so that overburdened borrowers will pay only 10 percent of their 

discretionary income in loan repayments and can 

have their remaining debt forgiven after 20 years.

Spur Partnership and Innovation in Vocational Rehabilitation and Adult Education.

The Budget seeks $60 million in innovation funds 

to support seamless delivery of services and improved outcomes for people with disabilities and 

adults seeking basic skills. Under a new Partnership for Workforce Innovation, the Departments of Education and Labor will coordinate 

their innovation grants and work with other Federal agencies to break down program silos and to 

build and share evidence of what works.

Evaluate Rigorously Federal Education 

Programs. The Budget reflects the Administration’s commitment to rigorous evaluations that 

distinguish between what works and what doesn’t 

so we do not waste taxpayer dollars. Compared 

to two years ago, the current request represents 

a nearly 20 percent increase in the investment in 

the development, evaluation, and dissemination 

of education interventions that increase student 

learning and achievement through the Institute 

of Education Sciences. Additional funds will be 

used to evaluate Federal education programs rigorously, particularly investments launched under 

the Recovery Act. The increase in education research and evaluation will provide practitioners 

and policy makers with effective tools for preparing students for success in college and the workforce.
THE BUDGET FOR FISCAL YEAR 2011 67

Department of Education

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Legislative proposal, Elementary and Secondary Education Act: 

College and Career Ready Students 1 ������������������������������������������������������� 14,492 14,492 14,492

School Turnaround Grants ������������������������������������������������������������������������� 546 546 900

Race to the Top ������������������������������������������������������������������������������������������ — — 1,350

Investing in Innovation ������������������������������������������������������������������������������� — — 500

English Learner Education ������������������������������������������������������������������������� 730 750 800

Effective Teaching and Learning for a Complete Education ����������������������� 979 920 1,015

College Pathways and Accelerated Learning ��������������������������������������������� 51 103 100

Excellent Instructional Teams �������������������������������������������������������������������� 3,181 3,505 3,855

Expanding Educational Options ����������������������������������������������������������������� 369 409 490

Supporting Student Success ���������������������������������������������������������������������� 1,795 1,541 1,786

Special Education State Grants 2 �������������������������������������������������������������������� 12,319 12,319 12,569

Career and Technical Education Programs ����������������������������������������������������� 1,272 1,272 1,272

Adult Education State Grants �������������������������������������������������������������������������� 554 628 612

Workforce Innovation Fund ����������������������������������������������������������������������������� — — 60

Federal Student Aid:

 Supplemental Educational Opportunity Grants �������������������������������������������� 757 757 757

Federal Work Study ������������������������������������������������������������������������������������ 980 980 980

Higher Education:

 Minority Serving Institutions—Disretionary funding ������������������������������������ 516 613 642

 Minority Serving Institutions—Mandatory funding (non-add) ���������������������� 278 278 278

 TRIO programs—Discretionary funding ������������������������������������������������������ 848 853 853

 TRIO programs—Mandatory funding (non-add) ����������������������������������������� 57 57 57

 GEAR UP ���������������������������������������������������������������������������������������������������� 313 323 323

Student Aid Administration ������������������������������������������������������������������������������ 753 870 1,170

Institute of Education Sciences ����������������������������������������������������������������������� 617 659 739

All other ����������������������������������������������������������������������������������������������������������� 5,173 5,241 4,432

Total, Discretionary budget authority 3

 ����������������������������������������������������������������� 46,245 46,781 49,697

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ����������������������� 81,124 — —

Total, Discretionary outlays ����������������������������������������������������������������������������������� 44,971 46,743 46,740

Memorandum: Outlays from American Recovery and Reinvestment Act ������������� 14,154 44,054 20,304

Mandatory Outlays:

Legislative proposal, Federal Direct Student Loans ���������������������������������������� –4,263 –6,389 –9,244

Legislative proposal, Federal Family Education Loans ����������������������������������� –26,175 –12,649 –106

Legislative proposal, Perkins Loan Program ��������������������������������������������������� — — –736
68 DEPARTMENT OF EDUCATION

Department of Education—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

 Legislative proposal, Federal Pell Grants ����������������������������������������������������� 14,432 24,076 28,928

 Academic Competitive/SMART Grants �������������������������������������������������������� 607 836 824

 Vocational Rehabilitation (VR) State Grants ������������������������������������������������ 2,766 2,986 3,080

All other ����������������������������������������������������������������������������������������������������������� 71 421 1,993

Total, Mandatory outlays ��������������������������������������������������������������������������������������� –12,562 9,281 24,739

Memorandum: Outlays from American Recovery and Reinvestment Act ������������� 6,849 6,886 2,498

Total, Outlays �������������������������������������������������������������������������������������������������������� 32,409 56,024 71,479

Credit activity 

Direct Loan Disbursements:

Historically Black College and University Capital Financing ��������������������������� 120 160 186

Federal Direct Student Loans ������������������������������������������������������������������������� 37,770 67,754 132,427

TEACH Grants ������������������������������������������������������������������������������������������������ 49 52 65

Temporary Student Loan Purchase Authority ������������������������������������������������� 62,796 28,456 972

Federal Perkins Loans ������������������������������������������������������������������������������������ — — 1,355

Total, Direct loan disbursements ��������������������������������������������������������������������������� 100,735 96,422 135,005

Guaranteed Loan Disbursements:

Federal Family Education Loans ��������������������������������������������������������������������� 65,346 53,082 —

Total, Guaranteed loan disbursements ����������������������������������������������������������������� 65,346 53,082 —

1 Program level. Budget authority is $2,906 million less than program level in 2009 and $841 million less than program level in 2011. 2 Program level. Budget authority is $1,736 million less than program level in 2009 and $841 million less than program level in 2011. 3 Program level. The Budget authority is $4,889 million less than program level in 2009. The 2009 and 2010 discretionary totals do not include mandatory 

changes enacted in the appropriation bills for those years. The 2011 discretionary total is net of a $597 million rescission of Academic Competitiveness/

SMART Grant balances and a $56 million increase over the VR State Grants baseline.
69

The President’s 2011 Budget provides $28.4 

billion for the Department of Energy (DOE) to 

support scientific innovation, develop clean and 

secure energy technologies, maintain national 

security, and reduce environmental risk.

Invests in the Sciences. The 2011 Budget 

continues the President’s Plan for Science and 

Innovation. The Budget provides $5.1 billion for 

the Office of Science, including $1.8 billion for 

basic energy sciences to discover novel ways to 

produce, store, and use energy. The Budget also 

expands graduate research fellowship programs 

that will train students in critical energy-related 

fields. The 2011 Budget includes $300 million for 

the Advanced Research Projects Agency-Energy, 

to accelerate game-changing energy technologies 

in need of rapid and flexible experimentation or 

engineering.

Funding Highlights:

•	 Supports high-risk, high-payoff transformational research and development projects with $300

million for the recently established Advanced Research Projects Agency–Energy (ARPA-E).

•	 Supports and encourages the early commercial deployment of innovative energy technologies

with an additional $36 billion in guaranteed loan volume authority for advanced nuclear power

plants and an additional $500 million in credit subsidy to support $3 to $5 billion in loan

guarantees for innovative energy efficiency and renewable energy projects.

•	 Provides a 4.6 percent, or $226 million, increase in funding at the Office of Science for basic

research and world-leading laboratories to support transformational scientific discoveries and

accelerate solutions to our Nation’s most pressing challenges.

•	 Invests $2.3 billion in applied energy research and development to position the United States

as the world leader in energy technology that will address climate change, develop new

industries, and create new jobs.

•	 Accelerates the transition to a low-carbon economy through support of development and

deployment of clean energy technologies such as solar, biomass, geothermal, wind, nuclear,

and low-carbon emission coal power.

•	 Reduces security risks through major increases in funding for the detection, elimination, and

securing of nuclear material and radiological sources worldwide and the maintenance of a

safe, secure, and effective nuclear weapons stockpile.

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

materials.

DEPARTMENT OF ENERGY
70 DEPARTMENT OF ENERGY

Encourages the Early Commercial Use of 

New, Innovative Energy Technologies that 

Will Reduce Greenhouse Gas Emissions. 

The Budget substantially expands support for 

DOE loan guarantees for innovative energy 

technologies, by adding $36 billion in new loan 

authority (for a total of $54.5 billion) for nuclear 

power facilities and an additional $500 million 

in credit subsidy to support $3 to $5 billion in 

loan guarantees for innovative energy efficiency 

and renewable energy projects. The loan guarantee program also will continue to support a 

range of commercial renewable energy programs 

and other facilities that help reduce pollutants 

and greenhouse gases while simultaneously 

creating clean energy jobs and contributing to 

long-term economic growth and international 

competitiveness. 

Invests in Smart, Energy Efficient, and 

Reliable Electricity Delivery Infrastructure. The Budget continues to support the modernization of the Nation’s electric grid, by investing in research, development and demonstration 

of smart-grid technologies that will spur the transition to a smarter, more efficient, secure and reliable electric system. The end result will promote 

energy- and cost-saving choices for consumers, 

reduce emissions, and foster the growth of renewable energy sources like wind and solar. In addition, the Budget supports the Power Marketing 

Administration to reliably operate, maintain, and 

rehabilitate the Federal hydropower and transmission systems.

Advances the Development of Carbon 

Capture and Storage Technologies. The Budget supports a balanced research and development (R&D) portfolio of carbon capture and storage technologies. The $545 million for climate 

change technology funding provided for Fossil 

Energy R&D in the 2011 Budget will help reduce 

greenhouse gas emissions by focusing resources 

to develop carbon capture technologies with broad 

applications to advanced power systems, existing 

power plants, and industrial sources.

Invests in Clean Energy Technologies to 

Reduce Dependence on Oil and Accelerate 

the Transition to a Low-Carbon Economy. 

The Budget provides support for accelerating research, development, demonstration of nuclear 

technologies, and the commercialization of new 

nuclear power facilities and various clean energy technologies. Nearly $2.4 billion is provided 

for energy efficiency and renewable energy programs, an increase of $113 million over the 2010 

appropriation, including $302 million for solar 

energy, $220 million for biofuels and biomass 

R&D, $325 million for advanced vehicle technologies, and $231 million for energy efficient building 

technologies. These investments will help reduce 

dependence on oil and create long-term, sustainable economic growth in the low-carbon industries of the future, helping to foster long-term job 

creation. The Budget also eliminates funding for 

programs that provide inefficient fossil fuel subsidies that impede investment in clean energy 

sources and undermine efforts to deal with the 

threat of climate change.

Reduces Proliferation Risks and Promotes the Safety, Security, and Reliability 

of the Nuclear Weapons Stockpile Without 

Nuclear Testing. The Budget provides $2.7 billion, an increase of $550 million over the 2010 appropriation, to prevent the proliferation of nuclear weapons. This increase supports the strategy 

to move toward a world without nuclear weapons 

that the President announced in his April 2009, 

speech in Prague. This investment fully funds efforts to: secure nuclear material; develop technology to detect and deter nuclear testing and smuggling; and support international nonproliferation 

treaties, regulatory controls, and safeguards. 

Development work on the reliable replacement 

warhead has ceased. The 2011 Budget funds 

$8.1 billion, $750 million over the 2010 Budget, 

to improve the nuclear stockpile’s safety, security, 

and effectiveness with more extensive life extension programs, upgrades to the infrastructure 

supporting the life extension programs, and new 

initiatives in naval reactors work. Funding for 

the stockpile and naval reactors work increases 

by about 10 percent over 2010 funding. 
THE BUDGET FOR FISCAL YEAR 2011 71

Protects the Public from Harmful Exposure to Radioactive Waste and Nuclear 

Materials. The Environmental Management 

program continues to clean up the legacy of 

waste and contamination at sites used to produce 

nuclear weapons and conduct energy research. 

The Administration has determined that Yucca 

Mountain, Nevada, is not a workable option for 

a nuclear waste repository and will discontinue its program to construct a repository at the 

mountain in 2010. The Department will carry 

out its responsibilities under the Nuclear Waste 

Policy Act within the Office of Nuclear Energy 

as it develops a new nuclear waste management 

strategy.

Department of Energy

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

National Defense:

National Nuclear Security Administration ������������������������������� 9,121 9,877 11,215

Other Defense Activities ��������������������������������������������������������� 1,314 847 878

Energy Resources ���������������������������������������������������������������������� 4,131 4,292 5,065

Science ��������������������������������������������������������������������������������������� 4,773 4,895 5,121

Environmental Management ������������������������������������������������������� 5,992 6,008 6,000

Radioactive Waste Management ������������������������������������������������ 288 197 —

Corporate Management �������������������������������������������������������������� 207 220 212

Power Marketing Administration ������������������������������������������������� 234 99 95

Offsetting receipts ����������������������������������������������������������������������� –23 –27 –230

Total, Discretionary budget authority ������������������������������������������������� 26,037 26,406 28,354

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ��� 36,729 — —

Budget authority from supplementals ����������������������������������������������� 7,867 — —

Total, Discretionary outlays ��������������������������������������������������������������� 25,154 29,667 31,609

Memorandum: Outlays from American Recovery and Reinvestment Act �� 954 10,703 14,646

Mandatory Outlays:

Existing law ��������������������������������������������������������������������������������� –1,206 –752 –474

Legislative proposal, Ultradeep Water, Oil, and Gas Research 

and Development �������������������������������������������������������������������� — — 30

Total, Mandatory outlays ������������������������������������������������������������������� –1,206 –752 –444

Memorandum: Outlays from American Recovery and Reinvestment Act �� 33 109 131

Total, Outlays ������������������������������������������������������������������������������������ 23,948 28,915 31,165
72 DEPARTMENT OF ENERGY

Department of Energy—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Credit activity 

Direct Loan Disbursements:

Title 17 Innovative Technology Direct Loan Financing Account ����� 21 7,284 18,114

Advanced Technology Vehicles Manufacturing Direct Loan 

Financing Account�������������������������������������������������������������������� 886 5,304 11,352

Total, Direct loan disbursements ������������������������������������������������������� 907 12,588 29,466

Guaranteed Loan Commitments:

Title 17 Innovative Technology Loan Guarantee Program 1 ��������� — 3,054 9,016

Total, Guaranteed loan commitments ����������������������������������������������� — 3,054 9,016 1 Commitments reflect the full face value of debt obligations, any part of which is guaranteed, supported by Title 17. These figures represent loan guarantee 

obligations of the Government at closing, and do not include “conditional commitments,” which are legally contingent on the satisfaction of various conditions 

precedent.
73

Funding Highlights:

•	 Supports health insurance reform by expanding patient-centered health research to give 

patients and physicians the best available information on what treatments will work the best 

for them; supporting investments in health information technology; expanding prevention and 

wellness activities; and launching payment reform demonstration programs in Medicare.

•	 Adds $290 million for health centers to expand health care access to the medically 

underserved.

•	 Expands support for biomedical research, by providing an increase of $1 billion for the 

National Institutes of Health.

•	 Invests approximately $1.4 billion to strengthen food safety efforts and implement core 

principles of the President’s Food Safety Working Group.

•	 Supports over 8,500 health care professionals in medically underserved areas through the 

National Health Service Corps.

•	 Continues a commitment to invest in the Indian health system to eliminate health disparities 

by increasing access to health care services among American Indians and Alaska Natives.

•	 Invests in our Nation’s prevention and wellness activities to improve health outcomes and 

lower costs, through the Federal workforce, community-based and State and local efforts.

•	 Invests more than $3 billion for HIV/AIDS prevention and treatment activities to expand 

access to affordable health care and prevention services. 

•	 Includes $25.5 billion for a six-month extension of the American Recovery and Reinvestment 

Act (AARA) temporary increase in the Federal Medicaid match. 

•	 Improves preparedness by increasing funding for biodefense medical countermeasure 

development.

•	 Places a renewed emphasis on preventing, detecting, and recouping fraudulent, wasteful, and 

abusive payments in Medicare, Medicaid, and the Children’s Health Insurance Program. 

•	 Expands and strengthens early education and child care programs by extending the ARRA 

expansion of Head Start and Early Head Start, providing an increase of $1.6 billion for 

child care to serve 235,000 more children than could be served without the additional funds 

in 2011, and supporting work with the Congress to improve quality in the Child Care and 

Development Fund.

•	 Increases help for families caring for aging relatives at home. 

DEPARTMENT OF HEALTH AND HUMAN SERVICES
74 DEPARTMENT OF HEALTH AND HUMAN SERVICES

The Department of Health and Human Services (HHS) is the principal Federal agency charged 

with protecting the health of all Americans and 

providing essential human services. This Budget 

includes $81.3 billion to support HHS’s mission. 

Builds on Health Information Technology 

(IT) Adoption Momentum. The Administration continues to prioritize adoption and use of 

health IT. The Budget includes $110 million for 

continuing efforts to strengthen health IT policy, 

coordination, and research activities. Combined 

with the ARRA Federal grant and incentives programs designed to assist providers with adoption 

and meaningful use of electronic health records, 

these efforts will positively affect and improve 

the quality of health care while protecting privacy and security of personal health information.

Increases Investment in Patient-Centered 

Health Research. The Budget includes $286 

million in the Agency for Healthcare Research 

and Quality for research that compares the effectiveness of different medical options, building 

on the expansion of this research begun under 

ARRA. The dissemination of this research is expected to lead to higher quality, evidence-based 

medicine, arming patients and physicians with 

the best available information to allow them to 

choose the medical option that will work the best 

for them. 

Expands Affordable High-Quality Primary and Preventive Care. The Budget includes $2.5 billion for health centers to provide 

affordable high quality primary and preventive 

care to underserved populations, including the 

uninsured. This will allow health centers to continue to provide care to the 2 million additional 

patients they served under ARRA and support 

approximately 25 new health center sites. In 

2008, health centers provided direct health care 

services to 17 million people. In 2011, the Health 

Center program will expand its partnerships with 

other Federal agencies as part of the Administration’s place-based initiative to revitalize neighborhoods. The Budget also includes funding to 

expand the integration of behavioral health into 

existing primary health care systems, enhancing 

the availability and quality of addiction care.

Funds Innovative Efforts to Improve Services for Seniors and People with Disabilities. The Budget includes new Medicare and 

Medicaid demonstration projects that evaluate 

reforms to provide higher quality care at lower 

costs, improve beneficiary education and understanding of benefits offered, and better align provider payments with costs and outcomes. Special 

emphasis will be placed on demonstrations that 

improve care coordination for beneficiaries with 

chronic conditions, that better integrate Medicare 

and Medicaid benefits, and that provide higher 

value for dollars spent. The Budget will also support the Year of Community Living Initiative to 

promote collaboration between HHS and the Department of Housing and Urban Development to 

expand access to housing and community supports to enable people with disabilities to live 

in the community, as opposed to in institutional 

settings.

Supports Biomedical Research at the 

National Institutes of Health (NIH). To 

accelerate progress in biomedical research, NIH 

investments will focus on priority areas including genomics, translational research, science to 

support health care reform, global health, and 

reinvigorating the biomedical research community. The Budget includes $6,036 million to support a range of bold and innovative cancer efforts, 

including the initiation of 30 new drug trials in 

2011, and a doubling of the number of novel compounds in Phase 1–3 clinical trials by 2016. In 

addition, the Budget will support the completion 

of a comprehensive catalog of cancer mutations 

for the 20 most common malignancies, setting 

the stage for complete genomic characterization 

of every cancer as part of medical care within 10 

years.

Supports Americans with Autism Spectrum Disorders (ASD). The Budget includes 

$222 million across HHS to expand research, detection, treatment, and other activities related to 

improving the lives of individuals and families affected by ASD. NIH will pursue comprehensive 
THE BUDGET FOR FISCAL YEAR 2011 75

and innovative approaches to defining the genetic 

and environmental factors that contribute to ASD, 

investigate epigenomic changes in the brain, and 

accelerate clinical trials of novel pharmacological 

and behavioral interventions by 2016.

Improves Access to and the Quality of 

Health Care in Rural Areas. The Budget includes $79 million for an initiative to strengthen regional and local partnerships among rural 

health care providers, increase the number of 

health care providers in rural areas, and improve 

the performance and financial stability of rural 

hospitals.

Increases Number of Primary Health Care 

Providers. The Budget invests $169 million in 

the National Health Service Corps (NHSC) to 

place providers in medically underserved areas 

to improve access to needed health care services. Under NHSC, primary health professionals 

such as physicians, nurse practitioners, and dentists agree to serve in a medically underserved 

community in exchange for receiving a portion of 

their student loans paid off. In 2011, the requested increase will add 400 NHSC clinicians to the 

more than 8,100 that will be providing essential 

primary and preventative care services in health 

care facilities across the country.

Continues Efforts to Increase Access to 

Health Care for American Indians and Alaska Natives (AI/ANs). The Budget includes $4.4 

billion for the Indian Health Service (IHS) to expand investments initiated in 2010. Increases 

for IHS will strengthen existing Federal, tribal, 

and urban programs that serve 1.9 million AI/

ANs at approximately 600 facilities nationwide, 

and will expand access to Contract Health Services to cover health care services provided outside of the Indian health system when services 

are not available at IHS-funded facilities. The 

Budget will also fund staff and operating costs 

at new and expanded facilities to increase access 

to health care services and enhance the Indian 

health system. The efforts supported in the Budget to expand health services in Indian communities also include an analysis of how IHS can 

improve distribution of resources throughout the 

Indian health system.

Expands and Strengthens Prevention and 

Wellness Activities. The Budget bolsters core 

prevention activities by expanding community 

health activities, strengthening the public health 

workforce, and enhancing surveillance and 

health statistics to improve detection and monitoring of chronic disease and health outcomes. 

The Budget funds a new effort in up to 10 of the 

largest cities in the United States to reduce the 

rates of morbidity and disability due to chronic 

disease through effective policy and environmental change strategies. The Budget also supports 

a new health prevention workforce to improve capacity of State and local health departments. 

Invests in Wellness Initiatives for the 

Federal Workplace to Improve Health and 

Lower Costs. The Budget invests $10 million 

for the Federal employee workplace wellness initiative. This initiative will implement prototype 

wellness programs in select locations that will be 

rigorously evaluated for their ability to produce a 

healthier workforce and lower healthcare costs. 

By encouraging the adoption of these programs, 

we can improve the productivity of our workforce, delay or avoid many of the complications 

of chronic disease, and slow medical cost growth.

Expands and Focuses HIV/AIDS Treatment, Care, and Prevention Activities. The 

Budget expands access to HIV/AIDS prevention and treatment activities consistent with the 

President’s pledge to develop a National HIV/

AIDS Strategy that will focus on reducing HIV 

incidence, increasing access to care and optimizing health outcomes, and reducing HIV-related 

health disparities. The Budget focuses HIV testing among high-risk groups, including men who 

have sex with men, African Americans, and Hispanics. The Budget increases resources for the 

Ryan White program to support the care and 

treatment needs for persons living with HIV/

AIDS who are unable to afford health care and 

related support services. The Budget directs resources to reduce HIV-related health disparities 

by expanding HIV/AIDS medical services within 
76 DEPARTMENT OF HEALTH AND HUMAN SERVICES

populations disproportionately impacted by the 

epidemic. The Budget also enhances funding 

for collaboration and integration activities to 

improve overall health outcomes for those with 

HIV/AIDS and co-infections with tuberculosis, 

hepatitis, and sexually transmitted diseases.

Expands Substance Abuse Prevention 

and Treatment Activities. The Budget expands substance abuse treatment services at IHS 

facilities and federally qualified health centers, 

and provides $23 million for comprehensive substance abuse prevention services targeting early 

risk factors that can improve health outcomes for 

children and young adults. To assist in recovery 

to reduce recidivism, the Budget provides $56 

million to expand the treatment capacity at drug 

courts and $23 million for re-entry programs. 

These activities are a part of over $150 million 

in new funding for the Departments of Health 

and Human Services and Justice (DOJ) to reduce 

the Nation’s demand for drugs by strengthening efforts to detect and prevent illicit drug use 

in our communities, expanding early drug abuse 

intervention in the primary health care system, 

enhancing specialty addiction treatment services, 

and breaking the cycle of illicit drug use, crime, 

and incarceration.

Bolsters the Safety of our Food and Medicines. The Budget provides $2.5 billion in budget authority and $4.0 billion in total program 

resources for the Food and Drug Administration 

(FDA). The Budget enables FDA to implement 

the core principles recommended by the President’s Food Safety Working Group: prioritizing 

prevention; strengthening surveillance and enforcement; and improving response and recovery. 

The Budget also includes increases to bring more 

safe, effective, and lower cost generic drugs and 

generic biologics to market, expand postmarket 

safety surveillance of medical products, and support FDA’s efforts to make such safety data more 

comprehensive and accessible to patients, providers, and scientists in a way that also protects 

privacy. 

Strengthens the Nation’s Preparedness 

Against Naturally Occurring Threats and 

Intentional Attacks. The Budget increases 

support to over $400 million to enhance the Advanced Development of next generation medical 

countermeasures against chemical, biological, radiological and nuclear threats. The Department 

has invested $5.6 billion since 2005 to enhance 

the Nation’s ability to rapidly respond to an influenza pandemic. In April 2009, the President 

requested resources from the Congress to enable 

additional efforts to respond to the 2009 H1N1 

virus that had recently emerged and in June, the 

Congress provided $7.65 billion in the Supplemental Appropriations Act 2009. By the end of 

2009, more than $3.6 billion had been spent as 

the Federal Government procured H1N1 vaccines, mounted a mass vaccination campaign, 

provided resources to the States to enhance public health response efforts, and provided critical 

anti-viral medications and personal protective 

equipment. In 2010, HHS will continue to use 

these resources to build the U.S.-based influenza 

vaccine production capacity and shift to non-egg 

based production technologies and invest in the 

development of improved diagnostics. Approximately $330 million of these resources is expected to be spent in 2011. These ongoing activities to 

reduce the impact of influenza pandemics will be 

funded from resources in the 2009 Supplemental 

for pandemic influenza.

Fights Waste and Abuse in Medicare, Medicaid, and the Children’s Health Insurance 

Program (CHIP). Reducing fraud, waste, and 

abuse is an important part of restraining spending growth and providing quality service delivery 

to beneficiaries. In November 2009, the President 

signed an Executive Order to reduce improper 

payments by boosting transparency, holding 

agencies accountable, and creating incentives for 

compliance. This Budget puts forward a robust 

set of proposals to strengthen Medicare, Medicaid 

and CHIP program integrity actions, including 

proposals aimed at preventing fraud and abuse 

before they occur, detecting it as early as possible 

when it does occur, and vigorously enforcing all 

penalties and recourses available when fraud is 

identified. It proposes $250 million in addition-
THE BUDGET FOR FISCAL YEAR 2011 77

al resources that, among other things, will help 

expand the Health Care Fraud Prevention and 

Enforcement Action Team (HEAT) initiative, a 

joint effort by HHS and DOJ. As a result, the Administration will be better able to minimize inappropriate payments, close loopholes, and provide 

greater value for program expenditures to beneficiaries and taxpayers. Also, to improve quality 

and safety, the Administration will strengthen its 

Medicare requirements to assure that air ambulance operators comply with aviation safety 

standards.

Supports Young Children and Their Families. The Budget provides critical support for 

young children and their families by building on 

historic increases provided in ARRA. The Budget provides an additional $989 million for Head 

Start and Early Head Start to continue to serve 

64,000 additional children and families funded 

in ARRA. The Budget also provides an additional $1.6 billion for the Child Care and Development Fund in preparation for reauthorization 

to expand child care opportunities, and improve 

health, safety, and outcomes for children. This request will allow States to provide child care subsidies to 1.6 million children, 235,000 more than 

could be served without the increase. 

Helps Families Care for Aging Relatives. 

The Budget includes $103 million for the Administration on Aging’s Caregiver Initiative, an effort 

to expand help to families and seniors so that 

caregivers can better manage their multiple responsibilities and seniors can live in the community for as long as possible. Without creating new 

programs, this initiative provides new resources 

to support the network of agencies in local communities across the country that already provide 

critical help to seniors and caregivers.

Provides Energy Assistance to Low-Income Families. The Budget includes $3.3 billion for the Low Income Home Energy Assistance 

Program to help low-income families with their 

home heating and cooling expenses. In addition, 

the Administration proposes a new trigger mechanism to provide automatic increases in energy 

assistance whenever there is a spike in energy 

costs or large numbers of families in poverty. The 

trigger allows the program to be more responsive 

to volatile energy markets and to increased demand for energy assistance during times of economic hardship. Using probabilistic scoring, we 

expect the trigger to provide roughly $2 billion 

in additional assistance in 2011 and $6.5 billion 

over 10 years. 

Help States Provide Health Care Coverage to Low-Income Individuals. The Budget 

includes $25.5 billion to support State Medicaid programs by temporarily increasing Federal 

Medicaid funding for six months through June 

2011. The Federal Medical Assistance Percentage (FMAP) increase has been an effective way 

to help States maintain their Medicaid programs 

during a period of high enrollment growth and reduced State revenue, and provide immediate and 

ongoing State fiscal relief. 

Department of Health and Human Services

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Food and Drug Administration 1 ���������������������������������������������������������������� 2,061 2,362 2,508

Program Level (non-add)  2,691 3,284 4,031

Health Resources and Services Administration ���������������������������������������� 7,243 7,484 7,512

Indian Health Service �������������������������������������������������������������������������������� 3,581 4,053 4,406
78 DEPARTMENT OF HEALTH AND HUMAN SERVICES

Department of Health and Human Services—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Centers for Disease Control and Prevention ��������������������������������������������� 6,357 6,467 6,342

National Institutes of Health ���������������������������������������������������������������������� 30,096 31,089 32,089

Substance Abuse and Mental Health Services Administration ����������������� 3,335 3,432 3,541

Agency for Healthcare Research and Quality ������������������������������������������� — — —

Program Level (non-add)  372 397 611

Centers for Medicare & Medicaid Services (CMS) 2

 �������������������������������� 3,522 3,415 3,601

Discretionary Health Care Fraud and Abuse Control �������������������������������� 198 311 561

Administration for Children and Families ��������������������������������������������������� 17,225 17,336 17,480

Administration on Aging ���������������������������������������������������������������������������� 1,488 1,513 1,625

General Departmental Management �������������������������������������������������������� 395 500 544

Office of Civil Rights ���������������������������������������������������������������������������������� 40 41 44

Office of the National Coordinator for Health Information Technology ������� 44 42 78

Program Level (non-add)  61 61 78

Office of Medicare Hearings and Appeals ������������������������������������������������ 65 71 78

Public Health and Social Services Emergency Fund �������������������������������� 1,399 1,347 735

Office of Inspector General ����������������������������������������������������������������������� 45 50 52

All other ����������������������������������������������������������������������������������������������������� 58 61 61

Subtotal, Discretionary budget authority���������������������������������������������������������� 77,152 79,574 81,257

Unallocated Bioshield Balances Transferred from Department of 

Homeland Security 3

������������������������������������������������������������������������������� — 2,424 —

Total, Discretionary budget authority ��������������������������������������������������������������� 77,152 81,998 81,257

Memorandum: 

Budget authority from American Recovery and Reinvestment Act 22,397 — —

Budget authority from supplementals 9,119 — —

Total, Discretionary outlays 2 ��������������������������������������������������������������������������� 74,921 82,266 82,803

Memorandum: Outlays from American Recovery and Reinvestment Act 682 8,437 10,100

Mandatory Outlays:

Medicare

Existing law 4 ���������������������������������������������������������������������������������������� 424,828 450,664 489,305

Legislative proposal ����������������������������������������������������������������������������� — — -722

Medicaid 5

Existing law ������������������������������������������������������������������������������������������ 226,885 245,118 264,498

Legislative proposal ����������������������������������������������������������������������������� — 15 25,280

All other 

Existing law ������������������������������������������������������������������������������������������ 34,503 34,872 35,915

Legislative proposal ����������������������������������������������������������������������������� — — 3,774

Total, Mandatory outlays ��������������������������������������������������������������������������������� 686,216 730,669 818,050
THE BUDGET FOR FISCAL YEAR 2011 79

Department of Health and Human Services—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Memorandum: Outlays from American Recovery and Reinvestment Act 32,673 45,674 21,520

Total, Outlays �������������������������������������������������������������������������������������������������� 761,137 812,935 900,853 1

 FDA 2009 budget authority increased by $6 million due to timing and availability of user fees.

2

 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.

3

 In 2010, $3,033 million from the Bioshield Special Reserve Fund (SRF) was transferred from the Department of Homeland Security to the Department of 

Health and Human Services. Of this amount, $609 million was redirected to support Advanced Development and NIH, and $2,424 million remains as 

balances in the SRF. In 2011, $476 million from the SRF will be used to support the Biomedical Advanced Research and Development Authority.

4

 Includes $44 million in 2009, $36 million in 2010, and $3 million in 2011 of CMS Program Management mandatory funding. Social Security Medicare 

Improvements for Patients and Providers Act (MIPPA) funding is included in the corresponding table of the SSA chapter.

5 Totals include Medicaid, CHIP, and CHIP Child Enrollment Contingency Fund outlays.

81

The Department of Homeland Security (DHS) 

is the principal Federal agency charged with 

such vital missions as aviation and border security, preparedness and emergency response, 

maritime safety and security, and protecting our 

Nation’s leaders. The Budget includes $44 billion 

to support these missions. 

Safeguards Our Nation’s Transportation 

Systems. The Budget provides $734 million 

to support the deployment of up to 1,000 new 

Advanced Imaging Technology (AIT) screening 

machines at airport checkpoints and new explosive detection equipment for baggage screening 

in 2011. AIT machines allow security officers to 

detect both metallic and non-metallic anomalies, 

such as weapons and explosives on persons entering an airport’s sterile area. Additional funding 

is also included for the Federal Air Marshal Service (FAMS). This funding will allow the FAMS 

to increase the number of international flights 

covered by FAMS to defend against attempted 

attacks on aviation. The Budget provides $54 

million for the continued modernization and 

streamlining of transportation security vetting 

and credentialing, which will reduce duplicative 

Transportation Security Administration processes and systems. This modernization will eliminate redundancies for those applying for multiple credentials as all vetting will be performed 

centrally, allowing for multiple credentials to be 

issued with a single vetting process.

Funding Highlights:

•	 Supports aviation security by deploying up to 1,000 Advanced Imaging Technology screening 

machines that can identify anomalies such as firearms and explosives on passengers, and by 

increasing the number of international flights on which Federal Air Marshals are present.

•	 Protects against threats to the homeland by procuring and deploying next-generation 

BioWatch sensors nationwide and supporting the Comprehensive National Cybersecurity 

Initiative.

•	 Strengthens border security and immigration enforcement by supporting 20,000 Border Patrol 

agents, adding 300 new officers at ports of entry, completing the first segment of the virtual 

border fence, and by enhancing and expanding immigration verification systems. 

•	 Supports State homeland security activities through funding provided to States and localities 

to protect Americans from terrorist attacks and natural disasters. Specifically, provides $4 

billion in State and local programs funding for risk-informed grants and additional assistance 

to our Nation’s first responders as well as $1.95 billion for disaster assistance. 

•	 Continues recapitalization of key Coast Guard assets, including $538 million to construct the 

fifth National Security Cutter and $240 million to construct four more Fast Response Cutters.

