USA doesn't need more prisons
Yet the Fascist Budget Bill would increase prisons a LOT.
- Immigration Detention: A proposed House Republican budget bill includes $45 billion for new and expanded immigrant detention centers, which would significantly increase the capacity for detaining individuals. This would nearly quadruple ICE's detention budget on an annualized basis, with one analyst noting it would be nearly 50% larger than the entire federal prison system's annual budget. It is estimated this could be enough to detain 100,000 people at a time, or possibly more.
- ICE Enforcement and Personnel: The House Judiciary Committee recommendations include $27 billion toward ICE's enforcement and deportation operations. Additionally, there's a proposed $8 billion for hiring new ICE personnel, aiming for an increase of 10,000 personnel by 2029. One report mentions $75 billion in supplemental funding for expanding ICE enforcement operations inside the U.S. over the next four years, including $10 billion for hiring thousands of agents.
- Refugee Resettlement: There is also a proposed $3 billion for the Office of Refugee Resettlement to hold unaccompanied migrant children.
These graphics are cringe-worth on many levels.
AI summary of budget Bill's proposals
- The House reconciliation bill allocates a substantial amount of funding to increase immigration detention centers, including family detention facilities, and to hire additional ICE officers.
- A separate initiative aims to create 20,000 new prison places through building new wings, refurbishing existing space, and potentially overhauling the prison regime.
- While some states are pursuing prison reform measures, such as expanded oversight and studies on deaths in custody, there are concerns about whether these measures will be effective in addressing systemic issues like inadequate mental health care and safety concerns.
- The budget reconciliation bill also includes funding for increased prosecutions of immigration-related offenses and expanded federal detention space.
Key Points
The FY2025 House budget reconciliation includes budget reconciliation instructions calling for $1.7 trillion in net spending cuts and $4.5 trillion in net tax cuts (with room for adjustments), allowing for a $2.8 trillion increase in primary deficits over the 10-year budget window from FY2025 to FY2034. Under budget reconciliation, primary deficits after FY2034 cannot increase.
If the Trump administration’s tax proposals were adopted by the House and enacted on a permanent basis, primary deficits over a 10-year period would increase by $6 trillion. Moreover, annual primary deficits would be around $700 billion higher in the years following 2034 and growing thereafter. To satisfy budget reconciliation rules, most tax cuts would, therefore, need to sunset (expire) by December 31, 2033.
With a sunset after calendar year 2033, we estimate that the combined spending and tax proposals put forward by the Trump administration would increase 10-year primary deficits by $5.1 trillion before accounting for economic growth effects and by $4.9 trillion after growth effects.
With a sunset after calendar year 2033, GDP modestly increases by the end of the 10-year budget window, between 0.3 and 0.4 percent, depending on how the $1.7 trillion in net spending cuts are allocated. Capital formation increases by 1 percent and wages increase between 0.6 and 0.7 percent. Under permanence, the signs reverse: GDP falls between 0.3 and 0.5 percent by year 10, wages fall by 0.6 and 0.7, as does capital.
On a conventional basis in 2026, the first 80 percent of the income distribution receives about 29 percent of the total value of the proposed tax cuts while the top 10 percent of the income distribution receives about 56 percent of the value. (Under current law, the top 10 percent of the income distribution pays about 70 percent of all federal taxes). Even with economic growth, lower income households are worse off if mandatory spending cuts, still to be decided under budget reconciliation, are allocated to programs like Medicaid and SNAP.
In Appendix A, we separately estimate that a scaled-back version of the Trump administration tax proposals would increase 10-year primary deficits by $3.6 trillion before economic effects, including required cost savings. This value is closer to, but still exceeds, the required target of $2.8 trillion.
A companion brief reports a wide range of different options for raising revenue from tariffs. To the extent that tariffs are implemented using Presidential authorities, it is unlikely that the concomitant revenue would be counted as an offset for budget reconciliation.
The FY2025 House Budget reconciliation and Trump Administration Tax Proposals Budgetary, Economic, and Distributional Effects
On February 25, the House of Representatives approved a budget resolution for fiscal year (FY) 2025 that sets the stage for new tax-and-spending legislation that can bypass the Senate’s 60-vote threshold and pass with a simple majority. While the budget resolution does not include specific changes to spending and taxes, it specifies which House committees should increase or decrease deficits in reconciliation legislation and by how much. These committees are responsible for identifying specific tax and spending changes within their jurisdictions to achieve these deficit targets.
In addition, the Trump administration and House Republican leadership have put forward a number of tax proposals, which include extension and restoration of expiring provisions of the Tax Cuts and Jobs Act of 2017 (TCJA), new tax cuts for households who receive Social Security benefits, no taxes on tipped income or overtime pay, removal of the state and local tax (SALT) deduction cap, and changes to the tax treatment of carried interest.
Table 1 summarizes the reconciliation instructions in the FY2025 House budget resolution. The topline instructions allow for up to $2.8 trillion in primary deficit increases over the 2025-2034 budget window, calling for $2 trillion in mandatory spending cuts, $300 billion in mandatory spending increases, and $4.5 trillion in net tax cuts.
Committee | Increase or decrease (-) in deficits, 2025-2034 | |
---|---|---|
Decreases in Mandatory Spending | -2,002 | |
Agriculture | -230 | |
Education and Workforce | -330 | |
Energy and Commerce | -880 | |
Financial Services | -1 | |
Natural Resources | -1 | |
Oversight and Government Reform | -50 | |
Transportation and Infrastructure | -10 | |
Unspecified committee | -500 | |
Increases in Mandatory Spending | 300 | |
Armed Services | 100 | |
Homeland Security | 90 | |
Judiciary | 110 | |
Decrease in Tax Revenues: Ways and Means | 4,500 | |
Total allowed increase in the primary deficit | 2,798 |
Notes: The targets for each committee are bounds; positive amounts are “maximum deficit increases” and negative amounts are “minimum deficit reductions.”
Source: House Budget Committee.
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