Prepared by the Department of Education and Public Programs, John F. Kennedy Presidential Library and Museum.
Please note that the numbers used in this document are for the purposes of this simulation only.
Setting National Priorities: A Federal Budget Simulation
Description of Functional Areas
See also: https://www.cfda.gov/downloads/CFDA_2009.pdf, Appendix III and http://budget.house.gov/functions.shtml
NATIONAL DEFENSE
This functional area includes all programs related to the
common defense and security of the United States. This area covers:






The raising, equipping, and maintaining of armed forces.
Development and utilization of weapons systems
(including nuclear weapons), and related programs.
Direct compensation and benefits paid to active military and civilian
personnel.
Contributions to their retirement, health, and life insurance funds.
The conduct of defense research, development, testing, and evaluation.
Procurement, construction, stockpiling, and other related activities.
Some points to consider:
 Many people believe that national security is a government’s first
priority.
 Military spending creates jobs. The Department of Defense is the
nation’s largest employer with approximately 1.4 million men and
women in active duty, 840,000 in the Reserve and National Guard, and
750,000 civilian personnel—so about 3 million employees. (Wal-Mart
employs about 1.3 million people, Ford employs 354,400.) 1
 The U.S. spends 45% of the total spent by all nations on military. More
than the next 14 countries put together. 2
 The U.S. Intelligence budget is classified, however, the National
Priorities Projects estimates that it is at least $48 billion—80% funded
within the Pentagon budget, and the remaining 20% (or approximately
$9.6 billion), funded through other areas of federal spending.3
 The DoD’s worldwide infrastructure includes nearly 545,000 facilities
(buildings, structures, and utilities) located at more than 5,400 sites
around the world, on more than 29 million acres. The DoD uses
approximately 11,532 aircraft, and 639 ships.4
EDUCATION, TRAINING, EMPLOYMENT,
AND SOCIAL SERVICES
This functional area includes funding for the entire Department of
Education, social services programs within the Department of Health and
1
http://www.defenselink.mil/pubs/dod101/dod101.html#comparison
http://www.nationalpriorities.org/
3
Ibid.
4
http://comptroller.defense.gov/AFR/fy2008/Section_1_Managements_Discussion_and_Analysis.pdf
2
1
Prepared by the Department of Education and Public Programs, John F. Kennedy Presidential Library and Museum.
Please note that the numbers used in this document are for the purposes of this simulation only.
Human Services, and employment and training programs within the
Department of Labor. This area covers:






Education for children and adults. Approximately 77% of the money
budgeted in this category in FY 2009 was allocated to education
(approximately $100 billion).
Loans, scholarships and stipends for students to participate in education.
Child care services.
Employment counseling.
Retraining adults for new vocations.
Programs designed to provide services to the poor (such as community
services).
Some points to consider:
 Education is mostly funded by state and local governments
(Massachusetts spends approximately $6 billion of its $28 billion state
budget on education)5, however, the federal government spends money
on education for the disadvantaged (approx. $22 billion) and special
education (approx. $17 billion).6
 Federal Pell grants are awarded to undergraduate students who have not
earned a B.A. or professional degree. Pell Grants, which do not have to
be repaid, are awarded to students based on need. In the past, this
program was part of discretionary spending. President Obama has
proposed that future funding be mandatory spending. He allocated $24.4
billion for FY 2010.7
 President Obama requested $7.2 billion for Head Start programs.8
 President Obama requested $8.5 billion in training and employment
services.9
 Some conservatives believe that funding and control of education should
be left to the states and would like to eliminate the U.S. Department of
Education.
TRANSPORTATION
This functional area includes all programs that provide for the
transportation of the general public. This area covers:





Programs for highways, mass transit, aviation, and maritime activities.
Construction of facilities related to transportation.
Purchase of equipment.
Research, testing and evaluation of transportation systems.
Air traffic control.
5
http://www.mass.gov/bb/gaa/fy2009/app_09/ga_09/hdefault.htm
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
7
http://www.aip.org/fyi/2009/057.html
8
http://budget.house.gov/doc-library/FY2010/05.15.09_Presidents_Budget_Analysis.pdf
9
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
6
2
Prepared by the Department of Education and Public Programs, John F. Kennedy Presidential Library and Museum.
Please note that the numbers used in this document are for the purposes of this simulation only.