DEPARTMENT OF HOMELAND SECURITY
82 DEPARTMENT OF HOMELAND SECURITY

Prevents Biological, Radiological, and 

Nuclear Attacks. The Budget funds activities 

to prevent attacks to our Nation. Procurement 

and nationwide deployment of next-generation 

BioWatch sensors is funded at $89 million. These 

sensors will detect bio-attacks at the earliest 

possible instant. As part of the ongoing effort to 

protect against radiological or nuclear threats, 

the Budget funds $61 million for radiation detection equipment to enhance the Department of 

Homeland Security’s detection capabilities at sea 

ports, land border crossings, and airports.

Strengthens Border Security and Immigration Verification Programs. The Budget includes funding to support 20,000 Border 

Patrol agents and complete the first segment of 

Customs and Border Protection’s (CBP’s) virtual 

border fence. The Budget also includes funding 

for 300 new CBP officers for passenger and cargo 

screening at ports of entry, as well as expansion of 

pre-screening operations at foreign airports and 

land ports of entry. The Budget provides more 

than $1.6 billion for Immigration and Customs 

Enforcement programs to expeditiously identify 

and remove from the United States illegal aliens 

who commit crimes. Included in this total is 

continued support for the Secure Communities 

program.

To enhance and expand immigration related 

verification programs, the Budget provides $137 

million to the U.S. Citizenship and Immigration Services. Through E-Verify, U.S. employers 

can maintain a legal workforce by verifying the 

employment eligibility of their workers, while 

Systematic Alien Verification for Entitlements 

(SAVE) assists Federal, State, and local benefit-granting agencies with determining eligibility for benefits by verifying immigration status. These programs promote compliance with 

immigration laws and prevent individuals from 

obtaining benefits for which they are not eligible.

Protects Critical Information Networks.

Data networks are central to the functioning of 

our economy and Nation. The Budget provides 

$364 million to support the operations of the 

National Cyber Security Division, which protects 

Federal systems as well as continuing efforts under the Comprehensive National Cybersecurity 

Initiative to protect our information networks 

from the threat of attacks or disruptions.

Promotes Citizenship and Integration. 

The Budget increases support for integration 

of new immigrants with $18 million identified 

to promote citizenship through education and 

preparation programs, replication of promising 

practices in integration for use by communities 

across the Nation, and expansion of innovative 

English learning tools. 

Invests Significantly in Upgrading the 

Coast Guard Fleet. The Budget funds $538 

million to construct the fifth Coast Guard 

National Security Cutter and $240 million to 

produce four new Fast Response Cutters. Funding of $45 million enables Coast Guard to move 

ahead with selection of a design for the Offshore 

Patrol Cutter. These new assets replace an 

aging fleet of cutters and patrol boats and provide stronger command and control platforms 

for more effective and efficient execution of all 

Coast Guard missions. 

Supports First Responders, National 

Preparedness, and Response Capabilities. 

The Budget funds $4 billion in State and local programs, including Firefighter Assistance 

Grants, for equipping, training, exercising, and 

hiring first responders. Of this amount, funding of $1.1 billion for the Urban Area Security 

Initiative will direct resources to the metropolitan vicinities with the highest threat—based on 

a risk management methodology. Funding of 

$600 million provides essential support to the 

transportation sector through the Transit and 

Port Security Grant Programs. The Budget also 

supports disaster response and resilience efforts 

by funding the Disaster Relief Fund (DRF) at 

$1.95 billion. The DRF is used in the instance of 

a presidentially-declared disaster or emergency 

by the Federal Emergency Management Agency to assist State and local governments in the 
THE BUDGET FOR FISCAL YEAR 2011 83

response, recovery, and mitigation against emergency and disaster events. 

Cuts Waste and Improves Performance by 

Integrating and Unifying the Department.

The Budget funds a number of activities to improve ongoing operations at DHS, including $288 

million for the consolidation of DHS into one 

major complex in the National Capital Region. 

Funding is also provided to enhance the capability and capacity of the DHS acquisition workforce.

Department of Homeland Security

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Departmental Management and Operations �������������������������������������������� 963 1,131 1,618

Office of the Inspector General ���������������������������������������������������������������� 123 130 130

U.S. Citizenship and Immigration Services ���������������������������������������������� 149 224 382

United States Secret Service ������������������������������������������������������������������� 1,412 1,483 1,572

Transportation Security Administration ���������������������������������������������������� 4,741 5,126 5,724

Federal Law Enforcement Training Center ����������������������������������������������� 333 282 278

Immigration and Customs Enforcement ��������������������������������������������������� 4,992 5,437 5,524

Customs and Border Protection ��������������������������������������������������������������� 9,686 10,134 9,817

U.S. Coast Guard ������������������������������������������������������������������������������������� 8,112 8,595 8,466

National Protection and Programs Directorate ���������������������������������������� 3,108 –1,584 1,460

Federal Emergency Management Agency ����������������������������������������������� 7,001 7,108 7,294

Science and Technology �������������������������������������������������������������������������� 933 1,000 1,018

Domestic Nuclear Detection Office ���������������������������������������������������������� 514 376 306

Total, Gross ����������������������������������������������������������������������������������������������������� 44,591 41,732 45,922

Less fee-funded activities ������������������������������������������������������������������������ 2,526 2,290 2,333

Total, Discretionary budget authority (net) ������������������������������������������������������ 42,065 39,442 43,589

Bioshield (non-add) ���������������������������������������������������������������������������������� 1,763 –3,033 —

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ����������������� 2,755 — —

Budget authority from supplementals ������������������������������������������������������������� 500 3,842 254

Total, Discretionary outlays ����������������������������������������������������������������������������� 48,967 51,404 53,248

Memorandum: Outlays from American Recovery and Reinvestment Act ������� 107 1,313 1,077

Mandatory Outlays:

U.S. Citizenship and Immigration Services ���������������������������������������������� 2,390 2,314 2,568

Federal Emergency Management Agency ����������������������������������������������� 2,116 –158 –9
84 DEPARTMENT OF HOMELAND SECURITY

Department of Homeland Security—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Customs and Border Protection 

Existing law ����������������������������������������������������������������������������������������� 1,055 1,327 1,373

Legislative proposal ���������������������������������������������������������������������������� — — 5

U.S. Coast Guard ������������������������������������������������������������������������������������� 1,512 1,500 1,604

Transportation Security Administration ���������������������������������������������������� 290 369 407

All other ���������������������������������������������������������������������������������������������������� –4,694 –5,154 –5,538

Total, Mandatory outlays ��������������������������������������������������������������������������������� 2,669 198 410

Total, Outlays �������������������������������������������������������������������������������������������������� 51,636 51,602 53,658

Credit activity 

Direct Loan Disbursements:

Disaster Assistance ��������������������������������������������������������������������������������� 89 160 160

Total, Direct loan disbursements ��������������������������������������������������������������������� 89 160 160
85

The Department of Housing and Urban 

Development (HUD) is committed to fulfilling 

its mission of supporting home ownership, 

increasing access to affordable housing free 

from discrimination, and supporting innovative 

and sustainable community development. 

The President’s Budget provides $48.5 billion 

in program funding to support HUD’s core 

programs and new initiatives to achieve these 

important goals while protecting taxpayer 

dollars and reducing costs through stronger risk 

management and reform of inefficient programs. 

This funding will be offset by estimated 

collections of $6.9 billion from responsible credit 

premiums charged for HUD mortgage insurance 

and other credit enhancements.

Funding Highlights:

•	 Provides $4.4 billion for the Community Development Fund, including full funding of 

Community Development Block Grant formula funds and $150 million for Catalytic Investment 

Competition Grants to implement economic development activities in targeted distressed 

communities. 

•	 Provides a $2.1 billion increase over the 2010 Budget for rental assistance to extremely 

low- and low-income families through Housing Choice Vouchers and Project-Based Rental 

Assistance. Rental assistance helps prevent homelessness and other hardships.

•	 Begins a new multi-year initiative to combine the Department’s multiple rental assistance 

programs into a single funding stream and encourage entities that administer Housing 

Choice Vouchers to operate on a regional basis. This initiative will more effectively preserve 

the public housing stock, provide assisted families greater housing mobility, and streamline 

Department operations.

•	 Strengthens communities and regions through place-based initiatives. The 2011 Budget 

requests an additional $250 million for Choice Neighborhoods; and includes $150 million for 

the Department’s role in developing and supporting the Sustainable Communities initiative in 

partnership with the Department of Transportation and the Environmental Protection Agency.

•	 Provides an unprecedented $2.1 billion for the Department’s Homeless Assistance Grants 

Program to implement the Homeless Emergency Assistance Rapid Transition to Housing 

(HEARTH) Act; the budget for homeless programs reflects the Administration’s commitment 

and goal to make visible, sustained progress toward ending homelessness. 

•	 Reforms Federal Housing Administration (FHA) mortgage insurance, increases funding 

for FHA information technology and risk management, and provides additional funds for 

combating mortgage fraud.

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT
86 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Fully Funds the Community Development 

Block Grant Program. The Budget provides 

$4.4 billion for the Community Development 

Fund, including $3.99 billion for the Community Development Block Grant (CDBG) formula 

program, and $150 million for the creation of a 

Catalytic Investment Competition Grants program. The new Catalytic Competition Grants 

program uses the authorities of CDBG, but will 

provide capital to bring innovative economic development projects to scale to make a measurable 

impact. The competitive grants will fund applicants with targeted economic investments while 

leveraging other federal neighborhood revitalization programs, including mainstream CDBG 

funding. Unlike CDBG, consortia including high 

capacity non-governmental entities that have developed an innovative plan may apply, along with 

governmental entities, and the grants will target 

areas experiencing significant economic distress. 

The program will create a well-targeted funding 

stream that is responsive to changes in market 

conditions and that enhances the economic competitiveness of distressed communities. 

Increases Funding for the Housing Choice 

Voucher Program. The President’s Budget 

requests $19.6 billion for the Housing Choice 

Voucher program to help more than two million 

extremely low- to low-income families with rental 

assistance to live in decent housing in neighborhoods of their choice. The Budget continues funding for all existing mainstream vouchers and provides flexibility to support new vouchers leased in 

2009 and 2010 and $85 million in special purpose 

vouchers for homeless families with children, 

families at risk of homelessness, and persons 

with disabilities. The Administration remains 

committed to working with the Congress to focus 

the goals and objectives of the program, as well as 

address the program’s costly inefficiencies, and to 

fully utilize available funding by alleviating the 

administrative burdens on the Public Housing 

Authorities that implement HUD voucher and 

other programs, and establish a funding mechanism that is transparent and predictable in order 

to serve more needy families. 

Preserves 1.3 Million Affordable Rental 

Units through Project-Based Rental Assistance Program. The President’s Budget provides $9.4 billion for the Project-Based Rental Assistance program to preserve approximately 1.3 

million affordable rental units through increased 

funding for contracts with private owners of multifamily properties. This critical investment will 

help extremely low- to low-income households to 

obtain or retain decent, safe and sanitary housing.

Launches the Conversion of Public 

Housing to Project-based Vouchers Through 

the Transforming Rental Assistance Initiative. The Administration requests $350 million 

to fund the first phase of this multi-year initiative to regionalize the Housing Choice Voucher 

program and convert Public Housing to projectbased vouchers. The primary goals of this initiative are to improve the physical condition and 

management of the public housing stock, increase 

the mobility of assisted families, and streamline 

HUD oversight of its rental assistance programs.

Combats Mortgage Fraud. The Budget provides $20 million for HUD to combat mortgage 

fraud and predatory lending practices. These 

resources will allow HUD to increase enforcement of mortgage and home purchase settlement 

requirements.

Provides Funding for Choice Neighborhoods. By providing $250 million in 2011, the 

Budget continues HUD’s effort to make a range 

of transformative investments in high-poverty 

neighborhoods where public and assisted housing 

is concentrated. A central element of the Administration’s place-based agenda, this initiative will 

invest in public, private and nonprofit partners 

that have transformative neighborhood interventions and provide the greatest returns on Federal 

investment. 

Implements the Homeless Emergency 

Assistance Rapid Transition to Housing 

(HEARTH) Act. The President’s Budget provides 

$2.1 billion for HUD’s Homeless Assistance 

Programs to effectively implement the HEARTH 

Act. Enacted in May 2009 to fundamentally 

transform the Federal response to homelessness, 

HEARTH streamlined three current homeless 

programs into one, placed greater emphasis on 

homelessness prevention, and provided increased 

funds for renewal costs and permanent housing 
THE BUDGET FOR FISCAL YEAR 2011 87

beds. The Budget will support the key priorities 

reflected in HEARTH, including $200 million for 

Emergency Solutions Grant, funding for about 

10,000 new permanent housing beds, and a competitive rural program. HUD is also working 

in partnership with the Department of Veteran 

Affairs to substantially lower the number of 

homeless veterans.

Helps Communities Become More 

Sustainable and Livable. As part of the President’s Partnership for Sustainable Communities, 

the Budget includes $150 million to help stimulate 

comprehensive regional and community planning 

efforts that integrate transportation and housing 

investments that result in more regional and local 

sustainable development patterns, reduce greenhouse gases, and increase more transit accessible 

housing choices for residents. HUD’s Sustainable 

Communities Initiative also expands and better 

coordinates Federal efforts to create incentives 

for State and local governments to plan for and 

implement pre-disaster mitigation strategies. 

Coordinating hazard mitigation efforts with related sustainability goals and activities will reduce risks while protecting life, property, and the 

environment. Combined with the Department of 

Transportation’s funding for strengthening the 

capacity of States and local governments to make 

smarter infrastructure investments and the Environmental Protection Agency’s technical assistance, this interagency Partnership, which is one 

of the pillars of the Administration’s place-based 

agenda, aims to lower the cost of living while improving the quality of life in local communities. 

It will do so by providing more coordinated housing and transportation options, improving environmental quality, and better leveraging Federal 

investments.

Enhances FHA’s Risk Management and 

Housing Counseling. The Budget provides 

an additional $18 million for FHA to enhance 

its monitoring and management of its insurance 

portfolio’s financial risk. In addition, the Budget 

includes programmatic changes to single-family mortgages insured by FHA. These changes, 

which include raising the minimum credit score 

for high-risk borrowers and restructuring of insurance premiums, will reduce risk and replenish 

FHA’s capital reserves while allowing it to meet 

its mission of providing sound access to home 

financing for underserved populations. In addition, the Budget proposes $338 million for housing counseling, including a greater than 7 percent 

increase for the Neighborhood Reinvestment Corporation (NeighborWorks), which will fund vital 

foreclosure counseling services in communities 

across the Nation. 

Expands Funding for High-Priority 

Research and Program Evaluations. The 

Budget provides increased funding for housing research, fully funds the American Housing Survey, 

and funds three new impact evaluations as part 

of the Government-wide evaluation initiative—a 

Family Self-Sufficiency Demonstration, Rent Reform Demonstration, and Choice Neighborhoods 

Demonstration. This increased investment in research will allow HUD to determine whether programs are achieving their intended outcomes and 

provide new evidence on how to efficiently and effectively provide rental assistance. The Budget 

also includes $25 million to support research and 

development (R&D) tied to the President’s national goals of energy, health and sustainability. 

Partnering with other agencies, HUD will invest 

in R&D focused on the linkages between the built 

environment and health, hazard risk reduction 

and resilience, and the development of innovative 

building technologies and building processes.
88 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Department of Housing and Urban Development

(In millions of dollars)

Actual

2009

Estimate

2010 2011

Spending

Discretionary Budget Authority:

Community Development Fund ����������������������������������������������������������������� 3,900 4,450 4,380

Catalytic Investment Grants (non-add) ������������������������������������������������� — — 150

Sustainable Communities (non-add) ���������������������������������������������������� — 150 150

HOME Investment Partnerships Program ������������������������������������������������� 1,825 1,825 1,650

Homeless Assistance Grants �������������������������������������������������������������������� 1,677 1,865 2,055

Housing Opportunities for Persons with AIDS ������������������������������������������ 310 335 340

Tenant-based Rental Assistance �������������������������������������������������������������� 16,225 18,184 19,551

Project-based Rental Assistance �������������������������������������������������������������� 7,100 8,558 9,376

Public Housing Operating Fund ���������������������������������������������������������������� 4,455 4,775 4,829

Public Housing Capital Fund ��������������������������������������������������������������������� 2,450 2,500 2,044

Transforming Rental Assistance ��������������������������������������������������������������� — — 350

Choice Neighborhoods/HOPE VI �������������������������������������������������������������� 120 200 250

Native American Housing Block Grant ������������������������������������������������������ 645 700 580

Housing for the Elderly ������������������������������������������������������������������������������ 765 825 274

Housing for Persons with Disabilities �������������������������������������������������������� 250 300 90

Federal Housing Administration (FHA) 

Existing Law ����������������������������������������������������������������������������������������� –874 –2,215 –1,628

Legislative proposal ����������������������������������������������������������������������������� –4,099

Government National Mortgage Association (GNMA)������������������������������� –888 –914 –679

Salaries and Expenses ����������������������������������������������������������������������������� 1,303 1,346 1,379

Policy Development and Research ����������������������������������������������������������� 58 48 87

All other ����������������������������������������������������������������������������������������������������� 722 799 761

Total, Discretionary budget authority ��������������������������������������������������������������� 40,043 43,581 41,590

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ����������������� 13,626 — —

Budget authority from supplementals ������������������������������������������������������������� 30 — —

Total, Discretionary outlays ����������������������������������������������������������������������������� 44,240 46,208 46,127

Memorandum: Outlays from American Recovery and Reinvestment Act........ 1,520 3,628 5,545

Mandatory Outlays:

FHA ����������������������������������������������������������������������������������������������������������� 15,938 12,228 1,016

Community Planning and Development ���������������������������������������������������� 119 1,263 1,128

Housing Trust Fund (non-add) �������������������������������������������������������������� — — 20

All other ����������������������������������������������������������������������������������������������������� –798 –807 –732

Total, Mandatory outlays ��������������������������������������������������������������������������������� 15,259 12,684 1,412

Total, Outlays �������������������������������������������������������������������������������������������������� 59,499 58,892 47,539
THE BUDGET FOR FISCAL YEAR 2011 89

Department of Housing and Urban Development—Continued

(In millions of dollars)

Actual

2009

Estimate

2010 2011

Credit activity 

Direct Loan Disbursements:

FHA ����������������������������������������������������������������������������������������������������������� — 50 50

GNMA ������������������������������������������������������������������������������������������������������� 10 27 25

Green Retrofit Program for Multifamily Housing ��������������������������������������� — 143 —

Total, Direct loan disbursements ��������������������������������������������������������������������� 10 220 75

Guaranteed Loan Commitments:

FHA ����������������������������������������������������������������������������������������������������������� 355,723 340,080 265,705

GNMA �������������������������������������������������������������������������������������������������������� 418,938 380,942 283,042

All other ����������������������������������������������������������������������������������������������������� 608 1,126 1,220

Total, Guaranteed loan commitments ������������������������������������������������������������� 775,269 722,148 549,967

91

The Department of the Interior (DOI) is committed to fulfilling its mission to protect and 

manage the Nation’s natural resources and cultural heritage; provide scientific and other information about those resources; and honor its 

trust responsibilities or special commitments to 

American Indians, Alaska Natives, and affiliated 

Island Communities. The President’s 2011 Budget provides $12 billion to DOI to achieve these 

goals, while reforming inefficient programs and 

generating mandatory savings of about $2.7 

billion over 10 years.

Invests in a Clean Energy Future. DOI 

plays a key role in supporting the President’s 

plan to create a clean energy future that holds 

the promise of an improved environment, enhanced energy security, and green jobs in new industries. DOI already manages public lands and 

offshore resources that provide about one-third 

of the domestic supply of fossil fuel resources. 

The Department is now expanding on that role 

to become a leader in promoting clean, renewable energy on Federal lands. The 2011 Budget 

adds $14 million—on top of $50 million in 2010 

increases—to build agency capacity to review 

and permit renewable energy projects on Federal 

Funding Highlights:

•	 Promotes renewable energy development on Federal lands and waters with the goal of 

permitting at least 9,000 megawatts of energy capacity on Department of the Interior lands by 

the end of 2011.

•	 Stays on track to fully fund Land and Water Conservation Fund programs by 2014 by 

providing nearly $620 million to acquire new lands for national parks, forests and refuges, 

protect endangered species habitat, and promote outdoor recreation.

•	 Helps Federal land managers address the impact of climate change by expanding the 

Department’s science capability to develop vital decision support tools.

•	 Improves the return to taxpayers from U.S. mineral production through royalty reforms and 

industry fees.

•	 Strengthens Native American communities with funds to enhance the management 

capacity of tribal governments and improve coordination between Federal agencies on law 

enforcement.

•	 Prepares responsibly for wildfires with full funding for suppression and a contingency reserve 

fund.

•	 Promotes water conservation and science while balancing competing water resource needs.

DEPARTMENT OF THE INTERIOR
92 DEPARTMENT OF THE INTERIOR

lands. This includes conducting the environmental evaluations and technical studies needed to 

spur development of renewable energy projects, 

assess available alternative resources, and mitigate the impacts of development. DOI has set a 

goal to permit at least 9,000 megawatts of new 

solar, wind, and geothermal electricity generation capacity on DOI-managed lands by the end 

of 2011.

Conserves Landscapes and Ecosystems.

The Administration continues its commitment to 

acquire and conserve landscapes and ecosystems 

that lack adequate protection with increased 

funding from the Land and Water Conservation Fund (LWCF). The Budget provides an increase of $106 million, or 31 percent, for LWCF 

programs in DOI that protect Federal lands for 

wildlife and public enjoyment and provide State 

grants for park and recreational improvements. 

Total LWCF funding for the Departments of 

Agriculture and the Interior is nearly $620 million, keeping the Administration on track to fully 

fund LWCF programs at $900 million by 2014. In 

addition, the Budget proposes to reauthorize and 

expand DOI’s authority under the Federal Land 

Transaction Facilitation Act, so that the proceeds 

from the sale of low-conservation value lands 

may be used to acquire additional high-priority 

conservation lands.

Establishes Climate Science Centers. 

Managing ecosystems and wildlife habitat that 

are facing the impact of climate change requires 

reliable data on changes, supporting science, and 

tools to bring these together to inform land management decisions. DOI is establishing a framework, which includes Climate Science Centers 

that will focus on the impact of climate change 

on a broad array of Departmental resources. 

The Budget includes an increase of $14 million 

for these Centers to provide land managers with 

vital decision support tools based on the latest 

science.

Provides a Better Return to Taxpayers 

from Mineral Development. The public received about $10 billion in 2009 from fees, royalties, and other Federal payments related to oil, 

gas, coal, and other mineral development. Yet a 

number of recent studies by the Government Accountability Office and DOI’s Inspector General 

have found that this return could be improved 

through more rigorous oversight and policy 

changes, such as charging appropriate fees and 

reforming how royalties are set. The Budget proposes a number of actions to ensure that Federal 

taxpayers receive a fair return from the development of U.S. mineral resources:

•	 Terminating payments to coal-producing 

States and Tribes that no longer need 

funds to clean up abandoned coal mines.

•	 Extending the practice of having States 

with mineral revenue payments help to 

defray the Federal costs in managing the 

mineral leases that generate the revenue. 

•	 Charging user fees to oil companies for 

processing oil and gas drilling permits and 

inspecting operations on Federal lands 

and waters. 

•	 Establishing fees for new non-producing 

oil and gas leases (both onshore and offshore) to encourage more timely production. 

•	 Making administrative changes to Federal oil and gas royalties, such as adjusting 

royalty rates and terminating the royaltyin-kind program. 

Empowers Tribal Nations. The Administration supports tribal self-determination and 

will assist tribal governments in enhancing their 

management capacity. The Budget provides increased funding to better compensate Tribes for 

the work they perform in managing Federal programs under self-determination contracts and 

self-governance compacts. In addition, the Budget includes proposals to foster better coordination between the Departments of the Interior and 

Justice on Indian law enforcement issues.

Prepares Responsibly for Wildfires. The 

Budget continues the long-standing practice of 

fully funding the 10-year average cost of wildland fire suppression operations. To reduce the 

need for emergency appropriations, the Budget 
THE BUDGET FOR FISCAL YEAR 2011 93

for DOI includes an additional $75 million funding reserve to be used only as a contingency when 

regular suppression funding is exhausted. The 

Budget also targets hazardous fuels reduction 

funding for activities in the wildland-urban interface where they are most effective. Priority 

is given to projects in communities that have 

met “Firewise” standards, identified acres to be 

treated, and invested in local solutions to protect 

against wildland fire.

Invests in Water Resources Infrastructure 

and Science. The Budget continues to focus resources on the Department’s Water Conservation 

initiative, which assists local communities in increasing water availability by encouraging voluntary water banks, reuse of treated wastewater, 

and other market-based conservation measures. 

The initiative also includes the Bureau of Reclamation’s water reuse and recycling (Title XVI) 

program and invests an additional $9 million in a 

multi-year, nationwide study of water availability 

and use by the U.S. Geological Survey. Moreover, 

in coordination with other Federal agencies and 

the State of California, the Department is also 

participating in activities and dedicating resources to foster continued progress in the restoration 

of a number of sensitive ecosystems, including the 

California Bay-Delta. The Department will work 

with Federal interagency working groups to develop performance measures and tools to identify 

those restoration activities that yield the highest 

returns to taxpayers.

Department of the Interior

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Bureau of Land Management ������������������������������������������������������������������� 1,062 1,143 1,151

Minerals Management Service ����������������������������������������������������������������� 163 181 190

Office of Surface Mining ���������������������������������������������������������������������������� 164 163 146

Bureau of Reclamation/CUPCA ���������������������������������������������������������������� 1,124 1,129 1,108

U.S. Geological Survey ����������������������������������������������������������������������������� 1,044 1,112 1,133

Fish and Wildlife Service ��������������������������������������������������������������������������� 1,443 1,647 1,642

National Park Service ������������������������������������������������������������������������������� 2,558 2,791 2,759

Bureau of Indian Affairs ���������������������������������������������������������������������������� 2,379 2,619 2,566

Office of the Special Trustee ��������������������������������������������������������������������� 182 186 160

All other ����������������������������������������������������������������������������������������������������� 1,133 1,183 1,250

Wildland Fire (non-add) ���������������������������������������������������������������������������� 859 856 934

Subtotal, Gross discretionary budget authority ����������������������������������������������� 11,252 12,154 12,105

Mandatory Savings Proposals ������������������������������������������������������������������ — — –70

Total, Discretionary budget authority ��������������������������������������������������������������� 11,252 12,154 12,035

Memorandum: ������������������������������������������������������������������������������������������������

Budget authority from American Recovery and Reinvestment Act ����������������� 3,005 — —

Budget authority from supplementals ������������������������������������������������������������� 50 — —

Total, Discretionary outlays ����������������������������������������������������������������������������� 11,298 12,387 12,439
94 DEPARTMENT OF THE INTERIOR

Department of the Interior—Continued

(In millions of dollars)

Actual

2009

Estimate

2010 2011

Memorandum: Outlays from American Recovery and Reinvestment Act ������� 168 1,255 1,128

Mandatory Outlays:

Cobell Settlement 

Legislative proposal, Payments from the Judgment Fund �������������������� — –2,000 —

Legislative proposal, Payments for Trust Land Purchasing ������������������ — 100 400

All other 

Existing law ������������������������������������������������������������������������������������������ 485 420 334

Legislative proposals ���������������������������������������������������������������������������� — — –96

Total, Mandatory outlays ��������������������������������������������������������������������������������� 485 –1,480 638

Total, Outlays �������������������������������������������������������������������������������������������������� 11,783 10,907 13,077

Credit activity 

Guaranteed Loan Commitments:

Indian Guaranteed Loan Program ������������������������������������������������������������ 78 134 132

Total, Guaranteed loan commitments ������������������������������������������������������������� 78 134 132
95

The President’s Budget for the Department of 

Justice (DOJ) is $29.2 billion. The Budget addresses key priorities in national security and 

crime-fighting programs in the FBI and other 

DOJ components; addresses needs in Indian 

Country, and combats financial fraud. The Budget also puts more police officers on the beat by 

funding the Community Oriented Policing Services (COPS) hiring program; provides other 

vital support for innovative State and local law 

enforcement efforts; and secures the Nation’s 

borders.

Increases Funding to Support the Hiring of Additional Police Officers Across the 

Country. The Budget includes $600 million, 

an increase of $302 million, to support the hiring or retention of police officers in communities across the country. Supporting the hiring of 

Funding Highlights:

•	 Continues to strengthen and expand local law enforcement agencies by providing $600 million 

as part of the President’s multi-year commitment to fund the hiring of 50,000 additional police 

officers nationwide.

•	 Steps up the effort to combat financial fraud and protect public investments in our Nation’s 

financial stability. 

•	 Expands targeted, place-based efforts to combat violent crime.

•	 Strengthens efforts to combat violence against women by providing $538 million, an increase 

of 29 percent.

•	 Reinvigorates Federal Civil Rights Enforcement.

•	 Promotes public safety and economic opportunity by providing re-entry programming for 

prisoners who need support to successfully reintegrate into their communities.

•	 Strengthens the Department’s capacity to target violent criminal activity and makes sure the 

Nation’s borders are secure.

•	 Addresses the national security and intelligence challenges confronting the FBI and other 

Department of Justice components.

•	 Increases efforts to target and combat violent drug trafficking cartels and organized criminal 

enterprise operations.

•	 Expands law enforcement, prosecutorial and grant assistance, and improves their 

coordination in Indian Country.

DEPARTMENT OF JUSTICE
96 DEPARTMENT OF JUSTICE

police officers will help States and communities 

prevent the growth of crime in our communities.

Combats Financial Fraud. To combat financial and other sophisticated crime problems, DOJ 

has developed a strategy of using intelligencebased and prosecutor-led task forces to leverage 

the resources and expertise of the complete law 

enforcement spectrum. For example, the Department has established an interagency task force 

to combat financial crime. The Attorney General 

and the Secretary of the Department of Health 

and Human Services have also established a 

Health Care Fraud Prevention and Enforcement 

Teams (HEAT) task force initiative to combat 

medical fraud. The task forces establish and coordinate investigative and enforcement priorities 

across multiple agencies. The Budget supports 

these efforts by providing resources for additional 

FBI agents and DOJ attorneys to investigate and 

prosecute major white collar crime, as well as 

mortgage and healthcare fraud cases. 

Expands Targeted, Place-Based Efforts 

to Curb Violent Crime. The Budget provides 

$112 million for place-based, evidence-supported, 

initiatives to combat violence in local communities, including $25 million for the CommunityBased Violence Prevention Initiatives that aim 

to reduce gun and other violence among youth 

gangs in cities and towns across the country, and 

$37 million for the Attorney General’s Children 

Exposed to Violence Initiative, which targets the 

youth most affected by violence and most susceptible to propagating it as they grow up. A new 

initiative, the Byrne Criminal Justice Innovation Program, for which the Budget requests $40 

million, is a central component of the Administration’s interagency initiative on Neighborhood 

Revitalization.

Strengthens Efforts to Combat Violence 

Against Women. The Budget includes $538 million, an increase of $120 million, to support women victims of violence, including domestic abuse 

and sexual assault victims. The numbers are 

staggering: last year, over a half million non-fatal violent victimizations were committed against 

women by an intimate partner. In 2007, 64 percent of female homicide victims were murdered 

by a family member or intimate partner. Many 

other women were harmed by people they did not 

know. 

Reinvigorates Federal Civil Rights 

Enforcement. To strengthen civil rights enforcement against racial, ethnic, sexual orientation, religious, and gender discrimination, the 

Budget includes an 11 percent increase in funding for DOJ’s Civil Rights Division. This investment will help the Division handle implementation of a historic new hate crimes law.

Combats Drug-trafficking and Organized 

Criminal Enterprises. The Budget includes an 

increase of $37 million for a comprehensive approach to combating drugs and crime through 

enhancing the Organized Crime Drug Enforcement Task Forces (OCDETF) and provides an 

additional $54 million to expand the Drug Enforcement Administration’s El Paso Intelligence 

Center (EPIC). The OCDETF task forces utilize 

the full capabilities of DOJ, including both agents 

and attorneys, to target major drug-trafficking 

and criminal organizations. EPIC enables Federal, State and local law enforcement partners to 

share real-time intelligence and unique capabilities of participating members to target, disrupt, 

and dismantle major drug trafficking cartels and 

criminal enterprise operations. The initiative 

also enhances the Department’s ability to combat 

gunrunners along the U.S. Southwest Border. Additionally, the Budget includes additional funding 

for enforcement along the Nation’s borders, combining the efforts of law enforcement and prosecutorial units to investigate arrest, detain, and 

prosecute criminal illegal aliens, as well as those 

who enter or stay in the country without proper 

documentation. 

Counters the Threat of Terrorism and 

Strengthens National Security. The Budget 

includes $145 million in enhancements for the 

FBI’s national security programs, and $100 million, including $8 million in program enhancements, for the National Security Division to 

protect the American people from terrorist acts. 

Funding supports counterterrorism, counter-
THE BUDGET FOR FISCAL YEAR 2011 97

intelligence, cyber-security and other threats 

against our National Security. The Budget also 

provides $73 million for the transfer, prosecution, 

and incarceration of Guantanamo Bay detainees. 

The Administration further anticipates working 

with the Congress to identify additional funding 

and other resources that may be needed in 2010 

to address extraordinary Federal, State, and local 

security requirements associated with terrorism 

trials that may begin in 2010 and continue into 

2011.

Supports Detention and Incarceration 

Programs and Expands Prisoner Re-entry 

Programs. The Budget provides $6.8 billion for 

the Bureau of Prisons to activate new prisons and 

increase correctional staff, and $1.5 billion for the 

Office of the Detention Trustee so that sentenced 

criminals and detainees are housed in facilities 

that are safe, humane, cost-efficient, and appropriately secure. The Budget also provides $330 

million for the State Criminal Alien Assistance 

Program to assist States and localities in the 

identification, status determination and conduct 

of removal proceedings of incarcerated illegal 

aliens. The Budget also provides $144 million for 

prisoner re-entry programs, including $100 million for the Office of Justice Programs to administer grant programs authorized by the Second 

Chance Act and $30 million for residential substance abuse treatment programs in State and 

local prisons and jails. These programs reduce 

recidivism by providing counseling, job training, 

drug treatment, and other transitional assistance 

so that former prisoners can reintegrate into the 

job market and community life. 

Enhances Capacity to Address Needs in 

Indian Country. The Budget includes $19 million to support 45 additional FBI agents for Indian country, and $256 million in grants and technical assistance to increase public safety efforts 

in tribal areas. The funding for additional FBI 

agents will be provided on a reimbursable basis 

through the Department of the Interior. The Departments of Justice and the Interior will coordinate the deployment of Federal public safety 

resources to best address the public safety needs 

in Indian Country.

