Budget Background

The Bipartisan Budget Act (BBA) of 2013 would increase the discretionary spending caps established by the 2011 Budget Control Act (BCA) by $45 billion in 2014 and $18 billion in 2015. The $63 billion in higher spending is not offset over the BCA window of 2014–2021; during that period, the legislation increases spending by almost $25 billion, as 53% of the offsets in the BBA realized during the BCA window come from higher fees and revenues. Additionally, $47 billion of the BBA’s $85 billion offset package (56%) are realized in FY 2022 and FY 2023—the final years of the current budget window, but beyond the timeframe of the current law BCA agreement.

The Pathway for SGR Reform Act of 2013, added by rule to the Bipartisan Budget Act of 2013, includes a 3-month Medicare “doc fix” and other health care extenders that increase mandatory spending today by roughly $8 billion with the promise of savings in the future. Virtually all of the future savings are expected in 2023.

To view the full section-by-section analysis of both portions of the legislation, including a table showing yearly changes in spending, revenues, and deficits, please click here.