1. www.clasp.org First Do No Harm Protecting Families in the Budget Debates January 31, 2015 Elizabeth Lower-Basch Policy Coordinator

2. www.clasp.org Republicans control both House (246-188) and Senate (54-46) But President Obama can veto legislation  Would require 2/3 majority of both chambers to override veto Some areas of bi-partisanship  WIOA, CCDBG in last Congress “Must-pass” legislation 2

3. www.clasp.org Discretionary spending must be “appropriated” each year. Like buying clothing, groceries, or a computer. Includes job training, health research, military spending, disaster relief, transportation Mandatory spending occurs automatically once authorized Like your rent or mortgage, health insurance, phone bill. Includes Social Security, Medicare, Medicaid, SNAP 3 Debt Ceiling limits total government borrowing

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5. Sequestration and budget caps threaten discretionary spending. Reconciliation threatens mandatory programs. 5

6. www.clasp.org Sequestration was designed to bring both Democrats and Republicans to the negotiating table to agree to unpalatable spending cuts and tax increases in order to reduce the deficit 6

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8. Both domestic discretionary and defense spending are capped Caps get slightly tighter each year 8

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10. Defense spending is less critical to Republicans Middle class has not felt much pain Effects were mitigated in 2013-2015  Used carry-over funds  Legislation – air traffic control  Murray-Ryan deal; 10

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12. www.clasp.org Sets overall spending levels Only has binding power when passed by both House and Senate Does not need President’s signature (no veto) Can include “reconciliation” instructions that allow other bills to take express track 12

13. www.clasp.org Can not be filibustered in Senate  does not require 60 votes Non-germane amendments prohibited Limited to provisions that have budgetary impact  As ruled by the Senate Parliamentarian Can be vetoed 13

14. www.clasp.org Reagan 81 and 82 welfare and food stamp cuts 1996 welfare reform and 2005 reauthorization Creation of CHIP and Affordable Care Act 1993 tax changes and expansion of EITC 2001 and 2003 Bush tax cuts 14

15. www.clasp.org 15 https://politicalgraffiti.wordpress.com/2010/03/16/demopublicans/

16. www.clasp.org 16 For political reasons, Social Security for the elderly is largely protected from cuts  SSDI and SSI are more vulnerable Medicaid – per capita spending limits SNAP – block grants, “opportunity grants” Earned Income Tax Credit and refundable CTC Pell grants Social Services Block Grant (SSBG)

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18. www.clasp.org 18 Annual appropriations or spending bills Debt ceiling extension Possible fix to ACA post Supreme Court King v. Burwell decision Could make it hard for Obama to veto proposals that he would reject otherwise

19. www.clasp.org Elizabeth Lower-Basch elowerbasch@clasp.org www.clasp.org 19