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Friday, September 09, 2005

Will the GOP Cut Medicaid, Student Loans?

We have been wondering for some time if Congressional Republicans would move forward with their plans to make $35 billion in cuts to social programs, including student loans and Medicaid. Earlier it seemed that their plans had been scuttled by Hurricane Katrina, but the AP's Andrew Taylor seems to indicate that the GOP's intention to enact massive spending cuts is still evident.

Republicans are going ahead with long-standing plans to trim Medicaid, food stamps and other benefits, even though party moderates are balking at cutting programs that aid the poor while hundreds of thousands are homeless from Hurricane Katrina.

The amount of savings — no more than $35 billion spread over five years — is modest at best, but it is the first time in eight years that Congress has shown any seriousness about reining in the automatic growth of such benefit programs.

Republican leaders have decided to delay the budget-cutting effort for at least a few weeks following widespread complaints that the government reacted too slowly in coming to the aid of Katrina's victims. When the effort resumes next month, there's less likelihood it will succeed because of Katrina's affect on the political landscape.

[...]

Cuts are planned for the Medicaid program for the poor and disabled, student loan subsidies for banks, farm subsidies and food stamps, among others. Katrina has helped solidify opposition to them among moderates in both parties.

"At a time when millions are displaced and seeking federal and state assistance, we believe it is inappropriate to move forward on ... a legislative package that would cut funding for Medicaid, food stamps ... housing and education," Sens. Gordon Smith, R-Ore., Olympia Snowe, R-Maine, Jeff Bingaman, D-N.M., and Blanche Lincoln, D-Ark., wrote in a letter this week to the chairman of the Senate Finance Committee.

Smith and Snowe's votes are needed if $10 billion in Medicaid cuts are to advance over unified Democratic opposition, and their hesitance puts those cuts in doubt.
When the budget vote came up the first time around, Smith voted for in the affirmative despite seeming promises not to support the cuts to Medicaid. So while the AP's Taylor might believe Smith's current apprehensiveness towards Medicaid cuts, I'm holding out until I see Smith vote.
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