Office of Management and Budget

Office of Management and Budget
News Release

FOR IMMEDIATE RELEASE

2001-07

Budget Agreement Reaffirms Key Goals of Bush Budget:
Moderated Spending Growth, Debt Reduction, and Tax Relief

Washington, DC, May 2, 2001 -- Office of Management and Budget Director Mitchell E. Daniels, Jr. today hailed the budget agreement reached between the Bush Administration and Congressional leaders as a victory for America’s families.

Director Daniels said, "This agreement reflects the major goals of President Bush’s first budget: the nation’s spending priorities will be met, historic levels of Federal debt will be retired, and taxes will be reduced. This budget is good for America’s families. Now the goal before us is to ensure that this agreement has sustained meaning. We will remain vigilant throughout the year to make certain that in the end we deliver a budget that adheres to the limits agreed to today."

The agreement:

Moderates discretionary spending growth to 4.9 percent in FY 2002 ($666.6 billion);
Provides for more than $2 trillion in debt reduction by FY 2011;
Provides $1.35 trillion in tax relief from FY 2001 to FY 2011;
Provides a $5.5 billion increase in FY 2001 and a $7 billion increase in FY 2002 for agriculture, bringing to not more than $79 billion the total amount set aside for the period FY 2001 to FY 2011; and
Provides $5 billion for a National Emergency Reserve. After providing for core disaster and wildfire operations, this additional amount will be available to the extent that the emergencies are sudden, urgent, unforeseen, and not permanent.

[A fact sheet that outlines the major provisions of the agreement is attached.] (8k)

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