Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Republican budget seeks to boost defense spending, ease repeal of Obamacare

Published 04/29/2015, 04:20 PM
© Reuters. U.S. Senator Bob Corker walks inside the U.S. Capitol in Washington

By David Lawder

WASHINGTON (Reuters) - Republicans unveiled the first joint House-Senate budget plan in six years on Wednesday, aiming to boost defense spending, eliminate deficits by 2024 and ease a repeal of President Barack Obama's signature health care reform law.

Their prescription to slash domestic spending by more than $5 trillion over 10 years appeared headed for final passage by Friday or early next week after endorsement was secured from Republican Senator Bob Corker.

The plan calls for deep cuts to social safety net programs, including Medicaid health care for the poor and food stamps. But it fails to direct relevant committees to implement most of these cuts.

Instead, the "reconciliation" procedural instructions are focused exclusively on repealing Obamacare, the five-year-old Affordable Care Act. The document directs the two Senate committees and three House committees with jurisdiction over the law to find savings of at least $1 billion each.

Repeal or replacement of Obamacare has long been a goal for Republicans, and budget procedural tools allow them to pass such legislation with only a simple majority in the Senate, rather than a nearly impossible 60-vote threshold.

While Obama has vowed to veto any attempt to dismantle Obamacare, he may be forced to compromise with Republicans if a Supreme Court ruling in June strikes down the health insurance subsidy structure at the heart of the law.

Republicans were already claiming that they "balanced the budget" despite criticism it is loaded with accounting "gimmicks."

While it calls for repeal of Obamacare, the budget assumes that nearly $1 trillion in tax revenue from the law over 10 years would remain in place. It also nominally maintains the "sequester" caps on military and domestic agency spending but supplements defense funds by adding nearly $40 billion to an off-budget war operations account.

"There is no question this budget is far from perfect, but it is some progress since it has been a long time since the Congress has completed this basic part of governing," Corker said in a statement announcing his signature.

As reported by Reuters last week, the compromise budget excludes language incorporating Representative Paul Ryan's longstanding proposals to convert the Medicare health program for seniors to a system of subsidies for largely private health insurance .

© Reuters. U.S. Senator Bob Corker walks inside the U.S. Capitol in Washington

"It sounds good. They said if we liked the first one, which I voted for, we'll like this one," Republican Representative John Fleming said after a closed meeting of House Republicans.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.