Operating subsidies for transportation facilities (such as airports)
and industries (such as railroads).
Some points to consider:
 Transportation, including the ownership and operation of vehicles and
expenses for public transit, is one of the largest expense category for
most American households.
 President Obama requested discretionary spending allocated as follows:
$52.5 billion towards highways; $22.9 billion for air transportation
(FAA, security, air traffic controllers); $14.2 billion for mass transit;
$ 8.6 billion for water transportation; $3.8 billion for railroads.10
 We need to continue funding highway, bridge, transit and safety
programs in order to maintain our economy. When a bridge starts
crumbling and cars and trucks have to be diverted, that costs our
economy in time, gas and money.
 Efficient transportation of goods (such as the transportation that gets
food into our grocery stores) represents an important aspect of a strong
economy.
INCOME SECURITY
This functional area consists of a range of income security programs that
provide cash or near-cash assistance (e.g., housing, food, and energy
assistance) to low-income persons, and benefits to certain retirees, persons
with disabilities, and the unemployed. Housing assistance programs
account for the largest share of discretionary spending ($47.1 billion) in
this function.11 This discretionary portion of this area includes:




Low and moderate-income housing aids ($47.1 billion).
Special supplemental food program for women, infants, and children
(WIC) ($7.5 billion).12
Low income home energy assistance ($3.4 billion)13
Child care and development block grant ($3.3 billion)14
Points for engagement with students:
 Subsidized housing for low income Americans is particularly important
in urban areas such as Boston where rents are too high for lower income
people to afford living here.
HEALTH
Health covers the physical and mental health of the nation’s population,
including the prevention of illness and accidents. Funding for the National
10
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
Ibid.
12
Ibid.
13
Ibid.
14
Ibid.
11
3
Prepared by the Department of Education and Public Programs, John F. Kennedy Presidential Library and Museum.
Please note that the numbers used in this document are for the purposes of this simulation only.
Institutes of Health (NIH) represents approximately half (53 percent $35.2 billion) of all discretionary funding.15 Medicare and Medicaid are
both mandatory programs, and, therefore, not part of today’s budgeting.
Discretionary programs in this category include most direct health care
services programs. The discretionary portion of this area covers:






Research into the causes and cure of disease.
Substance abuse and mental health services.
Financing specialized programs for training health workers and
researchers.
Promotion of consumer and occupational health safety (which includes
food safety and inspection against harmful bacteria and bioterrorism).
Health care to low income, uninsured, vulnerable people who need
government support when they become ill.
Funding for the Food and Drug Administration which assures the safety,
effectiveness, and security of medications and medical devices.
Points to consider:
 The goal of the National Institute of Health (NIH) is to acquire new
knowledge to help prevent, detect, diagnose, and treat disease and
disability, from the rarest genetic disorder to the common cold.
 NIH funding for general cancer research this year is estimated at
approximately $6 billion.16
 Funding for Substance Abuse and Mental Health services is estimated at
approximately $3.5 billion.17
 NIH funding FY 2010 funding for HIV/AIDS is approximately $3
billion.18
 The Health Resources and Services Administration is charged with
increasing access to health care for those who are medically underserved.
HRSA’s programmatic portfolio includes a range of programs or
initiatives designed to increase access to care, improve quality, and
safeguard the health and well-being of the Nation’s most vulnerable
populations. The President estimates $7.6 billion for their FY 2010
budget.19
 President Obama requested approximately $2.2 billion in funding for the
Food and Drug Administration (FDA) for FY 2010.20
 Funding for The Center for Disease Control and Prevention (CDC) is
approximately $6.4 billion.21
 The Consumer Product Safety Commission’s budget for FY 2010 is
estimated at $110 million (not billion).22
15
Ibid.
http://budget.house.gov/doc-library/FY2010/05.15.09_Presidents_Budget_Analysis.pdf
17
Ibid.
18
http://officeofbudget.od.nih.gov/pdfs/FY10/Office%20of%20AIDS%20Research.pdf
19
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
20
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
21
http://budget.house.gov/doc-library/FY2010/05.15.09_Presidents_Budget_Analysis.pdf
16
4
Prepared by the Department of Education and Public Programs, John F. Kennedy Presidential Library and Museum.
Please note that the numbers used in this document are for the purposes of this simulation only.
INTERNATIONAL AFFAIRS
This functional area contains funding for all U.S. international activities,
including: operating U.S. embassies and consulates throughout the world;
providing military assistance to allies; aiding developing nations;
dispensing economic assistance to fledgling democracies; promoting U.S.
exports abroad; making U.S. payments to international organizations; and
contributing to international peacekeeping efforts. This area covers:








