Policy Update

Congress Passes Budget, But More Work Lies Ahead

4/29/2005

BUDGET DEAL
The resolution would cut a total of $34.7 billion from mandatory programs over 5 years ($10 billion of which would come from Medicaid). The Agriculture Committee is directed to cut $3 billion from its programs, which may come out of Food Stamps.

The resolution also makes room for $100 billion in tax cuts - $70 billion of which would be protected through special fast-track reconciliation protections.  The Finance Committee in the Senate and the Ways and Means Committee in the House will choose which tax cuts to make.

Education, veteran's benefits, child care, Head Start, after school programs and other discretionary spending programs would be cut more than $200 billion over the next five years.

NEXT STEPS

While the votes last night are unfortunate, we will have more opportunities in this budget process to protect human needs programs.  The resolution approved last night sets in motion the reconciliation process. 

Committees are now directed to report legislation by September that follows the resolution's instructions on cutting spending and expanding tax cuts.  We will work to make sure that legislation does not lay the burden of spending cuts on those least able to bear it. 

For example, the Senate Finance Committee and House Energy and Commerce Committee will have to produce a bill that cuts Medicaid by $10 billion.  We will fight to make sure this bill doesn't result in needy Americans losing health care. 

The Senate Agriculture Committee will have to shape a bill that trims $3 billion from programs in its jurisdiction, which could come from Food Stamps.  We will fight so that these cuts don't result in more families and children going hungry. 

 The Senate HELP and House Education and Workforce Committee will have to produce a bill that cuts $6.6 billion from the federal Pension Benefit Guaranty Corp., which some businesses say will cause them to drop their pension plans. 

The Finance Committee and the House Ways and Means Committee will have to produce a bill that includes tax cuts.  We will fight to make sure this legislation isn't unfairly tilted toward the rich and against working families, children, the elderly, and people with disabilities. 

HUMAN NEEDS COMMUNITY REACTS

Read statements of human needs community leaders: http://www.chn.org/pdf/reactiontobudget.pdf

See a Center on Budget and Policy Priorities analysis:  http://www.cbpp.org/4-28-05bud.htm