News Background:

Breakdowns by State Show Impact of Proposed Fed FY 2007 Budget

The publication provides a brief overview for each state, showing the local impact of the proposed budget in seven different issue areas: food and nutrition; community development; the environment; Head Start; Low-Income Home Energy Assistance Program (LIHEAP); education and community policing.

To find a specific state, go here.

The budget proposes the elimination or significant reduction of 141 programs and deep cuts in domestic spending, according to NPP. While the administration claims that these cuts are necessary to reduce the deficit, the budget proposes to make the 2001-2003 tax cuts permanent, which would reduce revenues by $1.7 trillion over the next decade. The budget also does not include complete funding for the Iraq or Afghanistan wars, which could add another $70 billion to the deficit.

"The Bush administration proposes to cut seniors' meals and nutrition for infants while pushing tax cuts and more war spending," said Greg Speeter, executive director of the National Priorities Project, in a prepared statement to the press. "We're providing some state numbers to bring home the reality of what this budget would really mean to people across this country."

Though domestic spending is squeezed, the Defense Department budget is on the rise with a $29 billion increase, or 7% before inflation. But the budget does not fully account for the rising cost of the Iraq War. Only a $50 billion 'placeholder' is listed for fiscal year 2007 for the war in Iraq and Afghanistan. Another $70 billion war-related request for fiscal year 2006 will be submitted to Congress in a few weeks' time.

Breakdowns of the cost of the Iraq War by state are included in the publication, which can be found here.