Department of Justice

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Federal Bureau of Investigation ������������������������������������������������������������������� 7,340 7,736 8,165

Drug Enforcement Administration ���������������������������������������������������������������� 2,045 2,028 2,130

Federal Prison System ��������������������������������������������������������������������������������� 6,172 6,188 6,804

United States Marshals Service ������������������������������������������������������������������� 956 1,145 1,207

Bureau of Alcohol, Tobacco, Firearms, and Explosives ������������������������������� 1,054 1,119 1,163

Detention Trustee ����������������������������������������������������������������������������������������� 1,289 1,439 1,534

United States Attorneys ������������������������������������������������������������������������������� 1,837 1,934 2,041

General Legal Activities ������������������������������������������������������������������������������� 806 875 976

National Security Division ���������������������������������������������������������������������������� 84 88 100

Office of Justice Programs, Office of Community Oriented Policing 

Services, Office on Violence Against Women ������������������������������������������ 2,915 3,540 3,364
98 DEPARTMENT OF JUSTICE

Department of Justice—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Organized Crime and Drug Enforcement Task Force ���������������������������������� 515 528 579

All other �������������������������������������������������������������������������������������������������������� 940 925 1,127

Subtotal, Discretionary budget authority ������������������������������������������������������������ 25,953 27,545 29,190

Less Crime Victims’ Fund cancellation ��������������������������������������������������������� — — -4,552

Less Assets Forfeiture Fund cancellation ���������������������������������������������������� — — -495

Total, Discretionary budget authority ������������������������������������������������������������������ 25,953 27,545 24,143

Memorandum: 

Budget authority from American Recovery and Reinvestment Act �������������������� 4,012 — —

Budget authority from supplementals ���������������������������������������������������������������� 245 — —

FBI Overseas Contingency Operations �������������������������������������������������������������� — 101 —

Total, Discretionary outlays �������������������������������������������������������������������������������� 24,509 26,709 26,075

Memorandum: Outlays from American Recovery and Reinvestment Act ���������� 1,160 1,843 664

Mandatory Outlays:

Existing law �������������������������������������������������������������������������������������������������� 2,060 1,868 5,232

Legislative proposal ������������������������������������������������������������������������������������� — — —

Total, Mandatory outlays ������������������������������������������������������������������������������������ 2,060 1,868 5,232

Memorandum: Outlays from American Recovery and Reinvestment Act ���������� — — —

Total, Outlays ����������������������������������������������������������������������������������������������������� 26,569 28,577 31,307
99

The President’s Budget provides $14 billion for 

the Department of Labor (DOL) to prepare workers for good jobs that will allow them to support 

their families; guarantee fair, safe and healthy 

workplaces and secure retirements for America’s 

workers; and fulfill its other core responsibilities. 

Reforming the Job Training System. 

Whether they want to find a job, build basic or 

occupational skills, earn a postsecondary certificate, credential, or degree, or get guidance on 

charting a career path, all Americans deserve access to high-quality job training throughout their 

careers. That is why the Budget calls for reform 

of the Workforce Investment Act (WIA), which 

supports almost 3,000 One-Stop Career Centers 

nationwide and a range of other services. With 

$6 billion for WIA at DOL—and an additional 

$4 billion in the Department of Education—the 

Budget calls for reforms to improve WIA by: 

•	 Creating a Workforce Innovation Partnership to Streamline Service Delivery 

and Invest in What Works. Over 30 Federal programs provide job training and 

Funding Highlights:

•	 Supports reform of the Workforce Investment Act (WIA), which authorizes $10 billion for job 

training and employment services. 

•	 Creates a Workforce Innovation Partnership with the Department of Education and 

establishes two innovation funds that will support and test promising approaches to job 

training as well as encourage States and localities to work across programmatic silos to 

improve services. 

•	 Starts a joint Labor-Treasury initiative to stop the inappropriate misclassification of employees 

as independent contractors.

•	 Rebuilds worker protection programs to strengthen enforcement of labor standards.

•	 Expands families’ access to paid leave by creating a new fund to help States launch paid 

leave programs.

•	 Boosts funding for unemployment insurance integrity efforts and proposes legislative changes 

that would reduce improper payments by over $4 billion and employer tax evasion by $300 

million over 10 years. 

•	 Initiates a multi-agency legislative proposal to establishes automatic workplace pensions 

and expand access to the saver’s credit, and proposes regulatory reforms to give all workers 

access to retirement savings opportunities, provide Americans with incentives to save 

throughout their working careers, and protect pension plans.

DEPARTMENT OF LABOR
100 DEPARTMENT OF LABOR

related services. Yet today, workers and 

young people looking for effective training 

must navigate a maze of programs with 

little information about how well these programs work. Leveraging funding from the 

WIA formula programs, the 2011 Budget 

sets aside $261 million to establish two innovation funds that will support and test 

promising approaches to training, breaking down program silos, building evidence 

about effective practices, and investing in 

what works. With a $101 million increase 

in the Youth funding stream, the Budget redirects 15 percent of total Youth funding to 

a Youth Innovation Fund to pilot innovative 

models for delivering summer and yearround work experiences and comprehensive 

services to disconnected youth. The Workforce Innovation Fund pulls 5 percent from 

the Adult and Dislocated Worker streams 

to support and test “learn and earn” strategies like apprenticeships and on-the-job 

training; promote regional and sectoral collaborations; and support other innovations. 

In addition, DOL will work closely with the 

Department of Education to administer the 

innovation grants, and use them as a mechanism for encouraging States and localities 

to work across programs to improve service 

delivery and participant outcomes. 

•	 Meeting the Needs of Regional Economies and Employers. Labor markets are 

typically regional, yet the workforce system 

is designed around State and local boundaries. The system also does not do a good 

enough job matching training with employer demand. Through new innovation funds 

and WIA reauthorization, the Administration will facilitate regional collaboration and 

close linkages with employers so that training leads to good jobs. 

•	 Establishing a Transparent Accountability System that Encourages Success. The current accountability system 

dissuades States and localities from serving 

the populations that most need their assistance, like low-skilled adults, individuals 

with disabilities, and others needing more 

specialized and intensive services. The Budget supports efforts to overhaul performance 

measures and incentives to discourage 

“cream-skimming,” more accurately capture 

the value added by different services, and 

encourage better outcomes for individuals 

at every level of the workforce system. Performance data should be widely available to 

policymakers, program managers, and the 

participants themselves, so they can make 

informed choices about training. 

•	 Focusing on High-Growth Sectors and 

Workers Often Left Behind. The Budget 

makes strategic investments in competitive 

programs to target high-growth sectors and 

serve populations often left behind, including $85 million for green job training and 

$40 million for transitional jobs programs. 

The Budget also supports an initiative to 

reform and improve Job Corps, by setting 

high standards for Job Corps centers and 

taking quick and decisive action to address 

problems.

Protecting Benefits for Employees by Ensuring Proper Classification. When employees are misclassified as independent contractors, 

they are deprived of benefits and protections to 

which they are legally entitled. For example, independent contractors do not receive overtime 

and are ineligible to receive unemployment benefits. Misclassification also has a budgetary impact, reducing receipts in Treasury and the Social 

Security, Medicare and Unemployment Insurance 

Trust Funds. As part of the 2011 Budget, the 

Departments of Labor and Treasury are pursuing a joint proposal that eliminates incentives in 

law for employers to misclassify their employees; 

enhances the ability of both agencies to penalize 

employers who misclassify; and restores protections to employees who have been denied them 

because of their improper classification. This proposal would increase Treasury receipts by more 

than $7 billion over 10 years. The 2011 Budget 

for DOL includes an additional $25 million to target misclassification with 100 additional enforcement personnel and competitive grants to boost 

States’ incentives and capacity to address this 

problem. 
THE BUDGET FOR FISCAL YEAR 2011 101

Rebuilding Worker Protection Programs. 

The Budget includes a $67 million (4 percent) 

increase for the Department’s worker protection agencies to ensure they have the resources 

to meet their responsibilities to protect the 

health, safety, wages and working conditions, 

and retirement security of the nation’s workforce. 

The 2011 Budget builds on the 2010 Budget policy of returning worker protection programs to 

the 2001 staffing levels, after years of decline. In 

addition, the Budget provides additional resources for the regulatory and enforcement activities 

of these agencies.

Helping States Provide Paid Family Leave 

to Workers. Too many families must make the 

painful choice between the care of their families and a paycheck they desperately need. The 

Family and Medical Leave Act allows workers to 

take job-protected time off unpaid, but millions 

of families cannot afford to use unpaid leave. A 

handful of States have enacted policies to offer 

paid family leave, but more States should have 

the chance. The Budget establishes a $50 million 

State Paid Leave Fund within DOL that will provide competitive grants to help States that choose 

to launch paid-leave programs cover their startup costs. The Budget also provides resources to 

allow DOL to explore ways to improve the collection of data related to intersection of work and 

family responsibilities.

Strengthening Access to, and Accuracy 

of, Unemployment Benefits. Working with the 

Congress, the Administration has already extended and expanded unemployment insurance (UI) 

benefits to historic levels and offered powerful incentives for States to make permanent changes 

to modernize their UI programs. In response to 

these incentives, 26 States have changed their 

laws so that up to 20 weeks of additional benefits are available to workers who have exhausted 

their regular and Emergency Unemployment 

Compensation benefits; and 32 States now offer 

benefits to recent entrants to the workforce who 

lose their jobs. States have also granted benefits 

to part-time workers, those who must leave their 

jobs because of domestic violence or other compelling family reasons, and those seeking to retool 

for another career.

At the same time, the Administration believes 

UI benefits should go to the right workers in the 

right amounts. When States have to finance 

high levels of UI improper payments, employers 

face higher taxes and workers may see cuts in 

their benefit levels. Despite the efforts of States 

to reduce improper payments, over $11.4 billion 

in UI benefits were erroneously paid in 2009—

an overpayment rate of almost 10 percent. The 

Administration will tackle this problem by boosting funding for UI integrity efforts and proposing 

legislative changes that together would reduce 

improper payments by over $4 billion and employer tax evasion by $300 million over 10 years. 

Improving Retirement Security. After a 

lifetime of employment, American workers deserve to know that their efforts have resulted in 

a secure retirement. The Administration is committed to giving Americans more and better choices to save for retirement while also strengthening 

the existing private pension system. The Budget 

proposes a multi-agency effort to expand and improve employment-based retirement security by: 

•	 Establishing Automatic Workplace 

Pensions. Currently, 78 million working 

Americans—roughly half the workforce—

lack employer-based retirement plans. The 

2011 Budget proposes a system of automatic 

workplace pensions that will expand access 

to tens of millions of workers who currently 

lack pensions. Under the proposal, employers who do not currently offer a retirement 

plan will be required to enroll their employees in a direct-deposit IRA account that is 

compatible with existing direct-deposit payroll systems. Employees may opt-out if they 

choose. The smallest firms would be exempt.

•	 Doubling the Small Employer Pension 

Plan Startup Credit. Under current law, 

small employers are eligible for a tax credit equal to 50 percent (up to a maximum of 

$500 a year for three years) of the start-up 

expenses of establishing or administering 

a new retirement plan. To encourage small 
102 DEPARTMENT OF LABOR

employers to offer pensions to their workers in connection with the automatic IRA 

proposal, the Budget will increase the maximum credit from $500 a year to $1,000 per 

year. 

•	 Reforming and Expanding the Saver’s 

Credit. The Budget proposes to expand 

retirement savings incentives for working 

families by modifying the existing Saver’s 

Credit to provide a 50 percent match on the 

retirement savings of families that earn less 

than $85,000 (up to $1,000 of savings would 

be matched). The credit would be fully refundable to create savings incentives fair to 

all workers. Studies indicate that automatic 

enrollment combined with a savings match 

significantly increases the savings participation rate for low and middle income workers. 

This proposal is expected to increase significantly both the number of Americans who 

save for retirement and the overall amount 

of amount of retirement wealth they accumulate. 

•	 Improving the Defined-Contribution 

Savings System. A majority of American 

workers rely on 401(k)-style plans to finance 

their retirements. The Budget proposes a 

number of initiatives to improve the transparency and adequacy of 401(k) retirement 

savings. Specifically, DOL will undertake 

regulatory efforts to reduce barriers to annuitization of 401(k) plan assets; increase 

the transparency of pension fees; improve 

transparency of target date and other default retirement investments; and reduce 

conflicts of interest between pension advisers and fiduciaries. 

•	 Expanding Opportunities for Automatic Enrollment in 401(K) and Other 

Retirement Savings Plans. Automatic 

enrollment typically boosts participation in 

401(k) retirement plans from about 70 percent to more than 90 percent, and it is particularly effective in increasing the participation of low-income and minority workers. 

But while nearly half of larger companies 

with 401(k) plans have adopted automatic 

enrollment, fewer medium-sized or small 

businesses have done so. The Administration will streamline the process for 401(k) 

plans to adopt automatic enrollment; make 

it easier to increase saving over time; and allow automatic enrollment in SIMPLE-IRAs.

Department of Labor

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending

Discretionary Budget Authority:

Training and Employment Service ������������������������������������������������������������������� 3,626 3,829 3,925

Unemployment Insurance Administration �������������������������������������������������������� 3,511 3,990 3,581

Employment Service/One-Stop Career Centers ���������������������������������������������� 793 788 788

Office of Job Corps ������������������������������������������������������������������������������������������ 1,684 1,708 1,707

Community Service Employment for Older Americans ������������������������������������ 572 825 600

Bureau of Labor Statistics �������������������������������������������������������������������������������� 597 611 645

Occupational Safety and Health Administration ����������������������������������������������� 513 559 573

Mine Safety and Health Administration ������������������������������������������������������������ 347 357 361

Wage and Hour Division 1 ��������������������������������������������������������������������������������� 193 224 244

Office of Federal Contract Compliance Programs ������������������������������������������� 82 103 113
THE BUDGET FOR FISCAL YEAR 2011 103

Department of Labor—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Office of Labor-Management Standards ���������������������������������������������������������� 45 41 45

Office of Workers’ Compensation Programs ���������������������������������������������������� 103 108 127

Employee Benefits Security Administration ����������������������������������������������������� 143 155 162

Veterans Employment and Training ������������������������������������������������������������������ 239 256 262

Departmental Management: 314 356 429

Bureau of International Labor Affairs (non-add) ������������������������������������������ 86 93 115

Solicitor of Labor (non-add) ������������������������������������������������������������������������� 101 117 123

Foreign Labor Certification ������������������������������������������������������������������������������� 68 68 66

Office of Disability Employment Policy ������������������������������������������������������������� 27 39 39

State Paid Leave Fund ������������������������������������������������������������������������������������� — — 50

All other ������������������������������������������������������������������������������������������������������������ 36 241 251

Total, Discretionary budget authority ���������������������������������������������������������������������� 12,893 14,266 13,967

Memorandum: Budget authority from American Recovery and Reinvestment Act ���� 4,805 — —

Total, Discretionary outlays ������������������������������������������������������������������������������������� 12,125 14,674 13,936

Memorandum: Outlays from American Recovery and Reinvestment Act �������������� 882 2,941 565

Mandatory Outlays:

Unemployment Insurance Benefits 

Existing law ������������������������������������������������������������������������������������������������� 93,783 126,787 82,385

Legislative proposal ������������������������������������������������������������������������������������ — 31,000 17,912

Trade Adjustment Assistance 

Existing law ������������������������������������������������������������������������������������������������� 416 810 1,497

Legislative proposal ������������������������������������������������������������������������������������ — — 145

Pension Benefit Guaranty Corporation ������������������������������������������������������������ 194 -86 -1,073

Black Lung Benefits Program ��������������������������������������������������������������������������� 3,060 524 512

Federal Employees’ Compensation Act 2

Existing law ������������������������������������������������������������������������������������������������� 1,246 184 180

Legislative proposal ������������������������������������������������������������������������������������ — — -10

Energy Employees Occupational Illness Compensation Program Act ������������� 1,168 1,080 960

All other ������������������������������������������������������������������������������������������������������������ -2,146 -2,534 271

Total, Mandatory outlays ���������������������������������������������������������������������������������������� 97,721 157,765 102,779

Memorandum: Outlays from American Recovery and Reinvestment Act �������������� 27,434 33,896 1,533

Total, Outlays ���������������������������������������������������������������������������������������������������������� 109,846 172,439 116,715 1 In the 2011 Budget, funding previously requested for the component agencies and offices under the heading “Employment Standards Administration

Salaries and Expenses” is requested separately for the Office of Workers’ Compensation Programs, Wage and Hour Division, Office of Federal Contract 

Compliance Programs, and Office of Labor-Management Standards.

2 2009 outlays are lower due to delayed reimbursements from the Postal Service.

105

Funding Highlights:

•	 Increases funding for the President’s Global Health Initiative, including increased efforts to 

reduce mortality of mothers and children under five, avoid unintended pregnancies, and work 

towards the elimination of some neglected tropical diseases. As part of this effort, the Budget 

also expands support for the President’s Emergency Plan for AIDS Relief to prevent new HIV 

infections while providing care and treatment to millions of people, and for the President’s 

Malaria Initiative to dramatically reduce the prevalence of this disease.

•	 Increases funding for the President’s Global Hunger and Food Security Initiative to help poor 

countries improve the nutritional and income status of millions of people living in extreme 

poverty and suffering from hunger by 2015.

•	 Increases aid to Afghanistan and Pakistan to revitalize economic development and confront 

the resurgence of the Taliban.

•	 Supports continued progress toward a sovereign, stable, and self-reliant Iraq and prepares 

the Department of State to assume responsibility for security, logistics, and police training 

programs as part of the military-to-civilian transition in Iraq.

•	 Helps developing nations adapt to climate change and pursue low-carbon development.

•	 Recognizes that diplomacy and development activities are instrumental in promoting U.S. 

National Security interests and provides critical funding necessary to support greater civilian 

capacity to meet expanded roles.

•	 Maintains path to achieve goal of 11,000 Peace Corps volunteers by 2016.

•	 Supports President Obama’s vision of Global Engagement through activities to expand 

economic opportunity, foster scientific and technological innovation, and strengthen people-topeople connections. 

•	 Promotes sustainable economic growth to help reduce global poverty with support for new 

Millennium Challenge Corporation compacts.

•	 Supports the poorest populations globally through U.S. contributions to the Multilateral 

Development Banks.

DEPARTMENT OF STATE AND OTHER 

INTERNATIONAL PROGRAMS
106 DEPARTMENT OF STATE AND OTHER INTERNATIONAL PROGRAMS

The Department of State, the U.S. Agency for 

International Development (USAID), and other 

international programs advance the interests 

of the United States through engagement, partnership, and the promotion of universal values. 

Through the power of example and the empowerment of people, using diplomatic and development tools, the Administration is working to 

forge the global consensus required to defeat 

the threats, manage the challenges, and seize 

the opportunities of the 21st century. 

Increases Funding for the President’s 

Global Health Initiative. The Administration 

will build on its commitment to save millions of 

lives through increased investments in global 

health activities. The Budget includes increased 

funding to combat the HIV/AIDS crisis by: focusing on increasing treatment and prevention; 

ramping up maternal and child health programming to reduce mortality of mothers and children 

under five and decrease the prevalence of malnutrition; expanding investments in family planning 

activities, malaria, tuberculosis, and neglected 

tropical diseases; and strengthening local health 

systems to enhance capacity and long-run sustainability of each health program. Alongside 

our multilateral partners, the United States will 

continue to provide global leadership in fulfilling 

our shared responsibility and our common promise to improve the health of the world’s poorest 

populations. 

Promotes U.S. Strategy in Afghanistan 

and Pakistan. The 2011 Budget increases U.S. 

resources in support of the President’s strategy 

to disrupt, dismantle, and defeat al Qaeda in Afghanistan and Pakistan. The Budget increases 

assistance to both countries, providing additional funding for governance, reconstruction, 

and other development activities that will counter extremists. For Pakistan, the Budget also 

increases security assistance and funds a new 

signature energy project. The Budget expands 

the number of civilian personnel in Afghanistan 

and Pakistan in an effort to build government 

capacity, increase diplomatic engagement, manage expanded assistance programs, and reduce 

the potential for fraud and misuse of American 

funding. 

Supports Strategic Realignments in Iraq. 

The 2011 Budget aligns U.S. assistance efforts 

in Iraq with the U.S.-Iraq Strategic Framework 

Agreement and provides support for continued 

progress toward a sovereign, stable, and self-reliant Iraq. The Budget provides the Department 

of State with the resources to prepare to assume 

responsibility for key programs that have been 

funded and led by the Department of Defense, 

including police capacity building, and provides 

security and logistic support for U.S. civilians 

deployed around the country. The Budget also 

continues to provide support for Iraqis who have 

been displaced from their homes. 

Fights Hunger and Expands Food Security 

Efforts. The 2011 Budget increases funding for 

agriculture development and nutrition programs 

as part of a multi-year plan to lift a significant 

number of people out of poverty and reduce underfive malnutrition for millions of children by 2015. 

The Budget provides assistance through bilateral 

assistance and a new multi-donor facility administered by the World Bank to poor countries that 

make policy and financial commitments to address 

their internal food security needs. Additional assistance will help targeted countries increase agricultural productivity, improve agricultural research and development, and expand markets and 

trade while monitoring and evaluating program 

performance. The Budget also maintains strong 

support for food aid and other humanitarian assistance.

Helps Developing Nations to Adapt to 

Climate Change and Pursue Low-Carbon 

Development. To reduce greenhouse gas emissions worldwide, the United States will spur the 

development and dissemination of clean energy 

technologies and increase the sequestration of 

carbon stored in soils, plants, and trees. The 

United States will take prompt, substantial action to help vulnerable countries adapt and build 

resilience to the effects of climate change. The 

top priority is to support the development of 

low-carbon development strategies that contain 
THE BUDGET FOR FISCAL YEAR 2011 107

measureable, reportable, and verifiable actions, 

laying the groundwork for meaningful reductions 

in national emissions trajectories. 

Maintains Path to Increase Peace Corps 

Volunteers. The 2011 Budget funds the second 

year of the President’s initiative to significantly 

increase the number of Peace Corps volunteers, 

and puts the Peace Corps on track to grow by 50 

percent so that it reaches 11,000 volunteers by 

2016.

Aligns Resources with Global Engagement Priorities. The 2011 Budget supports 

President Obama’s vision of global engagement 

that is based on mutual respect, the pursuit of 

sustainable partnerships in areas of mutual interest, and a commitment to listening to and 

working with local stakeholders, with an emphasis on women and youth. The Budget supports activities designed to expand economic opportunity 

including job creation and employment-focused 

education efforts; foster scientific and technological innovation; and strengthen people-to-people 

connections through exchange programs. 

Combats Trafficking in Persons Worldwide. The 2011 Budget supports the Administration’s efforts to combat trafficking in persons 

and assist in the coordination of anti-trafficking 

efforts both worldwide and domestically. It will 

allow the United States to lead in advancing 

public awareness and advocacy in concert with 

non-governmental organizations, international 

organizations, Congress and the media; with 

our programs focusing on the “3P” paradigm of 

prosecuting traffickers, protecting victims, and 

preventing trafficking in persons. 

Supports the Poorest Populations 

Globally. The Multilateral Development Banks 

(MDBs) provide concessional financing to meet 

the needs of the poorest populations globally, including in fragile and post-conflict countries and 

in countries that have disproportionally felt the 

effects of the global financial crisis. The MDBs 

play a particularly important role in regions of 

high need like Sub-Saharan Africa, while working 

throughout the developing world to help countries 

achieve sustained economic growth and poverty 

reduction. U.S. contributions to the MDBs leverage other donor resources and increase the U.S.’s 

influence, credibility, and effectiveness globally. 

The Budget also provides funding for new Millennium Challenge Corporation compacts in eligible 

countries, such as Indonesia and Zambia, to reduce poverty and stimulate economic growth.

Realigns Non-Military Contingency and 

Stabilization Activities of the Department 

of Defense and the Department of State. The 

Budget proposes a Complex Crises Fund within 

the Department of State that would replace current authorities of the Department of Defense to 

provide non-military reconstruction, security, and 

stabilization assistance funding. The account 

would provide a source of flexible contingency 

funding to meet unforeseen reconstruction and 

stabilization needs.

Department of State and Other International Programs

(In millions of dollars)

Actual 

2009

Estimate

20101 2011

Spending 

Discretionary Budget Authority:

Administration of Foreign Affairs ��������������������������������������������������������������� 9,974 13,320 12,377

International Organizations and Peacekeeping ���������������������������������������� 3,993 3,808 3,778

Economic Support Fund ��������������������������������������������������������������������������� 7,122 8,164 7,812

Global Health and Child Survival �������������������������������������������������������������� 7,289 7,829 8,513
108 DEPARTMENT OF STATE AND OTHER INTERNATIONAL PROGRAMS

Department of State and Other International Programs—Continued

(In millions of dollars)

Actual 

2009

Estimate

 20101 2011

International Narcotics and Law Enforcement (includes ACP) ����������������� 1,844 2,448 2,136

Migration and Refugee Assistance ����������������������������������������������������������� 1,675 1,693 1,605

Non-proliferation, Anti-terrorism, Demining Programs ������������������������������ 632 754 758

Foreign Military Financing ������������������������������������������������������������������������� 5,007 5,480 5,473

Pakistan Counterinsurgency Capability Fund ������������������������������������������� 700 — 1,200

Assistance for Europe, Eurasia, and Central Asia ������������������������������������ 918 742 716

Development Assistance ��������������������������������������������������������������������������� 2,004 2,495 2,946

USAID Operating Expenses ��������������������������������������������������������������������� 1,059 1,389 1,476

Broadcasting Board of Governors ������������������������������������������������������������� 725 746 769

Millennium Challenge Corporation ������������������������������������������������������������ 875 1,105 1,280

Export-Import Bank ����������������������������������������������������������������������������������� –177 3 –9

Overseas Private Investment Corporation ������������������������������������������������ –173 –172 –189

Peace Corps ��������������������������������������������������������������������������������������������� 340 400 446

Multilateral Development Banks ���������������������������������������������������������������� 1,493 2,044 2,957

Other State and International Programs ��������������������������������������������������� 3,595 2,924 2,726

Food for Peace, USDA P.L. 480 Title II (non-add) ................................. 2,321 1,690 1,690

Total, Discretionary budget authority (including supplementals) ��������������������� 48,895 55,172 56,770

Memorandum:

Budget authority from American Recovery and Reinvestment Act ................. 600 — —

Budget authority from enacted supplementals ............................................... 11,946 1,841 —

Budget authority from requested supplementals ............................................ — 4,461 —

Total, Discretionary outlays ����������������������������������������������������������������������������� 41,044 49,906 54,662

Memorandum: Outlays from American Recovery and Reinvestment Act ....... 29 356 135

Total, Mandatory outlays ��������������������������������������������������������������������������������� –3,941 1,087 –853

Total, Outlays �������������������������������������������������������������������������������������������������� 37,103 50,993 53,809

Credit activity 

Direct Loan Disbursements:

Export-Import Bank ����������������������������������������������������������������������������������� 1,481 50 25

All other programs ������������������������������������������������������������������������������������� 360 7,435 5,909

Total, Direct loan disbursements ��������������������������������������������������������������������� 1,841 7,485 5,934

Guaranteed Loan Commitments:

Export-Import Bank ����������������������������������������������������������������������������������� 14,599 13,500 14,425

All other programs ������������������������������������������������������������������������������������� 692 2,226 2,394

Total, Guaranteed loan commitments ������������������������������������������������������������� 15,291 15,726 16,819 1 The 2010 Estimate includes $1.8 billion of the 2010 President’s Request that was forward funded in the 2009 supplemental.
109

The Department of Transportation (DOT) is 

focused on its core mission of promoting safety 

and increasing mobility, and supporting the development of infrastructure that will underpin 

job creation for years to come. For 2011, DOT 

has several major initiatives in these areas, in 

addition to plans to deliver transportation funds 

based on greater use of analysis and consideration of program performance. 

Creates a National Infrastructure Innovation 

and Finance Fund. The Budget includes $4 

billion to create a National Infrastructure Innovation and Finance Fund to invest in projects 

of regional or national significance. This marks 

an important departure from the Federal Government’s traditional way of spending on infrastructure through grants to specific States and 

localities. Established as a new operational 

unit within DOT, the Fund will directly provide 

resources for projects through grants, loans, or 

a blend of both, and will effectively leverage 

non-Federal resources, including private capital. The Fund will allocate resources based on 

demonstrable merit and analytical measures of 

performance. The Fund will provide planning, 

feasibility, and analytical capacity to help sponsors identify projects from around the country 

and then carefully select the most worthwhile.

Establishes a New Federal Transit Safety 

Program. Unlike other modes of transportation, closed system rail transit services (generally, metro area subways and light rail systems) 

are not overseen by Federal safety regulators, 

but rather are subject to review by a patchwork 

Funding Highlights:

•	 Provides $4 billion for a new National Infrastructure Innovation and Finance Fund, which will 

invest in high-value projects of regional or national significance.

•	 Establishes a new $30 million Federal transit safety program to address critical needs.

•	 Invests in modernizing the air traffic control system by increasing funding for NextGen by 

more than 30 percent.

•	 Commits to developing long-run solutions for surface transportation finance and for improving 

program performance. 

•	 Helps communities to become more livable and sustainable by allocating $527 million for the 

Department’s investments as part of the President’s multi-agency Partnership for Sustainable 

Communities. 

•	 Sustains large-scale, multi-year support for high-speed rail, with $1 billion to fund promising 

and transformative projects.

DEPARTMENT OF TRANSPORTATION

UNITED STATES OF AMERICA

D

E

PARTMENT OF TRANSPORTATIO

N
110 DEPARTMENT OF TRANSPORTATION

of State safety organizations. Recent deadly accidents in Washington D.C., Boston, and San Francisco underscore the need for common nationwide 

safety standards and for Federal enforcement of 

these standards. The Budget includes $30 million 

for a new transit safety oversight program within 

the Federal Transit Administration (FTA). This 

will enable FTA to hire new staff and to implement a comprehensive safety oversight strategy, 

as proposed in legislation. 

Invests in Modernizing the Air Traffic 

Control System. The Budget provides $1.14 

billion, more than a 30 percent increase from 

2010 for the Next Generation Air Transportation 

System. NextGen is the Federal Aviation Administration’s long-term effort to improve the efficiency, safety, and capacity of the aviation system. 

The 2011 Budget supports the transformation 

from a national ground-based radar surveillance 

system to a more accurate satellite-based surveillance system; the development of more efficient 

routes through the airspace; and the improvement of aviation weather information.

Commits to Developing Long-Run Solutions for Surface Transportation Finance 

and for Improving Program Performance.

Surface transportation programs are at a crossroads. The current framework for financing and 

allocating surface transportation investments is 

not financially sustainable, nor does it effectively 

allocate resources to meet our critical national 

needs. The Administration recommends extending the current authorization through March 

2011, during which time it will work with the 

Congress to reform surface transportation programs and put the system on a viable financing 

path. Careful consideration is needed to design 

a Federal surface transportation program that 

leads to higher performing investments, increases 

people’s transportation options, promotes a sustainable environment, and makes our economy 

more productive. Further, the Federal program 

must generate the best investments to reduce 

congestion and improve safety. To do so, the Administration seeks to integrate economic analysis 

and performance measurement in transportation 

planning to ensure that taxpayer dollars are better targeted and spent.

Helps Communities to Become More 

Livable and Sustainable. As part of the President’s Partnership for Sustainable Communities 

initiative, the Budget includes $527 million in 

DOT to help State and local governments invest 

smarter in transportation infrastructure and leverage that investment to advance sustainable 

development. The Federal Government will help 

stimulate comprehensive regional and community planning efforts that integrate transportation, 

housing, and other critical investments. This approach aims to reduce greenhouse gases, improve 

mobility and transportation access to economic 

opportunity, and improve housing choices. Combined with $150 million in Department of Housing and Urban Development planning grants, and 

$10 million in Environmental Protection Agency 

technical assistance, DOT will dedicate $527 million, focused on capacity building and transportation projects, to this multi-agency effort. Because 

improving local quality of life is a universal challenge, this place-based interagency initiative will 

help communities across the Nation make better 

coordinated, higher-performing infrastructure 

investments. 

Sustains Multi-Year Support for HighSpeed Rail. Building on the historic $8 billion 

down payment provided through the American 

Recovery and Reinvestment Act, the President’s 

Budget includes $1 billion for high-speed rail. 

The 2011 request supports the President’s fiveyear, $5 billion pledge in the 2010 Budget. Highspeed rail promises to give the traveling public a 

practical alternative to flying or driving, particularly where there is congestion in the skies and 

on the roads. With trains efficiently connecting 

city and business centers, travelers would enjoy 

a new level of convenience not available in most 

parts of the country today. The Administration 

is dedicated to working with States and project 

sponsors to identify high-speed rail projects that 

will provide the greatest transportation, social, 

and environmental benefits, while maximizing 

the return on taxpayer dollars. 
THE BUDGET FOR FISCAL YEAR 2011 111

Department of Transportation

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending

Discretionary Budgetary Resources:

Federal Aviation Administration ������������������������������������������������������������������ 11,959 12,477 12,953

Obligation Limitation ������������������������������������������������������������������������������� 3,515 3,515 3,515

Federal Highway Administration ������������������������������������������������������������������ 176 936 –263

Obligation Limitation ������������������������������������������������������������������������������ 39,715 41,107 41,363

Federal Motor Carrier Safety Administration Obligation Limitation ������������ 541 550 570

National Highway Traffic Safety Administration ������������������������������������������� 127 143 136

Obligation Limitation ������������������������������������������������������������������������������ 729 730 743

Federal Railroad Administration ������������������������������������������������������������������ 1,798 4,360 2,831

Federal Transit Administration ��������������������������������������������������������������������� 1,969 2,388 2,167

Obligation Limitation ������������������������������������������������������������������������������ 9,247 8,343 8,632

Federal Maritime Administration ����������������������������������������������������������������� 333 363 352

St. Lawrence Seaway Development Corporation ���������������������������������������� 32 32 32

Pipeline and Hazardous Materials Safety Administration ��������������������������� 144 164 174

Research and Innovative Technology Administration ���������������������������������� 13 13 17

National Infrastructure Innovation and Finance Fund:

Legislative proposal ������������������������������������������������������������������������������� — — 4,000

Office of the Secretary �������������������������������������������������������������������������������� 207 890 352

All other ������������������������������������������������������������������������������������������������������� 21 18 14

Total, Discretionary budgetary resources 1

 ������������������������������������������������������ 70,526 76,029 77,588

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ������������������� 48,120 — —

Budget authority from supplementals ��������������������������������������������������������������� 3,013 — —

Total, Discretionary outlays ������������������������������������������������������������������������������� 68,778 73,393 74,376

Memorandum: Outlays from American Recovery and Reinvestment Act ��������� 3,652 16,363 11,359

Mandatory Outlays:

Federal Aviation Administration ������������������������������������������������������������������ –162 –159 –178

Federal Highway Administration ������������������������������������������������������������������ 793 1,094 900

Federal Railroad Administration������������������������������������������������������������������� 10 15 –3

Federal Maritime Administration ����������������������������������������������������������������� 265 254 176

Pipeline and Hazardous Materials Safety Administration ��������������������������� 16 37 35

Office of the Secretary �������������������������������������������������������������������������������� 38 53 50

All other ������������������������������������������������������������������������������������������������������� –384 –106 –50

Total, Mandatory outlays ����������������������������������������������������������������������������������� 576 1,188 930

Total, Outlays ���������������������������������������������������������������������������������������������������� 69,354 74,581 75,306
112 DEPARTMENT OF TRANSPORTATION

Department of Transportation—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Credit activity 

Direct Loan Disbursements:

Transportation Infrastructure Financing and Innovation Program ��������������� 317 1,159 1,107

Railroad Rehabilitation and Improvement Program ������������������������������������ 96 600 600

National Infrastructure Innovation and Finance Fund ���������������������������������� — — 250

Total, Direct loan disbursements ����������������������������������������������������������������������� 413 1,759 1,957

Guaranteed Loan Commitments:

Transportation Infrastructure Financing and Innovation Program ��������������� — 40 80

Railroad Rehabilitation and Improvement Program������������������������������������� — 100 100

Minority Business Resource Centers ���������������������������������������������������������� 3 18 18

Maritime Guaranteed Loans ����������������������������������������������������������������������� 269 350 450

Total, Guaranteed loan commitments ��������������������������������������������������������������� 272 508 648 1

 Includes discretionary budget authority and obligation limitations.
113

The Department of the Treasury is a leader in 

the President’s efforts to promote the economic 

prosperity and financial security of the United 

States. Treasury operations are critical to the 

core functions of government, including collecting over $2.3 trillion in revenue and disbursing 

over $2.3 trillion in payments, managing Federal finances, and protecting the financial system from threats. Treasury also plays a key role 

in modernizing the American financial regulatory framework and ensuring effective, transparent administration of programs designed to 

strengthen the economy. 

