How Obama Would Spend Your Money In 2016, Agency By Agency

WASHINGTON (AP) — Sure, $4 trillion sounds like a lot.

         But it goes fast when your budget stretches from aging highways to medical care to space travel and more.

         Here's an agency-by-agency look at how President Barack Obama would spend Americans' money in the 2016 budget year beginning Oct. 1:

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HEALTH AND HUMAN SERVICES

 

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         Up or down? Up 4.3 percent

         What's new? Medicare could negotiate prices for cutting-edge drugs.

         Highlights:

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— The president's proposed health care budget asks Congress to authorize Medicare to negotiate what it pays for high-cost prescription drugs and for biologics, including advanced medications for diseases such as rheumatoid arthritis. Currently, private insurers bargain on behalf of Medicare beneficiaries. Drug makers have beaten back prior proposals to give Medicare direct pricing power. But the introduction of a $1,000-a-pill hepatitis-C drug last year may have shifted the debate.

 

— Tobacco taxes would nearly double, to extend health insurance for low-income children. The federal cigarette tax would rise from just under $1.01 per pack to about $1.95 per pack. Taxes on other tobacco products also would go up. That would provide financing to pay for the Children's Health Insurance Program through 2019. The federal-state program serves about 8 million children, and funding technically expires Sept. 30. The tobacco tax hike would take effect in 2016.

 

— Starting in 2019, the proposal increases Medicare premiums for high-income beneficiaries and adds charges for new enrollees. The charges for new enrollees include a home health copayment, changes to the Part B deductible, and a premium surcharge for seniors who've also purchased a kind of supplemental insurance whose generous benefits are seen as encouraging overuse of Medicare services.

 

— There's full funding for ongoing implementation of Obama's health care law.

 

—The plan would end the budget sequester's 2 percent cut in Medicare payments to service providers and repeal another budget formula that otherwise will result in sharply lower payments for doctors. But what one hand gives, the other hand takes away. The budget also calls for Medicare cuts to hospitals, insurers, drug companies and other service providers.

 

         The numbers:

         Total spending: $1.1 trillion, including about $1 trillion on benefit programs including Medicare and Medicaid, already required by law.

         Spending that needs Congress' annual approval: $80 billion.

 

NASA

 

         Up or down? Up 2.9 percent

         What's new? Not much. Just more money for planned missions.

         Highlights:

 

—The exploration budget — which includes NASA's plans to grab either an asteroid or a chunk of an asteroid and haul it closer to Earth for exploration by astronauts — gets a slight bump in funding. But the details within the overall exploration proposal are key. The Obama plan would put more money into cutting-edge non-rocket space technology; give a 54 percent spending jump to money sent to private firms to develop ships to taxi astronauts to the International Space Station; and cut by nearly 12 percent spending to build the next government big rocket and capsule to carry astronauts. Congress in the past has cut the president's proposed spending on the private firms and technology and boosted the spending on the government big rocket and capsule.

 

—The president's 0.8 percent proposed increase in NASA science spending is his first proposed jump in that category in four years. It's also the first proposed jump in years in exploring other planets. It includes extra money for a 2020 unmanned Martian rover and continued funding for an eventual robotic mission to Jupiter's moon Europa. But the biggest extra science spending goes to study Earth.

 

— Obama's budget would cut aeronautics research 12 percent from current spending and slash NASA's educational spending by 25 percent. It also slightly trims the annual spending to build the over-budget multi-billion dollar James Webb Space Telescope, which will eventually replace the Hubble Space Telescope and is scheduled to launch in 2018.

 

         The numbers:

         Total spending: $18.5 billion

         Spending that needs Congress' annual approval: $18.5 billion

 

TRANSPORTATION

 

         Up or down? Up 31 percent

         What's new? A plan to tackle an estimated $2 trillion in deferred maintenance for the nation's aging infrastructure by boosting highway and transit spending to $478 billion over six years.

         Highlights:

 

— The six-year highway and transit plan would get a one-time $238 billion infusion from the general treasury. Some of the money would be offset by taxing the profits of U.S. companies that haven't been paying taxes on income made overseas. That infusion comes on top of the $35 billion a year that normally comes from gasoline and diesel taxes and other transportation fees.

 

— The proposal also includes tax incentives to encourage private investment in infrastructure, and an infrastructure investment bank to help finance major transportation projects.

 

— The new infrastructure investment would be front-loaded. The budget proposes to spend the money over six years and pay for the programs over 10 years.

 

— The proposal also includes a new Interagency Infrastructure Permitting Improvement Center to coordinate efforts across nearly 20 federal agencies and bureaus to speed up the permitting process. For example, the Coast Guard, Corps of Engineers and Transportation Department are trying to synchronize their reviews of projects such as bridges that cross navigation channels.

 

         The numbers:

         Total spending: $94.5 billion, including more than $80 billion already required by law, mostly for highway and transit aid to states and improvement grants to airports.

         Spending that needs Congress' annual approval: $14.3 billion.

 

 

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