The Budget Outlook: What it Means for Women of Color Tazra Mitchell Center on Budget and Policy Priorities April 29, 2017
Potential Threats Health “reform” that results in loss of coverage/access Tax “reform” that results in large loss in revenues and/or bad policy Underfunding of non-defense discretionary programs Cuts in key low-income entitlements
The Budget has Two Major Parts Mandatory Spending occurs without annual action by Congress Also known as entitlement spending, such as Social Security, Medicaid, and SNAP Discretionary Congress sets funding levels each year ●Defense spendingssss ●Non-defense spending
Non-Defense Discretionary Spending, FY2016
Skinny Budget Targets Non-Defense Discretionary Programs for Deeper Cuts
Trump Budget Harms Those He Promised to Help His budget cuts NDD programs by $54 billion in FY18, shifting the funds to defense. Some programs that he would cut include: Student aid and work-study programs that help needy students afford college Job training that helps workers upgrade their skills Housing aid for hard-pressed families struggling to pay the rent His budget would eliminate 4 discretionary block-grant programs: LIHEAP, CDBG, the HOME program, and CSBG. These cuts alone total $8.0 billion, or nearly half of discretionary block grant spending. These cuts would come on top of a 37% drop in funding for block grants targeted on low- and moderate-income people since 2000* * Adjusted for inflation and population
Congressional Budget Resolution Could Pave the Way for Harmful Tax Reform Budget Resolution could include “reconciliation instructions” that would allow Congress to pass tax reform with simple majority in Senate Big question: will budget resolution allow tax reform bill to lose trillions in revenue?
Low-Income Entitlements May Ultimately be Targeted for Cuts If deficit reduction is the goal, then low-income entitlements are the likely target They are “what’s left” if you are: Unwilling to raise taxes (or worse, cut taxes), Don’t want to cut discretionary further, and Social Security and Medicare are off-the-table
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