Discretionary Spending Also Could Be Limited

Both the House bill and the Senate budget also seek to impose caps on discretionary spending, which essentially consists of programs that are reauthorized year to year. The White House request similarly seeks legislation to impose binding limits on discretionary spending through 2009. Such caps were used for a decade ending in 2002 to limit spending on a host of programs, including accounts from which agencies pay federal salaries, training and other overhead expenses. The caps differ in the two versions, as do the enforcement rules. The two versions also differ regarding whether any tax cuts would have to be offset, with the Senate budget measure requiring offsetting revenue increases or spending cuts but the House bill not requiring offsets.