tv House Budget Cmte - 2019 Federal Budget - Day 1 Part 1 CSPAN June 21, 2018 5:07am-7:27am EDT
going to yield to the ranking member for a specific request. >> thank you mr. chairman. i am moved that we dispense and ask unanimous consent. >> unanimous consent request for the purpose of -- >> the gentleman from california. >> i don't believe that can be done. a quorum is required for conducting business. >> i will yield to counsel. it is the opinion of the council that the committee can wave by unanimous consent.
>> rivalries the point of order i believe that exceeds the authority of the committee acting. it can do several things. it can recess, set a time to switch to adjourn and a german but i don't believe it has the power of the requirement without the quorum present. >> the chair will take the gentleman's point of inquiry point of order as an objection to the unanimous consent request and with that -- >> we are considering a very important question, the budget of the united states government, to take this up makes a mockery of the process and further action required to make a mockery. >> the point is take plaintiffse will proceed once the committee has a quorum.
[inaudible conversations] pursuant to request, let me just read under the title and this is in the committee markup documentation for two different requirements cost to each one of the house rule 11 requires a majority of the committee's membership was actually be present when the committee votes to the orbit of a measure
>> are you satisfied the requirement has been met? >> now we have a court command we can proceed. >> i haven't done my math but my staff has i think one third of the committee is present and without objections so ordered. thank you to the ranking member to develop a structure for the markup to closely follow what has been done in the past to have an open market that both sides have an opportunity for the frame fiscal 2019 con current resolution. also it should be noted because of the logistical problems between votes and markups, this has been a tough issue to wedge into the
proceedings on capitol hill this week. thanks to the ranking member and others for their splendid cooperation to ask to get our work accomplished this week. i will recognize the distinguished gentleman from indiana. >> i would like to begin that with other committee markups going on i ask unanimous consent that the chairman. >> that is consistent with the agreement. by tomorrow june 21 we ask unanimous consent to be allocated to 45 minutes to make opening statements. and then make their statements out of the remaining time a
have additional days to submit for the record. with factual q&a with a buzzer on -- budget resolution & went to the agreement and to be air organized into the two tiers the debate time will be evenly divided and the member in opposition to have one minute reserved to accommodate floor votes and without objection and majority staff will be available for one hour to answer any technical questions we will begin debate and after
that concludes we will recess to accommodate markups and reconvene at 9:00 o'clock a.m. tomorrow morning and then consider the remainder of the amendments and vote on final passage of the con current resolution and the important duty of this committee of the no budget resolution not unlike past years there were some delays to fulfill the responsibility including the baseline of the starting point of which budget negotiations must taken under consideration. despite the late start it is still the duty of this committee to produce this important document and the role we take very seriously. today i am pleased we are fulfilling the duty to fulfill the optimistic vision budget
for a brighter american future. and with the american exceptionalism and that's because of the strong enterprising spirit however while america has the extraordinary past making positive economic strides for our future thanks to tax reform with real fiscal challenges casting a shadow of doubt, these are challenges that must not be ignored any longer and they must be overcome. in order to do so tough decisions must be made in the short-term. federal government is spending far more than it takes in due to unchecked growth mandatory or autopilot spending adding to the national debt today
stands at more than $21 trillion the nl deficit will regionally $1 trillion but this should not come as a surprise ithould serve as an urgent call to ensure brighter future and with those years of imbalance is not easy or impossible the budget is a balanced budget to responsibly bow --dash with those governmentwide savings by fiscal year 2027 the largest looming shadow that is the extent of the nation's debt and the single greatest driver is mandatory spending. more than two thirds of federal dollars are spent on safety net programs like
medicare and social security. because they are not reviewed on an annual basis, they grow unsustainably. to be clear, there is a critical need for mandatory programs and the benefits they provide are long -- to the most vulnerable americans and absently form it will be harsh not a matter of if but when programs can't fill their promise according to cbo insolvency could come as early as 2026. budget calls for reforms to save those programs on which many vulnerable americans depend by easing the fiscal burden from other generations in the same spirit of fiscal responsibility our budget takes mandatory savings through reconciliation even further to authorize committees by nearly $100 billion at $302 billion total.
