This volume-part of the Congressional Budget Office's (CBO's) annual report to the House and Senate Committees on the Budget-is intended to help inform policymakers about options for the federal budget. The report has two main components. First, it discusses some major proposals to increase spending or cut taxes that have been prompted by the emergence of large budget surpluses. Second, it presents some 250 specific policy options to reduce spending or increase revenues in a wide variety of programs; those options could be used to offset the cost of new initiatives, maintain budgetary discipline, reorder priorities, or accomplish other goals. The broad proposals and specific policy options come from many sources. In keeping with CBO's mandate to provide objective and impartial analysis, the discussion of each proposal or option presents the cases for and against it. The inclusion or exclusion of a particular proposal or option does not represent an endorsement or rejection by CBO. As a nonpartisan Congressional staff agency, CBO does not make recommendations about policy.