NYCmetsfan
Banned
The budgets adopted on March 19 by the House Budget Committee and the Senate Budget Committee each cut more than $3 trillion over ten years (2016-2025) from programs that serve people of limited means. These deep reductions amount to 69 percent of the cuts to non-defense spending in both the House and Senate plans.
Each budget plan derives more than two-thirds of its non-defense budget cuts from programs for people with low or modest incomes even though these programs constitute less than one-quarter of federal program costs. Moreover, spending on these programs is already scheduled to decline as a share of the economy between now and 2025.[1]
The bipartisan deficit reduction plan that Alan Simpson and Erskine Bowles (co-chairs of the National Commission on Federal Policy) issued in 2010 adhered to the basic principle that deficit reduction should not increase poverty or widen inequality. The new Congressional plans chart a radically different course, imposing their most severe cuts on people on the lower rungs of the economic ladder.
- More than $2.9 trillion in health care reductions for low- and moderate-income people. The plan would convert Medicaid and the Childrens Health Insurance Program into a single block grant with drastically reduced funding levels. It also would repeal the Affordable Care Act (ACA), including health reforms subsidies to make coverage affordable for people with low or modest incomes and its Medicaid expansion. To date, the ACA coverage expansions have extended coverage to 16.4 million previously uninsured people and strengthened coverage for millions of others.
- $125 billion in cuts to SNAP (formerly food stamps). The House plan block-grants SNAP starting in 2021 and cuts SNAP funds by $125 billion, or more than a third, over 2021 to 2025. States would be left to decide whose benefits to reduce or terminate, but cuts of this magnitude would end food assistance for millions of low-income families, cut benefits for millions of such households, or do some combination of the two, according to a new CBPP analysis.[3]
- $159 billion[4] in cuts to tax credits for low- and modest-income working families. The House Budget Committee plan would allow critical provisions of the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) to expire at the end of 2017, which would increase the number of people in poverty by an estimated 1.8 million, including 1.0 million children and deepen poverty for another 14.6 million people, including 6.7 million children, in 2018. The House plan would also allow the American Opportunity Tax Credit to expire at the end of 2017, which would cause millions of low- and moderate-income families to lose some or all of the tax credits they receive to help offset college costs.[5]
- Roughly $300 billion in cuts in other mandatory (i.e. entitlement) programs serving low-income Americans, much of which is unspecified. Aside from the cuts in SNAP and refundable tax credits discussed above, the House plan cuts more than $550 billion from mandatory programs just in the education and income security categories of the budget. The Budget Committee provided few specifics here, but we conservatively estimate that about $300 billion would come from low-income programs in these areas. The Budget Committee made clear that the plan eliminates the mandatory portion of funding for Pell Grants, which help students from families with modest incomes afford college. The reduced Pell Grant funding would necessitate cuts in the program. Despite the fact that Pell Grants already cover a much lower share of college costs than they used to, the Budget Committee said its plan would freeze the maximum grant level for ten years, even as tuition and room and board costs continued to rise. Other mandatory programs in these areas that would also be candidates for significant cuts under this vague part of the plan include child nutrition programs, Supplemental Security Income (SSI) for the elderly and disabled poor, and possibly the underlying refundable portion of the EITC and the underlying low-income (or refundable) component of the Child Tax Credit (CTC). In calculating the size of the cuts in programs targeted on people of modest means, we assumed that low-income program (other than SNAP) would bear their proportionate share of the remaining $550 billion in cuts in mandatory programs that the budget plan makes in the education and income security categories.
- About $160 billion, and maybe more, in cuts to low-income non-defense discretionary programs. On top of the significant cuts already enacted as a result of the BCAs discretionary caps and sequestration, the House Budget Committee cuts non-defense discretionary programs about $970 billion[6] below their post-sequestration levels. About two-thirds of these cuts are located in portions of the budget that have little or no low-income programs, such as scientific research, natural resources, and transportation infrastructure. But the rest are essentially unspecified or occur in areas where low-income programs reside. Here, too, we make the conservative assumption that low-income programs would bear a proportionate share of the cuts, which is how we derive our estimate of $160 billion in reductions.
![3-23-15bud-f1.png](http://www.cbpp.org/images/cms/3-23-15bud-f1.png)
![3-23-15bud-f2.png](http://www.cbpp.org/images/cms/3-23-15bud-f2.png)
http://www.cbpp.org/cms/index.cfm?fa=view&id=5289