Budget Brief 15-07
September 29, 2015

The Senate is expected to vote shortly on a continuing resolution (CR) for fiscal year (FY) 2016 that would keep the federal government operating until December 11, 2015. Discretionary spending levels in the CR are set at an annualized level of $1.017 trillion, which conforms to the FY 2016 post-sequestration discretionary spending level specified in the Budget Control Act of 2011 (BCA). However, within the total, the CR would exceed the FY 2016 BCA cap for non-defense discretionary spending and provide a lower amount for defense discretionary spending, as shown on the graph below. To increase defense spending, the CR would provide $75 billion for the Overseas Contingency Operations (OCO) account, which is not subject to the BCA caps (and not included on the graph).

To achieve the overall FY 2016 BCA spending level, the CR proposes various rescissions. The FY 2016 annualized level for most discretionary programs would be the FY 2015 enacted level reduced by a -0.2108% across-the-board (ATB) rescission. The CR also includes a few program-specific rescissions.

The CR would also extend the authorization for several programs set to expire on October 1, 2015, and would include certain program flexibilities, as well as a few policy provisions.

UPDATE: The president signed this legislation into law on September 30, 2015.