Related documents:  
List of Program Cuts
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Economic Policy Institute, Impact of Bush budget on aid to state and local governments

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Bush Budget Would Cut Federal Aid to Minnesota by 6.1%

A report released this week by the Economic Policy Institute shows the impact of the Bush budget proposal on federal discretionary programs that provide aid to state and local governments.  The Bush FY 2002 budget reduces spending on these programs nationwide by 6.9%, compared to what funding levels would be if current spending per capita were maintained and adjusted for inflation.  The reductions grow to 11.2% in FY 2011.  These programs comprise 38% of all non-defense federal discretionary spending and about 10% of total spending by state and local governments.

Minnesota faces a 6.1% cut in 2002 and a 10.7% reduction in 2011 for these programs.  Although Minnesota receives smaller cuts than the national average, the state still would lose of millions of dollars used for the environment, agriculture, transportation, community development, education and training, health, income security, justice, and general government programs.  Programs facing cuts include:

  • EPA – Drinking Water Grants – cut 4.2% in 2002 and 16.9% in 2011
  • Community Development Block Grant -  cut 3.3% in 2002 and 5.6% in 2011
  • Dislocated Workers – cut 18.1% in 2002 and 20.3% in 2011
  • Job Training Partnership Act (Workforce Investment Act) – cut 10.8% in 2002 and 13.2% in 2011
  • Low-Income Home Energy Assistance – cut 12.8% in 2002 and 15.3% in 2011
  • Head Start – cut 3.9% in 2002 and 6.5% in 2011

May 16, 2001

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