The Ryan budget, which passed the US House earlier this year, would reduce federal spending by about $6 trillion over a decade. In particular, it would reduce discretionary spending (stuff that’s not Medicare, Social Security, debt interest, and other mandatory expenses) by about half during this period, from 12.5 percent of gross domestic product to 6.75 percent.
These cuts would be enforced by a binding cap on total spending as a percentage of the economy, as well as sub-caps on particular spending categories, according to House Budget Committee documents.
Defense spending – the largest discretionary category – would be kept flat under Ryan, who says the US risks forfeiting world leadership if it reduces the military. Critics say all other programs labeled “discretionary," from the FBI to the FDA, would face massive reductions as a result, while Pentagon contractors are shielded.