Military and economic assistance to sustain key countries supporting the
U.S. in the war on terrorism.
Training of foreign law enforcement and armed services to improve their
counter-terrorist capabilities.
Attacking narcotics trafficking in source countries through training,
equipment and law enforcement cooperation.
Providing employees at U.S. diplomatic missions with safe, secure and
functional facilities.
Promotion of democracy and protection of human rights throughout the
world.
Maintaining strong U.S. leadership in funding the international
HIV/AIDS prevention and care campaign.
International humanitarian relief for refugees, displaced people and
victims of disaster. Preservation of the world’s tropical forests and
promoting environmental sustainability.
Strengthening global broadcasting and public diplomacy to communicate
American ideals and beliefs to vital audiences in countries in conflict and
transition, especially in the Middle East.
Points to consider:
 Just over 2/3 of international affairs spending ($36.7 billion) goes to
foreign assistance—both humanitarian and military. Most of the
remainder goes to diplomacy, State administration, and international
broadcasting.23
 $7.6 billion is allocated for global health and child survival programs.24
 $5.7 billion is allocated for foreign military financing, military education
and peacekeeping operations.25
 The 2010 budget includes $4.4 billion for Afghanistan and Pakistan and
$500 million for Iraq.26
 $12.1 billion is allocated for the State Department’s administration of
foreign affairs.27
22
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
http://budget.house.gov/doc-library/FY2010/05.15.09_Presidents_Budget_Analysis.pdf
24
Ibid.
25
Ibid.
26
Ibid.
27
Ibid.
23
5
Prepared by the Department of Education and Public Programs, John F. Kennedy Presidential Library and Museum.
Please note that the numbers used in this document are for the purposes of this simulation only.


Though the U.S. is the largest international economic aid donor in dollar
terms, when calculated as a percent of gross national income, it provides
one of the smallest contributions among the major donor governments.
The U.S. provides more aid to the Middle East than any other region of
the world. For FY 2010 we will give approximately $2.8 billion to Israel
and $1.6 billion to Egypt. Our current level of financial support grew out
of the 1979 Camp David Peace Treaty between Israel and Egypt.28
ADMINISTRATION OF JUSTICE
This functional area includes those programs designed to provide judicial
services, police protection, law enforcement (including civil rights),
rehabilitation, and incarceration of criminals, and promotion of the general
maintenance of domestic order. This area includes:




Court appointed counsel.
Pay for justices and court officers for federal courts.
Incarceration of people convicted of federal crimes.
The FBI, Immigration and Naturalization Services (now part of the
Department of Homeland Security), Drug Enforcement Agency (DEA),
Bureau of Prisons (BOP), U.S. Attorneys, and the U.S. Marshals Service
(USMS).
Points to consider:
 President Obama requested $5.8 billion to fund criminal investigations
by agencies such as the FBI, DEA (Drug Enforcement Agency), and
DHS (Department of Homeland Security).29
 For FY 2010, $11.2 billion was allocated for federal litigative and
judicial activities—including prosecution and representation of alleged
criminals.30
 At present, there are more than 200,000 inmates in the Bureau of
Prison’s custody, most of whom were convicted for drug-related
offenses, weapons or arson charges, or for illegal immigration.31 For FY
2010, $7.1 billion was requested to fund the federal prison system—
including federal detention and incarceration. These DOJ components
ensure that Federal criminals and those awaiting trial or sentencing are
safely and cost-effectively incarcerated and detained.32
 Other costs for FY 2010: $19.5 billion for border and transportation
security related to preventing illegal immigration; $4.2 billion for civil
and criminal prosecution and representation; $1.5 billion for the Secret
Service.33
28
http://www.fas.org/sgp/crs/mideast/RL33222.pdf
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
30
Ibid.
31
http://www.bop.gov/news/quick.jsp
32
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
33
Ibid.
29
6
Prepared by the Department of Education and Public Programs, John F. Kennedy Presidential Library and Museum.
Please note that the numbers used in this document are for the purposes of this simulation only.
VETERANS BENEFITS AND SERVICES
This functional area consists of programs providing benefits and
services, the eligibility for which is related to prior military
service but the financing of which is not an integral part of
the costs of national defense. The discretionary portion of this area covers:


Medical facilities, medical research, and medical care of veterans.
Housing loans to veterans.
Points to consider:
 In 2007 there were 23.6 million military veterans in the U.S.—39% of
them were age 65 or older. 25% of veterans have disabilities.34 Most
discretionary funds in this category (for FY 2010: $46.0 billion out of
$52.1 billion) go towards medical care of veterans. As more choose to
use VA as their primary care provider, the strain on the system continues
to grow.
 How much should we pay in benefits for spouses and children of
veterans?
NATURAL RESOURCES AND ENVIRONMENT
This functional area includes programs concerned with environmental
protection and enhancement; recreation and wildlife areas; and the
development and management of the nation's land, water, and mineral
resources. This area covers:



The development and maintenance of recreational resources such as
national parks.
Fostering of conservation practices on both public and private lands.
Controlling and reducing air, water, and land pollution.
Points to consider:
 President Obama requested $3.0 billion allocated to support recreational
resources such as national parks, refuges, and public lands.35
 He requested $10.9 billion for conservation and land management.36
 He requested $11.0 billion for pollution control and abatement.37
 $9.3 billion was allocated to the Army Corps of Engineers—part of their
mission is the planning, designing, building and operating of water
resources and other civil works projects (Navigation, Flood Control,
34
Table 502, Statistical Abstract of the United States: 2009
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
36
Ibid.
37
Ibid.
35
7
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Please note that the numbers used in this document are for the purposes of this simulation only.
Environmental Protection, Disaster Response, etc.)38 For example, they
have been working on rebuilding the levees in New Orleans.39
GENERAL SCIENCE, SPACE AND TECHNOLOGY
The general scientific research under the National
Science Foundation (NSF), NASA, and the Department of
Energy is covered in this area. This area covers:




America’s space program.
Grants for cutting-edge discovery in science and engineering to provide
significant breakthroughs in information technology, climate change
research, mathematics, nanotechnology, and fundamental research
related to combating bioterrorism.
Grants for improvement of the quality of math and science education.
Stipends for U.S. students into graduate level science and engineering.
Points to consider:
 President Obama requested $7.9 billion for The National Science
Foundation, an independent federal agency created by Congress "to
promote the progress of science; to advance the national health,
prosperity, and welfare; to secure the national defense…" This is the
funding source for approximately 20 percent of all federally supported
basic research conducted by America's colleges and universities. In many
fields such as mathematics, computer science and the social sciences,
NSF is the major source of federal backing.40
 He requested $17.9 billion for space flight, research, and supporting
activities (NASA).41
 He requested $5.9 billion for Department of Energy science programs.42
 The more we know about the environment, agriculture, weather,
geological phenomenon, the oceans and alternative sources of energy,
the more we can do to actually save lives and make our quality of life
better. There might be a discovery just around the corner that can save
us billions of dollars, and save us from earthquakes, famine, etc.
COMMUNITY AND REGIONAL DEVELOPMENT
Federal support for community and regional development helps
economically distressed urban and rural communities.
This functional area consists of broad-based community,
regional, urban and rural renewal and development
programs. The purpose of this development is to develop
physical facilities or financial infrastructures that promote
38
39
Ibid.
http://www.usace.army.mil/CEPA/EngineerUpdate/Pages/IHNC.aspx
40
http://www.nsf.gov/
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
42
Ibid.
41
8
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Please note that the numbers used in this document are for the purposes of this simulation only.
workable community economies. This area covers:






Grants and loans for water supply and sewer systems.
Urban community and economic development programs, like money for
the revitalization of public housing, or money to build affordable
housing.
Regional economic development programs.
Money for the relief and rehabilitation for places in the case of natural
disasters.
Aids to business such as loans and loan guarantees.
When transportation facilities are created as an integral part of
community development, rather than transportation, it will receive
money from this functional area.
Points for engagement with students:
 President Obama requested $9.5 billion for community development.43
 He requested $5.2 billion for area and regional development.44
 He requested $11.6 billion for disaster relief and insurance including
funding for FEMA (Federal Emergency Management Agency). 45
ENERGY
Most programs in this category are within the Department of Energy,
comprising civilian energy-related programs including research and
development and environmental clean-up. This category does not include
national security activities. Discretionary spending includes:





Funding for alternative fuel research and development.
Nuclear waste disposal of commercial (non-Defense) spent nuclear fuels.
Strategic Petroleum Reserves - which provides emergency oil supply in
the event of a severe disruption of supply.
Funding for energy efficiency and renewable energy.
Fossil energy programs. (ex., R&D for coal uses)
Points to consider:
 President Obama’s budget builds on stimulus spending, estimated at 10.8
billion for FY 2010, and reflects the president’s interest in building an
economy powered by renewable energy.46
 His budget includes: $2.3 billion for energy efficiency and renewable
energy programs47; $13.6 billion for energy conservation; $2.3 billion for
Innovative Technology Loan Guarantee Program; $2.2 billion for
electricity delivery and energy reliability.48
43
Ibid.
Ibid.
45
Ibid.
46
FY2010/05.15.09_Presidents_Budget_Analysis.pdf
47
http://budget.house.gov/doc-library/FY2010/05.15.09_Presidents_Budget_Analysis.pdf
48
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
44
9
Prepared by the Department of Education and Public Programs, John F. Kennedy Presidential Library and Museum.
Please note that the numbers used in this document are for the purposes of this simulation only.
GENERAL GOVERNMENT
Not only does this category cover the general overhead costs (and
salaries) of the Federal Government, including legislative and
executive activities, but it also covers the IRS. This area covers:


Investments in IRS technology and staffing to improve customer service
to ensure fair tax compliance.
Support for breakthroughs in electronic government, including new
options for individual and business tax filing.
Points to consider:
 This may seem like an easy place to take money, but money for this
function supports the cost of running our federal agencies, and running
the IRS. We need tax revenues from the IRS to pay for our government
programs. Direct appropriations to the IRS is approximately $11 billion
for FY 2010.49
 The President gets $400,000 in salary plus allowances for extra traveling
($100,000), personal expenses ($50,000) and “unanticipated expenses”
($1 million). The Vice President's annual salary is $$227,300. Senators
and Representatives earn approximately $174,000.50
AGRICULTURE
This functional area includes farm income stabilization, agricultural
research, and other services administered by the U.S. Department of
Agriculture (USDA). The mandatory programs include crop insurance, and
certain farm loans. The discretionary programs include:






Meat and poultry inspection
Security - inspectors searching bags at airports and cargo at major ports
of entry for compliance with animal and plant restrictions.
Research
Education
Rural development programs.
A portion of the “Food for Peace” international food aid program.
Points to consider:
 The USDA ensures the safety and abundance of our food supply with
agricultural and grain inspections, animal health monitoring, and pest
detection.
 President Obama requested $4.6 billion for agricultural research and
services (including education).51
 Approximately $886 million was allocated for animal and plant
inspection programs.52
49
Ibid.
http://www.thecapitol.net/FAQ/payandperqs.htm
51
http://www.gpoaccess.gov/usbudget/fy10/fct.html (Table 26-1)
52
Ibid.
50
10