Congress Adopts Fiscal Year 2011 Spending Cuts
On April 14, 2011, the full United States House of Representatives voted 260-167 to adopt a measure (H.R. 1473) that will keep the federal government open for the remaining five months of fiscal year 2011 while also reducing total budget authority for federal agencies. Specifically, H.R. 1473 will cut federal discretionary spending by $78.5 billion over the President’s budget request and $40 billion over fiscal year 2010 levels. Total, the savings amounted to over three-quarters of the amount being sought by the House of Representatives in its negotiations with the Senate and President Barack Obama.
Congressman Todd Platts voted in favor of H.R. 1473. The Senate subsequently passed H.R. 1473 by a vote of 81-19. The President signed the measure into law on April 15, 2011.
The adoption of H.R. 1473 was necessary to keep the federal government functioning because the previous session of Congress failed to enact any appropriations legislation. Most of the savings from the enactment of H.R. 1473 will not be realized immediately because of the short amount of time remaining in fiscal year 2011. However, the savings will multiply to an estimated $315 billion over the next ten years as the budget baseline determining overall federal spending is reduced.
House Debates Further Deficit Reduction as Part of Fiscal Year 2012 Budget Process
On April 15, 2011, the full United States House of Representatives voted 235-193 to approve a budget resolution (H. Con. Res. 34) for fiscal year 2012. H. Con. Res. 34 proposes $5.8 trillion in deficit reduction over the next decade - $4.4 trillion more than contained in the President’s original budget submission.
A budget resolution such as H. Con. Res. 34 sets discretionary spending caps and tasks committees with producing deficit-reduction legislation within their respective areas. It is the first step in a nearly year-long budget process for Congress that also involves the passing of appropriations bills, the enactment of tax legislation, and consideration of possible reforms to entitlement programs.
Under the House-passed budget resolution, domestic discretionary spending would be frozen at below 2008 levels for the next five years. H. Con. Res. 34 also instructs House committees to consider tax reforms that will increase economic growth and boost job creation; to draft legislation ending corporate welfare such as the conservatorship of Fannie Mae and Freddie Mac and the permanent bail-out authority for Wall Street firms enacted last year; and, to build on welfare reform by block-granting Medicaid to the states, giving the states more flexibility to design the Medicaid program for their own populations. H. Con. Res. 34 would make no changes to the Medicare program for those age 55 and older. For those under age 55 only, it instructs House committees to consider Medicare reforms that will save the program for the future and ensure its long-term sustainability. A possible reform model cited by the Budget Committee is the premium-support health care plans offered to Members of Congress and other federal employees.
“The United States House of Representatives has taken an important step towards restoring fiscal responsibility to Washington and putting our nation back on the path to prosperity,” said Congressman Platts. “Our national debt currently exceeds $14 trillion and we are borrowing more than 40 cents of every dollar we spend. At this rate, the national debt will exceed the size of our entire economy within the next decade. This inevitably would mean diminished economic growth and diminished opportunity. H. Con. Res. 34 is an attempt to honestly address the fiscal challenges that face us and chart a more positive future for generations of Americans to come.”
For more information regarding H. Con. Res. 34, please visit www.house.gov/budget and click on “The Path to Prosperity: Restoring America’s Promise.”
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