House GOP Leadership Approves Drastic Budget Cuts Proposal
by Adam Hughes*, 10/7/2005
In a boost to Budget Chairman Jim Nussle's plans to enact substantial budget cuts to offset the cost for recovery from Hurricane Katrina, House Speaker Hastert announced yesterday the approval of a package of cuts modeled after Nussle's plan. "In order to maintain our commitment to deficit reduction, we are proposing to move a mid-session Budget Amendment for the first time in almost 30 years (1977)," Hastert said in a written release. The release also detailed the following proposals for offsetting Katrina costs:
- An "additional across the board cut of '06 discretionary spending." Permanently eliminate and "deauthorize" programs that House appropriators have zeroed out.
- Increase total minimum reconciled mandatory savings from $34.7 billion to $50 billion. "In addition to the $50 billion, we will offset dollar-for-dollar the new mandatory spending included in reconciliation/entitlement reform that is required to address the disasters."
- "We will bring forward packages of additional rescissions to further help offset reconstruction costs. Congress must develop, with the President, a budget for reconstruction and a plan to pay for it."
