FY 2011 Budget Finally Enacted; More Details to Come

On April 15, 2011, the president signed the Department of Defense and Full-Year Continuing Appropriations Act of 2011 (P.L. 112-10), which funds the federal government for the remainder of federal fiscal year (FY) 2011. P.L. 112-10 marks the eighth and final Continuing Resolution (CR) passed by Congress to keep the government running for FY 2011. In the past 35 years, there have been only four other instances in which Congress has enacted eight or more CRs in a given fiscal year, most recently in FY 2003.

According to congressional appropriators, the FY 2011 budget reduces spending by $38.5 billion. As shown on Table 1, these cuts include at least $8 billion in discretionary funds to states. However, the precise impact of the enacted budget on states is uncertain. Because Congress funded the government through a CR, rather than an appropriations bill, it will not provide explanatory statements or funding tables. In many instances, the legislative text only provides funding at the account level, instead of the program level. For those programs not specifically addressed in the bill, federal agencies will determine the funding level and how to absorb cuts within the account level. The final FY 2011 budget also includes a 0.2% across-the-board cut to all non-defense discretionary appropriations.

This Budget Brief describes funding levels and major provisions included in the final FY 2011 budget of importance to states.