Republican Budget Would Shred Safety Net

Jazelle Hunt, NNPA Washington Correspondent | 3/30/2015, 11:29 a.m.
The Republican House budget will shred the social safety net designed to protect the most vulnerable citizens, severely cutting programs ...
House Budget Committee Chairman Tom Price (R-Ga.)

WASHINGTON (NNPA) – The Republican House budget will shred the social safety net designed to protect the most vulnerable citizens, severely cutting programs ranging from student loans to food stamps, according to a nonpartisan think thank.

“The budget would cause tens of millions of people to become uninsured or underinsured, make it harder for low-income students to afford college, shrink nutrition assistance, and squeeze many other such programs,” writes Robert Greenstein, president of the Center on Budget and Policy Priorities (CBPP). “Consequently, it’s sure to significantly increase poverty, hardship, and inequality.”

In an effort to balance the federal budget without raising taxes or restoring them to pre-recession levels, House Republicans plan to shrink spending in a variety of areas—especially health care and anti-poverty, food assistance, and housing assistance programs. The cuts will total $5.5 trillion over the next 10 years.

The House of Representatives Budget Committee’s proposal would drastically reduce or end federal funding to such programs, or reform them into state-run or meager versions of themselves.

Under this plan, the Affordable Care Act would be completely defunded, sacrificing the $1 trillion in federal income it generates through taxes, and also eliminating states’ expanded Medicaid. The CBPP finds that 14 million Americans would be left uninsured. The uninsured rate for Black people in particular has dropped from 24 percent to 16 percent, in the two years since ACA implementation.

Medicaid, the Children’s Health Insurance Program (CHIP), and other health programs would also lose $1 trillion in funding by 2025. Greenstein, who has served three presidential administrations before creating CBPP, points out that this cut comes on top of the losses from repealing health care reform.

The Supplemental Nutrition Assistance Program (SNAP) is slated to lose $125 billion. In 2013, Black people were 25.7 percent of all SNAP recipients; the same year, a national-representative Pew Research Center survey conducted the same year found that Black people were twice as likely as Whites to have used the food stamp program at some point in life.

The proposed budget would retain these and other mandatory safety net programs through federal block grants. Full responsibility for managing the grants and running the programs would be left to state governments. The CBPP asserts that block grants would not be enough on their own for most states to adequately administer these programs, and low- to moderate-income families would suffer most for it.

Medicare would lose $148 billion over the next decade, and would become a “premium support model” voucher system, in which seniors can choose their own insurance plan via marketplaces (similar to the current Affordable Care Act). Medicare would apply each recipient’s benefits directly to the insurance company he or she has chosen.

Black seniors with Medicare tend to have significantly lower-than-average incomes and savings as well as more chronic health conditions than others, making Medicare much more critical to their survival. As wealth gaps widen and health disparities persist, the need for effective Medicare will likely continue or deepen for Black retirees in the future.