The President’s FY2016 Budget Request: What You Need to Know
On Feb. 2, 2015, President Obama submitted his FY2016 Budget Request to the Congress. The submission formally kicks off the FY2016 appropriations process. In the coming weeks, the House and Senate will begin work on Budget Resolutions, which are non-binding road maps that set funding and policy priorities.
The President’s FY2016 Budget Request is available here.
FY2016 Process at a Glance
For the first time during President Obama’s presidency, Republicans control both Houses of Congress. Unlike previous years, where the House and Senate Budget Resolutions varied wildly, expect Budget Chairmen Rep. Tom Price (R-GA) and Sen. Mike Enzi (R-WY) to work in lockstep. In the coming weeks, each Congressional Committee will submit “Views and Estimates” letters, providing spending recommendations to the Budget Committees.
In parallel, the House and Senate Appropriations Committees will begin drafting each of the twelve spending bills that cover all federal spending. Once the Budget Resolutions have been adopted, the Appropriations Committees begin public hearings.
FY2016 President’s Request: Microbusiness Funding and Priorities
Please note that the President’s Budget Request does not typically drill down to the programmatic funding level. Most programmatic funding levels are contained in an agency’s Congressional Budget Justification (CBJ).
For the following programs, the budget line item is available.
Microloan – Lending $35 M (29% increase over FY15)
Microloan – TA $25 M(10% increase over FY15)
PRIME $0 M (FY16 request contains no funding for PRIME)
WBCs $16 M (8% increase over FY15)
Treasury’s CDFI Fund $233.5 M (1.5% increase over FY15)
USDA RMAP – Lending $23 M (no change)
USDA RMAP – TA $2 M (no change)
Recognizing that “mature microlenders with good success support their microbusinesses with both pre- and post-loan technical assistance,” the SBA has requested legislative authorityto eliminate the “25/75 rule.” AEO has been advocating for this change for many years and is pleased to see the Administration’s acknowledgment that this change is long overdue. We look forward to working with the Congress to enact this change.
In addition to the $3.5 M increase proposed for the Community Financial Institutions (CDFI) Fund, the FY2016 Treasury Budgetproposes permanently extending the New Markets Tax Credit (NMTC) Program at $5 billion per year and extending the CDFI Bond Guarantee Program through FY 2017.
The Department of Agriculture’s (USDA) RBEG and RBOG Grant Programs have been consolidated into the Rural Business Development Grant Program, which would be funded at $34 M in FY2016.
The President’s Budget request proposes expanding the Earned Income Tax Credit (EITC), which is a tax credit for employed individuals and families with children. It proposes expanding the credit available to childless workers to $1,000 and would lower the eligibility age from 25 to 21. It also calls on Congress to make permanent the current EITC expanded rates, which are set to expire in 2017.
Key Dates: The FY2016 Appropriations Calendar
Feb. 2— President’s FY2016 Budget Request submission to Congress.
Feb. 3— Congressional Budget Committees begin hearings on FY2016 Budget Request.
April 15— Statutory deadline for votes on House & Senate Budget Resolutions.
May 15— The date after which the House may begin hearings on FY2016 appropriations bills, even if a final budget resolution has not been adopted.
June 29 — Informal House deadline for passing all 12 appropriations bills.
Aug. 10— Informal Senate deadline for passing all 12 appropriations bills.
Sept. 8— House and Senate return from summer recess, with three weeks to enact all appropriations bills before the new fiscal year begins. In previous years, the Congress has typically rolled all twelve bills into an Omnibus spending bill.
Oct. 1— FY2016 begins.
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