The GOP budget resolution would savagely cut the safety net — and no one seems to care
It might just let Republicans cut trillions from Medicaid, Medicare, unemployment insurance, ObamaCare's subsidies, and more with only a 51-vote majority. Here's how.
Stories about the GOP's tax reform plans have dominated policy headlines for awhile now. This week, for instance, Senate Republicans started hashing out their future plans for the U.S. federal budget in earnest, which they're using to set the stage for — you guessed it — tax reform.
But taxation is only one side of the budget resolution. The other side is spending. And the GOP has big plans there, too — $5.8 trillion in plans to be exact.
That's how much the Senate Republicans' plan would cut from federal spending over the next decade. If enacted, those reductions would gut public investment in communities across the country, hamstring the economy, and leave millions upon millions of already-vulnerable American families without the basic help they need to make ends meet.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
So far, Democrats and their allies are treating this savagery like they did Trump's hypothetical budget back in the spring: an opportunity to bash the GOP for cruelty and hypocrisy. But no one is really treating it with the urgency it arguably deserves. Because here's the kicker: It's possible that Senate Democrats wouldn't be able to mount a filibuster against at least some of those cuts. The Republicans could pass them with a bare 51-vote majority.
To explain how, we're gonna have to get wonky.
What the Senate is preparing is technically known as a budget resolution. "It's a statement of policy preferences going forward over the next 10 years," as Jacob Leibenluft, a senior adviser at the Center on Budget and Policy Priorities, explained to The Week. "What revenues look like, what spending looks like, and what spending looks like in specific categories."
Some programs are singled out for specific cuts in the resolution. But a lot of the spending reductions are assigned as bulk sums to various "budget functions," to be distributed among a range of programs. Once the budget resolution has passed, lawmakers will come in with other, smaller budget bills to nail down all the specifics. But the resolution provides enough detail that we can get a picture of where the GOP intends to cut that $5.8 trillion.
It isn't pretty.
Remarkably, Medicare is effectively singled out for $473 billion in cuts. Senate Democrats are shouting their heads off about this one, since President Trump repeatedly promised during his campaign that Medicare wouldn't be touched.
Another $1.3 trillion would be taken out of other health programs, which will mostly mean Medicaid and the various subsidies provided by ObamaCare. A cut of that size would reduce this bucket of programs by a whopping 30 percent by 2027.
The Republicans aim to cut $653 billion from the general bucket that includes food stamps, cash assistance to needy families, a range of refundable tax credits, and more. They'd cut $199 billion from programs that include Pell Grants, student loans, and block grants for social services. Then there's another $500 billion in cuts assigned to various other budget functions. And there's even $1 trillion in free-floating cuts the Republicans know they want to take out of something — they just don't know what yet.
A lot of the above are called "mandatory" programs, because their spending each year is determined by their overall design and how many Americans are eligible. But lots of government spending programs are "discretionary" — Congress decides each year how much it wants to pump into them.
The military is the single biggest chunk of the discretionary budget, and the Republicans are loath to touch it. But nondefense discretionary spending covers just about every bit of civil society you can think of: fighting homelessness, lending in poor communities, scientific and medical research, public transit, local investment, home repair, foreclosure prevention, job programs, and even Meals on Wheels.
You might remember that the Budget Control Act of 2011 imposed automatic cuts to nondefense discretionary spending going forward. These cuts were meant to be so painful and absurd they would force Democrats and Republicans to hammer out a better arrangement.
Well, the Republicans want to reduce nondefense discretionary below even those automatic cuts — 10 percent below in 2019, and 18 percent below by 2027.
The one bit of good news is that passing any of these cuts through the Senate ostensibly requires 60 votes to beat a filibuster. That means eight Democrats have to sign on, which will never happen.
But there's a catch.
The reason Republicans need to pass a budget resolution first, before the smaller and more specific budget bills, is that the resolution sets reconciliation in motion. That's the Senate procedural rule that allows you to pass certain bills by a simple majority without dealing with the filibuster. This year, the Republicans used reconciliation instructions to try to pass their various repeals of ObamaCare. (Though even with the lower vote threshold, they failed.) In the coming year, they want to use reconciliation to pass their tax reform plans.
As Leibenluft explained it, the reconciliation instructions apply to two Senate committees: energy and natural resources, and finance. The assignments to the first are negligible. But the instructions to the finance committee give it a $1.5 trillion deficit increase to play with. The Republicans' whole tax reform project falls under finance's jurisdiction. So presumably, $1.5 trillion is the amount of revenue the GOP anticipates it will lose from its tax changes over the first decade. (Those tax cuts will likely have to expire after that, because bills passed by reconciliation can't add to the deficit beyond the first 10 years.)
But what if the Republicans decide they want even bigger tax cuts in the first 10 years? Then they'll need to cut spending somewhere to offset the extra revenue losses, and stay within the $1.5 trillion ceiling. The spending programs that fall under the finance committee's jurisdiction include Medicaid, Medicare, unemployment insurance, ObamaCare's subsidies, and more. Any spending cuts the finance committee makes to those programs, and which are directly tied to making room for the GOP's tax cuts, would fall under the purview of reconciliation.
Then they could be passed through the Senate with a bare 51-vote majority.
So while the spending cuts in the Republicans' new budget resolution technically fall outside of reconciliation, there's a way they could sneak at least some of that $5.8 trillion in through the back door. No one knows if this is the GOP's plan. It may well not be. But the design of the budget resolution makes it a real live possibility — one that not nearly enough people are taking seriously.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.
-
Georgia DA Fani Willis removed from Trump case
Speed Read Willis had been prosecuting the election interference case against the president-elect
By Rafi Schwartz, The Week US Published
-
Democrats blame 'President Musk' for looming shutdown
Speed Read The House of Representatives rejected a spending package that would've funding the government into 2025
By Peter Weber, The Week US Published
-
Today's political cartoons - December 20, 2024
Cartoons Friday's cartoons - founding fathers, old news, and more
By The Week US Published
-
US election: who the billionaires are backing
The Explainer More have endorsed Kamala Harris than Donald Trump, but among the 'ultra-rich' the split is more even
By Harriet Marsden, The Week UK Published
-
US election: where things stand with one week to go
The Explainer Harris' lead in the polls has been narrowing in Trump's favour, but her campaign remains 'cautiously optimistic'
By Harriet Marsden, The Week UK Published
-
Is Trump okay?
Today's Big Question Former president's mental fitness and alleged cognitive decline firmly back in the spotlight after 'bizarre' town hall event
By Harriet Marsden, The Week UK Published
-
The life and times of Kamala Harris
The Explainer The vice-president is narrowly leading the race to become the next US president. How did she get to where she is now?
By The Week UK Published
-
Will 'weirdly civil' VP debate move dial in US election?
Today's Big Question 'Diametrically opposed' candidates showed 'a lot of commonality' on some issues, but offered competing visions for America's future and democracy
By Harriet Marsden, The Week UK Published
-
1 of 6 'Trump Train' drivers liable in Biden bus blockade
Speed Read Only one of the accused was found liable in the case concerning the deliberate slowing of a 2020 Biden campaign bus
By Peter Weber, The Week US Published
-
How could J.D. Vance impact the special relationship?
Today's Big Question Trump's hawkish pick for VP said UK is the first 'truly Islamist country' with a nuclear weapon
By Harriet Marsden, The Week UK Published
-
Biden, Trump urge calm after assassination attempt
Speed Reads A 20-year-old gunman grazed Trump's ear and fatally shot a rally attendee on Saturday
By Peter Weber, The Week US Published