Supports the Administration’s Reform 

of Financial Regulation and Consumer 

Protection. In June 2009, the Administration 

proposed comprehensive financial reform legislation designed to create a robust financial regulatory system that could help prevent future economic crises. The proposal includes changes to 

improve the safety and soundness of the financial 

sector, especially large and interconnected firms, 

and creates a new Government entity responsible for monitoring financial businesses and 

practices that impact consumers directly.

Funding Highlights: 

•	 Includes resources to implement the Administration’s proposal to reform financial regulation 

including a new agency to protect consumers, and increases the security and convenience of 

Federal payment and collection transactions.

•	 Manages responsibly Troubled Asset Relief Program (TARP) investments to protect taxpayer 

interests while winding down extraordinary market interventions.

•	 Provides $250 million to expand job-creating investments and access to credit in 

disadvantaged communities through the Community Development Financial Institutions Fund.

•	 Invests over $8 billion in the Internal Revenue Service’s enforcement and modernization 

programs, while continuing to drive innovation and responsiveness in taxpayer services. The 

Budget supports significant new revenue-generating initiatives that will target critical areas of 

non-compliance, and enhances a multi-year modernization strategy that will deliver a vastly 

improved IRS within the next five years.

•	 Supports the capacity of the Department to respond to future economic challenges by 

expanding Treasury’s finance and tax policy resources. This increased analytical capability 

will also fund the Administration’s plan to strengthen oversight of financial institutions and 

markets so that the system is safer for consumers and investors. 

DEPARTMENT OF THE TREASURY
114 DEPARTMENT OF THE TREASURY

Redirects TARP to Small Businesses and 

Homeowners. The Budget continues to support activities authorized under the Emergency 

Economic Stability Act of 2008 and the Housing 

and Economic Recovery Act of 2008 that help stabilize the financial system and restart markets 

critical to financing American households and 

businesses, through new and existing investment 

agreements with financial institutions including 

banks, servicers, insurance companies, and the 

Government-Sponsored Enterprises Fannie Mae 

and Freddie Mac. New TARP agreements will 

be directed toward assisting homeowners threatened with foreclosure and small businesses needing access to affordable credit. The Budget emphasizes effective, transparent, and accountable 

management of the TARP. Over the past year, 

financial markets have rebounded faster than expected, and as a result the Budget reflects a significantly lower cost and volume of TARP asset 

purchases than previously estimated. 

Supports Lending in Low-Income 

Communities. The Budget supports the availability of affordable financing in low-income 

communities by providing targeted support to 

Community Development Financial Institutions throughout the Nation. The $250 million 

in financial support will help these local financial institutions offer affordable loans to small 

businesses, consumers, nonprofit developers, and 

home buyers in communities that lack access to 

affordable credit. These resources will also be 

coordinated with resources in other agencies to 

support the Administration’s place-based initiatives. New initiatives will expand financing for 

access to healthy foods and access to financial services in underserved communities. Supporting 

the Department’s efforts to improve protections 

for consumers of complicated financial products, 

Treasury will continue its work to improve financial literacy, especially among youth and young 

adult populations. Treasury along with its partners, will work to improve access to financial services for America’s unbanked and underbanked, 

building upon findings from its multi-year community financial access pilot, which concludes in 

2010. 

Improves Services to Taxpayers. The Administration will improve the quality of IRS services to taxpayers, providing for a better tax filing experience. The Budget provides additional 

resources for high-quality phone service so that 

taxpayers’ questions are answered quickly and 

correctly. A top priority of the IRS is to promptly 

and correctly answer a taxpayer’s question the 

first time asked, through the most efficient and 

taxpayer-friendly means. The IRS will also work 

to improve interactions between taxpayers and 

tax preparation service providers through a new 

targeted strategy, and will further enhance electronic filing capabilities through increased availability of electronic forms and improved information technology infrastructure. 

Streamlines Internal Processes to Deliver 

Tax Fairness while Targeting Waste and 

Fraud. The Budget supports the IRS’ continued 

progress in reducing the tax gap through fair, 

robust, and equal application of the tax laws—

including new revenue-generating enforcement 

initiatives that will increase recovery of tax debts 

by nearly $2 billion a year once the initiatives are 

fully mature in 2013. This set of initiatives will 

be balanced with an increased focus on IRS modernization, for which the Budget makes a significant commitment through nearly $200 million in 

targeted investments in the IRS’ new core taxpayer database and processing platform. Once 

complete, this modernized system will improve 

both the taxpayer experience through, for example, enhanced service capabilities such as more 

individualized self-service offerings, as well as 

the IRS’ operational effectiveness, creating a 

more responsive, nimble organization. The Budget also includes a set of innovative legislative 

proposals to improve the fairness, effectiveness 

and efficiency of tax administration, which will 

also narrow the tax gap. 

Achieves New Savings Through Commonsense Reforms. The Budget will increase collections of delinquent debt owed to the Federal 

Government, as well as child support payments 

through States, expand the use of electronic 

payment and collection transactions, and propose 

other cross-cutting initiatives that are expected 
THE BUDGET FOR FISCAL YEAR 2011 115

to yield approximately $2 billion in savings over 

the next 10 years. The Budget eliminates nearly 

$250 million in Federal subsidies to insurance 

companies for terrorism insurance. These subsidies are no longer necessary given the robust 

private market for such insurance, and domestic 

terrorism insurance policies are now sufficiently 

available and affordable to meet demand. According to industry data, property and casualty 

insurers’ surpluses—the balances available to 

pay claims associated with covered terrorist attacks—are currently estimated at over $490 

billion.

Strengthens the Analytic Capacity of 

Departmental Offices. The Budget funds additional staff with expertise in finance and tax policy. This investment will allow the Department 

to identify more effectively and address emerging 

economic challenges and improve policy-making 

capacity. Some of the new positions will support 

implementation of Financial Regulation Reform 

initiatives, including the launch of the Office of 

National Insurance and the Financial Services 

Oversight Council, which will improve supervision and regulation of financial institutions and 

markets. 

Department of the Treasury

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 1

Discretionary Budget Authority:

Internal Revenue Service ���������������������������������������������������������������������� 11,522 12,147 12,633

Financial Management Service ������������������������������������������������������������ 240 244 235

Departmental Offices ���������������������������������������������������������������������������� 279 305 346

Department-wide Systems and Capital Investments Programs ����������� 27 10 22

Bureau of the Public Debt ��������������������������������������������������������������������� 179 182 176

Department and IRS Inspectors General����������������������������������������������� 172 182 185

Special Inspector General for TARP������������������������������������������������������� — 23 50

Alcohol and Tobacco Tax and Trade Bureau ����������������������������������������� 99 103 —

Financial Crimes Enforcement Network ������������������������������������������������ 91 111 100

Community Development Financial Institutions Fund ��������������������������� 107 247 250

All other ������������������������������������������������������������������������������������������������� –92 — –62

Total, Discretionary budget authority ����������������������������������������������������������� 12,624 13,554 13,935

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ������������� 318 — —

Total, Discretionary outlays ������������������������������������������������������������������������� 12,224 13,278 13,738

Memorandum: Outlays from American Recovery and Reinvestment Act ��� 139 149 16

Mandatory Outlays:

Payment where tax credit exceeds liability for tax (multiple programs)�� 78,604 71,821 59,438

GSE MBS and HFA Purchases ������������������������������������������������������������� –4,500 –9,879 —
116 DEPARTMENT OF THE TREASURY

Department of the Treasury—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

GSE Preferred Stock Purchase Agreements and Dividends ���������������� 91,264 56,746 5,435

Troubled Asset Relief Program (TARP) ������������������������������������������������ 151,151 41,427 10,734

TARP Downward Reestimate of Subsidies ������������������������������������������� — –114,531 —

Office of Financial Stability �������������������������������������������������������������������� 90 443 309

Special Inspector General for TARP ������������������������������������������������������ 12 37 11

Internal Revenue Collections for Puerto Rico ��������������������������������������� 473 356 348

Legislative Proposal ������������������������������������������������������������������������� — 66 91

Terrorism Insurance Program ��������������������������������������������������������������� 2 104 236

Legislative proposal ������������������������������������������������������������������������� — — –26

All other ������������������������������������������������������������������������������������������������� –2,633 5,239 3,163

Total, Mandatory outlays ����������������������������������������������������������������������������� 314,463 51,763 79,674

Memorandum: Outlays from American Recovery and Reinvestment Act ��� 2,433 49,156 44,181

Total, Outlays ���������������������������������������������������������������������������������������������� 326,687 65,041 93,412

Credit activity 

Direct Loan Disbursements:

 GSE MBS and HFA Purchases ������������������������������������������������������������ 190,574 48,676 —

 Troubled Asset Relief Program ������������������������������������������������������������� 363,825 85,713 5,168

Total, Direct loan disbursements ����������������������������������������������������������������� 554,399 134,389 5,168

Guaranteed Loan Commitments:

Troubled Assets Relief Program ������������������������������������������������������������ 301,000 — —

Total, Guaranteed loan commitments ��������������������������������������������������������� 301,000 — —

 1 Excludes International Programs.
117

Veterans earn an array of benefits and services through their dedicated service to America. 

The President’s Budget makes it easier for veterans to access the benefits and services they have 

earned, by investing in 21st Century technology 

and in improved services for veterans with specialized needs. 

Builds on the Historic Past Increase in 

Funding for VA. The Budget provides $57 

billion in funding for a 20 percent total increase 

since 2009. This significant increase contributes 

to the President’s pledge to increase funding for 

the VA, providing a foundation to transform the 

Department and better serve veterans and their 

families today.

Provides Advance Appropriations for 

VA Medical Care. The 2011 Budget requests 

$50.6 billion in advance appropriations for the 

VA medical care program so that care for the Nation’s veterans is not hindered by budget delays. 

This funding will enable the Department to have 

timely and predictable funding from year to year, 

ultimately making it easier for veterans to rely 

on accessible VA care.

Focuses on the Unique Needs of Women 

Veterans. The 2011 President’s Budget responds to the growing number of women veterans by providing for their unique needs, from an 

appropriate environment of care to specialized 

medical and counseling services. 

Funding Highlights:

•	 Builds on the historic past increase in funding for the Department of Veterans Affairs (VA), for 

a 20 percent total increase since 2009.

•	 Secures timely, sufficient, and predictable funding for health care services through 2012 with 

advance appropriations for VA Medical Care.

•	 Increases access to medical care services by focusing on the unique needs of women 

veterans and continuing the enrollment of over 500,000 previously ineligible veterans into VA 

health care by 2013.

•	 Supports timely and high-quality delivery of health care and benefits through 21st Century 

technology, including the Virtual Lifetime Electronic Record and benefits processing systems. 

•	 Funds the Administration’s commitment to dramatically reduce veteran homelessness.

•	 Continues the emphasis on specialized care for veterans with psychological and cognitive 

health needs, especially due to post-traumatic stress and traumatic brain injury.

•	 Provides greater benefits to veterans who are medically retired from service.

•	 Dramatically expands access to national cemeteries for eligible veterans. 

DEPARTMENT OF VETERANS AFFAIRS
118 DEPARTMENT OF VETERANS AFFAIRS

Continues to Increase Enrollment of Previously Ineligible Veterans into VA Health 

Care. The President’s Budget continues enrolling more than 500,000 moderate-income veterans into the VA health care system by 2013 while 

maintaining high-quality and timely care for the 

lower-income and disabled veterans who currently rely on VA.

Supports Timely and High-Quality 

Delivery of Health Care and Benefits 

through 21st Century Technology. VA and 

the Department of Defense (DOD) are jointly 

implementing the Virtual Lifetime Electronic 

Record, which will enable VA to maintain a 

complete health record for each veteran and 

to deliver care and benefits to veterans with 

efficiency and accuracy. The President’s Budget 

also invests over $200 million in automated 

processing to directly improve the accuracy and 

timeliness of veterans benefits, particularly 

disability compensation and the new Post-9/11 

GI Bill benefit. 

Works to Dramatically Reduce Veteran 

Homelessness. With an investment of almost 

$800 million, the President’s Budget expands 

VA’s services for homeless veterans and those 

at risk of becoming homeless through the 

expansion of collaborative partnerships with 

local governments, non-profit organizations, 

and the Departments of Housing and Urban 

Development, Justice, and Labor. 

Continues the Emphasis on Specialized 

Care for Veterans with Psychological and 

Cognitive Health Needs. The President’s Budget strengthens VA’s ability to provide veterans 

the best possible care for Post-Traumatic Stress, 

Traumatic Brain Injury, and other mental health 

conditions by investing $5.2 billion in specialized care. These conditions will continue to be 

urgent issues for the VA for many years to come. 

The Budget increases collaboration between joint 

DOD and VA programs that target psychological 

health; increases research to develop new evidence-based approaches; and increases outreach 

to veterans. 

Provides Greater Benefits to Veterans 

who are Medically Retired from Service. 

For the first time, highly-disabled veterans who 

are medically retired from service will be eligible 

for concurrent receipt of disability benefits from 

VA in addition to DOD retirement benefits. All 

medically retired servicemembers will be eligible 

for concurrent receipt of VA and DOD benefits by 

2015. 

Dramatically Expands Access to National 

Cemeteries for Eligible Veterans. VA will reduce the population threshold used to determine 

where new national veterans cemeteries should 

be built from 170,000 to 80,000 veterans living 

within 75 miles of a potential location. The lower 

threshold will provide a nearby national cemetery 

burial option to at least 500,000 additional veterans and will result in 94 percent of all veterans 

having a veterans cemetery burial option within 

a reasonable distance of their homes.
THE BUDGET FOR FISCAL YEAR 2011 119

Department of Veterans Affairs

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending

Discretionary Budget Authority:

Medical Care ����������������������������������������������������������������������������������������������� 40,183 44,512 48,183

 Medical Collections (non-add) ������������������������������������������������������������ 2,767 3,026 3,355

 Total Medical Care including collections (non-add) ���������������������������� 42,950 47,538 51,538

Medical Care and Prosthetics Research ����������������������������������������������������� 510 581 590

Information Technology ������������������������������������������������������������������������������� 2,748 3,307 3,307

Construction ������������������������������������������������������������������������������������������������ 1,882 2,043 1,750

Veterans Benefits Administration ���������������������������������������������������������������� 1,461 1,689 2,149

General Administration ������������������������������������������������������������������������������� 336 398 463

Housing and Other Credit ��������������������������������������������������������������������������� 158 166 165

National Cemetery Administration �������������������������������������������������������������� 230 250 251

Office of Inspector General ������������������������������������������������������������������������� 88 109 109

Total, Discretionary budget authority ����������������������������������������������������������������� 47,596 53,055 56,967

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ������������������� 1,408 — —

Budget authority from supplementals ��������������������������������������������������������������� 198 — —

Total, Discretionary outlays ������������������������������������������������������������������������������� 46,580 51,516 55,224

Memorandum: Outlays from American Recovery and Reinvestment Act ��������� 86 590 465

Mandatory Outlays:

Disability Compensation and Pensions:

Existing law �������������������������������������������������������������������������������������������� 44,270 47,901 57,109

Supplemental ����������������������������������������������������������������������������������������� — 13,377 —

Legislative proposal ������������������������������������������������������������������������������� — 531 44

Education Benefits �������������������������������������������������������������������������������������� 3,155 8,444 9,704

Vocational Rehabilitation and Employment ������������������������������������������������� 720 787 830

Housing (credit) ������������������������������������������������������������������������������������������� 329 828 19

Insurance ���������������������������������������������������������������������������������������������������� 48 49 63

All other ������������������������������������������������������������������������������������������������������� –188 549 764

Total, Mandatory outlays ����������������������������������������������������������������������������������� 48,334 72,466 68,533

Memorandum: Outlays from American Recovery and Reinvestment Act ��������� 465 — —

Total, Outlays ���������������������������������������������������������������������������������������������������� 94,914 123,982 123,757

Credit activity 

Direct Loan Disbursements:

Vendee and Acquired Loans ����������������������������������������������������������������������� 79 965 1,102
120 DEPARTMENT OF VETERANS AFFAIRS

Department of Veterans Affairs—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

All other programs ��������������������������������������������������������������������������������������� 22 15 12

Total, Direct loan disbursements ����������������������������������������������������������������������� 101 980 1,114

Guaranteed Loan Commitments:

 Veterans Home Loans�������������������������������������������������������������������������������� 67,849 58,286 53,570
121

The Army Corps of Engineers civil works program (Corps) develops, manages, and protects 

the Nation’s water resources through its studies 

of potential projects; its construction, operation 

and maintenance of projects; and its regulatory 

program. The Corps, working with other Federal 

agencies, also helps communities respond to and 

recover from floods and other natural disasters. 

The Corps conducts much of its work in partnership with State and local governments and other 

non-Federal entities.

Funds High-Return Construction Projects. The Budget for the construction program 

supports high-return investments for ongoing 

work in the three main mission areas of the 

Corps: commercial navigation; flood and storm 

damage reduction; and aquatic ecosystem restoration. The Budget also gives priority for funding to dam safety work, projects that reduce significant risks to human safety, and projects that 

will complete construction during 2011.

Supports Capital Investment on the Inland Waterways. The Budget proposes to replace the current excise tax on diesel fuel for the 

inland waterways with a new funding mechanism that raises the revenue needed to meet the 

authorized non-Federal cost-share of inland waterways capital investments in a way that is more 

efficient and more equitable than the fuel tax. It 

will also preserve the landmark cost-sharing reform established by the Congress in 1986, while 

supporting inland waterways construction, expansion, replacement, and rehabilitation work.

Advances Aquatic Ecosystem Restoration. The Budget supports ongoing, high-performing ecosystem restoration efforts, including 

continued progress toward restoring the Florida 

Funding Highlights:

•	 Helps build infrastructure to support economic growth and restore aquatic ecosystems by 

allocating $1.7 billion to fund construction for projects that provide the highest economic and 

environmental return to the Nation while achieving public safety objectives.

•	 Emphasizes the safe and reliable operation and maintenance of key inland and coastal 

waterways and other infrastructure.

•	 Focuses resources on the restoration of significant aquatic ecosystems, such as the 

Everglades, the California Bay-Delta, and the Louisiana coastal wetlands. 

•	 Begins to chart a new direction for the Corps to meet 21st Century water resources 

challenges, including reforming the procedures for planning future projects and eliminating 

funding for ongoing projects and activities that are ineffective or duplicative.

CORPS OF ENGINEERS—CIVIL WORKS
122 CORPS OF ENGINEERS—CIVIL WORKS

Everglades, the California Bay-Delta, and the 

Louisiana coast. Based on sound science, these 

and other aquatic ecosystem efforts supported in 

the Budget focus on those activities that cost effectively provide high-quality, reliable, and sustainable long-term solutions that restore the environmental integrity and sustainability of the 

affected ecosystems. The Corps will work with 

Federal interagency working groups led by the 

White House Council on Environmental Quality to develop performance measures and tools 

to identify those restoration activities with the 

highest returns to taxpayers.

Emphasizes the Operation and Maintenance of Existing Infrastructure. The Budget 

focuses resources on furthering the operational 

reliability, safety, and availability of the key features of the existing Corps infrastructure. The 

Budget funds high-priority maintenance work 

that will improve the overall performance of the 

Corps aging infrastructure, including work on the 

Ohio, Upper Mississippi, and Illinois Waterway, 

and development of models to help the Corps understand the impact of climate change on its projects and how to adapt to those changes.

Supports a New Direction for the Corps.

The Budget supports Corps activities to plan and 

implement water resources projects that advance 

sustainable economic development and preserve 

and restore ecosystems. It also supports the Administration’s effort to revise the over 25-year 

old procedures for planning future Federal water 

resources projects and supports improving the 

management of existing projects to incorporate 

current water resources planning concepts and 

analytical methods. In addition, the Administration intends to develop a set of broad principles 

to chart the future course of the Corps and to 

help guide authorization of Corps studies, projects, and programs in the next Water Resources 

Development Act.

Eliminates Funding for Ineffective or Duplicative Programs. The Budget eliminates 

funding for dozens of projects that have a low 

economic or environmental return or that are duplicative of programs in other agencies, including 

cutting $129 million for water and wastewater 

infrastructure projects that are better addressed 

through other Federal programs.
THE BUDGET FOR FISCAL YEAR 2011 123

Corps of Engineers—Civil Works

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Construction ������������������������������������������������������������������������������������������������ 2,080 2,029 1,690

Operation and Maintenance ������������������������������������������������������������������������ 2,202 2,400 2,361

Mississippi River and Tributaries ����������������������������������������������������������������� 384 340 240

Flood Control and Coastal Emergencies ���������������������������������������������������� — — 30

Investigations ���������������������������������������������������������������������������������������������� 168 162 104

Regulatory Program ������������������������������������������������������������������������������������ 183 190 193

Expenses ���������������������������������������������������������������������������������������������������� 179 185 185

Office of the Assistant Secretary of the Army (Civil Works) ������������������������ 5 5 6

Formerly Utilized Sites Remedial Action Program �������������������������������������� 140 134 130

Subtotal, Discretionary budget authority ����������������������������������������������������������� 5,341 5,446 4,939

Cancellation of Unobligated Balances, Mississippi River and Tributaries ��� — — –58

Total, Discretionary budget authority ����������������������������������������������������������������� 5,341 5,446 4,881

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ������������������� 4,600 — —

Budget authority from supplementals ��������������������������������������������������������������� 6,558 — —

Total, Discretionary outlays ������������������������������������������������������������������������������� 6,777 7,566 5,951

Memorandum: Outlays from American Recovery and Reinvestment Act ��������� 346 2,965 976

Mandatory Outlays:

Existing law ������������������������������������������������������������������������������������������������� –261 38 35

Total, Mandatory outlays ����������������������������������������������������������������������������������� –261 38 35

Total, Outlays ���������������������������������������������������������������������������������������������������� 6,516 7,604 5,986

125

The Environmental Protection Agency (EPA) 

is committed to protecting human health and the 

environment. To achieve this mission, EPA collaborates with States and Tribes to implement air, 

water, waste, and chemical programs. The Budget requests $10 billion for EPA, a substantially 

higher annual amount than requested under any 

previous Administration. This total expands the 

Administration’s 2010 increase to the Agency’s 

core operating budget, which provides funds for 

program implementation, priority research, enhanced regulation, and comprehensive enforcement activities. EPA’s budget also provides more 

funding for State and tribal program implementation grants than any previous budget.

Invests in Clean Water Infrastructure. 

The Budget requests $3.3 billion for the Clean 

Water and Drinking Water State Revolving 

Funds (SRFs). The Federal SRF funding provides grants to States for low-interest loans to 

communities through a combination of Federal 

capitalization, State matches, State leveraging, interest, and loan repayments. Since loan 

interest and principal payments are returned 

to the program, the SRFs continue to generate 

funding for new loans even without continued 

Federal funding. The Federal contribution to 

water and waste water infrastructure has been 

substantially incorporated into SRFs. These 

Funds, combined, now produce approximately $5 

billion in repayments each year. As the Funds 

have grown, the need for Federal capitalization 

will decline over the next decade. Some ongoing 

contribution will be maintained so the neediest 

communities are adequately served. 

Funding Highlights:

•	 Provides $3.3 billion total for the Clean Water and Drinking Water State Revolving Funds. 

This will allow States and Tribes to initiate approximately 800 clean water and 500 drinking 

water projects nationally, continuing a major Federal commitment to water infrastructure 

investment.

•	 Provides new funding to support the Administration’s commitment to mitigate climate change.

•	 Continues support for collaborative, interagency ecosystem restoration efforts in the Great 

Lakes, Chesapeake Bay and Mississippi River Basin. 

•	 Provides grants for States and Tribes to administer delegated environmental programs at $1.3 

billion, the highest level ever.

•	 Funds the Agency’s operating budget at $3.8 billion to support regulatory, research, and 

enforcement activities.

•	 Supports economic growth and job creation in hard hit regions by bolstering Brownfields 

cleanup.

ENVIRONMENTAL PROTECTION AGENCY
126 ENVIRONMENTAL PROTECTION AGENCY

For 2011, EPA proposes a new approach to 

helping small drinking water systems, as well as 

reforms to improve the long-term financial, managerial, and environmental sustainability of the 

SRFs. As part of that strategy, Federal dollars 

provided through the SRFs will act as a catalyst 

for efficient system-wide planning, improvements 

in technical, financial and managerial capacity, 

and the design, construction and on-going management of sustainable water infrastructure. 

Supports Efforts to Mitigate Climate 

Change. The President has called on the Congress to enact forward-looking energy legislation 

that would spur U.S. development of advanced, 

clean energy technologies to reduce our dependence on oil, strengthen our energy and national 

security, create new jobs, and restore America’s 

position as a global leader in efforts to mitigate 

climate change and address its worst consequences. The Administration supports a comprehensive 

market-based climate change policy to reduce 

greenhouse gas emissions in the United States 

more than 80 percent below 2005 levels by 2050. 

The President also supports a near-term target 

in the range of a 17-percent reduction by 2020. 

The Budget includes $21 million, an increase of 

$4 million from 2010 enacted levels, to implement 

the Mandatory Greenhouse Gas Reporting Rule 

and ensure the availability of high quality emissions data that will serve as the basis for effective 

climate policy.

In order for EPA and States to quickly and 

effectively address climate change, the Budget requests $43 million in new funding for 

regulatory initiatives to control greenhouse 

gas emissions under existing Clean Air Act 

authorities. Requested funds include $25 million to aid States in permitting activities for 

greenhouse gas (GHG) emissions under the 

New Source Review, and Title V operating permits programs. The Budget also requests $7 

million to develop New Source Performance 

Standards to control GHG emissions from a 

few categories of major stationary sources. 

The Budget requests an increase of $6 million to support regulatory programs to reduce 

GHG emissions from mobile sources. These 

initiatives will help the United States meet its 

target for emissions reductions.

Advances Restoration of Great Lakes and 

Other Imperiled Waters. The 2011 Budget 

supports ecosystem restoration efforts, including $300 million for the Great Lakes, the largest freshwater system in the world. This EPAled interagency effort to restore the Great Lakes 

focuses on priority environmental issues such 

as contaminated sediments and toxics, nonpoint 

source pollution, habitat degradation and loss, 

and invasive species. 

The Budget also provides $17 million in new 

funding for the Mississippi River Basin and increases support for the Chesapeake Bay by $13 

million. In the Mississippi River Basin, EPA 

will work with the Department of Agriculture 

to target nonpoint source reduction practices on 

agricultural land to reduce nutrient loadings. 

Funding for the Chesapeake Bay supports the 

President’s May 2009 Chesapeake Bay Protection and Restoration Executive Order and will 

enable EPA to conduct robust regulatory, permitting, modeling, and reporting efforts. EPA 

and Federal partners will continue to coordinate 

with States, Tribes, municipalities, and industry 

to restore the integrity of imperiled waters of 

the United States.

Assists States and Tribes Clean Air and 

Water Efforts. For grants that support eligible 

States and Tribes that implement environmental programs, the Budget requests $1.3 billion, a 

14-percent increase from 2010 enacted and the 

highest level ever. In addition to the $25 million 

provided for States to conduct GHG permitting 

activities, the Budget recognizes State fiscal constraints and provides substantial increases for 

select State and tribal programs, including a $45 

million increase for State water pollution control 

grants and a $58 million increase for air quality 

management grants. The Budget includes $30 

million for a new tribal multimedia grant program targeted at Tribes and tribal consortia that 

can implement environmental program requirements on tribal lands. 
THE BUDGET FOR FISCAL YEAR 2011 127

Promotes Economic Growth with 

Increased Funding for Brownfields Cleanup. Brownfields are lightly contaminated sites—

many in economically hard-hit regions—that pollution may keep from being used productively. 

To stimulate economic growth and job creation 

in economically distressed areas, the Budget 

provides a substantial increase for the Brownfields program to integrate area-wide planning 

and environmental remediation activities. 

Environmental Protection Agency

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Operating Budget 1

���������������������������������������������������������������������������������������� 3,281 3,940 3,843

State and Tribal Assistance Grants �������������������������������������������������������������� 1,082 1,116 1,276

Clean Water State Revolving Fund �������������������������������������������������������������� 689 2,100 2,000

Drinking Water State Revolving Fund ���������������������������������������������������������� 829 1,387 1,287

Brownfields Assessment and Cleanup �������������������������������������������������������� 97 100 138

Clean Diesel Grants ������������������������������������������������������������������������������������� 75 80 60

Targeted Water Infrastructure ���������������������������������������������������������������������� 192 195 20

Requested (non-add) ������������������������������������������������������������������������������ 39 30 20

Unrequested (non-add) ��������������������������������������������������������������������������� 153 165 —

Superfund ���������������������������������������������������������������������������������������������������� 1,285 1,307 1,293

Leaking Underground Storage Tanks ����������������������������������������������������������� 113 113 113

Cancellation of unobligated balances ���������������������������������������������������������� –10 –40 –10

Total, Discretionary budget authority ������������������������������������������������������������������ 7,633 10,298 10,020

Memorandum: Budget authority from American Recovery and Reinvestment Act ������ 7,220 — —

Total, Discretionary outlays �������������������������������������������������������������������������������� 7,885 8,591 9,351

Memorandum: Outlays from American Recovery and Reinvestment Act ���������� 302 2,841 2,005

Mandatory Outlays:

Agency-wide 

Existing law ��������������������������������������������������������������������������������������������� –117 –131 –129

Legislative proposals, Pesticide and PMN user fees ������������������������������� — — –50

Total, Mandatory outlays ������������������������������������������������������������������������������������ –117 –131 –179

Total, Outlays ��������������������������������������������������������������������������������������������������� 7,768 8,460 9,172 1 Includes funding for Great Lakes Initiative.

129

The mission of the National Aeronautics and 

Space Administration (NASA) is to drive advances in science, technology, and exploration 

to enhance knowledge, education, innovation, 

economic vitality, stewardship of the Earth, and 

solutions to national and global challenges. The 

President’s Budget will allow NASA to improve 

our knowledge of the Earth, explore space with 

humans and robots, foster strong partnerships 

with other nations, and educate and inspire the 

next generation of scientists and engineers.

Funding Highlights:

•	 Adds $6 billion to NASA’s budget over five years and draws upon American ingenuity to 

enable us to embark on an ambitious 21st Century program of human space exploration.

•	 Initiates flagship exploration technology development and demonstration programs of “gamechanging” technologies that will increase the reach and reduce the costs of future human 

space exploration as well as other NASA, government, and commercial space activities.

•	 Embraces the commercial space industry and the thousands of new jobs that it can create 

by contracting with American companies to provide astronaut transportation to the Space 

Station—thus reducing the risk of relying exclusively on foreign crew transport capabilities.

•	 Ends NASA’s Constellation program, which was planning to use an approach similar to the 

Apollo program to return astronauts back to the Moon 50 years after that program’s triumphs. 

An independent panel found that Constellation was years behind schedule and would require 

large budget increases to land even a handful of astronauts back on the Moon before 2030. 

Instead, we are launching a bold new effort that invests in American ingenuity for developing 

more capable and innovative technologies for future space exploration.

•	 Extends the International Space Station and enhances its utilization, bringing nations together 

in a common pursuit of knowledge and excellence in space.

•	 Enhances the Nation’s global climate change research and monitoring system, including reflight of a satellite that will help identify global carbon sources and sinks.

•	 Provides for a robust program of robotic solar system exploration and new astronomical 

observatories, including a probe that will fly through the Sun’s atmosphere and an expanded 

effort to detect potentially hazardous asteroids.

•	 Revitalizes and realigns NASA to put in place the right workforce and facilities to function as 

an efficient 21st Century research and development agency.

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION
130 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Lays the Foundation for a Bold New 

Course for Human Space Flight. NASA’s 

Constellation program—based largely on 

existing technologies—was begun to realize a 

vision of returning astronauts back to the Moon 

by 2020. However, the program was over budget, 

behind schedule, and lacking in innovation due 

to a failure to invest in critical new technologies. 

Using a broad range of criteria, an independent 

review panel determined that even if fully 

funded, NASA’s program to repeat many of the 

achievements of the Apollo era, 50 years later, 

was the least attractive approach to space 

exploration as compared to potential alternatives. 

Furthermore, NASA’s attempts to pursue its Moon 

goals had drawn funding away from other NASA 

programs, including robotic space exploration, 

science, and Earth observations. The President’s 

Budget cancels Constellation and replaces it with 

a bold new approach that invests in the building 

blocks of a more capable approach to space 

exploration that includes:

•	 Research and development to support 

future heavy-lift rocket systems that will 

increase the capability of future exploration architectures with significantly lower 

operations costs than current systems—

potentially taking us farther and faster 

into space. 

•	 A vigorous new technology development 

and test program that aims to increase 

the capabilities and reduce the cost of future exploration activities. NASA, working with industry, will build, fly, and test 

in orbit key technologies such as automated, autonomous rendezvous and docking, 

closed-loop life support systems, in-orbit 

propellant transfer, and advanced inspace propulsion so that our future human and robotic exploration missions are 

both highly capable and affordable.

•	 A steady stream of precursor robotic exploration missions to scout locations and 

demonstrate technologies to increase the 

safety and capability of future human 

missions and provide scientific dividends.

Develops and Deploys Technologies to Reduce Future Space Mission Costs, Expand 

Opportunities, and Grow the American 

Economy. NASA will embark on a new agencywide technology development and test program 

aimed at increasing the capabilities and reducing the cost of future NASA, other government, 

and commercial space activities. NASA will increase its support for transformative research 

that can enable a broad range of NASA missions. 

This program, which will involve work at NASA, 

in private industry, and at all levels of academia, 

will also generate spin-off technologies and potentially entire new industries.

Supports Extension and Enhanced Utilization of the Space Station. The International 

Space Station is poised to reach its full complement of international crew and laboratories in 

2010. The President’s Budget provides funds 

to extend operations of the Space Station past 

its previously planned retirement date of 2016. 

Working with partners around the world, NASA 

will maximize return on this investment by deploying new research facilities to conduct scientific research and test technologies in space and 

by making Space Station research capabilities 

available to educators and new researchers. New 

capabilities could include a centrifuge to support 

research into human physiology, inflatable space 

habitats, and a program to continuously upgrade 

Space Station capabilities.

