Discretionary Spending

Multiple Budget Functions

Eliminate or Reduce Funding for Certain Grants to State and Local Governments

CBO periodically issues a compendium of policy options (called Options for Reducing the Deficit) covering a broad range of issues, as well as separate reports that include options for changing federal tax and spending policies in particular areas. This option appears in one of those publications. The options are derived from many sources and reflect a range of possibilities. For each option, CBO presents an estimate of its effects on the budget but makes no recommendations. Inclusion or exclusion of any particular option does not imply an endorsement or rejection by CBO.

Billions of dollars 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015-2019 2015-2024
    Eliminate Department of Energy Grants for Energy Conservation and Weatherization
Change in Spending                        
  Budget authority 0 -0.2 -0.2 -0.2 -0.3 -0.3 -0.3 -0.3 -0.3 -0.3 -1.0 -2.3
  Outlays 0 -0.1 -0.1 -0.2 -0.2 -0.2 -0.2 -0.3 -0.3 -0.3 -0.6 -1.8
                           
    Phase Out Environmental Protection Agency Grants for Wastewater and Drinking Water Infrastructure
Change in Spending                        
  Budget authority 0 -0.2 -1.2 -2.5 -2.5 -2.6 -2.6 -2.7 -2.7 -2.8 -6.4 -19.8
  Outlays 0 * -0.1 -0.4 -1.1 -1.7 -2.1 -2.3 -2.4 -2.5 -1.6 -12.6
                           
    Eliminate New Funding for Community Development Block Grants
Change in Spending                        
  Budget authority 0 -3.2 -3.3 -3.3 -3.4 -3.5 -3.5 -3.6 -3.7 -3.8 -13.2 -31.3
  Outlays 0 * -0.8 -2.4 -3.1 -3.3 -3.3 -3.4 -3.5 -3.6 -6.2 -23.3
                           
    Eliminate Certain Department of Education Grants
Change in Spending                        
  Budget authority 0 -1.5 -1.5 -1.5 -1.6 -1.6 -1.6 -1.7 -1.7 -1.7 -6.1 -14.3
  Outlays 0 * -0.9 -1.3 -1.5 -1.5 -1.6 -1.6 -1.6 -1.7 -3.8 -11.8
                           
    Decrease Funding for Certain Department of Justice Grants
Change in Spending                        
  Budget authority 0 -0.5 -0.5 -0.6 -0.6 -0.6 -0.6 -0.6 -0.6 -0.6 -2.2 -5.2
  Outlays 0 -0.1 -0.3 -0.4 -0.5 -0.6 -0.6 -0.6 -0.6 -0.6 -1.2 -4.1
                           
    Total
Change in Spending                        
  Budget authority 0 -5.7 -6.8 -8.1 -8.3 -8.5 -8.6 -8.8 -9.0 -9.2 -28.9 -72.9
  Outlays 0 -0.2 -2.1 -4.7 -6.3 -7.3 -7.8 -8.2 -8.4 -8.6 -13.4 -53.7

Notes: This option would take effect in October 2015. Estimates are relative to CBO’s August 2014 baseline projections.

* = between -$50 million and zero.

The federal government provides a variety of grants to state and local governments. This option would eliminate new funding for the Department of Energy’s grants for energy conservation and weatherization; phase out grants from the Environmental Protection Agency for wastewater and drinking water infrastructure over three years; eliminate new funding for the Community Development Block Grant program; eliminate Department of Education grants that fund nonacademic programs that address the physical, emotional, and social well-being of students; and decrease funding for certain Department of Justice grants to nonprofit community organizations and state and local law enforcement agencies by 25 percent relative to the Congressional Budget Office’s baseline.