Budget Battle: No Pay Raise, Congress to Start Markup as Critics Blast Lack of Details
The White House released additional details on its fiscal year (FY) 2026 budget request to Congress, in which it plans to cut nondefense discretionary spending by about 22 percent or $163 billion.
However, members of Congress and nonpartisan groups say it’s still not a full budget, and is still lacking in necessary details.
The additional information comes in the form of a 1,224 budget appendix and it comes after House members demanded more information as they accelerate marking up appropriations bills and hearing from agency leaders on their requests. House markups are starting with the subcommittees on Military Construction, Veterans Affairs and Related Agencies, and Agriculture, Rural Development, Food and Drug Administration, and Related Agencies.
No Pay Raise Included for Federal Civilian Employees
Not included in the budget so far is a pay raise for federal civilian employees, with military members getting a proposed 3.8 percent bump. We’ll know for sure if no raise is in the cards when President Trump submits his annual alternative pay plan letter in August.
In addition, the White House said it’s extending the pay freeze for Senior Executive Service (SES) members and political appointees.
Details Lacking
Overall, the 1,224 budget plan details spending plans for some agencies, but is lacking in certain details. For instance, it left out 10-year estimates of federal spending, revenue, and deficits, and projections of economic growth and other indexes, in a departure from tradition.
The Office of Management and Budget (OMB) says it’s waiting for Congress to finish work on the President’s tax cut package, before releasing such projections.
“A budget is a proposal. We are in the business of actually passing law,” said OMB Director Russell Vought on Fox Business.
“I’ve never seen a budget delayed this much. The president’s budget sets a vision for the entire federal government that is useful to Congress and the American people,” said Jessica Riedl, a senior fellow at the Manhattan Institute, a center-right think tank.
While policymakers wait for more information, we do know that the cuts are targeted to certain areas. The administration wants to cut more than $60 billion from health, housing and community development work, $12 billion from federal education programs, and $5 billion from agriculture efforts.
Sequestration and Impoundment
The Trump Administration is leaning on mechanisms to try and get a deal.
Coming back is sequestration, which is where Congress automatically cancels or reduces previously enacted spending, if it fails to meet specific budget targets.
And the White House is also threatening to use impoundment, which is the withholding of congressionally approved money, if Congress deviates too far from the president’s request.
“Impoundment is still on the table and something we will consider,” said OMB Director Vought.