Supports Promising Commercial Space 

Transportation. Commercial launch vehicles 

have for years carried all U.S. military and commercial—and most NASA—satellites to orbit. 

The Budget funds NASA to contract with industry to provide astronaut transportation to the 

International Space Station as soon as possible, 

reducing the risk of relying solely on foreign 

crew transports for years to come. A strengthened U.S. commercial space launch industry will 

bring needed competition, act as a catalyst for the 

development of other new businesses capitalizing 

on affordable access to space, help create thousands of new jobs, and help reduce the cost of 

human access to space. 
THE BUDGET FOR FISCAL YEAR 2011 131

Commits Funds to Safely and Prudently 

Fly the Remaining Space Shuttle Flights.

The President’s Budget promotes a safe and orderly retirement of the Space Shuttle program 

by providing funding for the Shuttle to fly its final five missions, even if their schedule slips into 

2011. 

Improves Our Understanding of Global 

Climate Change. NASA’s Earth science program conducts first-of-a-kind demonstration 

flights of sensors in air and space in an effort to 

foster scientific understanding of the Earth system and to improve the ability to forecast climate change and natural disasters. The Budget 

accelerates the development of new satellites 

the National Research Council recommended as 

Earth science priorities. The Budget also supports several research satellites currently in 

development, a campaign to monitor changes in 

polar ice sheets, and enhancements to climate 

models. In addition, the Budget provides funds 

for NASA to develop and fly a replacement for the 

Orbiting Carbon Observatory, a mission designed 

to identify global carbon sources and sinks that 

was lost when its launch vehicle failed in 2009.

Increases Scientific Understanding of the 

Solar System and Universe. NASA’s space 

probes, rovers, and telescopes have revolutionized humanity’s scientific understanding of the 

cosmos. The Budget supports space science research grants and dozens of operating missions 

and telescopes currently studying the planets 

and stars as well as many more in development—

including a telescope to succeed the Hubble Space 

Telescope, missions to study the Moon, and two 

Mars exploration missions. The Budget also 

funds early work on a mission that will make the 

closest-ever approach to the Sun, flying through 

its outer atmosphere in an attempt to understand 

how it is heated and how it ejects the stream of 

charged particles known as the solar wind. In 

addition, the Budget increases funding to detect 

asteroids that could potentially pose a hazard to 

the Earth. 

Increases Support for Green Aviation and 

a More Efficient Air Transportation System. The President’s Budget increases support 

for NASA’s green aviation initiative by focusing 

on both innovative fundamental research and 

systems-level applications to reduce fuel needs, 

noise, and emissions of aircraft. These improvements to future air transportation will promote 

both the economic and environmental health of 

this country.

Revitalizes and Realigns NASA. The Budget supports the revitalization of NASA to put in 

place the right workforce and facilities to function 

as an efficient 21st Century research and development agency. A major focus of this effort will be 

to create the 21st Century launch facilities and 

infrastructure needed at Kennedy Space Center, 

transforming the facility to more effectively support future NASA, commercial, and other government launches.

Inspires More Young People to Engage 

in Science, Technology, Engineering, and 

Mathematics. The Budget supports NASA programs that are designed to meet the goals of the 

President’s “Educate to Innovate” campaign in 

Science, Technology, Engineering and Mathematics education. NASA’s Summer of Innovation, 

for example, will work with thousands of middle 

school teachers and students to engage students 

in stimulating, evidence-based math and sciencebased education programs.
132 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

National Aeronautics and Space Administration

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Science ����������������������������������������������������������������������������������������������������� 4,503 4,469 5,006

Exploration ������������������������������������������������������������������������������������������������ 3,505 3,746 4,263

Aeronautics and Space Research and Technology ���������������������������������� 500 501 1,152

Space Operations ������������������������������������������������������������������������������������� 5,765 6,147 4,888

Education �������������������������������������������������������������������������������������������������� 169 183 146

Cross Agency Support ������������������������������������������������������������������������������ 3,306 3,194 3,111

Construction and Environmental Compliance and Restoration ����������������� — 448 397

Inspector General ������������������������������������������������������������������������������������� 34 36 37

Total, Discretionary budget authority ��������������������������������������������������������������� 17,782 18,724 19,000

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ����������������� 1,002 — —

Total, Discretionary outlays ����������������������������������������������������������������������������� 19,138 18,347 17,694

Memorandum: Outlays from American Recovery and Reinvestment Act ������� 37 790 183

Mandatory Outlays:

All Other General Funds and Proprietary Receipts ���������������������������������� –6 –15 –15

Undistributed Intragovernmental Payments and Receivables ������������������� –2 — —

Science, Space, and Technology Education Trust Fund ��������������������������� 1 1 1

Total, Mandatory outlays ��������������������������������������������������������������������������������� –7 –14 –14

Total, Outlays �������������������������������������������������������������������������������������������������� 19,131 18,333 17,680
133

The National Science Foundation (NSF) is the 

key Federal agency responsible for supporting 

the full breadth of non-biomedical science and 

technology research at the Nation’s universities 

and colleges. This basic research and the agency’s high-tech workforce development programs 

help drive future economic growth and the creation of high-wage jobs for American workers. 

The Budget fully funds the President’s Plan for 

Science and Innovation by providing NSF with 

$552 million over the 2010 enacted level, and 

maintains the Administration’s commitment to 

doubling funding for key basic research agencies.

Lays the Groundwork for the Industries 

and Jobs of the Future. The Budget doubles 

funding to $90 million for basic research aimed 

at creating a future bio-economy by enhancing our ability to design biological systems, and 

starting the next revolution in computing by 

designing new materials. The Budget also supports advanced manufacturing technologies by 

funding research on nano-manufacturing and 

cyber-physical systems such as automated traffic control and zero-net energy buildings.

Inspires Students to Pursue Clean Energy 

Careers. In partnership with the Department 

of Energy, NSF will dedicate at least 5 percent 

of its undergraduate and graduate fellowship, 

scholarship, and traineeship programs, roughly 

$19 million in 2011, to students pursuing clean 

energy careers.

Increases Sustainability Research. The 

Budget provides $766 million, an increase of 

$105 million over comparable 2010 levels, for a 

new effort at NSF that represents a fundamenFunding Highlights:

•	 Provides $7.4 billion for the National Science Foundation, an 8 percent increase over the 

2010 enacted level, as part of the President’s Plan for Science and Innovation.

•	 Drives the creation of the industries and jobs of the future by doubling funding for 

multidisciplinary research targeted at next-generation information and biological technologies.

•	 Provides $19 million in graduate and undergraduate fellowships and scholarships for a joint 

initiative with the Department of Energy to inspire tens of thousands of American students to 

pursue careers in science, engineering, and entrepreneurship related to clean energy.

•	 Creates a new $766 million, cross-agency sustainability research effort focused on renewable 

energy technologies and complex environmental- and climate-system processes.

•	 Increases funding by 14 percent for a new consolidated program aimed at building the 

science and technology workforce by recruiting and retaining undergraduate students from 

under-represented groups.

NATIONAL SCIENCE FOUNDATION
134 NATIONAL SCIENCE FOUNDATION

tal shift in how the agency defines and supports 

multidisciplinary energy and climate research. 

This new cross-agency effort is an integrated approach to increasing U.S. energy independence, 

enhancing environmental stewardship, reducing 

energy and carbon intensity, and generating sustained economic growth.

Broadens Reach and Increases Funding to 

Promote Study of Science and Technology.

The Budget proposes to launch a comprehensive 

science and technology workforce program to 

engage undergraduates at Historically Black, 

Tribal, and Hispanic-serving colleges and 

universities by realigning and building on 

existing programs. Funding for these activities 

would increase by over 14 percent to $103 million.

National Science Foundation

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Research and Related Activities ��������������������������������������������������������������� 5,183 5,564 6,019

Education and Human Resources ������������������������������������������������������������ 845 873 892

Major Research Equipment and Facilities Construction ��������������������������� 152 117 165

Agency Operations and Award Management ������������������������������������������� 294 300 329

Inspector General ������������������������������������������������������������������������������������� 4 5 5

National Science Board ���������������������������������������������������������������������������� 12 14 14

Total, Discretionary budget authority ��������������������������������������������������������������� 6,490 6,873 7,424

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ����������������� 3,002 — —

Total, Discretionary outlays ����������������������������������������������������������������������������� 5,834 6,149 6,653

Memorandum: Outlays from American Recovery and Reinvestment Act ������� 27 1,463 859

Mandatory Outlays:

H-B Fee Programs ������������������������������������������������������������������������������������ 96 165 137

All other ����������������������������������������������������������������������������������������������������� 1 42 -2

Total, Mandatory outlays ��������������������������������������������������������������������������������� 97 207 135

Total, Outlays �������������������������������������������������������������������������������������������������� 5,931 6,356 6,788
135

The 2011 Budget provides $994 million for the 

Small Business Administration (SBA), a $170 

million, or 21 percent, increase over the 2010 

enacted level. This reflects the Administration’s 

strong support of small businesses, which play a 

vital role in the Nation’s economy.

Provides Small Business Access to Credit.

The Budget provides $165 million in subsidy 

costs to support $17.5 billion in 7(a) loan guarantees that will help small businesses operate and 

expand. This includes an estimated $16 billion 

in term loans and $1.5 billion in revolving lines 

of credit; the latter are expected to support $39 

billion in total economic activity through draws 

and repayments over the life of the guarantee. 

The Budget also supports $7.5 billion in guaranteed lending for commercial real estate development and heavy machinery purchases; $3 billion 

in Small Business Investment Company debentures to support new businesses and new jobs 

through early-stage and mezzanine small business financing; and $25 million in direct Microloans, for intermediaries to provide small loans 

to emerging entrepreneurs and other promising 

but “un-bankable” borrowers.

The Budget also includes the following legislative proposals, to improve small business access 

to credit. It proposes to increase the maximum 

7(a) loan size from $2 million to $5 million; to 

increase the maximum Certified Development 

Company (or “504”) loan size from $2 million to 

$5 million for regular projects and from $4 million to $5.5 million for manufacturing projects; 

and to increase the maximum Microloan size to 

$50,000. The Budget also proposes to increase 

the maximum outstanding loan amount to Microloan intermediaries in their first year of participation from $750,000 to $1 million, and from 

$3.5 million to $5 million in the subsequent 

years.

Funding Highlights:

•	 Supports $28 billion in loan guarantees to help small businesses access the credit they need 

to grow and create jobs.

•	 Provides competitive technical assistance grants to better support business development and 

regional economic growth.

•	 Provides long-term disaster recovery loans for homeowners, renters, and businesses of all 

sizes.

•	 Strengthens lender and procurement program oversight to protect taxpayer dollars.

•	 Upgrades the Agency’s information technology systems and human capital resources to 

increase SBA’s impact on businesses and communities.

SMALL BUSINESS ADMINISTRATION
136 SMALL BUSINESS ADMINISTRATION

Supports Business Growth and Cluster 

Development. The Budget includes $14 million 

for competitive technical assistance grants 

to expand SBA’s Emerging Leaders (formerly 

Emerging 200) initiative and to enhance small 

business participation in regional economic 

clusters. The Emerging Leaders initiative ($3 

million) provides intensive technical assistance 

to companies that have high growth potential and 

are located in distressed economic areas, such as 

inner cities and Native American communities, 

and connects them to regional business 

networks to accelerate growth. SBA will also 

support enhanced small business participation 

in regional economic clusters ($11 million) by 

awarding competitive grants to facilitate greater 

coordination of resources (business counseling, 

training, mentor-protégé partnerships).

Funds Long-Term Disaster Recovery. The 

Budget supports $1.1 billion in direct loans, the 

normalized 10-year average, for homeowners and 

businesses whose property is damaged by natural disasters. The Budget requests $203 million 

in new budget authority for disaster-loan administrative expenses, an increase of $126 million 

from the 2010 enacted level.

Strengthens Oversight to Protect Taxpayer Dollars. Due to the economic downturn 

and higher defaults on prior loans, SBA’s guaranteed loan programs are recording a $4.5 billion increase in losses and subsidy costs on its 

outstanding loan portfolio, particularly on those 

made between 2005 and 2007. This reestimate 

increases the deficit in 2010. In addition, projected defaults and economic conditions have doubled 

the estimated cost of new 7(a) loan guarantees 

for 2011 compared to 2010. The Budget provides 

funding for these increased costs in 2011, as noted above. However, to strengthen the program’s 

long-term economic foundation, the Administration will submit a legislative package to provide 

SBA the flexibility to adjust fees in the program 

to enable it to be self-sustaining over time. These 

changes in the program’s fee structure would become effective for loans originated in 2012. 

The Budget also provides additional resources 

to improve program management through enhanced lender oversight and credit risk mitigation activities, to promote prudent use of taxpayer 

dollars in SBA’s programs. In addition, an increase of $4 million is requested to improve SBA’s 

oversight of Government contracting programs 

($2 million), including the HUBzone program, 

and to strengthen performance assessment and 

management of the Small Business Innovation 

Research program ($2 million), which provides 

small business opportunities through set-asides 

of over $2 billion annually in Federal research 

and development funding. 

Strengthens Core Agency Capabilities.

The Budget provides the resources needed to 

modernize SBA information technology systems, 

including migrating additional loan programs to 

a modern loan management and accounting system. The Budget also contains funds to continue 

SBA personnel training initiatives, to allow the 

agency to continue to make progress on improving its human capital and customer relationships.
THE BUDGET FOR FISCAL YEAR 2011 137

Small Business Administration

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Salaries and Expenses ���������������������������������������������������������������������������������� 390 433 446

Business Loans:

Loan Subsidy ������������������������������������������������������������������������������������������� 2 83 169

Loan Administration ���������������������������������������������������������������������������������� 138 153 157

Subtotal, Business Loans ������������������������������������������������������������������������������ 140 236 326

Disaster Loans:

Loan Subsidy ������������������������������������������������������������������������������������������� — 2 —

Loan Administration ���������������������������������������������������������������������������������� — 77 203

Subtotal, Disaster Loans �������������������������������������������������������������������������������� — 79 203

Office of the Inspector General ���������������������������������������������������������������������� 17 16 18

Surety Bond Revolving Fund ������������������������������������������������������������������������� 2 1 1

Unrequested Projects ������������������������������������������������������������������������������������ 66 59 —

Subtotal, Gross Discretionary budget authority ����������������������������������������������������� 615 824 994

Negative subsidy receipts ������������������������������������������������������������������������������� — –2 –1

Total, Net Discretionary budget authority��������������������������������������������������������������� 615 822 993

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ����������������������� 730 — —

Budget authority from supplementals ������������������������������������������������������������������� — 125 —

Total, Discretionary outlays ����������������������������������������������������������������������������������� 924 916 1,233

Memorandum: Outlays from American Recovery and Reinvestment Act ������������� 119 380 160

Mandatory Outlays:

Business Loan Subsidy Reestimates ������������������������������������������������������������� 1,051 4,475 N/A

Disaster Loan Subsidy Reestimates �������������������������������������������������������������� 159 211 N/A

Liquidating Credit Accounts ��������������������������������������������������������������������������� –7 –4 –5

Total, Mandatory outlays ��������������������������������������������������������������������������������������� 1,203 4,682 –5

Total, Outlays �������������������������������������������������������������������������������������������������������� 2,127 5,598 1,228

Credit activity 

Direct Loan Disbursements:

Direct Disaster Loans ������������������������������������������������������������������������������������� 727 738 738

Direct Business Loans ����������������������������������������������������������������������������������� 24 400 450

Total, Direct loan disbursements ��������������������������������������������������������������������������� 751 1,138 1,188
138 SMALL BUSINESS ADMINISTRATION

Small Business Administration—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Guaranteed Loan Commitments:

Guaranteed Business Loans �������������������������������������������������������������������������� 12,116 22,803 23,900

Guaranteed Disaster Loans ��������������������������������������������������������������������������� — 75 —

Total, Guaranteed loan commitments ������������������������������������������������������������������� 12,116 22,878 23,900
139

Funding Highlights:

•	 Provides $12.5 billion for the Social Security Administration, an 8 percent increase, targeted at 

reducing backlogs and improving service for the American public.

•	 Expands program integrity efforts to make sure payments are made to the right person and in 

the right amount.

•	 Restructures Federal Wage Reporting.

SOCIAL SECURITY ADMINISTRATION

The President believes that all Americans 

should be able to retire with dignity. He is committed to protecting Social Security and working 

in a bipartisan manner to preserve its original 

purpose as a reliable source of income for American seniors. The Social Security Administration 

(SSA) administers the Old Age, Survivors, and 

Disability Insurance program and the Supplemental Security Income (SSI) program. In 2009, 

more than 51 million retired or disabled workers, survivors, and their families received over 

$659 billion in benefit payments. Nearly 8 million Americans received SSI benefits totaling 

$49 billion. 

Protects Social Security. The President 

recognizes that Social Security is indispensable 

to workers, people with disabilities, seniors, and 

survivors and is probably the most important 

and most successful program that our country 

has ever established. Based on current forecasts, Social Security can pay full benefits until 

2037. The President is committed to making 

sure that Social Security is solvent and viable for 

the American people, now and in the future. He 

is strongly opposed to privatizing Social Security 

and looks forward to working in a bipartisan way 

to preserve it for future generations.

Provides an 8 Percent Funding Increase 

to Provide Services Faster and Reduce 

Backlogs. This year, SSA will process almost 

5 million retirement, survivor, and Medicare 

claims; 3.3 million disability claims; and over 

326,000 Supplemental Security Income (SSI) 

aged claims. The Budget proposes $12.5 billion 

for SSA, an increase of $930 million, or (8 percent), above the 2010 enacted level of $11.6 billion. This amount includes resources to increase 

staffing in 2011 and will allow SSA to provide 

services faster with a focus on key service delivery areas, such as processing initial retirement 

and disability claims, and disability appeals. 

At the end of 2010, the initial disability claims 

backlog is expected to reach record highs with 

over one million people waiting for a decision. 

This is unacceptable. The 2011 Budget funds 

SSA to lower the backlog below one million by 

processing over three million claims. The Budget also allows SSA to continue to reduce the 

appeals hearing backlog. By hearing approximately 799,000 cases in 2011, the backlog will 
140 SOCIAL SECURITY ADMINISTRATION

fall to 657,000 hearings pending. In addition, the 

Budget also includes resources to enable SSA to 

more effectively and efficiently verify hundreds 

of millions of Social Security Numbers and issue 

about 19 million Social Security cards.

Increases Significantly Program Integrity 

Efforts. SSA’s program integrity efforts are 

part of a strong framework for making sure the 

Government is spending tax dollars efficiently and 

that benefits are paid only to those beneficiaries 

who are eligible and are paid in correct amounts. 

The President’s 2011 Budget provides $796 

million for SSA program integrity, including an 

over 9 percent increase in the level of medical 

Continuing Disability Reviews over the prior 

year. Continuing Disability Reviews make sure 

that Disability Insurance and SSI recipients 

continue to the meet the medical criteria for those 

programs. 

Restructures the Federal Wage Reporting 

Process. The President’s 2011 Budget proposes 

to restructure the Federal wage reporting process 

by reverting to quarterly wage reporting. Currently, wages are reported to the Federal Government once a year. Increasing the timeliness of 

wage reporting would enhance tax administration, improve program integrity for a range of 

programs, and facilitate implementation of automatic workplace pensions. The Administration 

will work with the States so that the overall reporting burden on employers is not increased.

Social Security Administration

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending

Discretionary Budget Authority:

Limitation on Administrative Expenses (LAE) Base 1, 2 ���������������������� 10,285 11,281 12,195

Office of Inspector General ����������������������������������������������������������� 100 103 106

Research and Development ���������������������������������������������������������� 28 42 36

Total, Discretionary budget authority �������������������������������������������������������� 10,413 11,426 12,338

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ���������� 1,092 — —

Total, Discretionary outlays ���������������������������������������������������������������������� 10,163 11,124 12,142

Memorandum: Outlays from American Recovery and Reinvestment Act ��� 165 389 31

Mandatory Outlays:

Old-age, Survivors, and Disability Insurance ������������������������������������� 664,732 702,582 729,523

Supplemental Security Income ���������������������������������������������������������� 44,906 47,478 52,761

Special Benefits for Certain World War II Veterans ���������������������������� 9 9 8

Offseting collections ��������������������������������������������������������������������������� –24,452 –28,006 –30,285

Legislative proposals ������������������������������������������������������������������������� — 12,543 569

All other ���������������������������������������������������������������������������������������������� 20,838 24,440 26,889

Total, Mandatory outlays �������������������������������������������������������������������������� 706,033 759,046 779,465
THE BUDGET FOR FISCAL YEAR 2011 141

Social Security Administration—Continued

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Memorandum: Outlays from American Recovery and Reinvestment Act ��� 13,079 300 45

Total, Outlays �������������������������������������������������������������������������������������������� 716,173 770,379 791,681 1 The LAE account includes funding from the Hospital Insurance and Supplementary Medical Insurance trust funds for services that support the Medicare 

program, including implementation of Medicare Reform. 2 This amount reflects offsetting collections from SSI State Supplemental Fees.

143

Funding Highlights:

•	 Expands AmeriCorps, the national service program, to a record-level 105,000 members from 

85,000 members, providing more opportunities for all Americans to serve their communities.

•	 Fosters the replication of innovative, proven and transformative evidence-based programs 

through the Social Innovation Fund.

•	 Strengthens the Corporation’s management and information technology infrastructure to meet 

the President’s vision and support the growth and excellence in its programs.

CORPORATION FOR NATIONAL 

AND COMMUNITY SERVICE

The President believes that service is central 

to addressing our Nation’s greatest challenges. 

The Corporation for National and Community Service (CNCS) provides an on-ramp for 

Americans of all ages to serve their community 

and country in sustained and effective ways 

throughout their lives, from tutoring at-risk 

youth to responding to natural disasters to 

building the capacity of community organizations. The President also believes that many of 

the best solutions to America’s challenges can 

be found outside of Washington, in communities 

across the country. That is why the President’s 

Budget proposes $1.416 billion for CNCS, an 

increase of $266 million from 2010, providing 

more Americans the opportunity to serve and 

fostering community innovation.

Expands National Service. In April 2009, 

the President signed the Edward M. Kennedy 

Serve America Act, which authorized an 

unprecedented expansion of the AmeriCorps 

program to 250,000 members by 2017. This 

Budget keeps the program on that trajectory 

by funding over 105,000 members in 2011, an 

increase of 20,000 from 2010. The increase for 

AmeriCorps includes additional funds for the 

National Civilian Community Corps program, a 

full-time, team-based, residential program with 

a focus on disaster relief.

Invests in Innovative Non-Profits. Innovators 

often come up with great ideas for addressing critical 

national challenges, but too often they lack the 

capital to develop, evaluate, and replicate successful 

approaches. The Budget invests $60 million in 

the Social Innovation Fund to test promising new 

approaches to major challenges, leverage private 

and foundation capital to meet these needs, and 

grow evidence-based programs.

Strengthens the Management Capacity 

of the Corporation. The success of the Corporation’s programs and growth requires an investment in its management, so the Budget provides 

resources to strengthen the Corporation’s capacity to meet the President’s vision and manage 

its growing portfolio. In addition to staffing, the 

Budget supports targeted enhancements to the 

agency’s information technology (IT) infrastructure. These IT improvements are critical to the 

effective performance of nearly every aspect of 
144 CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

the Corporation’s business. The Budget likewise 

invests in the Corporation’s capacity to measure 

its performance, evaluate its programs, and make 

data-driven decisions. 

Corporation for National and Community Service

(In millions of dollars)

Actual 

2009

Estimate

2010 2011

Spending 

Discretionary Budget Authority:

Operating Expenses ��������������������������������������������������������������������������������� 812 1,054 1,298

AmeriCorps (non-add) ������������������������������������������������������������������������� 526 698 914

Learn and Serve America (non-add) ���������������������������������������������������� 37 40 40

Senior Corps (non-add) ����������������������������������������������������������������������� 214 221 221

Social Innovation Fund (non-add) �������������������������������������������������������� — 50 60

Salaries and Expenses ���������������������������������������������������������������������������� 72 88 109

Office of the Inspector General ����������������������������������������������������������������� 7 8 9

Total, Discretionary budget authority ��������������������������������������������������������������� 891 1,150 1,416

Memorandum: 

Budget authority from American Recovery and Reinvestment Act ����������������� 201 — —

Total, Discretionary outlays ����������������������������������������������������������������������������� 860 732 945

Memorandum: Outlays from American Recovery and Reinvestment Act ������� 56 50 26

Mandatory Outlays:

Interest, National Service Trust ����������������������������������������������������������������� — 30 22

Total, Mandatory outlays ��������������������������������������������������������������������������������� — 30 22

Total, Outlays �������������������������������������������������������������������������������������������������� 859 762 967
145

