Majority Leader Eric Cantor has introduced legislation that replaces the sequester for one year with responsible spending cuts that protect our national security, and provides an additional $200 billion in savings over ten years.
UPDATE: The Spending Reduction Act has passed the House in a 215-209-1 vote. Click here to see how your Representative voted.
The Spending Reduction Act (H.R. 6684) will:
The savings from these reforms will replace the arbitrary discretionary sequester cuts and lay the groundwork for further efforts to avert the spending-driven economic crisis before us.
When previously scored, the net deficit reduction from the proposals contained in the Spending Reduction Act was $237.8 billion (gross savings of $310.0 less the cost of partially replacing the sequester of $72.2 billion (FY 13-22). This assumed an October 1, 2012 enactment date and thus the score will have to be updated to reflect the delayed enactment.
Some specifics:
STOP FRAUD: Receiving a TANF-funded brochure or a referral to an “800” number telephone hotline would no longer automatically make a household eligible for food stamps. This would only apply to households who truly are not eligible. According to CBO, this proposal would save $11.7 billion over ten years.
STOP BAILOUTS: The Dodd-Frank Act granted the FDIC “Orderly Liquidation Authority” that gives government bureaucrats the authority to use taxpayer dollars to bail out the creditors of “too big to fail” institutions. This would repeal that authority for future bailouts without oversight.
CONTROL UNCHECKED SPENDING: Obamacare provided the Secretary of HHS a direct appropriation of “such sums as necessary” for grants to states to facilitate the purchase of qualified health plans in newly created exchanges. The Secretary can determine the amount of spending and spend the funds without further Congressional action – an unprecedented authority that gives an executive branch official an unlimited tap into the federal Treasury.
RESTRAIN SPENDING ON BUREAUCRACY: The Consumer Financial Protection Bureau (CFPB) is a large and powerful Federal agency that is accountable to neither the executive branch nor Congress. Its Director has the unprecedented and sole authority to decide which financial products Americans can and cannot use. In addition, the CFPB is authorized to fund itself by drawing money directly from the Federal Reserve. The CFPB must be subject to the ordinary congressional appropriations process and authorized the appropriation of $200 million to the agency for FY 2012 and FY 2013. This will ensure proper oversight and accountability.
REDUCE WASTE: Enacts the HEALTH Act, modeled after California’s decades-old and highly successful health care litigation reforms. This reform addresses the current crisis in health care by reigning in unlimited lawsuits and thereby making health care delivery more accessible and cost-effective in the United States. Reduces the federal deficit by nearly $40 billion over ten years.
