•HCON 27 RH 
SEC. 513. DEFICIT-NEUTRAL RESERVE FUND FOR OVER-
SEAS 
CONTINGENCY 
OPERATIONS/GLOBAL 
WAR ON TERRORISM. 
The chair of the Committee on the Budget may revise 
the allocations, aggregates, and other budgetary levels in 
this concurrent resolution for any bill or joint resolution, 
or amendment thereto or conference report thereon, if 
such measure is related to the support of Overseas Contin-
gency Operations/Global War on Terrorism by the 
amounts provided in such legislation in excess of $73.5 
billion but not to exceed $94 billion, but only if such meas-
ure would not increase the deficit (without counting any 
net revenue increases in that measure) over the period of 
fiscal years 2016 through 2025. 
TITLE VI—ESTIMATES OF 
DIRECT SPENDING 
SEC. 601. DIRECT SPENDING. 
(a) MEANS-TESTED DIRECT SPENDING.— 
(1) For means-tested direct spending, the aver-
age rate of growth in the total level of outlays dur-
ing the 10-year period preceding fiscal year 2016 is 
6.8 percent. 
(2) For means-tested direct spending, the esti-
mated average rate of growth in the total level of 
outlays during the 10-year period beginning with fis-
cal year 2016 is 4.6 percent under current law. 
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•HCON 27 RH 
(3) The following reforms are proposed in this 
concurrent resolution for means-tested direct spend-
ing: 
(A) In 1996, a Republican Congress and a 
Democratic president reformed welfare by lim-
iting the duration of benefits, giving States 
more control over the program, and helping re-
cipients find work. In the five years following 
passage, child-poverty rates fell, welfare case-
loads fell, and workers’ wages increased. This 
budget applies the lessons of welfare reform to 
both the Supplemental Nutrition Assistance 
Program and Medicaid. 
(B) For Medicaid, this budget assumes the 
conversion of the Federal share of Medicaid 
spending into flexible State allotments, which 
States will be able to tailor to meet their unique 
needs. Such a reform would end the misguided 
one-size-fits-all approach that ties the hands of 
State governments and would provide States 
with the freedom and flexibility they have long 
requested in the Medicaid program. Moreover, 
this budget assumes the repeal of the Medicaid 
expansions in the President’s health care law, 
relieving State governments of the crippling 
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•HCON 27 RH 
one-size-fits-all enrollment mandates, as well as 
the overwhelming pressure the law’s Medicaid 
expansion puts on an already-strained system. 
(C) For the Supplemental Nutrition As-
sistance Program, this budget assumes the con-
version of the program into a flexible State al-
lotment tailored to meet each State’s needs. 
The allotment would increase based on the De-
partment of Agriculture Thrifty Food Plan 
index and beneficiary growth. Such a reform 
would provide incentives for States to ensure 
dollars will go towards those who need them 
most. 
(b) NONMEANS-TESTED DIRECT SPENDING.— 
(1) For nonmeans-tested direct spending, the 
average rate of growth in the total level of outlays 
during the 10-year period preceding fiscal year 2016 
is 5.4 percent. 
(2) For nonmeans-tested direct spending, the 
estimated average rate of growth in the total level of 
outlays during the 10-year period beginning with fis-
cal year 2016 is 5.5 percent under current law. 
(3) The following reforms are proposed in this 
concurrent resolution for nonmeans-tested direct 
spending: 
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(A) For Medicare, this budget advances 
policies to put seniors, not the Federal Govern-
ment, in control of their health care decisions. 
Future retirees would be able to choose from a 
range of guaranteed coverage options, with pri-
vate plans competing alongside the traditional 
fee-for-service Medicare program. Medicare 
would provide a premium-support payment ei-
ther to pay for or offset the premium of the 
plan chosen by the senior, depending on the 
plan’s cost. The Medicare premium-support 
payment would be adjusted so that the sick 
would receive higher payments if their condi-
tions worsened; lower-income seniors would re-
ceive additional assistance to help cover out-of- 
pocket costs; and wealthier seniors would as-
sume responsibility for a greater share of their 
premiums. Putting seniors in charge of how 
their health care dollars are spent will force 
providers to compete against each other on 
price and quality. This market competition will 
act as a real check on widespread waste and 
skyrocketing health care costs. As with previous 
budgets, this program will begin in 2024 and 
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makes no changes to those in or near retire-
ment. 
(B) In keeping with a recommendation 
from the National Commission on Fiscal Re-
sponsibility and Reform, this budget calls for 
Federal employees—including Members of Con-
gress and congressional staff—to make greater 
contributions toward their own retirement. 
TITLE VII—RECOMMENDED 
LONG-TERM LEVELS 
SEC. 701. LONG-TERM BUDGETING. 
The following are the recommended revenue, spend-
ing, and deficit levels for each of fiscal years 2030, 2035, 
and 2040 as a percent of the gross domestic product of 
the United States: 
(1) REVENUES.—The budgetary levels of Fed-
eral revenues are as follows: 
Fiscal year 2030: 18.7 percent. 
Fiscal year 2035: 19.0 percent. 
Fiscal year 2040: 19.0 percent. 
(2) OUTLAYS.—The budgetary levels of total 
budget outlays are not to exceed: 
Fiscal year 2030: 18.4 percent. 
Fiscal year 2035: 17.8 percent. 
Fiscal year 2040: 16.9 percent. 
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