When it comes to the annual federal budget request exercise, the real details are in the plans for discretionary spending across defense and non-defense agencies. That is where the proverbial rubber hits the road for federal programs and mission areas.

For fiscal 2025, President Joe Biden wants to increase defense discretionary spending by $37 billion to $895.2 billion over what was enacted in 2023, while decreasing non-defense discretionary spending by $26 billion to $733.9 billion.

Overall, the president wants an $11 billion increase in agency discretionary budgets for 2025, topping $1.63 trillion. In 2024, the expected discretionary spending will be around $1.6 trillion, which is expected to be $16 billion less than in 2023.

While overall discretionary spending for civilian agencies will be down, most agencies are asking for more overall money.

The cuts to discretionary spending are mainly coming from proposed reductions at the departments of Veterans Affairs and Transportation.

At the same time, the White House is seeking more discretionary money for the Defense Department to “to execute the administration’s 2022 National Security Strategy and 2022 National Defense Strategy.”

Several agencies could be facing more severe cuts when compared to the expected 2024 budget. Congress passed and Biden signed funding bills for six agencies last week, and now are working on the remaining appropriations bills ahead of the continuing resolution expiring on March 22.

VA, the Army Corps of Engineers, Transportation and the Department of Justice are seeking less money in 2025 than they are expected to receive in 2024.

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