The House Budget Committee approved its budget proposal for fiscal 2014 on March 13 by a vote of 22-17, and the Senate Budget Committee advanced its own proposal on March 14 by a vote of 12-10. The two plans differ significantly in terms of their spending priorities, deficit reduction plans and fiscal policies.

The House Republican budget blueprint calls for balancing the budget in 10 years by cutting spending by $5.7 trillion compared to the Congressional Budget Office’s baseline. It would replace the defense sequester starting in fiscal 2014 with additional cuts to domestic discretionary spending. It calls for repealing the Affordable Care Act health care exchange subsidies and Medicaid expansion, converting Medicaid into block grants to states, and providing those under 55 years of age a choice between traditional Medicare and a premium-support-based program. The proposal also calls on the President and Congress to develop plans to make the Social Security trust fund solvent, and would cut $31 billion from agricultural programs. Regarding tax reform, the resolution would permit floor consideration of a revenue-neutral overhaul of the tax code.

The Senate Democratic plan would reduce the federal budget deficit by $1.8 trillion over the next 10 years compared to CBO’s baseline through a combination of revenue increases and spending cuts. It would not make any major structural reforms to entitlement programs, but would call for $275 billion in savings from mandatory health programs. It would replace the sequester starting in fiscal 2014 with a combination of new revenue and spending reductions. It would also cut $23 billion from agriculture programs. In addition, it calls for economic stimulus in the form of $100 billion for infrastructure projects and workforce training programs. On tax policy, it instructs the Senate Finance Committee to generate $975 billion in additional revenue over 10 years through scaling back and eliminating tax breaks that benefit corporations and wealthy households.

The House and Senate are both scheduled to take up their respective budget resolutions on the floor this week.

Links: House FY2014 Budget Resolution; Senate FY2014 Budget Resolution