SUMMARY TABLES
146 SUMMARY TABLES Table S–1. Budget Totals (In billions of dollars) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011- 2015 2011- 2020 Budget (Without Fiscal Commission) Budget Totals in Billions of Dollars: Receipts ���������������������������������������������������������� 2,105 2,165 2,567 2,926 3,188 3,455 3,634 3,887 4,094 4,299 4,507 4,710 15,771 37,268 Outlays ����������������������������������������������������������� 3,518 3,721 3,834 3,755 3,915 4,161 4,386 4,665 4,872 5,084 5,415 5,713 20,051 45,800 Deficit ������������������������������������������������������� 1,413 1,556 1,267 828 727 706 752 778 778 785 908 1,003 4,280 8,532 Debt held by the public ���������������������������������� 7,545 9,298 10,498 11,472 12,326 13,139 13,988 14,833 15,686 16,535 17,502 18,573 Debt net of financial assets ��������������������������� 6,647 8,164 9,418 10,246 10,972 11,677 12,428 13,205 13,983 14,767 15,675 16,677 Gross domestic product (GDP) ��������������������������� 14,237 14,624 15,299 16,203 17,182 18,193 19,190 20,163 21,136 22,087 23,065 24,067 Budget Totals as a Percent of GDP: Receipts ���������������������������������������������������������� 14.8% 14.8% 16.8% 18.1% 18.6% 19.0% 18.9% 19.3% 19.4% 19.5% 19.5% 19.6% 18.3% 18.9% Outlays ����������������������������������������������������������� 24.7% 25.4% 25.1% 23.2% 22.8% 22.9% 22.9% 23.1% 23.1% 23.0% 23.5% 23.7% 23.3% 23.3% Deficit ������������������������������������������������������� 9.9% 10.6% 8.3% 5.1% 4.2% 3.9% 3.9% 3.9% 3.7% 3.6% 3.9% 4.2% 5.1% 4.5% Debt held by the public ���������������������������������� 53.0% 63.6% 68.6% 70.8% 71.7% 72.2% 72.9% 73.6% 74.2% 74.9% 75.9% 77.2% Debt net of financial assets ��������������������������� 46.7% 55.8% 61.6% 63.2% 63.9% 64.2% 64.8% 65.5% 66.2% 66.9% 68.0% 69.3% FISCAL COMMISSION The Administration supports the creation of a Fiscal Commission. The Fiscal Com- mission is charged with identifying policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run.  Specifically, the Commission is charged with balancing the budget excluding interest payments on the debt by 2015.  The result is projected to stabilize the debt-to-GDP ratio at an acceptable level once the economy recovers.  The magnitude and timing of the policy measures necessary to achieve this goal are subject to considerable uncertainty and will depend on the evolution of the economy.  In addition, the Commission will ex- amine policies to meaningfully improve the long-run fiscal outlook, including chang- es to address the growth of entitlement spending and the gap between the projected revenues and expenditures of the Federal Government.
THE BUDGET FOR FISCAL YEAR 2011 147 Table S–2. Effect of Budget Proposals on Projected Deficits (Deficit increases (+) or decreases (–) in billions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Projected deficits in the baseline projection of current policy1 ........................................................... 1,430 1,145 934 940 934 983 1,013 1,042 1,077 1,227 1,346 4,936 10,640 Percent of GDP ������������������������������������������������������������� 9.8% 7.5% 5.8% 5.5% 5.1% 5.1% 5.0% 4.9% 4.9% 5.3% 5.6% 5.8% 5.5% Temporary recovery measures: Tax cuts ������������������������������������������������������������������������� 29 53 20 –7 –5 –4 –3 –2 –2 –1 –1 57 47 Mandatory proposals ��������������������������������������������������� 45 44 1 * ..... ..... ..... ..... ..... ..... ..... 46 46 Allowance for other jobs initiatives ����������������������������� 24 50 16 6 4 ..... ..... ..... ..... ..... ..... 76 76 Total, temporary recovery measures ������������������� 98 147 37 –1 –1 –4 –3 –2 –2 –1 –1 179 169 Allowance for health reform2 ������������������������������������������� 6 –23 –34 –39 –28 –3 12 2 –6 –12 –20 –127 –150 Allowance for climate policy 3 ������������������������������������������� Tax cuts for families and businesses 4, 5 ��������������������������� 12 29 31 23 24 25 27 28 30 32 35 133 284 Other revenue changes and loophole closers 4, 6 ������������� –1 –36 –66 –74 –77 –78 –79 –81 –83 –86 –90 –331 –749 Proposed changes in mandatory programs and user fees7 ������������������������������������������������������������������������������ 2 –2 4 2 4 –2 –4 –6 –7 –7 –6 6 –24 Proposed changes in appropriated (“discretionary”) programs: Overseas contingency operations (OCO) �������������������� 9 37 –41 –75 –83 –87 –91 –93 –95 –98 –101 –250 –728 Security (except OCO) ������������������������������������������������� 2 12 18 23 26 30 32 34 35 36 37 109 284 Non-security ���������������������������������������������������������������� * –10 –15 –24 –27 –29 –29 –30 –31 –30 –25 –105 –249 Subtotal, appropriated programs ������������������������ 11 39 –38 –76 –84 –86 –88 –89 –91 –92 –88 –245 –693 Subtotal, policy proposals ..................................... 127 154 –67 –164 –161 –147 –135 –148 –158 –166 –170 –386 –1,164 Upper-income tax provisions dedicated to deficit reduction .................................................................... –1 –34 –41 –50 –60 –68 –74 –80 –85 –91 –97 –252 –678 Credit and other indirect interest effects ����������������������� -* –2 –2 -* 1 2 2 2 3 3 3 –1 13 Debt service ���������������������������������������������������������������������� * 2 5 1 –8 –18 –28 –39 –51 –64 –79 –17 –279 Total reduction in projected deficits .................. 125 121 –105 –213 –228 –231 –235 –264 –292 –319 –343 –656 –2,108 Resulting deficits in 2011 Budget ............................. 1,556 1,267 828 727 706 752 778 778 785 908 1,003 4,280 8,532 Percent of GDP ������������������������������������������������������������� 10.6% 8.3% 5.1% 4.2% 3.9% 3.9% 3.9% 3.7% 3.6% 3.9% 4.2% 5.1% 4.5%
148 SUMMARY TABLES Table S–2. Effect of Budget Proposals on Projected Deficits—Continued (Deficit increases (+) or decreases (–) in billions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Memorandum, proposed changes in appropriated (“discretionary”) budgetary resources: Overseas contingency operations ������������������������������� 33 28 –84 –86 –88 –90 –93 –95 –98 –101 –103 –320 –810 Security (except OCO) ������������������������������������������������� 8 16 27 30 33 37 38 39 39 40 41 144 341 Non-security ���������������������������������������������������������������� ..... –14 –19 –31 –29 –27 –32 –34 –34 –32 –25 –120 –278 Total, appropriated funding ��������������������������������� 41 30 –75 –86 –85 –80 –87 –91 –93 –93 –87 –296 –747 Memorandum, deficit reduction exclusive of OCO proposals and related debt service ������������������������������ 117 84 –65 –136 –140 –135 –131 –153 –173 –192 –208 –391 –1,249 Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission. * $500 million or less. 1 See tables S–3 and S–7 for information on the baseline projection of current policy. 2 Allowance for pending health reform legislation. See Table S–8 for further detail. 3 A comprehensive market-based climate change policy will be deficit neutral because proceeds from emissions allowances will be used to compensate vulnerable families, communities, and businesses during the transition to a clean energy economy. Receipts will also be reserved for investments to reduce greenhouse gas emissions, including support of clean energy technologies, and in adapting to the impacts of climate change, both domestically and in developing countries. 4 Includes refundable tax credits. 5 Includes the effects of continuing certain expiring provisions through calendar year 2011. 6 Includes limiting itemized deductions, trade initiatives, and other tax initiatives on Table S–8. 7 Includes PAYGO impact of changes in mandatory programs included in appropriations language.
THE BUDGET FOR FISCAL YEAR 2011 149 Table S–3. Baseline Projection of Current Policy by Category 1 (In billions of dollars) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011–2015 2011–2020 Outlays: Appropriated (“discretionary”) programs: Security ��������������������������������������������������������� 782 844 846 850 863 882 903 921 944 968 993 1,019 4,344 9,187 Non-security ������������������������������������������������� 437 553 530 490 480 484 493 504 516 528 541 554 2,477 5,120 Subtotal, appropriated programs ����������� 1,219 1,397 1,376 1,340 1,343 1,367 1,396 1,425 1,460 1,496 1,534 1,573 6,821 14,307 Mandatory programs: Social Security ���������������������������������������������� 678 703 730 762 801 846 894 947 1,004 1,067 1,133 1,204 4,033 9,388 Medicare ������������������������������������������������������� 425 451 492 502 557 625 654 727 760 795 886 957 2,830 6,955 Medicaid �������������������������������������������������������� 251 275 271 274 293 313 337 363 390 420 453 488 1,488 3,602 Troubled Asset Relief Program (TARP)2 ���� 151 –73 11 10 7 6 3 1 * * ..... ..... 37 39 Other mandatory programs ������������������������� 607 701 596 532 532 526 525 542 543 542 588 606 2,710 5,532 Subtotal, mandatory programs �������������� 2,112 2,057 2,100 2,079 2,191 2,316 2,413 2,579 2,698 2,823 3,060 3,256 11,098 25,515 Net interest ��������������������������������������������������������� 187 188 250 340 434 516 586 652 716 779 844 912 2,126 6,029 Disaster costs3 ���������������������������������������������������� ..... 1 3 4 4 4 5 5 5 5 5 5 21 46 Total outlays ������������������������������������������������� 3,518 3,643 3,728 3,762 3,973 4,203 4,400 4,661 4,879 5,103 5,443 5,746 20,066 45,897 Receipts: Individual income taxes �������������������������������������� 915 951 1,126 1,271 1,387 1,507 1,625 1,739 1,853 1,966 2,078 2,186 6,917 16,739 Corporation income taxes ����������������������������������� 138 176 293 333 361 415 383 422 437 449 461 478 1,785 4,031 Social insurance and retirement receipts: Social Security payroll taxes ����������������������� 654 635 674 720 764 810 854 908 949 994 1,038 1,077 3,823 8,788 Medicare payroll taxes ��������������������������������� 191 180 192 208 222 236 250 266 278 292 305 317 1,108 2,566 Unemployment insurance ���������������������������� 38 51 60 66 71 75 77 77 76 74 74 75 349 725 Other retirement ������������������������������������������ 8 9 8 9 9 9 9 9 9 9 9 10 43 89 Excise taxes ��������������������������������������������������������� 62 74 80 83 84 86 87 88 89 89 90 91 419 867 Estate and gift taxes ������������������������������������������� 23 17 24 21 22 24 25 27 29 32 34 36 116 274 Customs duties ���������������������������������������������������� 22 24 29 33 36 38 40 43 45 48 50 53 175 413 Deposits of earnings, Federal Reserve System �� 34 77 79 67 59 52 48 50 52 55 57 59 305 578 Other miscellaneous receipts ����������������������������� 18 18 18 18 18 18 19 19 19 19 20 20 91 188 Total receipts ������������������������������������������������ 2,105 2,213 2,583 2,829 3,033 3,269 3,417 3,648 3,838 4,026 4,215 4,400 15,130 35,257 Deficit ...................................................................... 1,413 1,430 1,145 934 940 934 983 1,013 1,042 1,077 1,227 1,346 4,936 10,640 On-budget deficit ������������������������������������������������� 1,550 1,508 1,241 1,054 1,074 1,080 1,139 1,183 1,209 1,243 1,385 1,486 5,589 12,094 Off-budget surplus (–) ����������������������������������������� –137 –78 –96 –120 –135 –147 –156 –170 –168 –166 –157 –140 –653 –1,454
150 SUMMARY TABLES Table S–3. Baseline Projection of Current Policy by Category 1 —Continued (In billions of dollars) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011–2015 2011–2020 Memorandum, funding (“budgetary resources”) for appropriated programs: Security ���������������������������������������������������������������� 824 814 834 854 874 895 917 939 963 988 1,013 1,040 4,374 9,318 Non-security �������������������������������������������������������� 689 447 456 465 477 488 499 511 523 536 549 563 2,385 5,067 Total, appropriated funding ������������������������� 1,513 1,260 1,290 1,319 1,351 1,383 1,416 1,450 1,486 1,524 1,562 1,602 6,760 14,385 * $500 million or less. 1 See Table S–7 for information on adjustments to the Budget Enforcement Act (BEA) baseline. 2 Outlays for TARP in 2011 and subsequent years result from obligations for the Home Affordable Modification Program, and other estimated TARP obligations incurred through October 3, 2010. 3 These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction. Such assistance might be provided in the form of discretionary or mandatory outlays or tax relief. These amounts are included as outlays for convenience.
THE BUDGET FOR FISCAL YEAR 2011 151 Table S–4. Proposed Budget by Category (In billions of dollars) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011–2015 2011–2020 Outlays: Appropriated (“discretionary”) programs: Security ���������������������������������������������������������� 782 855 895 827 811 825 845 862 885 907 931 955 4,203 8,743 Non-security �������������������������������������������������� 437 553 520 475 456 457 465 475 486 497 511 529 2,373 4,871 Subtotal, appropriated programs ������������ 1,219 1,408 1,415 1,301 1,267 1,283 1,310 1,337 1,371 1,405 1,442 1,484 6,576 13,614 Mandatory programs: Social Security ����������������������������������������������� 678 715 730 762 801 845 893 945 1,002 1,064 1,130 1,201 4,030 9,373 Medicare �������������������������������������������������������� 425 451 491 501 556 623 652 724 757 791 881 953 2,822 6,927 Medicaid ��������������������������������������������������������� 251 275 297 274 292 313 336 362 389 419 451 487 1,512 3,619 Troubled Asset Relief Program (TARP)1 ����� 151 –73 11 10 7 6 3 1 * * ..... ..... 37 39 Allowance for jobs initiatives ������������������������ ..... 12 25 8 3 2 ..... ..... ..... ..... ..... ..... 38 38 Allowance for health reform2 ������������������������ ..... 6 –7 –17 2 30 72 101 100 100 104 106 80 590 Other mandatory programs �������������������������� 607 737 619 570 547 546 544 563 567 568 616 637 2,826 5,775 Subtotal, mandatory programs ��������������� 2,112 2,123 2,165 2,107 2,208 2,364 2,500 2,696 2,815 2,942 3,182 3,384 11,344 26,363 Net interest ����������������������������������������������������������� 187 188 251 343 436 510 571 627 681 733 786 840 2,110 5,777 Disaster costs3 ������������������������������������������������������� ..... 1 3 4 4 4 5 5 5 5 5 5 21 46 Total outlays �������������������������������������������������� 3,518 3,721 3,834 3,755 3,915 4,161 4,386 4,665 4,872 5,084 5,415 5,713 20,051 45,800 Receipts: Individual income taxes ���������������������������������������� 915 936 1,121 1,326 1,468 1,604 1,733 1,856 1,980 2,102 2,223 2,338 7,253 17,752 Corporation income taxes ������������������������������������� 138 157 297 366 393 445 411 449 463 473 486 502 1,913 4,285 Social insurance and retirement receipts: Social Security payroll taxes ������������������������ 654 635 674 720 766 809 856 911 954 1,000 1,044 1,084 3,825 8,819 Medicare payroll taxes ���������������������������������� 191 180 192 208 223 237 251 267 280 293 307 318 1,112 2,578 Unemployment insurance ����������������������������� 38 51 60 67 73 77 79 79 78 77 76 77 357 743 Other retirement ������������������������������������������� 8 9 8 9 9 9 9 9 9 9 9 10 43 89 Excise taxes ����������������������������������������������������������� 62 73 74 81 85 87 88 89 90 90 91 92 415 867 Estate and gift taxes ��������������������������������������������� 23 17 25 23 24 26 28 30 32 35 37 40 124 298 Customs duties ������������������������������������������������������ 22 24 27 32 35 37 39 42 44 47 49 52 170 404 Deposits of earnings, Federal Reserve System ���� 34 77 79 67 59 52 48 50 52 55 57 59 305 578 Allowance for jobs initiatives ������������������������������� ..... –12 –25 –8 –3 –2 ..... ..... ..... ..... ..... ..... –38 –38 Allowance for health reform2 ������������������������������� ..... ..... 16 18 39 58 74 86 93 101 110 119 204 712 Other miscellaneous receipts ������������������������������� 18 18 17 17 17 18 18 18 18 19 19 19 87 180 Total receipts ������������������������������������������������� 2,105 2,165 2,567 2,926 3,188 3,455 3,634 3,887 4,094 4,299 4,507 4,710 15,771 37,268 Deficit ....................................................................... 1,413 1,556 1,267 828 727 706 752 778 778 785 908 1,003 4,280 8,532
152 SUMMARY TABLES Table S–4. Proposed Budget by Category—Continued (In billions of dollars) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011–2015 2011–2020 On-budget deficit ��������������������������������������������������� 1,550 1,634 1,363 949 863 852 910 952 952 959 1,075 1,153 4,937 10,028 Off-budget surplus (–) ������������������������������������������� –137 –78 –96 –120 –136 –146 –158 –175 –174 –174 –167 –151 –656 –1,496 Primary deficit ������������������������������������������������������ 1,226 1,368 1,016 486 291 196 181 151 97 52 123 163 2,170 2,755 Net interest ����������������������������������������������������������� 187 188 251 343 436 510 571 627 681 733 786 840 2,110 5,777 Memorandum, funding (“budgetary resources”) for appropriated programs: Security ������������������������������������������������������������������ 824 855 879 798 819 840 864 885 906 929 953 978 4,198 8,849 Non-security ���������������������������������������������������������� 689 447 441 446 446 459 472 479 489 502 517 538 2,265 4,789 Total, appropriated funding �������������������������� 1,513 1,302 1,320 1,244 1,265 1,299 1,336 1,363 1,395 1,431 1,470 1,515 6,464 13,638 Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission. * $500 million or less. 1 Outlays for TARP in 2011 and subsequent years result from obligations for the Home Affordable Modification Programs, and other estimated TARP obligations incurred through October 3, 2010. 2 Reflects on-budget effects only. See Table S–8 for further detail. 3 These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction. Such assistance might be provided in the form of discretionary or mandatory outlays or tax relief. These amounts are included as outlays for convenience.
THE BUDGET FOR FISCAL YEAR 2011 153 Policy Outlays by Category Other Mandatory Programs and Disaster Costs Net Interest Security Discretionary Non-Security Discretionary Social Security Medicare Medicaid Policy Revenues by Source Borrowing and Other Net Financing Social Security Payroll Taxes Excise Taxes Corporation Income Taxes Unemployment Insurance Medicare Payroll Taxes Individual Income Taxes Other Receipts 2011 2011 2015 2015Borrowing and Other Net Financing Social Security Payroll Taxes Excise Taxes Corporation Income Taxes Unemployment Insurance Medicare Payroll Taxes Individual Income Taxes Other Receipts Security Discretionary Non-Security DiscretionarySocial Security Medicare MedicaidNet InterestOther Mandatory Programs and Disaster Costs
154 SUMMARY TABLES Table S–5. Proposed Budget by Category as a Percent of GDP (As a percent of GDP) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Averages 2011– 2015 2011- 2020 Outlays: Appropriated (“discretionary”) programs: Security ������������������������������������������������������������� 5.5 5.8 5.8 5.1 4.7 4.5 4.4 4.3 4.2 4.1 4.0 4.0 4.9 4.5 Non-security ���������������������������������������������������� 3.1 3.8 3.4 2.9 2.7 2.5 2.4 2.4 2.3 2.3 2.2 2.2 2.8 2.5 Subtotal, appropriated programs ��������������� 8.6 9.6 9.2 8.0 7.4 7.1 6.8 6.6 6.5 6.4 6.3 6.2 7.7 7.0 Mandatory programs: Social Security �������������������������������������������������� 4.8 4.9 4.8 4.7 4.7 4.6 4.7 4.7 4.7 4.8 4.9 5.0 4.7 4.8 Medicare ����������������������������������������������������������� 3.0 3.1 3.2 3.1 3.2 3.4 3.4 3.6 3.6 3.6 3.8 4.0 3.3 3.5 Medicaid ������������������������������������������������������������ 1.8 1.9 1.9 1.7 1.7 1.7 1.8 1.8 1.8 1.9 2.0 2.0 1.8 1.8 Troubled Asset Relief Program (TARP)1 ���������� 1.1 –0.5 0.1 0.1 * * * * * * ..... ..... * * Allowance for jobs initatives ���������������������������� ..... 0.1 0.2 * * * ..... ..... ..... ..... ..... ..... * * Allowance for health reform2 ���������������������������� ..... * –* –0.1 * 0.2 0.4 0.5 0.5 0.5 0.4 0.4 0.1 0.3 Other mandatory programs ����������������������������� 4.3 5.0 4.0 3.5 3.2 3.0 2.8 2.8 2.7 2.6 2.7 2.6 3.3 3.0 Subtotal, mandatory programs ������������������ 14.8 14.5 14.2 13.0 12.9 13.0 13.0 13.4 13.3 13.3 13.8 14.1 13.2 13.4 Net interest ������������������������������������������������������������� 1.3 1.3 1.6 2.1 2.5 2.8 3.0 3.1 3.2 3.3 3.4 3.5 2.4 2.9 Disaster costs3 ���������������������������������������������������������� ..... * * * * * * * * * * * * * Total outlays ����������������������������������������������������� 24.7 25.4 25.1 23.2 22.8 22.9 22.9 23.1 23.1 23.0 23.5 23.7 23.3 23.3 Receipts: Individual income taxes ������������������������������������������ 6.4 6.4 7.3 8.2 8.5 8.8 9.0 9.2 9.4 9.5 9.6 9.7 8.4 8.9 Corporation income taxes ��������������������������������������� 1.0 1.1 1.9 2.3 2.3 2.4 2.1 2.2 2.2 2.1 2.1 2.1 2.2 2.2 Social insurance and retirement receipts: Social Security payroll taxes �������������������������� 4.6 4.3 4.4 4.4 4.5 4.4 4.5 4.5 4.5 4.5 4.5 4.5 4.4 4.5 Medicare payroll taxes ������������������������������������ 1.3 1.2 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 Unemployment insurance �������������������������������� 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.4 0.4 Other retirement ���������������������������������������������� 0.1 0.1 0.1 0.1 * * * * * * * * 0.1 * Excise taxes ������������������������������������������������������������� 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.5 0.4 Estate and gift taxes ����������������������������������������������� 0.2 0.1 0.2 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.1 0.2 Customs duties �������������������������������������������������������� 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Deposits of earnings, Federal Reserve System ������ 0.2 0.5 0.5 0.4 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.4 0.3 Allowance for jobs initatives ����������������������������������� ..... –0.1 –0.2 -* -* -* ..... ..... ..... ..... ..... ..... –* –* Allowance for health reform ����������������������������������� ..... ..... 0.1 0.1 0.2 0.3 0.4 0.4 0.4 0.5 0.5 0.5 0.2 0.3 Other miscellaneous receipts ��������������������������������� 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Total receipts ���������������������������������������������������� 14.8 14.8 16.8 18.1 18.6 19.0 18.9 19.3 19.4 19.5 19.5 19.6 18.3 18.9 Deficit .......................................................................... 9.9 10.6 8.3 5.1 4.2 3.9 3.9 3.9 3.7 3.6 3.9 4.2 5.1 4.5
THE BUDGET FOR FISCAL YEAR 2011 155 Table S–5. Proposed Budget by Category as a Percent of GDP—Continued (As a percent of GDP) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Averages 2011– 2015 2011- 2020 On-budget deficit ����������������������������������������������������� 10.9 11.2 8.9 5.9 5.0 4.7 4.7 4.7 4.5 4.3 4.7 4.8 5.8 5.2 Off-budget surplus (–) ��������������������������������������������� –1.0 –0.5 –0.6 –0.7 –0.8 –0.8 –0.8 –0.9 –0.8 –0.8 –0.7 –0.6 –0.8 –0.8 Primary deficit �������������������������������������������������������� 8.6 9.4 6.6 3.0 1.7 1.1 0.9 0.7 0.5 0.2 0.5 0.7 2.7 1.6 Net interest ������������������������������������������������������������� 1.3 1.3 1.6 2.1 2.5 2.8 3.0 3.1 3.2 3.3 3.4 3.5 2.4 2.9 Memorandum, funding (“budgetary resources”) for appropriated programs: Security �������������������������������������������������������������������� 5.8 5.8 5.7 4.9 4.8 4.6 4.5 4.4 4.3 4.2 4.1 4.1 4.9 4.6 Non-security ����������������������������������������������������������� 4.8 3.1 2.9 2.8 2.6 2.5 2.5 2.4 2.3 2.3 2.2 2.2 2.6 2.5 Subtotal, appropriated programs �������������������� 10.6 8.9 8.6 7.7 7.4 7.1 7.0 6.8 6.6 6.5 6.4 6.3 7.6 7.0 Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission. * 0.05 percent of GDP or less. 1 Outlays for TARP in 2011 and subsequent years result from obligations for the Home Affordable Modification Program, and other estimated TARP obligations incurred through October 3, 2010. 2 Reflects on-budget effects only. See Table S–8 for further detail. 3 These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction. Such assistance might be provided in the form of discretionary or mandatory outlays or tax relief. These amounts are included as outlays for convenience.
156 SUMMARY TABLES Table S–6. Proposed Budget by Category Adjusted for Inflation and Population Growth (In billions of dollars, based on 2011 prices and population) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Outlays: Appropriated (“discretionary”) programs: Security ��������������������������������������������������������������������������������������������������������������� 895 804 766 756 752 745 741 738 734 731 Non-security ������������������������������������������������������������������������������������������������������ 520 461 430 419 413 410 407 404 403 405 Subtotal, appropriated programs ����������������������������������������������������������������� 1,415 1,265 1,196 1,175 1,165 1,155 1,149 1,142 1,137 1,137 Mandatory programs: Social Security ���������������������������������������������������������������������������������������������������� 730 740 756 774 794 816 840 865 891 920 Medicare ������������������������������������������������������������������������������������������������������������� 491 487 524 570 580 625 634 643 695 730 Medicaid �������������������������������������������������������������������������������������������������������������� 297 266 276 287 299 313 326 340 356 373 Troubled Asset Relief Program (TARP)1 ����������������������������������������������������������� 11 10 7 6 3 1 * * ..... ..... Allowance for jobs initiatives ����������������������������������������������������������������������������� 25 8 3 2 ..... ..... ..... ..... ..... ..... Allowance for health reform2 ����������������������������������������������������������������������������� –7 –17 1 27 65 87 83 82 82 82 Other mandatory programs ������������������������������������������������������������������������������� 619 554 517 500 484 486 475 461 486 488 Subtotal, mandatory programs �������������������������������������������������������������������� 2,165 2,048 2,084 2,166 2,225 2,329 2,358 2,391 2,510 2,592 Net interest ���������������������������������������������������������������������������������������������������������������� 251 333 411 467 508 542 571 596 620 643 Disaster costs3 ������������������������������������������������������������������������������������������������������������ 3 4 4 4 4 4 4 4 4 4 Total outlays ������������������������������������������������������������������������������������������������������� 3,834 3,650 3,695 3,813 3,902 4,030 4,082 4,133 4,271 4,376 Receipts: Individual income taxes ��������������������������������������������������������������������������������������������� 1,121 1,289 1,386 1,470 1,542 1,604 1,659 1,709 1,753 1,791 Corporation income taxes ������������������������������������������������������������������������������������������ 297 356 371 408 366 388 388 384 383 385 Social insurance and retirement receipts: Social Security payroll taxes ���������������������������������������������������������������������������� 674 700 723 741 762 787 800 813 823 830 Medicare payroll taxes �������������������������������������������������������������������������������������� 192 203 210 217 224 231 235 239 242 244 Unemployment insurance ���������������������������������������������������������������������������������� 60 66 69 71 70 68 65 62 60 59 Other retirement ������������������������������������������������������������������������������������������������ 8 8 8 8 8 8 7 7 7 7 Excise taxes ���������������������������������������������������������������������������������������������������������������� 74 79 80 79 78 77 75 74 72 70 Estate and gift taxes �������������������������������������������������������������������������������������������������� 25 22 22 23 25 26 27 28 29 31 Customs duties ����������������������������������������������������������������������������������������������������������� 27 31 33 34 35 36 37 38 39 40 Deposits of earnings, Federal Reserve System ��������������������������������������������������������� 79 65 56 48 42 43 44 44 45 45 Allowance for jobs initiatives ������������������������������������������������������������������������������������ –25 –8 –3 –2 ..... ..... ..... ..... ..... ..... Allowance for health reform2 ������������������������������������������������������������������������������������ 16 17 37 53 66 74 78 82 86 91 Other miscellaneous receipts ������������������������������������������������������������������������������������ 17 17 16 16 16 16 15 15 15 15 Total receipts ������������������������������������������������������������������������������������������������������ 2,567 2,845 3,009 3,167 3,233 3,358 3,431 3,495 3,554 3,607 Deficit ............................................................................................................................ 1,267 805 686 647 669 672 652 638 716 768
THE BUDGET FOR FISCAL YEAR 2011 157 Table S–6. Proposed Budget by Category Adjusted for Inflation and Population Growth—Continued (In billions of dollars, based on 2011 prices and population) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 On-budget deficit �������������������������������������������������������������������������������������������������������� 1,363 922 815 781 810 823 798 779 848 883 Off-budget surplus (–) ������������������������������������������������������������������������������������������������ –96 –117 –128 –134 –141 –151 –146 –141 –131 –115 Primary deficit ����������������������������������������������������������������������������������������������������������� 1,016 472 275 179 161 130 81 42 97 125 Net interest ���������������������������������������������������������������������������������������������������������������� 251 333 411 467 508 542 571 596 620 643 Memorandum, funding (“budgetary resources”) for appropriated programs: Security ����������������������������������������������������������������������������������������������������������������������� 879 775 773 769 769 764 760 755 751 749 Non-security �������������������������������������������������������������������������������������������������������������� 441 434 421 421 420 414 410 408 408 412 Subtotal, appropriated programs ���������������������������������������������������������������������� 1,320 1,209 1,194 1,190 1,189 1,178 1,169 1,163 1,159 1,160 Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission. * $500 million or less. 1 Outlays for TARP in 2011 and subsequent years result from obligations for the Home Affordable Modification Program, and other estimated TARP obligations incurred through October 3, 2010. 2 Reflects on-budget effects only. See Table S–8 for further detail. 3 These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction. Such assistance might be provided in the form of discretionary or mandatory outlays or tax relief. These amounts are included as outlays for convenience.
158 SUMMARY TABLES Table S–7. Bridge From Budget Enforcement Act Baseline to Baseline Projection of Current Policy (Deficit increases (+) or decreases (–) in billions of dollars) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 BEA baseline deficit ................................................... 1,413 1,404 912 613 561 495 492 469 445 421 507 557 3,073 5,472 Adjustments to reflect current policies: Index to inflation the 2009 parameters of the AMT ..... 13 64 32 38 45 53 62 72 84 97 110 233 659 Continue the 2001 and 2003 tax cuts1 �������������������� ..... 5 135 237 266 295 318 335 352 369 386 403 1,251 3,097 Prevent reduction in Medicare physician payments ���� ..... 7 22 27 32 34 35 38 40 43 48 53 150 371 Correct baseline growth rates for pay increases ����� ..... ..... –2 –3 –3 –3 –3 –3 –3 –4 –4 –4 –14 –32 Subtotal ��������������������������������������������������������������� ..... 25 219 294 333 371 403 432 461 492 527 562 1,620 4,095 Adjustment to reflect costs of possible emergencies2 ........................................................... ..... 1 3 4 4 4 5 5 5 5 5 5 21 46 Adjustments to Pell Grants: Reflect cost of funding existing maximum grant award ��������������������������������������������������������������������� ..... ..... 9 12 12 12 12 12 12 12 12 13 56 118 Remove Pell Grants from appropriated category ���� –19 –27 –27 –29 –30 –30 –31 –31 –32 –32 –32 –33 –147 –307 Add Pell Grants to mandatory category ������������������ 19 27 27 29 30 30 31 31 32 32 32 33 147 307 Subtotal ��������������������������������������������������������������� ..... ..... 9 12 12 12 12 12 12 12 12 13 56 118 Total program adjustments �������������������������������������� ..... 26 231 310 349 387 420 449 478 510 545 580 1,697 4,259 Debt service on adjustments ������������������������������������ ..... * 2 11 31 51 71 94 118 146 175 209 167 909 Total adjustments ����������������������������������������������� ..... 26 233 321 379 438 491 543 597 655 720 789 1,863 5,167 Baseline projection of current policy deficit ....... 1,413 1,430 1,145 934 940 934 983 1,013 1,042 1,077 1,227 1,346 4,936 10,640 *$500 million or less. 1 In continuing the 2001 and 2003 tax cuts, the estate tax is maintained at its 2009 parameters. 2 These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction. Such assistance might be provided in the form of discretionary or mandatory outlays or tax relief. These amounts are included as outlays for convenience.
THE BUDGET FOR FISCAL YEAR 2011 159 S–8. Mandatory and Receipt Proposals (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Temporary Recovery Measures (emergency, exempt from PAYGO): Tax Cuts: Extend making work pay tax credit in 2011 1 ���� ..... 30,132 31,075 ..... ..... ..... ..... ..... ..... ..... ..... 61,207 61,207 Extend COBRA health insurance premium assistance 1 ����������������������������������������������������� 3,188 5,237 228 ..... ..... ..... ..... ..... ..... ..... ..... 5,465 5,465 Provide additional tax credits for investment in qualified property used in a qualified advanced energy manufacturing project ������ ..... 284 731 1,145 1,114 539 122 –72 –114 –62 –26 3,813 3,661 Extend temporary increase in expensing for small businesses �������������������������������������������� 706 440 –434 –268 –186 –135 –76 –43 –24 –15 –12 –583 –753 Extend temporary bonus depreciation for certain property ��������������������������������������������� 22,445 15,216 –11,912 –7,478 –5,149 –3,912 –2,580 –1,685 –1,063 –792 –744 –13,235 –20,099 Extend option for grants to States in lieu of housing tax credits 1 �������������������������������������� 2,435 1,798 –91 –269 –429 –511 –538 –538 –538 –538 –538 498 –2,192 Total, tax cuts ����������������������������������������������� 28,774 53,107 19,597 –6,870 –4,650 –4,019 –3,072 –2,338 –1,739 –1,407 –1,320 57,165 47,289 Mandatory Initiatives: Provide 6-month extension of FMAP relief to states: Medicaid impact ������������������������������������������� ..... 25,500 ..... ..... ..... ..... ..... ..... ..... ..... ..... 25,500 25,500 Foster care impact ���������������������������������������� ..... 214 19 4 ..... ..... ..... ..... ..... ..... ..... 237 237 Extend EUC/EB unemployment insurance benefits ����������������������������������������������������������� 31,000 18,000 ..... ..... ..... ..... ..... ..... ..... ..... ..... 18,000 18,000 Enhance TANF emergency fund ����������������������� 508 1,357 1,363 273 ..... ..... ..... ..... ..... ..... ..... 2,993 2,993 Extend ARRA suspension of SNAP time limits ���� ..... 25 25 25 Provide $250 Economic Recovery Payments 2 �� 13,585 681 95 ..... ..... ..... ..... ..... ..... ..... ..... 776 776 Interaction with the making work pay tax credit ��������������������������������������������������������� –348 –1,986 –2 ..... ..... ..... ..... ..... ..... ..... ..... –1,988 –1,988 Total, mandatory initiatives ������������������������ 44,745 43,791 1,475 277 ..... ..... ..... ..... ..... ..... ..... 45,543 45,543 Allowance for other jobs initiatives 2 ........... 24,000 50,000 16,000 6,000 4,000 ..... ..... ..... ..... ..... ..... 76,000 76,000 Health insurance reform (allowance)2,3 ................ 5,500 –23,000 –34,500 –39,000 –27,500 –3,000 12,000 2,000 –5,500 –12,000 –19,500 –127,000 –150,000 Climate policy (deficit-neutral reserve) 4 ............. ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
160 SUMMARY TABLES S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Other Tax Provisions: 5 Tax Cuts for Families and Individuals: 6 Expand earned income tax credit 1 ������������������� ..... 85 1,674 1,645 1,636 1,628 1,639 1,663 1,692 1,730 1,766 6,668 15,158 Expand the child and dependent care tax credit �������������������������������������������������������������� ..... 377 1,345 1,359 1,368 1,373 1,377 1,374 1,365 1,354 1,349 5,822 12,641 Provide for automatic enrollment in IRAs and double the tax credit for small employer plan startup costs 1 ���������������������������������������� ..... ..... 506 825 876 982 1,113 1,261 1,423 1,604 1,801 3,189 10,391 Expand saver’s credit 1 �������������������������������������� ..... 323 2,683 2,996 3,029 3,109 3,195 3,323 3,490 3,716 3,910 12,140 29,774 Extend American opportunity tax credit 1 �������� ..... 951 6,875 7,444 7,815 8,400 8,841 8,632 8,738 8,870 8,907 31,485 75,473 Total, tax cuts for families and individuals ..... 1,736 13,083 14,269 14,724 15,492 16,165 16,253 16,708 17,274 17,733 59,304 143,437 Tax Cuts for Businesses: Eliminate capital gains taxation on small businesses ������������������������������������������������������ ..... ..... ..... ..... 55 280 731 1,217 1,591 1,933 2,248 335 8,055 Make research and experimentation tax credit permanent ����������������������������������������������������� 3,044 5,346 5,969 6,622 7,286 7,945 8,597 9,244 9,887 10,530 11,182 33,168 82,608 Remove cell phones from listed property ��������� 69 277 226 238 248 266 281 296 314 332 348 1,255 2,826 Total, tax cuts for businesses ���������������������� 3,113 5,623 6,195 6,860 7,589 8,491 9,609 10,757 11,792 12,795 13,778 34,758 93,489 Continue certain expiring provisions through calendar year 20111 ......................... 8,867 21,539 11,926 2,205 1,581 1,422 1,309 1,013 1,138 1,435 3,109 38,673 46,677 Other Revenue Changes and Loophole Closers: Reform treatment of financial institutions and products: Impose a financial crisis responsibility fee ��� ..... –8,000 –8,000 –9,000 –9,000 –9,000 –9,000 –9,000 –9,000 –10,000 –10,000 –43,000 –90,000 Require accrual of income on forward sale of corporate stock ������������������������������������� –1 –5 –12 –19 –26 –33 –36 –38 –40 –42 –44 –95 –295 Require ordinary treatment of income from day-to-day dealer activities for certain dealers of equity options and commodities ���������������������������������������������� –49 –169 –214 –226 –240 –254 –270 –286 –303 –321 –341 –1,103 –2,624 Modify the definition of “control” for purposes of section 249 ���������������������������� –2 –15 –30 –32 –34 –36 –38 –41 –43 –46 –48 –147 –363 Subtotal, reform treatment of financial institutions and products ������������������� –52 –8,189 –8,256 –9,277 –9,300 –9,323 –9,344 –9,365 –9,386 –10,409 –10,433 –44,345 –93,282 Reinstate Superfund taxes ������������������������������� ..... –1,203 –1,608 –1,729 –1,837 –1,921 –1,995 –2,068 –2,129 –2,196 –2,239 –8,298 –18,925 Repeal LIFO method of accounting for inventories ����������������������������������������������������� ..... ..... –2,667 –6,007 –7,070 –7,120 –7,162 –7,224 –7,207 –7,278 –7,350 –22,864 –59,085 Repeal gain limitation for dividends received in reorganization exchanges ������������������������� ..... –46 –77 –78 –78 –81 –83 –85 –86 –86 –88 –360 –788
THE BUDGET FOR FISCAL YEAR 2011 161 S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Reform U.S. international tax system: Defer deduction of interest expense related to deferred income ����������������������������������� ..... –2,024 –3,357 –3,343 –3,350 –3,434 –3,520 –3,572 –1,803 –613 –626 –15,508 –25,642 Reform foreign tax credit: Determine the foreign tax credit on a pooling basis ������� ..... –1,928 –3,198 –3,184 –3,191 –3,271 –3,353 –3,403 –3,439 –3,462 –3,532 –14,772 –31,961 Reform foreign tax credit: Prevent splitting of foreign income and foreign taxes ���������������������������������������������������������� ..... –1,226 –2,223 –2,494 –2,707 –2,875 –3,006 –3,106 –3,186 –3,253 –3,327 –11,525 –27,403 Tax currently excess returns associated with transfers of intangibles offshore ����� ..... –635 –1,580 –1,573 –1,577 –1,616 –1,657 –1,681 –1,699 –1,711 –1,745 –6,981 –15,474 Limit shifting of income through intangible property transfers ������������������������������������ ..... –12 –32 –54 –78 –104 –131 –159 –189 –220 –254 –280 –1,233 Disallow the deduction for excess nontaxed reinsurance premiums paid to affiliates ���� ..... –22 –53 –54 –54 –50 –50 –54 –58 –60 –64 –233 –519 Limit earnings stripping by expatriated entities ������������������������������������������������������ ..... –211 –352 –353 –356 –368 –379 –385 –390 –393 –402 –1,640 –3,589 Repeal 80/20 company rules ������������������������ ..... –83 –111 –111 –112 –116 –120 –122 –123 –124 –127 –533 –1,149 Prevent the use of equity swaps to avoid dividend withholding taxes ��������������������� –219 –275 –135 –91 –94 –96 –97 –102 –109 –115 –123 –691 –1,237 Modify tax rules for dual capacity taxpayers �������������������������������������������������� ..... –381 –676 –734 –788 –846 –907 –972 –1,044 –1,121 –1,080 –3,425 –8,549 Combat under-reporting of income on accounts and entities in offshore jurisdictions ���������������������������������������������� –27 –72 –161 –716 –919 –447 –381 –549 –686 –740 –762 –2,315 –5,433 Subtotal, reform U.S. international tax system ������������������������������������������������� –246 –6,869 –11,878 –12,707 –13,226 –13,223 –13,601 –14,105 –12,726 –11,812 –12,042 –57,903 –122,189 Eliminate fossil fuel tax preferences: Oil and gas company preferences: Repeal enhanced oil recovery credit 7 ���� ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Repeal credit for oil and gas produced from marginal wells 7 �������������������������� ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Repeal expensing of intangible drilling costs ����������������������������������������������������� ..... –1,202 –1,582 –1,089 –914 –848 –694 –482 –374 –344 –310 –5,635 –7,839 Repeal deduction for tertiary injectants ..... –5 –9 –9 –8 –7 –6 –6 –5 –6 –6 –38 –67 Repeal exception to passive loss limitations for working interests in oil and natural gas properties ������������ ..... –20 –24 –19 –18 –17 –17 –17 –16 –16 –16 –98 –180 Repeal percentage depletion for oil and natural gas wells �������������������������������� ..... –522 –895 –933 –969 –1,009 –1,052 –1,095 –1,141 –1,184 –1,226 –4,328 –10,026
162 SUMMARY TABLES S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Repeal domestic manufacturing tax deduction for oil and natural gas companies ������������������������������������������� ..... –851 –1,470 –1,559 –1,650 –1,742 –1,831 –1,920 –2,007 –2,096 –2,188 –7,272 –17,314 Increase geological and geophysical amortization period for independent producers to seven years �������������������� ..... –44 –160 –246 –231 –177 –122 –67 –28 –17 –18 –858 –1,110 Subtotal, oil and gas company preferences ������������������������������������ ..... –2,644 –4,140 –3,855 –3,790 –3,800 –3,722 –3,587 –3,571 –3,663 –3,764 –18,229 –36,536 Coal tax preferences: Repeal expensing of exploration and development costs ������������������������������� ..... –32 –55 –49 –45 –45 –44 –40 –37 –34 –32 –226 –413 Repeal percentage depletion for hard mineral fossil fuels ����������������������������� ..... –57 –98 –102 –106 –109 –111 –115 –119 –122 –123 –472 –1,062 Repeal capital gains treatment for royalties ���������������������������������������������� –10 –18 –25 –48 –67 –78 –87 –95 –103 –111 –119 –236 –751 Repeal domestic manufacturing deduction for hard mineral fossil fuels ����������������������������������������������������� ..... –3 –5 –5 –5 –6 –6 –6 –7 –7 –7 –24 –57 Subtotal, coal tax preferences ����������� –10 –110 –183 –204 –223 –238 –248 –256 –266 –274 –281 –958 –2,283 Subtotal, eliminate fossil fuel tax preferences ��������������������������������� –10 –2,754 –4,323 –4,059 –4,013 –4,038 –3,970 –3,843 –3,837 –3,937 –4,045 –19,187 –38,819 Tax carried interest as ordinary income ���������� ..... –1,452 –3,289 –3,914 –3,741 –3,176 –2,534 –1,975 –1,530 –1,355 –1,011 –15,572 –23,977 Modify cellulosic biofuel producer credit ��������� –784 –6,569 –8,058 –4,901 –2,659 –1,491 –309 ..... ..... ..... ..... –23,678 –23,987 Eliminate advanced earned income tax credit 1 ..... –120 –72 –70 –69 –68 –69 –69 –72 –74 –77 –399 –760 Deny deduction for punitive damages �������������� ..... ..... –22 –32 –33 –34 –35 –36 –38 –38 –39 –121 –307 Repeal lower-of-cost-or-market inventory accounting method ���������������������������������������� ..... ..... –286 –1,423 –2,045 –1,402 –1,127 –283 –296 –309 –323 –5,156 –7,494 Make unemployment insurance surtax permanent ����������������������������������������������������� ..... ..... –1,458 –1,501 –1,539 –1,571 –1,596 –1,616 –1,631 –1,642 –1,642 –6,069 –14,196 Reduce the tax gap and make reforms: Expand information reporting: Require information reporting on payments to corporations ������������������� ..... –84 –612 –777 –924 –983 –1,040 –1,095 –1,152 –1,212 –1,275 –3,380 –9,154 Require information reporting for rental property expense payments ��������������� ..... –179 –267 –281 –296 –312 –327 –342 –357 –372 –387 –1,335 –3,120 Require information reporting for private separate accounts of life insurance companies �������������������������� ..... –1 –2 –3 –4 –4 –6 –7 –8 –10 –13 –14 –58 Require a certified Taxpayer Identification Number for contractors ���������������������������� ..... –17 –44 –63 –72 –76 –79 –83 –86 –90 –94 –272 –704 Require increased information reporting for certain government payments ������ ..... –25 –70 –58 –28 –30 –32 –34 –35 –37 –39 –211 –388 Increase information return penalties ���� ..... –20 –34 –35 –35 –36 –42 –43 –43 –44 –44 –160 –376 Subtotal, expand information 

