House, Senate To Battle Over Budget Cuts

Among the top priorities for Congress, when its members return to Washington next week, is the construction of a conference report for spending cuts that is acceptable to both chambers. The House and Senate versions of the reconciliation bill for entitlement spending contain significant differences, particularly with respect to cuts to Medicaid, student loans, and food stamps. The razor-thin margin by which these bills passed in each chamber and the scandals that have increasingly embroiled the Republican Party will likely make reaching consensus during the conference still more arduous by splintering the Republican caucus, decreasing the chances of the cuts being enacted into law. The House passed its version of the bill cutting just under $50 billion early in the morning on Nov. 18 by only two votes (217 - 215). With the resignation of Rep. Randy Cunningham (R-CA) on Nov. 28 that margin is cut in half. The Senate had already passed its bill two weeks earlier on the evening of Nov. 3, including a provision--removed from the House version--that would allow drilling in Alaska's Arctic National Wildlife Refuge. The Senate reconciliation bill cuts $39.1 billion from entitlement programs over a five-year period and passed 52 - 47. The Senate cuts are not nearly as contentious or damaging to low-income beneficiaries as those being considered on the other side of Capitol Hill. To what extent Senate provision will be reflected in the final bill is difficult to speculate, however, as the select few Representatives and Senators chosen as conferees will wield considerable power,and the bill emerging from conference for a final vote in each chamber could be drastically different than either version. Adding to the Republican leadership's woes, more bad news surfaced yesterday as Cunningham, a supporter of the budget cuts in the House, resigned from Congress for taking bribes from defense contractors. His absence this December will further complicate the calculus needed to craft a consensus package and may make pushing through a final version of the bill in the House untenable this year. A special election to replace Cunningham must be held within 120 days.
back to Blog