On August 2, 2011, the Budget Control Act of 2011 was signed into law. The Budget Control Act (BCA) allows President Obama to raise the debt ceiling and contains a number of provisions aimed at controlling federal spending and reducing the long-term budget deficit. The BCA immediately imposes overall spending caps for the next ten years intended to produce nearly one trillion dollars in savings. The spending caps essentially freeze the budget at fiscal year (FY) 2011 levels for the next two years (FY 2012 and 2013) to allow the economy time to recover before imposing funding cuts.
Shortly after the budget bill was signed, the Office of Management and Budget asked federal agencies to submit budget plans for FY 2013 that are 5% below the FY 2011 level. It also asked them to identify areas where targeted spending has the potential to spur economic growth.
The BCA also mandated the creation of a bipartisan Congressional panel charged with identifying another $1.2-1.5 trillion in savings over the next ten years. The panel, made up of six Democrats and six Republicans, has until November 23, 2011 to draft recommendations that could include any combination of spending cuts and revenue increases. Congress will then have until December 23, 2011 to vote yes or no on the panel’s recommendations. If these targeted recommendations are not adopted, mandatory across-the-board reductions in spending will go into effect. These cuts would affect all but a handful of federal programs, and could be devastating to research budgets.
While the BCA outlines the broad spending targets, it is important to note that spending levels for individual agencies and programs will still be determined on a yearly basis by Congress and the Administration. Biomedical research has proven to be a priority for many Members of Congress and President Obama. The scientific community should continue to advocate strongly for federal investment in research. More information about APS advocacy is available at our Science Advocacy Center.