reporting ���������������������������������������� ..... –326 –1,029 –1,217 –1,359 –1,441 –1,526 –1,604 –1,681 –1,765 –1,852 –5,372 –13,800
THE BUDGET FOR FISCAL YEAR 2011 163 S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Improve compliance by businesses: Require electronic filing by certain large organizations �������������������������������������� ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Implement standards clarifying when employee leasing companies can be held liable for their clients’ Federal employment taxes ������������������������������� ..... –4 –6 –6 –7 –7 –7 –8 –8 –9 –9 –30 –71 Strengthen rules pertaining to classification of employees as independent contractors ��������������������� ..... –11 –214 –543 –688 –766 –848 –933 –1,020 –1,112 –1,208 –2,222 –7,343 Subtotal, improve compliance by businesses �������������������������������������� ..... –15 –220 –549 –695 –773 –855 –941 –1,028 –1,121 –1,217 –2,252 –7,414 Strengthen tax administration: Codify “economic substance doctrine” ��� ..... –23 –77 –157 –272 –366 –476 –593 –682 –758 –838 –895 –4,242 Allow assessment of criminal restitution as tax ��������������������������������������������������� ..... ..... –3 –4 –4 –4 –4 –4 –4 –4 –4 –15 –35 Revise offer-in-compromise application rules ����������������������������������������������������� –1 –3 –3 –3 –3 –3 –3 –3 –3 –3 –4 –15 –31 Expand IRS access to information in the National Directory of New Hires for tax administration purposes �������������� ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Make repeated willful failure to file a tax return a felony ����������������������������� ..... ..... ..... ..... –1 –1 –1 –1 –2 –2 –2 –2 –10 Facilitate tax compliance with local jurisdictions ��������������������������������������� ..... ..... ..... ..... ..... –1 –1 –1 –1 –1 –1 –1 –6 Extend statute of limitations where State adjustment affects Federal tax liability ������������������������������������������������ ..... –3 –4 –4 –4 –4 –5 –5 –5 –5 –6 –19 –45 Improve investigative disclosure statute ��� ..... ..... ..... ..... –1 –1 –1 –1 –2 –2 –2 –2 –10 Subtotal, strengthen tax administration ������������������������������� –1 –29 –87 –168 –285 –380 –491 –608 –699 –775 –857 –949 –4,379 Expand penalties: Clarify the bad check penalty applies to electronic checks and other payment forms ��������������������������������������������������� ..... –1 –2 –2 –2 –3 –3 –3 –3 –4 –4 –10 –27 Impose a penalty on failure to comply with electronic filing requirements ��� ..... ..... ..... ..... ..... –1 –1 –1 –2 –2 –2 –1 –9 Subtotal, expand penalties ��������������������� ..... –1 –2 –2 –2 –4 –4 –4 –5 –6 –6 –11 –36 Modify estate and gift tax valuation discounts and make other reforms: Require consistent valuation for transfer and income tax purposes ����� –40 –135 –171 –182 –192 –204 –216 –229 –243 –258 –273 –884 –2,103 Modify rules on valuation discounts ����� ..... –666 –1,413 –1,531 –1,671 –1,818 –1,972 –2,135 –2,305 –2,484 –2,672 –7,099 –18,667
164 SUMMARY TABLES S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Require a minimum term for grantor retained annuity trusts (GRATs) ������� ..... –15 –46 –93 –160 –231 –308 –389 –477 –570 –670 –545 –2,959 Subtotal, modify estate and gift tax valuation discounts and make other reforms ��������������������������������� –40 –816 –1,630 –1,806 –2,023 –2,253 –2,496 –2,753 –3,025 –3,312 –3,615 –8,528 –23,729 Subtotal, reduce the tax gap and make reforms ����������������������������� –41 –1,187 –2,968 –3,742 –4,364 –4,851 –5,372 –5,910 –6,438 –6,979 –7,547 –17,112 –49,358 Reform treatment of insurance institutions and products: Modify rules that apply to sales of life insurance contracts ���������������������������������� ..... –22 –71 –84 –101 –117 –136 –156 –179 –204 –233 –395 –1,303 Modify dividends-received deduction for life insurance company separate accounts ��� ..... –149 –379 –407 –432 –441 –468 –492 –511 –512 –515 –1,808 –4,306 Expand pro rata interest expense disallowance for corporate-owned life insurance �������������������������������������������������� ..... –20 –87 –183 –276 –437 –659 –910 –1,293 –1,731 –2,188 –1,003 –7,784 Permit partial annuitization of a nonqualified annuity contract ����������������� ..... –5 –21 –39 –59 –81 –105 –132 –160 –192 –226 –205 –1,020 Subtotal, reform treatment of life insurance and products ���������������������� ..... –196 –558 –713 –868 –1,076 –1,368 –1,690 –2,143 –2,639 –3,162 –3,411 –14,413 Total, other revenue changes and loophole closers ������������������������������ –1,133 –28,585 –45,520 –50,153 –50,842 –49,375 –48,565 –48,269 –47,519 –48,754 –49,998 –224,475 –467,580 Upper-Income Tax Provisions: Upper-income tax provisions devoted to deficit reduction: Expand the 28-percent rate and reinstate the 36-percent and 39.6-percent rates for those taxpayers with income over $250,000 (married) and $200,000 (single): PAYGO ����������������������������������������������� ..... 698 1,075 1,211 1,349 1,479 1,617 1,757 1,899 2,035 2,175 5,812 15,295 Non-PAYGO ��������������������������������������� ..... –15,207 –27,292 –30,506 –33,905 –37,155 –40,426 –43,717 –47,034 –50,434 –54,058 –144,065 –379,734 Reinstate the personal exemption phaseout and limitation on itemized deductions for those taxpayers with income over $250,000 (married) and $200,000 (single) (non-PAYGO) �������������������������������������������� ..... –6,840 –14,925 –17,119 –18,991 –20,808 –22,571 –24,324 –26,054 –27,687 –29,170 –78,683 –208,489 Impose 20-percent tax rate on capital gains and dividends for those taxpayers with income over $250,000 (married) and $200,000 (single) (non-PAYGO). �������������� –1,344 –12,165 263 –3,315 –8,230 –11,372 –12,370 –13,288 –14,162 –14,973 –15,752 –34,819 –105,364 Subtotal, upper-income provisions devoted to deficit reduction ���������������� –1,344 –33,514 –40,879 –49,729 –59,777 –67,856 –73,750 –79,572 –85,351 –91,059 –96,805 –251,755 –678,292
THE BUDGET FOR FISCAL YEAR 2011 165 S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Limit the tax rate at which itemized deductions reduce tax liability to 28 percent ..... –7,896 –21,582 –24,500 –27,019 –29,351 –31,570 –33,938 –36,268 –38,426 –40,625 –110,348 –291,175 Total, upper-income tax provisions ������������� –1,344 –41,410 –62,461 –74,229 –86,796 –97,207 –105,320–113,510 –121,619–129,485 –137,430 –362,103 –969,467 Trade Initiatives: Promote trade ���������������������������������������������������� ..... 145 430 552 606 647 680 705 729 753 777 2,380 6,024 Other Initiatives: Extend and modify the New Markets tax credit �������������������������������������������������������������� ..... 113 229 345 430 480 511 510 441 279 103 1,597 3,441 Reform and extend build America bonds 1 ������� ..... –8 3 3 3 4 4 4 4 4 3 5 24 Total, other initiatives ��������������������������������� ..... 105 232 348 433 484 515 514 445 283 106 1,602 3,465 Mandatory Initiatives and Savings: 8 Agriculture: Enact Animal Plant and Health Inspection Service (APHIS) fees ���������������������������������������������������������� ..... –20 –27 –27 –28 –29 –30 –31 –32 –33 –34 –131 –291 Enact Food Safety and Inspection Service (FSIS) performance fee ����������������������������������������������������� ..... –11 –13 –13 –13 –14 –14 –14 –14 –15 –15 –64 –136 Enact Grain Inspection, Packers, and Stockyards Administration (GIPSA) fees �������������������������������� ..... –29 –30 –31 –31 –31 –32 –32 –32 –33 –34 –152 –315 Enact Natural Resources Conservation Service (NRCS) fee ������������������������������������������������������������� ..... –19 –19 –19 –19 –19 –19 –19 –19 –19 –19 –95 –190 Eliminate Commodity Storage payments ���������������� ..... –2 ..... ..... ..... ..... ..... ..... ..... ..... ..... –2 –2 Reduce commodity payments to wealthy farmers ��� ..... –1 –172 –201 –241 –245 –258 –262 –277 –297 –309 –860 –2,263 Reauthorize Child Nutrition programs ������������������� ..... 860 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 4,860 9,860 Reform Market Access Program ������������������������������� ..... –8 –38 –40 –40 –40 –40 –40 –40 –40 –40 –166 –366 Total, Agriculture ���������������������������������������������� ..... 770 701 669 628 622 607 602 586 563 549 3,390 6,297 Commerce: Eliminate grants to manufacturers of worsted wool ��� ..... –5 –5 –5 –5 –5 ..... ..... ..... ..... ..... –25 –25 Corps of Engineers: Support capital investment in the inland waterways (receipt effect) 2 ����������������������������������� ..... ..... –196 –163 –187 –129 –100 –72 –70 –68 –68 –675 –1,053 Defense: Implement concurrent receipt policy: Effect on military retirement ���������������������������� ..... 217 346 435 511 531 541 550 560 570 581 2,040 4,842 Accrual payments to the Military Retirement Fund (non-PAYGO) ��������������������������������������� ..... 408 395 406 416 426 440 455 470 486 503 2,051 4,405
166 SUMMARY TABLES S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Military Retirement Fund offsetting receipts for concurrent receipt accruals (non- PAYGO) ���������������������������������������������������������� ..... –408 –395 –406 –416 –426 –440 –455 –470 –486 –503 –2,051 –4,405 Payments to Military Retirement Fund (non- PAYGO) ���������������������������������������������������������� ..... 469 487 505 524 604 627 651 675 700 727 2,589 5,969 Military Retirement Fund offsetting receipts (non-PAYGO) ������������������������������������������������� ..... –469 –487 –505 –524 –604 –627 –651 –675 –700 –727 –2,589 –5,969 Provide additional accrual payments to Medicare/ Eligible Retiree Health Care Fund (non-PAYGO) ��� ..... –143 ..... ..... ..... ..... ..... ..... ..... ..... ..... –143 –143 Total, Defense ���������������������������������������������������� ..... 74 346 435 511 531 541 550 560 570 581 1,897 4,699 Education: Make Pell Grant funding mandatory and increase and index maximum awards �������������������������������� 2 825 2,603 2,942 6,581 5,183 6,616 8,154 9,818 11,873 14,031 18,134 68,626 Eliminate entitlements for financial intermediaries under the Family Federal Education Loan Program ����������������������������������������������������������������� –2,266 –8,034 –6,527 –4,458 –3,098 –2,975 –3,184 –3,414 –3,636 –3,840 –4,129 –25,092 –43,294 Expand income-based repayment options for Federal student loans ������������������������������������������� 1,692 448 512 551 586 644 708 774 842 1,158 1,265 2,741 7,487 Extend mandatory funding for Historically Black Colleges and Universities and other Minority- Serving Institutions ���������������������������������������������� 13 186 232 255 255 255 255 255 255 255 255 1,183 2,458 Create a new Graduation Promise Grants program to strengthen high schools ������������������������������������ 20 140 260 380 260 140 ..... ..... ..... ..... ..... 1,180 1,180 Create a new Early Learning Challenge Fund ������� 31 456 588 899 966 1,000 1,000 1,000 1,000 1,000 1,000 3,909 8,909 Create a new Access and Completion Fund program ����������������������������������������������������������������� 117 583 700 700 700 583 117 ..... ..... ..... ..... 3,266 3,383 Provide mandatory funding for community colleges to support the American Graduation Initiative �� 3 541 991 765 958 793 950 950 950 950 950 4,046 8,796 Modernize Perkins loans ������������������������������������������ ..... –736 –709 –614 –563 –583 –589 –539 –468 –396 –274 –3,205 –5,471 Total, Education ������������������������������������������������ –388 –5,592 –1,351 1,420 6,645 5,039 5,873 7,180 8,761 11,000 13,098 6,162 52,074 Energy: Repeal ultra-deepwater oil and gas research and development program ������������������������������������������� ..... –20 –40 –50 –50 –30 –10 ..... ..... ..... ..... –190 –200 Environmental Protection Agency: Enact pesticide and pre-manufacture notification (PMN) fees ������������������������������������������������������������� ..... –50 –54 –80 –83 –89 –89 –92 –92 –95 –95 –356 –819 Health and Human Services (HHS): Expand child care entitlement to States ����������������� ..... 502 753 961 1,115 1,106 1,142 1,226 1,314 1,403 1,493 4,437 11,015
THE BUDGET FOR FISCAL YEAR 2011 167 S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Extend ARRA child support enforcement incentive match provision ����������������������������������������������������� ..... 555 114 ..... ..... ..... ..... ..... ..... ..... ..... 669 669 Create a LIHEAP trigger ����������������������������������������� ..... 1,460 1,475 1,115 690 373 285 258 250 250 250 5,113 6,406 Continue child welfare study ����������������������������������� ..... 3 2 1 ..... ..... ..... ..... ..... ..... ..... 6 6 Expand CMS program integrity authority �������������� ..... –109 –213 –1,121 –1,250 –1,418 –1,564 –1,660 –1,784 –1,912 –2,047 –4,111 –13,078 Extend TANF supplemental grants ������������������������� ..... 251 64 4 ..... ..... ..... ..... ..... ..... ..... 319 319 Establish Fatherhood, Marriage, and Families Innovation Fund ��������������������������������������������������� ..... –118 220 148 100 ..... ..... ..... ..... ..... ..... 350 350 Improve child support enforcement tools ���������������� ..... 1 –2 –2 –2 –2 –2 –2 –2 –2 –2 –7 –17 Outyear costs of extending TANF supplemental grants ��������������������������������������������������������������������� ..... ..... 251 315 319 319 319 319 319 319 319 1,204 2,799 Reauthorize the Court Improvement Program ������� ..... 1 4 16 18 20 19 16 4 2 ..... 59 100 Support teen pregnancy prevention ������������������������� ..... 20 42 48 49 50 50 50 50 50 50 209 459 Total, HHS ��������������������������������������������������������� ..... 2,566 2,710 1,485 1,039 448 249 207 151 110 63 8,248 9,028 Homeland Security: Eliminate grants to manufacturers of worsted wool ���� ..... 5 5 5 5 ..... ..... ..... ..... ..... ..... 20 20 Housing and Urban Development: Provide funding for the Affordable Housing Trust Fund ����������������������������������������������������������������������� ..... 20 140 250 250 240 100 ..... ..... ..... ..... 900 1,000 Interior: Increase fees for migratory bird hunting and conservation stamps 2 �������������������������������������������� ..... –4 ..... ..... ..... ..... ..... ..... ..... ..... ..... –4 –4 Increase return from minerals on Federal lands: End Abandoned Mine Lands (AML) payments to certified States ������������������������������������������ ..... –115 –171 –177 –176 –97 –72 –75 –123 –140 –95 –736 –1,241 Impose fee on nonproducing oil and gas leases ..... –8 –22 –38 –53 –67 –80 –97 –114 –132 –149 –188 –760 Repeal Energy Policy Act fee prohibition and mandatory permit funds ������������������������������� ..... ..... –22 –22 –21 –20 ..... ..... ..... ..... ..... –85 –85 Reauthorize Federal land sales/acquisition law (FLTFA) ����������������������������������������������������������������� ..... –4 –6 –11 –12 –3 ..... ..... ..... ..... ..... –36 –36 Repeal geothermal payments to counties under EPAct ��������������������������������������������������������������������� ..... –8 –8 –8 –8 –8 –8 –8 –8 –8 –8 –40 –80 Return to net receipts sharing for energy minerals ..... ..... –45 –45 –47 –51 –50 –51 –51 –54 –56 –188 –450 Reserve funds for insular affairs assistance ������������ ..... 21 21 21 21 16 16 16 16 16 15 100 179 Total, Interior ���������������������������������������������������� ..... –118 –253 –280 –296 –230 –194 –215 –280 –318 –293 –1,177 –2,477
168 SUMMARY TABLES S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Labor: Implement unemployment insurance integrity legislation: 2,9 ���������������������������������������������������������� PAYGO ��������������������������������������������������������������� ..... ..... –190 –218 –162 –164 –179 –202 –114 –199 –214 –734 –1,642 Non-PAYGO ������������������������������������������������������� ..... ..... –74 –148 –138 –117 –34 83 –377 26 71 –477 –708 Reform FECA program ��������������������������������������������� ..... –10 –14 –7 –10 –20 –29 –39 –50 –60 –71 –61 –310 Extend foreign labor certification fees ��������������������� ..... ..... ..... 1 17 18 18 20 20 20 21 36 135 Reform Trade Adjustment Assistance ���������������������� ..... 145 564 796 1,044 948 884 846 832 847 879 3,497 7,785 Total, Labor �������������������������������������������������������� ..... 135 286 424 751 665 660 708 311 634 686 2,261 5,260 State: Change retention policy for consular fees (receipt effect) 2 �������������������������������������������������������������������� ..... 782 810 825 840 857 873 891 909 927 946 4,114 8,660 Treasury: Levy payments to Federal contractors with delinquent tax debt: Authorize post-levy due process (receipt effect) 2 ������������������������������������������������������������ ..... –77 –115 –119 –124 –109 –113 –118 –122 –127 –132 –544 –1,156 Increase levy authority to 100 percent for vendor payments (receipt effect) 2 ����������������� ..... –61 –87 –86 –90 –78 –82 –85 –88 –92 –96 –402 –845 Revise terrorism risk insurance program2 �������������� ..... –26 –42 –102 –134 –74 55 134 –39 –9 –12 –378 –249 Offset tax refunds to collect deliquent taxes for out-of-state residents �������������������������������������������� ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Establish FMS debt collection fee ���������������������������� ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Restructure assistance to New York City (NYC): Provide tax incentives for transportation infrastructure (receipt effect) 2 ����������������������������� ..... 200 200 200 200 200 200 200 200 200 200 1,000 2,000 Total, Treasury �������������������������������������������������� ..... 36 –44 –107 –148 –61 60 131 –49 –28 –40 –324 –250 Veterans Affairs: Implement concurrent receipt policy: Effect on Veterans disability payments ������������ ..... 47 49 51 53 54 54 54 53 53 52 254 520 Extend VBA pension limitation �������������������������������� ..... ..... –559 –571 –584 –597 –611 ..... ..... ..... ..... –2,311 –2,922 Medicaid impact ������������������������������������������������ ..... ..... 313 326 339 353 367 ..... ..... ..... ..... 1,331 1,698 Reform criteria for special monthly pension ����������� ..... –3 –6 –10 –13 –16 –20 –23 –27 –30 –33 –48 –181 Extend VBA authority for use of HHS data ������������ ..... ..... 2 1 ..... –1 –2 –3 –4 –5 –5 2 –17 Extend veterans income verification ������������������������ ..... ..... 20 –7 –13 –20 –27 ..... ..... ..... ..... –20 –47 Provide authority for vendee loan pooling ��������������� ..... ..... –86 –99 –5 ..... ..... ..... ..... ..... ..... –190 –190 Total, Veterans Affairs �������������������������������������� ..... 44 –267 –309 –223 –227 –239 28 22 18 14 –982 –1,139
THE BUDGET FOR FISCAL YEAR 2011 169 S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011– 2015 2011– 2020 Federal Communications Commission: Auction domestic satellite spectrum ������������������������ ..... –100 –75 –25 ..... ..... ..... ..... ..... ..... ..... –200 –200 Provide permanent auction authority ���������������������� ..... ..... ..... –200 –200 –200 –200 –200 –200 –200 –200 –600 –1,600 Enact spectrum license user fee ������������������������������� –50 –200 –300 –425 –550 –550 –550 –550 –550 –550 –550 –2,025 –4,775 Eliminate Telecommunications Development Fund ���� –3 –7 –7 –7 –6 –6 –6 –6 –6 –6 –6 –33 –63 Total, Federal Communications Commission ����� –53 –307 –382 –657 –756 –756 –756 –756 –756 –756 –756 –2,858 –6,638 Social Security Administration: Require States and localities to provide pension information (non-PAYGO) ������������������������������������ ..... ..... ..... ..... –172 –375 –492 –523 –478 –452 –417 –547 –2,909 Revert to Quarterly Wage Reporting (non-PAYGO) ..... 20 30 100 ..... ..... ..... ..... ..... ..... ..... 150 150 Total, Social Security Administration �������������� ..... 20 30 100 –172 –375 –492 –523 –478 –452 –417 –397 –2,759 Other Independent Agencies: Reform financial regulatory system ������������������������� ..... 867 1,595 2,204 2,583 2,893 3,052 2,397 1,855 1,433 1,141 10,142 20,020 Reflect discrimination claims settlement (non- PAYGO) ������������������������������������������������������������������ 690 230 230 ..... ..... ..... ..... ..... ..... ..... ..... 460 460 Total, other independent agencies �������������������� 690 1,097 1,825 2,204 2,583 2,893 3,052 2,397 1,855 1,433 1,141 10,602 20,480 Multi-Agency: Fund Cobell settlement costs: PAYGO ��������������������������������������������������������������� 100 400 400 200 200 200 200 200 100 ..... ..... 1,400 1,900 Non-PAYGO ������������������������������������������������������� 1,412 ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Implement program integrity allocation adjustments (non-PAYGO) 2 ���������������������������������� ..... –1,864 –4,555 –7,005 –9,452 –12,507 –15,807 –17,939 –19,448 –21,138 –22,506 –35,383 –132,221 Exclude refundable tax credits from means-tested programs ���������������������������������������������������������������� 26 26 26 25 25 25 24 23 23 22 22 127 241 Reform asset limits in means-tested programs ������� ..... 426 813 1,145 1,090 1,027 982 965 973 986 986 4,501 9,393 Total, multi-agency �������������������������������������������� 1,538 –1,012 –3,316 –5,635 –8,137 –11,255 –14,601 –16,751 –18,352 –20,130 –21,498 –29,355 –120,687 Outyear PAYGO Impact of Changes in Mandatory Programs included in Appropriations Language: Justice, Crime Victims Fund Obligation Delay ������� ..... ..... 2,731 1,366 455 ..... ..... ..... ..... ..... ..... 4,552 4,552 Total, mandatory and receipt proposals ......... 114,309 81,497 –69,867–137,843–137,205–128,927 –121,145–138,590–152,488–165,698–178,834 –392,346 –1,149,100 Note: For receipt effects, positive figures indicate lower receipts.  For outlay effects, positive figures indicate higher outlays.  For net costs, positive figures indicate higher deficits. Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission.
170 SUMMARY TABLES S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 1 The estimates for this proposal include effects on outlays. The outlay effects included in the totals above are listed below: 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011– 2015 2011– 2020 Extend making work pay tax credit in 2011 ����������� ..... 703 21,265 ..... ..... ..... ..... ..... ..... ..... ..... 21,968 21,968 Extend COBRA health insurance premium assistance �������������������������������������������������������������� 319 524 23 ..... ..... ..... ..... ..... ..... ..... ..... 547 547 Extend option for grants to States in lieu of housing tax credits ������������������������������������������������ 2,435 1,815 ..... ..... ..... ..... ..... ..... ..... ..... 1,815 1,815 Expand earned income tax credit ����������������������������� ..... 83 1,667 1,635 1,628 1,622 1,634 1,659 1,689 1,726 1,762 6,635 15,105 Expand child and dependent care tax credit ����������� ..... ..... 399 406 403 398 403 406 408 407 409 1,606 3,639 Provide for automatic enrollment in IRAs and double the tax credit for small employer plan startup costs ���������������������������������������������������������� ..... ..... 83 146 149 158 177 200 223 250 281 536 1,667 Expand saver’s credit ������������������������������������������������ ..... 570 3,715 1,402 1,369 1,366 1,349 1,337 1,339 1,340 1,353 8,422 15,140 Provide American opportunity tax credit ���������������� ..... ..... 2,941 3,058 3,146 3,268 3,441 3,363 3,330 3,310 3,302 12,413 29,159 Continue certain expiring provisions through calendar year 2011 ������������������������������������������������ 66 91 23 ..... ..... ..... ..... ..... ..... ..... ..... 114 114 Eliminate advanced earned income tax credit �������� ..... –120 –72 –70 –69 –68 –69 –69 –72 –74 –77 –399 –760 Reform and extend build America bonds ����������������� ..... 266 1,216 2,630 4,108 5,608 7,105 8,595 10,078 11,554 13,023 13,828 64,183 Total outlay effects of receipt proposals ����������� 2,820 3,932 31,260 9,207 10,734 12,352 14,040 15,491 16,995 18,513 20,053 67,485 152,577 2 The estimates for this proposal include effects on receipts. The receipt effects included in the totals above are listed below. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011– 2015 2011– 2020 Provide $250 economic recovery payments ������������� 38 –1,959 ..... ..... ..... ..... ..... ..... ..... ..... ..... –1,959 –1,959 Jobs initiatives allowance ����������������������������������������� 12,000 25,000 8,000 3,000 2,000 ..... ..... ..... ..... ..... ..... 38,000 38,000 Health insurance allowance ������������������������������������� ..... –16,000 –17,500 –40,500 –57,000 –75,500 –89,500 –98,000 –106,500–116,000 –126,500 –206,500 –743,000 Preserve cost-sharing of inland waterways capital costs ����������������������������������������������������������������������� ..... ..... –196 –163 –187 –129 –100 –72 –70 –68 –68 –675 –1,053 Increase fees for migratory bird hunting and conservation stamps ��������������������������������������������� ..... –14 –14 –14 –14 –14 –14 –14 –14 –14 –14 –70 –140 Implement unemployment insurance integrity legislation: PAYGO ��������������������������������������������������������������� ..... ..... –39 –40 –27 –32 –49 –72 19 –62 –73 –138 –375 Non-PAYGO ������������������������������������������������������� ..... ..... –3 –2 11 36 124 247 –208 200 252 42 657 Change retention policy for passport application fees ������������������������������������������������������������������������� ..... 782 810 825 840 857 873 891 909 927 946 4,114 8,660 Authorize post-levy due process ������������������������������� ..... –77 –115 –119 –124 –109 –113 –118 –122 –127 –132 –544 –1,156 Increase levy authority to 100 percent for vendor payments ��������������������������������������������������������������� ..... –61 –87 –86 –90 –78 –82 –85 –88 –92 –96 –402 –845 Revise terrorism risk insurance program ���������������� ..... ..... 21 18 45 99 173 205 6 21 15 183 603
THE BUDGET FOR FISCAL YEAR 2011 171 S–8. Mandatory and Receipt Proposals—Continued (Deficit increases (+) or decreases (-) in millions of dollars) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011– 2015 2011– 2020 Restructure assistance to NYC: Provide tax incentives for transportation infrastructure ������� ..... 200 200 200 200 200 200 200 200 200 200 1,000 2,000 Implement program integrity allocation adjustments – IRS ������������������������������������������������ ..... –385 –1,164 –2,355 –3,955 –6,015 –7,987 –9,238 –9,931 –10,378 –10,809 –13,874 –62,217 Total receipt effects of mandatory proposals ��� 12,038 7,486 –10,087 –39,236 –58,301 –80,685 –96,475–106,056 –115,799–125,393 –136,279 –180,823 –760,825 3 Allowance reflects the average budget impacts of the House- and Senate-passed health care reform bills, extrapolated to 2020 and adjusted to remove the effects of four provisions already included explicitly as 2011 Budget proposals. The four adjustments are for proposals to require information reporting on payments to corporations, codify the economic substance doctrine, modify cellulosic biofuel producer credit, and extend FMAP relief to States. 4 A comprehensive market-based climate change policy will be deficit neutral because proceeds from emissions allowances will be used to compensate vulnerable families, communities, and businesses during the transition to a clean energy economy. Receipts will also be reserved for investments to reduce greenhouse gas emissions, including support of clean energy technologies, and in adapting to the impacts of climate change, both domestically and in developing countries. 5 Receipt effects unless otherwise noted. 6 The Administration continues to support expanding refundability of the child tax credit by lowering the refundability threshold to $3,000, as well as the expansion of the earned income tax credit for married couples by increasing the phase-out threshold by $5,000 compared to other filers. These policies are incorporated in the baseline projection of current policy. 7 This provision is estimated to have zero receipt effects under the Administration’s current projections for energy prices. 8 Outlay effects unless otherwise noted. 9 Net of income offsets.
172 SUMMARY TABLES Table S–9. Bridge Between Total Mandatory and Receipt Proposals and PAYGO Scorekeeping Deficit increases (+) or decreases (–) in millions of dollars Total 1 2011-2020 total mandatory and receipt proposals, Table S–8 ������������������������������������������������������������������������������������������ –1,149,100 Plus 2010 effects: PAYGO includes a “lookback” provision to capture current-year costs �������������������������������������� 114,309 2010–2020 total mandatory and receipt proposals and climate policies, Table S–8 ......................................... –1,034,791 Adjustments to remove costs or savings for non-PAYGO items on S–8: Temporary recovery measures ����������������������������������������������������������������������������������������������������������������������������������� –266,351 Savings from not extending upper-income tax cuts �������������������������������������������������������������������������������������������������� 694,931 Program integrity and other savings generated by increased discretionary funding ��������������������������������������������� 135,838 Other non-PAYGO items �������������������������������������������������������������������������������������������������������������������������������������������� –3,847 Total, adjustments for non-PAYGO items ..................................................................................................... 561,261 TOTAL: Net scoreable PAYGO savings in Administration’s budget ................................................................... –473,530 Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission. 1 Totals represent 2010-2020 unless otherwise stated.
THE BUDGET FOR FISCAL YEAR 2011 173 Table S–10. Funding Levels for Appropriated (“Discretionary”) Programs by Category 1 (Budgetary resources in billions of dollars) 2009 Actual 2010 Enacted 2011 Request Totals 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011– 2015 2011– 2020 Non- ARRA ARRA2 Discretionary Policy by Category: Security Agencies ������������������������� 650.1 12.0 683.7 719.2 747.5 768.7 789.7 814.0 834.6 856.5 879.0 902.7 927.6 3,839.0 8,239.4 Non-Security Agencies ����������������� 407.8 253.1 446.3 441.3 446.4 446.2 459.1 472.3 478.7 488.8 501.6 517.0 537.5 2,265.2 4,788.9 Total, Base Discretionary Funding .... 1,057.9 265.1 1,130.0 1,160.5 1,193.9 1,214.9 1,248.8 1,286.2 1,313.3 1,345.3 1,380.6 1,419.7 1,465.1 6,104.3 13,028.3 Other Discretionary Funding (not included above): Overseas Contingency Operations3 �������������������������������� 145.9 ..... 130.0 159.3 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 359.3 609.3 Other Supplemental/Emergency Funding ������������������������������������� 44.1 ..... 0.4 ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Proposed 2010 Supplemental Funding 4 ����������������������������������� ..... ..... 41.1 ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Grand Total, Discretionary Budgetary Resources ............... 1,248.0 265.1 1,301.5 1,319.8 1,243.9 1,264.9 1,298.8 1,336.2 1,363.3 1,395.3 1,430.6 1,469.7 1,515.1 6,463.6 13,637.6 Memorandum: Base Security Budget Authority adjusted for Inflation and Population ���������������������������������������� 685.5 12.6 700.1 719.2 726.6 725.5 723.7 724.3 721.0 717.7 714.6 711.9 710.5 3,619.3 7,194.9 Base Non-Security Budgetary Resources adjusted for Inflation and Population ���� 430.0 266.9 457.0 441.3 433.9 421.1 420.8 420.2 413.6 409.6 407.7 407.7 411.7 2,137.3 4,187.6 Grand Total, Discretionary Budgetary Resources adjusted for Inflation and Population �������������������������������� 1,315.9 279.5 1,332.8 1,319.8 1,209.1 1,193.8 1,190.2 1,189.0 1,177.7 1,169.2 1,163.0 1,159.1 1,160.5 6,102.0 11,931.5 Grand Total, Discretionary Budgetary Resources as a Percent of GDP ������ 8.8% 1.9% 8.9% 8.6% 7.7% 7.4% 7.1% 7.0% 6.8% 6.6% 6.5% 6.4% 6.3% 7.6% 7.0% 1Although the Budget shows discretionary funding in nominal terms, the Administration conceives of discretionary growth rates in inflation-adjusted terms. If inflation projections are revised from what is currently projected, future budgets would be expected to adjust funding levels up or down accordingly. (This statement does not apply to funding growth between 2010 and the 2011 budget year, since the appropriations process for 2011 must begin immediately and before inflation assumptions will be revisited. It also does not apply to the outyear BA for overseas contingency operations, which is a placeholder and does not represent a policy determination.) 2“ARRA” refers to the American Recovery and Reinvestment Act of 2009 (P.L. 111-5). 3The Budget includes placeholder estimates of $50 billion per year for Overseas Contingency Operations in 2012 and beyond.  These estimates do not reflect any specific policy decisions. 4The 2010 requested supplemental includes additional funding for Overseas Contingency Operations.
174 SUMMARY TABLES Table S–11. Funding Levels for Appropriated (“Discretionary”) Programs by Agency1 (Budgetary resources in billions of dollars) 2009 Actual 2010 Enacted 2011 Request Totals Non- ARRA ARRA2 2012 2013 2014 2015 2011–2015 2011–2020 Base Discretionary Resources by Agency: Security Agencies: Defense (DOD) ���������������������������������������������������������������������� 513.2 7.4 530.8 548.9 566.4 581.8 597.8 616.0 2,910.9 6,255.3 Energy - National Nuclear Security Administration ��������� 9.1 ..... 9.9 11.2 11.6 11.9 12.4 12.9 60.0 126.6 Homeland Security (DHS)3 �������������������������������������������������� 42.1 2.8 39.4 43.6 44.2 44.8 45.3 46.7 224.6 481.4 Veterans Affairs4 ������������������������������������������������������������������� 47.6 1.4 53.1 57.0 59.7 61.3 63.0 64.7 305.6 659.7 State and Other International Programs 5 �������������������������� 38.1 0.4 50.6 58.5 65.7 69.0 71.2 73.6 337.9 716.4 Subtotal, Security Agencies .................................................. 650.1 12.0 683.7 719.2 747.5 768.7 789.7 814.0 3,839.0 8,239.4 Non-Security Agencies: Agriculture5 ��������������������������������������������������������������������������� 22.6 6.9 25.0 23.9 24.6 24.5 25.2 26.0 124.2 266.2 Commerce ����������������������������������������������������������������������������� 9.4 7.8 13.9 8.9 9.1 8.8 8.5 8.8 44.2 101.0 Census Bureau ���������������������������������������������������������������� 3.1 1.0 7.2 1.3 1.1 1.2 1.3 1.5 12.1 23.9 Education6 ����������������������������������������������������������������������������� 41.4 81.1 46.8 49.7 50.1 50.2 51.4 52.7 254.1 537.5 Energy (excluding National Nuclear Security Administration) ���������������������������������������������������������������� 16.9 36.7 16.5 17.1 17.1 17.2 17.7 18.3 87.5 186.2 Health and Human Services (HHS)7 ����������������������������������� 77.6 22.4 84.1 83.5 82.4 80.7 83.1 85.5 415.1 881.1 Housing and Urban Development ��������������������������������������� 40.0 13.6 43.6 41.6 41.3 42.0 44.1 45.3 214.3 464.1 Interior ���������������������������������������������������������������������������������� 11.3 3.0 12.2 12.0 11.9 11.8 12.2 12.5 60.3 126.6 Justice ����������������������������������������������������������������������������������� 26.0 4.0 27.5 24.1 28.5 28.0 29.0 29.9 139.5 291.8 Labor ������������������������������������������������������������������������������������� 12.9 4.8 14.3 14.0 13.5 13.1 13.3 13.5 67.4 138.4 State and Other International Programs 5 �������������������������� 0.1 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.6 1.3 Transportation ���������������������������������������������������������������������� 70.5 48.1 76.0 77.6 79.2 80.6 82.1 84.7 404.2 824.5 Budget Authority (BA) ���������������������������������������������������� 16.8 48.1 21.8 22.8 70.0 33.8 39.0 41.2 206.6 418.1 Obligation Limitations ��������������������������������������������������� 53.7 ..... 54.2 54.8 9.3 46.8 43.1 43.6 197.6 406.4 Treasury �������������������������������������������������������������������������������� 12.6 0.3 13.6 13.9 14.1 14.5 15.1 15.9 73.6 158.9 Corps of Engineers ��������������������������������������������������������������� 5.3 4.6 5.4 4.9 4.7 4.6 4.7 4.8 23.6 49.3 Environmental Protection Agency ��������������������������������������� 7.6 7.2 10.3 10.0 9.4 8.8 8.6 8.5 45.4 89.0 General Services Administration ���������������������������������������� 0.6 5.9 0.6 0.7 0.6 0.6 0.6 0.7 3.2 6.8 National Aeronautics and Space Administration ��������������� 17.8 1.0 18.7 19.0 19.4 20.0 20.6 21.0 100.0 212.7 National Science Foundation ����������������������������������������������� 6.5 3.0 6.9 7.4 7.8 8.3 8.9 9.5 41.9 96.9 Small Business Administration ������������������������������������������� 0.6 0.7 0.8 1.0 1.0 0.9 0.9 1.0 4.8 9.9 Social Security Administration7 ������������������������������������������� 8.5 1.1 9.3 10.1 10.5 10.9 11.4 11.7 54.7 117.6 Corporation for National and Community Service ������������� 0.9 0.2 1.2 1.4 1.7 2.0 2.3 2.6 10.0 26.9 Other Agencies ��������������������������������������������������������������������� 18.6 0.3 19.4 20.2 19.2 18.6 19.1 19.5 96.6 202.0

