Washington, D.C.— A new analysis from the Center for American Progress finds that federal funding for domestic discretionary programs, as a percentage of the economy, has fallen to its lowest level since the Eisenhower administration. Domestic discretionary program funding has been cut by more than 10 percent since 2023, threatening vital services on which millions of Americans rely.
Funding for domestic discretionary programs has declined 10.3 percent since 2023, two-thirds as large as the cuts to Medicaid enacted in the Big Beautiful Bill, and 19.6 percent since 2010, more than the Medicaid cuts enacted in the Big Beautiful Bill. According to the analysis, Congress would need to provide an additional $87 billion in fiscal year 2027 just to restore domestic discretionary funding to its 2023 level.
“Congress has quietly hollowed out critical federal programs that Americans depend upon,” said Bobby Kogan, senior director of federal budget policy at CAP and co-author of the report. “We’re now investing a smaller percentage of our economy in domestic discretionary priorities than at any point since the Eisenhower administration. The challenges are only getting more complex, and Congress needs to seriously consider how it plans to rebuild these investments or risk the country falling further behind.”
Federal disinvestment has affected key programs, including those focused on:
- Affordable housing. On a real basis, funding for the HOME Investment Partnerships Program, which helps build, preserve, and rehabilitate affordable housing, has fallen 25 percent since 2023 and 59 percent since 2010.
- Education. Federal funding for Title I schools, special education through the Individuals with Disabilities Education Act (IDEA), and Full-Service Community Schools has fallen 10 percent since 2023 on a real basis.
- Workforce development. Funding for Workforce Innovation and Opportunity Act grants, which support job training and career services at approximately 2,400 job centers nationwide, has fallen 13 percent since 2023, after adjusting for inflation and population growth.
- Public health. Real funding for the Centers for Disease Control and Prevention has fallen 13 percent since 2023 and 29 percent since 2010, reducing federal resources for disease prevention and public health.
- Consumer safety. Funding for the Food Safety and Inspection Service has fallen 8 percent since 2023, while funding for the Consumer Product Safety Commission has declined 11 percent, after adjusting for inflation and population growth.
- Infrastructure investments. Congress faces an additional $66 billion funding shortfall in fiscal year 2027 following the expiration of key investments under the bipartisan infrastructure law.
Freezing domestic discretionary funding in fiscal year 2027 would increase the reduction to 13 percent, after adjusting for inflation and population growth. Without congressional action, discretionary program funding cuts will deepen.
Read the analysis: “Domestic Discretionary Programs Have Been Dramatically Cut in Recent Years” by Bobby Kogan and Jiun Park
For more information on this topic or to speak with an expert, please contact Christian Unkenholz at [email protected].