2009-02-26

The Office of Management and Budget has released President Barack Obama’s fiscal year (FY) 2010 budget overview document, which provides a broad description of the Obama Administration's fiscal policies and major budgetary initiatives. The full details of the FY 2010 budget, including proposed funding levels for most federal departments of agencies, including the National Institutes of Health (NIH), will be released later this spring.

In the budget overview document, entitled “A New Era of Responsibility: Renewing America’s Promise,” President Obama renews his commitment to doubling federal funding for cancer research. The budget “includes over $6 billion within NIH to support cancer research. This funding is central to the President's sustained, multi-year plan to double cancer research. These resources will be committed strategically to have the greatest impact on developing innovative diagnostics, treatments, and cures for cancer. This initiative will build upon the unprecedented $10 billion provided in the Recovery Act, which will support new NIH research in 2009 and 2010."

Much of the focus of President Obama’s proposed budget centers on his plan to reform the nation’s healthcare system. The proposal seeks to establish a $634 billion reserve fund as a “down payment on healthcare reform.” Although the President’s proposal includes broad principles such as guaranteeing people a choice of insurance plans and doctors, continuing employer-based coverage, and encouraging the portability of health insurance when people change jobs, the details of how to reform the health-care system will be left to Congress. The President proposes to pay for this “reserve fund” through tax increases and reforms to the Medicare and Medicaid programs, including:

• $8.1 billion for the “reserve fund” will come from increasing Medicare Part D prescription program co-pays and premiums for seniors earning over $170,000 per year;
• $318 billion will come from raising the tax liability of people earning $250,000 or more per year by limiting the amount of itemized deductions;
• $176 billion will come from adding various efficiencies and reforms to the Medicare and Medicaid programs.

ASH will continue to keep its members informed about each step in the debate toward the completion of the FY 2010 federal budget, with frequent updates posted on the Society’s Web site.

More detailed information about the President’s FY 2010 budget overview document is also available online.

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