Subtotal, Non-Security Discretionary Budget Authority .... 354.1 253.1 392.1 386.4 437.1 399.4 416.0 428.7 2,067.6 4,382.5
THE BUDGET FOR FISCAL YEAR 2011 175 Table S–11. Funding Levels for Appropriated (“Discretionary”) Programs by Agency1—Continued (Budgetary resources in billions of dollars) 2009 Actual 2010 Enacted 2011 Request Totals Non- ARRA ARRA2 2012 2013 2014 2015 2011–2015 2011–2020 Subtotal, Non-Security Discretionary Budgetary Resources .............................................................................. 407.8 253.1 446.3 441.3 446.4 446.2 459.1 472.3 2,265.2 4,788.9 Other Discretionary Funding (not included above): Overseas Contingency Operations8 .................................... 145.9 ..... 130.0 159.3 50.0 50.0 50.0 50.0 359.3 609.3 Defense ���������������������������������������������������������������������������������� 145.7 ..... 129.6 159.1 50.0 50.0 50.0 50.0 359.1 609.1 Homeland Security ��������������������������������������������������������������� 0.3 ..... 0.2 0.3 ..... ..... ..... ..... 0.3 0.3 Justice ����������������������������������������������������������������������������������� ..... ..... 0.1 ..... ..... ..... ..... ..... ..... ..... Other Enacted Supplemental or Emergency Funding ... 44.1 ..... 0.4 ..... ..... ..... ..... ..... ..... ..... Agriculture ���������������������������������������������������������������������������� 1.4 ..... 0.4 ..... ..... ..... ..... ..... ..... ..... Energy �������������������������������������������������������������������������������������������������� 7.9 ..... ..... ..... ..... ..... ..... ..... ..... ..... Health and Human Services ������������������������������������������������ 10.5 ..... ..... ..... ..... ..... ..... ..... ..... ..... State and Other International Programs ���������������������������� 13.8 ..... ..... ..... ..... ..... ..... ..... ..... ..... Department of Transportation ��������������������������������������������� 3.0 ..... ..... ..... ..... ..... ..... ..... ..... ..... Corps of Engineers-Civil Works ������������������������������������������� 6.6 ..... ..... ..... ..... ..... ..... ..... ..... ..... Other Agencies ���������������������������������������������������������������������� 0.9 ..... -* ..... ..... ..... ..... ..... ..... ..... Proposed 2010 Supplemental Funding .............................. ..... ..... 41.1 ..... ..... ..... ..... ..... ..... ..... Defense (includes Overseas Contingency Operations) ��������� ..... ..... 33.0 ..... ..... ..... ..... ..... ..... ..... Homeland Security ��������������������������������������������������������������� ..... ..... 3.6 ..... ..... ..... ..... ..... ..... ..... State and Other International Programs ���������������������������� ..... ..... 4.5 ..... ..... ..... ..... ..... ..... ..... Grand Total, Discretionary Budget Authority ....................... 1,194.2 265.1 1,247.3 1,265.0 1,234.6 1,218.1 1,255.7 1,292.6 6,266.0 13,231.2 Grand Total, Discretionary Budgetary Resources ............... 1,248.0 265.1 1,301.5 1,319.8 1,243.9 1,264.9 1,298.8 1,336.2 6,463.6 13,637.6 * $50 million or less. 1Although the Budget shows discretionary funding in nominal terms, the Administration conceives of discretionary growth rates in inflation-adjusted terms. If inflation projections are revised from what is currently projected, future budgets would be expected to adjust funding levels up or down accordingly. (This statement does not apply to funding growth between 2010 and the 2011 budget year, since the appropriations process for 2011 must begin immediately and before inflation assumptions will be revisited. It also does not apply to the outyear BA for overseas contingency operations, which is a placeholder and does not represent a policy determination.) 2“ARRA” refers to the American Recovery and Reinvestment Act of 2009 (P.L. 111-5). 3The DHS level includes $1.8 billion for BioShield in 2009 and a -$3.0 billion transfer in 2010 of BioShield balances to HHS. 4The Veterans Affairs total is net of medical care collections. 5The Security category for State and Other International Programs is comprised entirely of International Function 150. This includes funding for International Food Aid programs in the Department of Agriculture. 6Adjusted for advance appropriations, 2009 funding for the Department of Education is $46.2 billion.  All numbers exclude funding for Pell Grants. 7Funding from the Hospital Insurance and Supplementary Medical Insurance trust funds for administrative expenses incurred by the Social Security Administration that support the Medicare program are included in the HHS total and not in the Social Security Administration total. Additionally, the HHS total includes $0.4 billion and $3.0 billion in 2009 and 2010, respectively, for transfer of the BioShield program in DHS. 8The Budget includes placeholder estimates of $50 billion per year for Overseas Contingency Operations in 2012 and beyond.  These estimates do not reflect any specific policy decisions.
176 SUMMARY TABLES Table S–12. Market Valuation and Balance Sheet of Fannie Mae and Freddie Mac (In billions of dollars) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals 2011- 2015 2011- 2020 Transactions between Treasury and Fannie Mae/Freddie Mac: Senior Preferred Liquidity Payments to Fannie Mae/Freddie Mac ��������������������������������������������������� ..... 96 69 23 ..... ..... ..... ..... ..... ..... ..... ..... ..... 23 23 Senior Preferred Dividend Payments from Fannie Mae/Freddie Mac �������������������������������������������������� ..... –4 –12 –18 –7 –7 –7 –7 –7 –7 –7 –7 –7 –44 –78 Net Payments ����������������������������������������������������� ..... 91 57 5 –7 –7 –7 –7 –7 –7 –7 –7 –7 –21 –55 Market Valuation of Fannie Mae and Freddie Mac: Market Value of Net Liability ���������������������������������� –18 –18 Value of Private Equity Shares �������������������������������� –3 –3 Net Position of Fannie Mae and Freddie Mac: Assets: U.S. Treasury Securities ������������������������������������� ..... 12 Other Financial Assets ��������������������������������������� 1,524 1,579 Cash �������������������������������������������������������������������� 115 110 Other ������������������������������������������������������������������� 63 54 Liabilities: Debt Outstanding ����������������������������������������������� 1,615 1,607 Other Financial Liabilities ��������������������������������������� 90 155 Equity: Treasury Senior Preferred Stock ����������������������� ..... 96 Private Equity ���������������������������������������������������� –4 –101 Net Position ��������������������������������������������������� –4 –5
THE BUDGET FOR FISCAL YEAR 2011 177 Table S–13. Economic Assumptions (Calendar years) 2008 Actual Projections 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Gross Domestic Product (GDP): Nominal level, billions of dollars �������������������� 14,441 14,252 14,768 15,514 16,444 17,433 18,446 19,433 20,408 21,373 22,329 23,312 24,323 Percent change, nominal GDP, year/year ������� 2.6 –1.3 3.6 5.1 6.0 6.0 5.8 5.3 5.0 4.7 4.5 4.4 4.3 Real GDP, percent change, year/year ������������ 0.4 –2.5 2.7 3.8 4.3 4.2 4.0 3.6 3.2 2.8 2.6 2.5 2.5 Real GDP, percent change, Q4/Q4 ����������������� –1.9 –0.5 3.0 4.3 4.3 4.2 3.9 3.4 3.1 2.7 2.6 2.5 2.5 GDP chained price index, percent change, year/year ������������������������������������������������������ 2.1 1.2 0.9 1.2 1.6 1.7 1.7 1.7 1.8 1.8 1.8 1.8 1.8 Consumer Price Index1, percent change, year/year ......................................................... 3.8 –0.3 1.9 1.5 2.0 2.0 2.0 2.0 2.0 2.1 2.1 2.1 2.1 Unemployment rate, civilian, percent2 ........ 5.8 9.3 10.0 9.2 8.2 7.3 6.5 5.9 5.5 5.3 5.2 5.2 5.2 Interest rates, percent: 91-day Treasury bills3 ������������������������������� 1.4 0.2 0.4 1.6 3.0 4.0 4.1 4.1 4.1 4.1 4.1 4.1 4.1 10-year Treasury notes ���������������������������� 3.7 3.3 3.9 4.5 5.0 5.2 5.3 5.3 5.3 5.3 5.3 5.3 5.3 Note: A more detailed table of economic assumptions is in Chapter 2, “Economic Assumptions,” in the Analytical Perspectives volume of the Budget, Table 2–1. 1 Seasonally adjusted CPI for all urban consumers. 2 Annual average. 3 Average rate, secondary market (bank discount basis).
178 SUMMARY TABLES Table S–14. Federal Government Financing and Debt (In billions of dollars) 2009 Estimate 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Financing: Unified budget deficit ������������������������������������������������������������������������������� 1,413 1,556 1,267 828 727 706 752 778 778 785 908 1,003 Other transactions affecting borrowing from the public: Changes in financial assets and liabilities:1 Change in Treasury operating cash balance2 ����������������������������� –96 –5 –200 ..... ..... ..... ..... ..... ..... ..... ..... ..... Net disbursements of credit financing accounts: Direct loan accounts ��������������������������������������������������������������� 293 210 143 135 118 108 99 70 85 79 91 91 Guaranteed loan accounts ������������������������������������������������������ 7 –7 8 12 12 6 4 3 1 –2 –4 –6 Troubled Asset Relief Program (TARP) equity purchase accounts ������������������������������������������������������������������������������ 105 1 –15 –* –2 –5 –5 –5 –9 –11 –26 –16 Net purchases of non-Federal securities by the National Railroad Retirement Investment Trust (NRRIT) ������������������� –3 –1 –1 –1 –1 –1 –1 –1 –1 –1 –1 –1 Net change in other financial assets and liabilities3 ����������������� 22 ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Subtotal, changes in financial assets and liabilities ������������� 329 198 –66 146 127 109 98 67 76 65 60 69 Seigniorage on coins �������������������������������������������������������������������������� –* –* –* –1 –1 –1 –1 –1 –1 –1 –1 –1 Total, other transactions affecting borrowing from the public ����������������������������������������������������������������������������������� 329 197 –66 145 126 108 97 67 75 64 59 68 Total, requirement to borrow from the public (equals change in debt held by the public) ������������������������������� 1,742 1,753 1,201 974 854 814 849 844 853 849 967 1,071 Changes in Debt Subject to Statutory Limitation: Change in debt held by the public ����������������������������������������������������������� 1,742 1,753 1,201 974 854 814 849 844 853 849 967 1,071 Change in debt held by Government accounts ��������������������������������������� 148 158 157 218 264 265 302 309 321 337 285 256 Change in other factors ��������������������������������������������������������������������������� 4 –2 –1 1 1 1 1 1 1 1 1 –* Total, change in debt subject to statutory limitation ���������������������� 1,893 1,909 1,357 1,193 1,119 1,079 1,152 1,155 1,176 1,187 1,253 1,327 Debt Subject to Statutory Limitation, End of Year: Debt issued by Treasury �������������������������������������������������������������������������� 11,850 13,760 15,117 16,308 17,426 18,505 19,656 20,809 21,984 23,171 24,424 25,751 Adjustment for discount, premium, and coverage4 �������������������������������� 3 2 2 4 5 6 7 8 8 9 9 9 Total, debt subject to statutory limitation5 �������������������������������������� 11,853 13,762 15,119 16,312 17,431 18,511 19,662 20,817 21,993 23,180 24,433 25,760 Debt Outstanding, End of Year: Gross Federal debt:6 Debt issued by Treasury ������������������������������������������������������������������� 11,850 13,760 15,117 16,308 17,426 18,505 19,656 20,809 21,984 23,171 24,424 25,751 Debt issued by other agencies ���������������������������������������������������������� 26 27 27 27 27 28 28 28 27 26 26 26 Total, gross Federal debt ������������������������������������������������������������� 11,876 13,787 15,144 16,336 17,453 18,532 19,683 20,837 22,011 23,197 24,450 25,777 Held by: Debt held by Government accounts ������������������������������������������������� 4,331 4,489 4,646 4,864 5,128 5,393 5,695 6,004 6,325 6,663 6,948 7,204 Debt held by the public7 �������������������������������������������������������������������� 7,545 9,298 10,498 11,472 12,326 13,139 13,988 14,833 15,686 16,535 17,502 18,573
THE BUDGET FOR FISCAL YEAR 2011 179 Table S–14. Federal Government Financing and Debt—Continued (In billions of dollars) 2009 Estimate 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Debt Held by the Public Net of Financial Assets: Debt held by the public ���������������������������������������������������������������������������� 7,545 9,298 10,498 11,472 12,326 13,139 13,988 14,833 15,686 16,535 17,502 18,573 Less financial assets net of liabilities: Treasury operating cash balance2 ���������������������������������������������������� 275 270 70 70 70 70 70 70 70 70 70 70 Credit financing account balances: Direct loan accounts �������������������������������������������������������������������� 489 700 842 977 1,095 1,204 1,303 1,373 1,458 1,537 1,628 1,719 Guaranteed loan accounts ����������������������������������������������������������� –35 –42 –34 –22 –10 –4 * 3 5 2 –2 –7 TARP equity purchase accounts ������������������������������������������������� 105 106 91 91 89 84 80 75 66 55 29 13 Government-sponsored enterprise preferred stock ������������������������� 65 102 115 115 115 115 115 115 115 115 115 115 Non-Federal securities held by NRRIT �������������������������������������������� 22 21 20 19 18 17 16 14 13 12 11 10 Other assets net of liabilities ������������������������������������������������������������ –24 –24 –24 –24 –24 –24 –24 –24 –24 –24 –24 –24 Total, financial assets net of liabilities ��������������������������������������� 898 1,133 1,080 1,227 1,353 1,462 1,560 1,627 1,703 1,768 1,827 1,896 Debt held by the public net of financial assets ��������������������� 6,647 8,164 9,418 10,246 10,972 11,677 12,428 13,205 13,983 14,767 15,675 16,677 Note: Figures displayed in the table do not reflect the impact of any recommendations from the Fiscal Commission. * $500 million or less. 1 A decrease in the Treasury operating cash balance (which is an asset) is a means of financing a deficit and therefore has a negative sign. An increase in checks outstanding (which is a liability) is also a means of financing a deficit and therefore also has a negative sign. 2 Includes assumed Supplementary Financing Program balance of $200 billion on September 30, 2010, and zero on September 30, 2011, and beyond. 3 Besides checks outstanding, includes accrued interest payable on Treasury debt, uninvested deposit fund balances, allocations of special drawing rights, and other liability accounts; and, as an offset, cash and monetary assets (other than the Treasury operating cash balance), other asset accounts, and profit on sale of gold. 4 Consists mainly of debt issued by the Federal Financing Bank (which is not subject to limit), debt held by the Federal Financing Bank, the unamortized discount (less premium) on public issues of Treasury notes and bonds (other than zero-coupon bonds), and the unrealized discount on Government account series securities. 5 The statutory debt limit is $12,394 billion, as enacted on December 28, 2009. 6 Treasury securities held by the public and zero-coupon bonds held by Government accounts are almost all measured at sales price plus amortized discount or less amortized premium. Agency debt securities are almost all measured at face value. Treasury securities in the Government account series are otherwise measured at face value less unrealized discount (if any). 7 At the end of 2009, the Federal Reserve Banks held $769.2 billion of Federal securities and the rest of the public held $6,775.5 billion. Debt held by the Federal Reserve Banks is not estimated for future years.

181

A

Katherine D. Aaby

Andrew Abrams

Chandana Achanta

Karl Agcaoili

Brenda Aguilar

Shagufta I. Ahmed

Steven D. Aitken

Jameela Raja Akbari

Robert Alderfer

David Alekson

Lois E. Altoft

Scott J. Anchin

Lucas J. Anderson

Robert B. Anderson

Kevin Archer

Anna R. Arroyo

Katherine T. Astrich

Lisa L. August

Laura G. Auletta

Renee Austin

Shawn D. Azman

B

Peter Babb

Kenneth S. Baer

Elizabeth A. Bafford

Paul W. Baker

Carol Bales

Preeta D. Bansal

John W. Barkhamer 

Patti Barnett

Carl Barrick

Jody Barringer

Tali Bar-Shalom

Mary C. Barth

Julie Basile

Nancy B. Beck

Jennifer Wagner Bell

Stuart Bender

Lindsey R. Berman

Elizabeth Bernhard

Boris Bershteyn

Catherine Bloniarz

Mathew C. Blum

James Boden

Melissa B. Bomberger

Debra Bond

Dan Bonesteel

Edward P. Borrego

David S. Bortnick

Constance J. Bowers

Bill Boyd

Wyatt Boyd

Chantel M. Boyens

Betty I. Bradshaw

Joshua J. Brammer

Shannon Bregman

Xavier D. Briggs

Brooke Brody-Waite

Mark Brooks

Charles H. Brown

Dustin S. Brown

James A. Brown

Jennifer E. Brown

Kelly D. Brown

Emily P. Brownlow

Michael Brunetto 

Ryan J. Bubb

Paul Bugg

Joshua Bull

Tom D. Bullers

Robert B. Bullock

Benjamin Burnett

John D. Burnim

John C. Burton

Rachel A. B. Burton

Mark Bussow

C

Kathleen Cahill

Steven Cahill

Philip T. Calbos 

Mark F. Cancian 

Anna Canfield 

Christa Capozzola

Kara K. Cardinale

Eric D. Cardoza

J. Kevin Carroll

Randy J. Caruso

Mary I. Cassell

David Cassidy

Benjamin Chan 

Daniel E. Chandler

Alan Chao

James Chase

Anita Chellaraj

Lingjiao Chen

Shawn Choy

Michael C. Clark

Allison Leah Cole

John J. Colleran

Debra M. Collins

Nicole E. Comisky

David C. Connolly

Ryan H. Cooper

Matthew Coryell 

Daniel Costello

Kelly T. Coylar

Catherine Crato

Joseph Crilley

Rosemarie C. Crow

Michael F. Crowley

Craig Crutchfield

Edna T. Falk Curtin

C. Tyler Curtis

William P. Curtis

D

Michael D’Amato 

Veronica Daigle

Neil Danberg

J. Michael Daniel

Kristy L. Daphnis

Michael P. Darling

A. James Daumit

Joanne Davenport

Garrick Davis 

Margaret B. DavisChristian

Anne M. Decesaro

Deanna DeMott

Carol R. Dennis

Alyssa Denzer 

G. Edward DeSeve

Samantha L. 

Deshommes

Cynthia Diamond

John H. Dick, Jr.

Frank DiGiammarino 

Angela Donatelli

Paul Donohue

Bridget C. E. Dooling

Shamera Dorsey 

OMB CONTRIBUTORS TO THE 2011 BUDGET

The following personnel contributed to the preparation of this publication. Hundreds, perhaps 

thousands, of others throughout the Government also deserve credit for their valuable contributions. 
182 LIST OF CONTRIBUTORS

Vishal D. Doshi

Audrey L. Duchesne

Laura Duke

Van Duong

Louise Dyer

E

Jacqueline A. Easley

Eugene M. Ebner

Mabel E. Echols

Jeanette Edwards

Emily M. Eelman

Katherine A. Eltrich

Zeke Emanuel 

Gene Emmans

Noah Engelberg

Michelle A. Enger

Leandra English

Elizabeth Erickson

Kristofor Erickson

Sally Ericsson

Dinée Eriksen 

Giannina Espichan

Victoria Espinel

Suzann K. Evinger

Rowe Ewell

F

Chris Fairhall

Robert S. Fairweather

Michael C. Falkenheim

Kim Farington

Kara Farley-Cahill

Dick Feezle

Nicole A. Fernandes

Patricia A. Ferrell

Lesley A. Field

Jessica Finkel

Alyssa D. Fisher

E. Holly Fitter

Mary E. Fitzpatrick

Michael A. Fitzpatrick

Darlene B. Fleming

Michael P. Flood

Tera Fong 

Keith Fontenot

Kim Ford 

James Ford-Fleming

Emily Fort

Peggy Fouts

Nicholas A. Fraser

Farrah Freis

Nathan J. Frey

Michael Friedberg

G

Marc Garufi

Thomas E. Gavin

Darcel D. Gayle

Jennifer Gera

Bassam F. Gergi

Michael D. Gerich

Brian W. Gill

Brian Gillis

David Glaudemans

Joshua Glazer

Kimberly Glenn 

Adam Goldberg

Robert Goldberg

Jeffrey Goldstein

Oscar Gonzalez

Dan Gordon 

Robert M. Gordon

Andrew Grandison

Melissa Green 

Richard E. Green

Aron Greenberg

Lisa Greenwood 

Fumie Y. Griego

Hester Grippando

Rebecca Grusky

H

Michael B. Hagan

Susan Haggerty

Christopher C. Hall

Kathleen D. Hamm

Eric V. Hansen

Linda W. Hardin

Dionne M. Hardy

David Harmon

Patsy Harris

Brian Harris-Kojetin

Nicholas R. Hart

Luke Hartig

Paul Harvey

David J. Haun

Florence Hawald

Mark H. Hazelgren

Pamela L. Heijmans

Gregory G. Henry

Kevin W. Herms

Jessica R. Hertz 

Michael Hickey

Beth Higa

Cortney J. Higgins

Mary Lou Hildreth

Jeffrey C. Hilliard

Leslie K. Hinchman

Andrew Hire

Jennifer Hoef

Joanne Cianci Hoff

Adam Hoffberg

Stuart Hoffman

Michael J. Howell

Grace Hu

Kathy M. Hudgins

Carrie A. Hug

Tammy S. Hughes

Jeremy D. Hulick

James Hundt

Alexander T. Hunt

Lorraine D. Hunt

James C. Hurban

Jaki Mayer Hurwitz

Kristen D. Hyatt

I

Tae H. Im

J

Laurence R. Jacobson

Dana M. James

Carol D. Jenkins

Christopher S. Johns

Barbara A. Johnson

Carol Johnson

Kim A. Johnson

Kim I. Johnson

Kristen Johnson

Michael D. Johnson

Bryant A. Jones

Denise B. Jones

Lisa M. Jones

Scott W. Jones

James F. Jordan

James J. Jukes

Hee K. Jun

K

Julie A. Kalishman

David C. Kamin

Amy Kaminski

Jacob H. Kaplan

Irene B. Kariampuzha

Jenifer Karwoski

Regina Kearney

Matthew J. Keeneth

John W. Kelly

Kenneth S. Kelly

Ann H. Kendrall

Nancy Kenly

Paul E. Kilbride

Timothy Kim

Barry D. King 

Heidi R. King

Kelly Kinneen

Carole Kitti

Ben Klay

Sarah B. Klein

Melissa A. Kline

Richard L. Kogan

Emily M. Kornegay

Steve M. Kosiak

Constantine Koulouris

John Kraemer

Lori A. Krauss

Caroline Krency 

Kristi Kubista-Hovis

Divya Kumaraiah

Vivek Kundra

Joydip Kundu

Christine J. Kymn

L

Leonard L. Lainhart

James A. Laity
THE BUDGET FOR FISCAL YEAR 2011 183

Chad A Lallemand

Lawrence L. Lambert

Daniel LaPlaca

Eric P. Lauer

Kristen Lauer

Jessie LaVine

Michael Lazzeri

Amanda I. Lee

David Lee

Jane K. Lee

Jessica Lee

Nicholas Lee

Richard Lee

Sarah S. Lee

Sun H. Lee

Susan Leetmaa

M. Bryan Legaspi

Christine M. Leininger

Stuart Levenbach

Ariel D. Levin

Shoshana M. Lew

Sheila D. Lewis

Wendy Liberante

Richard A. 

Lichtenberger

Jeffrey B. Liebman

Elizabeth K. Lien

Suzanne Lightman

Tung-Yen Lin

Lin C. Liu

Patrick G. Locke

Aaron M. Lopata

Marta M. Lopez

Adrienne C. Erbach 

Lucas

Kimberley Luczynski

Sarah Lyberg

Randolph M. Lyon

M

Debbie Macaulay

Ryan MacMaster

John S. Macneil

Anish Mahajan 

Natalia Mahmud

Neale A. Mahoney

Mikko Makarainen

Margaret A. Malanoski 

Dominic J. Mancini

Kate Mann

Meagan Mann

Sharon Mar

Celinda A. Marsh

Brendan A. Martin

Kathryn Martin

Rochelle Wilkie 

Martinez

Surujpat J. Adrian 

Mathura

Karen Yoshiko 

Matsuoka

Shelly McAllister

Karen R. McBride

Emily M. McCartan

Erin McCartney

Alexander J. 

McClelland

Anthony W. McDonald

Christine McDonald

Katrina A. McDonald

Renford McDonald

Carl McGruder 

Matthew McKearn

Christopher McLaren

Robin J. McLaughry

Alex McPhillips 

William J. McQuaid

William J. Mea

Andrew Medley

Inna L. Melamed

Karen C. Melanson

Gordon B. Mermin

Richard A. Mertens

Steven M. Mertens

Margaret M. Mesaros 

Justin R. Meservie

P. Thaddeus 

Messenger

Shelley Metzenbaum 

Julie V. Middleton

Laurie A. Mignone

Joanna Mikulski

Caitlyn Miller

Julie L. Miller

Kimberly Miller

Joe Montoni

Jeremy L. Moon

Jamesa C. Moone

David A. Morris

Jonathan D. Morse

Jane T. Moy

Jennifer W. Murray

Chris Music

N

Robert L. Nabors

Jennifer Nading

Jeptha E. Nafziger

Larry Nagl

Barry Napear

Erica Navarro

Michael A. Negron 

Kimberly Nelson

Betsy Newcomer

John Newman

Kimberly A. Newman

Kevin F. Neyland

Teresa Nguyen

Abigail P. Norris

Douglas A. Norwood

O

Erin O’Brien 

Kathleen E. O’Connell

Erin M. O’Keefe

Marvis G. Olfus

Farouk Ophaso

Peter R. Orszag

Jared Ostermiller

Tyler J. Overstreet

Pearson Owens

P

Ben Page

Brandye N. Page

Rasik Pandey

Louis Pappas 

Sangkyun Park

Joel R. Parriott

John Pasquantino

Arati Patel

Melissa N. Patterson 

Kshemendra N. Paul

Terri B. Payne

Jacqueline M. Peay

Falisa L. Peoples-Tittle

Kathleen Peroff

Andrew B. Perraut

Andrea M. Petro

John R. Pfeiffer

Stacey Que-Chi Pham

Carolyn R. Phelps

Karen A. Pica

Joseph T. Pika

Joseph G. Pipan

Alisa M. Ple-Plakon

Ruxandra I. Pond

Celestine M. Pressley

Jamie Price Pressly

Marguerite Pridgen

Robert B. Purdy

Michael J. Pyle

Q

John P. Quinlan

R

Lucas R. Radzinschi

Latonda Glass Raft

Ganeshkumar B. Raju

Maria Raphael

Peter J. Ray

McGavock D. Reed 

Paul B. Rehmus

Thomas M. Reilly

Richard J. Renomeron

Keri A. Rice

M. David Rice

Renee Richburg

Shannon Richter

Earl W. Rilington, Jr. 

Crystal Roach

Benjamin Roberts

John S. Roberts

Donovan O. Robinson

Marshall Rodgers

Teresa Canton Rojas

Meredith Romley

Dan T. Rosenbaum

Adam J. Ross
184 LIST OF CONTRIBUTORS

David Rostker

David Rowe

Mario D. Roy

Jonathan Rupp

Ross A. Rutledge

Rexon Y. Ryu

S

Fouad P. Saad

John Asa Saldivar

Dominic K. Sale

Erika Saleski

Hana Sarsour

Narahari Sastry

Ryan J. Schaefer

Erik K. Scheirer

Caryn Schenewerk 

Jill Schiller 

Evan Schlom

Tricia Schmitt

Andrew M. Schoenbach

Ingrid M. Schroeder

Margo Schwab

Candice M. Schwartz

Nancy Schwartz

Jasmeet K. Seehra

Nirav Shah

Shahid N. Shah

Emily L. Sharp

Dianne Shaughnessy

Paul Shawcross

Kathryn D. Sheehey

Rachel C. Shoemate

R. Jacob Shuler

Mary Jo Siclari

Sarah S. Siddiqui

Matthew J. Siegel

Sara R. Sills

Angela M. Simms

Robin Sinquefield

Jack A. Smalligan

Curtina O. Smith

Gayle E. Smith

Jan Smith

Jennifer Smookler

Joanne Snow

Silvana Solano

Leo Sommaripa

Lillian S. Spuria

Kathryn B. Stack

Scott Stambaugh

Andrea M. Staron

Henry Stawski

Nora Stein

Charlie Stern

Catherine L. Stewart

Gary Stofko 

Carla B. Stone

Justin Streufert

Shannon Stuart

Tom Suarez

Alice Suh

Stephen Suh

Kevin J. Sullivan

Jessica Sun

Cass R. Sunstein

T

Teresa A. Tancre

Benjamin K. Taylor

Richard P. Theroux

LaTina Thomas

Payton Thomas

Courtney B. 

Timberlake

Bruce D. Timman

Thomas Tobasko

Richard Toner

Anne M. Toomey

Gilbert Tran

Gregg Treml

Susan M. Truslow

Gretchen Trygstad

Donald L. Tuck

Grant Turner

U 

Darrell J. Upshaw

V

Matthew J. Vaeth

Ofelia M. Valeriano

Cynthia A. Vallina

Uday Varadarajan

Areletha L. Venson

Alexandra Ventura

Mark Vinkenes

Patricia Vinkenes

Dean Vonk

Kathy Voorhees

Ann M. Vrabel

W

James A. Wade

Emily Waechter

Ted Wainwright

Richard K. Wall

Martha A. Wallace

Katherine K. Wallman

Heather V. Walsh

Ali Wardle

LaTonya R. Ware

Sharon A. Warner

Gary S. Washington

Gary Waxman

Mark A. Weatherly

Bessie M. Weaver

Jean Weinberg 

Jeffrey A. Weinberg

Maggie Weiss 

Philip R. Wenger

Daniel Werfel

Arnette C. White

Kamela White

Kim S. White

Sherron R. White

Sarah Widor

Mary Ellen Wiggins

Debra L. Williams

Monique C. Williams

Tommy Williams

Jennifer Winkler

Brian C. Winseck

Melanie Winston

Julia B. Wise

Julie A. Wise

Daryl Womack 

Chantale Wong

Daren Wong

Raymond Wong

Lauren Wright

Sophia Wright

X

Xiao Ling Xu

Y

Melany N. Yeung

Z

Ali A. Zaidi

Jeff Zients 

Gail S. Zimmerman

Rachel Zinn
Budget of the U.S. Government, FY 2011

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Budget of the U.S. Government, FY 2011

Stock number: 041-001-00671-1

ISBN number: 978-0-16-084795-0

Price: $37.00

Appendix-Budget of the U.S. Government, FY 2011

Stock number: 041-001-00672-9

ISBN number: 978-0-16-084796-7

Price: $73.00

Historical Tables-Budget of the U.S. Government, FY 2011

Stock number: 041-001-00673-7

ISBN number: 978-0-16-084797-4

Price: $49.00

Analytical Perspectives-Budget of the U.S. Government, FY 2011

Stock number: 041-001-00674-5

ISBN number: 978-0-16-084798-1

Price: $52.00

The Federal Budget on CD-ROM-Budget of the U.S. Government, FY 2011

Stock number: 041-001-00675-3

ISBN number: 978-0-16-084799-8

Price: $25.00

Order Processing Code:

3555

Easy Secure Internet:

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Toll Free: 866 512–1800

DC Area: 202 512–1800

Fax: 202 512–2104

Mail: US Government Printing Oce

 P.O. Box 979050

 St. Louis, MO 63197–9000

Qty Stock Number Publication Title Unit Price Total Price

Check payable to Superintendent of Documents

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041-001-00673-7

041-001-00675-3

041-001-00674-5 Analytical Perspectives-Budget of the U.S. Government, FY 2011

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