that is significant. in fact the largest amount of deficit reduction called for through reconciliation and more than two decades. since that time mandatory spending growth has exploded as a result of new and growing programs making it more important than ever to achieve basic verification deficit reduction. despite our debt problem, the economy exhibits positive signs of recovery things to the tax cuts and jobs act the budget bills on tax reform success calls for progrowth policies raining and needless regulations on job creators to empower the would be entrepreneur. mindful of taxpayer dollars are hard-earned resource brighter american future calls for the effective stewardship while strengthening accountability and cutting back waste. finally the budget respects the constitutional powers granted to state and local governments and scales back over reach of the federal government and restores more
state and local decision-making. so the unique needs of each and every american citizen are better served nationwide. while america's future has always appeared bright our current fiscal challenges threatened that turning the country is difficult at not impossible. we can change the fiscal path to ensure a brighter future for generations to come. this budget for a brighter american future provides the vision to do so i am proud to present it here today before our committee and with that i yield to my friend the gentleman from the commonwealth of kentucky. >> mr. chairman less than one year ago republicans on the committee laid the groundwork for the nonpartisan tax bill despite passionate promises to the contrary about increasing
our deficits by trillions of dollars not a single democrat voted for that plan and reason it is bad enough on its own but we knew what would come next. the gop skyrocketing deficits are no accident part of the three step plan to dismantle much of what the american people need and want from their government. first, deep cuts benefiting the wealthy with no plan or intention to pay for them. tax cuts. then they shed crocodile tears about the exploding deficits they created and finally they demand extreme cuts that are vital to american families which is what the budget represents. this budget places the entire burden of defic reduction on the middle class and struggling families not even one penny of new revenue. hoses to close those polls and in contrast it assumes a total of $5.8 in spending cuts and
at least $2.1 trillion medicare trillion dollars medicare medicaid and other critical healthcare programs. it would end the medicare guarantee and repeal the affordable care act. with more hundred 99 -- $900 billion for struggling families. even social security and people at disabilities are not spared the gop budget assumes they cut them programs disability benefits which it is described as a first step social security reform. but also significantly reduces investments in education, science and research in transportation and environmental protection and other priorities critical to expanding economic opportunity. while keeping non-defense discretionary spending for next year at their currently agreed-upon level it will dramatically cut these programs in the future. funding will be/from $597 billion in 2019 at
$550 billion. it is not a tightening of the belt. while totally undermining my competitiveness and to fix these problems because the american people want a government that works for them they should have a congress that can pass the budget but how the process is broken it relies on fabricated numbers to achieve the balance with
the experts and independent analysis to provide for the extension of temporary tax provisions with no offset that still counts the revenue from the expiration of these tax cuts. this budget simply does not add up literally. but that makes sense because today isn't about good governing and smart policy but hoping the american families to make our country stronger it is purely messaging and political cover. that doesn't mean this should be dismissed out of hand american people need to see the priorities that the gop's single-minded focus of overall spending to strangle any possibility or to make meaningful improvements but
they do intend to push legislation but then for them to cast a show vote to enact tax cuts for the rich to dramatically increase deficits and debt. however but to use that budget process to enact to the into law the act of reconciliion undermines the key components of the affordable care act. last year they came close to destroying health care for of people despite massive opposition from the american public. so we must take the republican budget seriously if not literally to understand where congressional republicans where they want to take the country it is not a place they want to go i yield back. >> at this time we are still into opening statements and
now the most distinguished vice chair. >> today and tomorrow we will take up the budget of a brighter future it continues to fulfill that promise that republicans made after watching president obama spend trillions of dollars on failed government programs did nothing but drive up spending with little to show for it certainly not helping the economy. according to the cbo my fellow colleagues we are in a precarious fiscal situation our national debt is $21.4 trillion rising. if we don't make serious changes we will add 12.4 trillion in trillion in debt over the next ten years alone. much of this is due to autopilot programs of automatic spending like social security and medicare costing the country and nearly double
what they are costing today that doesn't mean they don't help millions of people and this side of the dais wants to strengthen those programs for people who truly need them. and those that take a different approach while our budget says one -- saves 5.4 trillion in mandatory programs a liberally the decide to continue elevating the failed ideas. what got us into this fiscal mess to begin with. they attack us for working to save medicare and social security and programs that by any reasonable estimation are looking to go insolvent if we take no action. if they say no action is needed to propose no
solutions. we cannot let that happen. true leaders don't let that happen and we make the responsible choice now. we are witnessing a booming economy with an all-time low employment rights which was considered impossible not a single democrat voted for tax reform. not only this committee with the house and even in the wake of the great success we see the results day after day the liberals are still trying to undo the tax cut that helps so many american families today. and it seems like a nearly impossible task but as you point out, it is not an impossible task we all have
programs that we can see that government spent more on with 535 members each with different priorities. republican members that is why it is expected with us there are those of us up here that pay the price it is the children and grandchildren that suffer. it has been my privilege to be a part of this committee over the last eight years and i yield back. >> the gentleman from californi california. >> three members describe everything there is to know 26. twenty-nine. forty-six. 26% combined growth over the
past ten years. 29% is the increase in revenue. revenue husband doing very well but the third number is killing us 46 is the growth of spending over the past ten years. spending has doubled our debt which now exceeds $21 trillion. just to pay the interest cost us $475 billion per year the fastest growing component of the federal budget. our current path within three years interest will exceed what we spend on the entire military establishment for this country. because we carry so much debt a 1% increase of interest rates will cost $200 billion more in annual interest payments but our parties
controlled the house in this government cannot spend one dollar must the house says that it can every year we have been told that they are visionary and the real culprit is the mandatory spending that is beyond our control. these are lies. the lies that we tell ourselves as an excuse to avoid those tough decisions that are getting tougher every year we delay making them. the budget is not a wish list but the most powerful operational fiscal control we have one federal spending. the budget committee is supposed to set limits on discretionary and mandatory spending these limits are real and enforceable. the appropriations committee cannot exceed the limits we set on the discretionary side and on the mandatory side moving into those instructions that are authorizing committees if they don't meet
them the budget committee itself can make those changes but either way we are responsible for producing the reconciliation bill for those statutory changes within the mandatory limit that is easier to control than discretionary ending because the mandatory spending reductions of the reconcile is expedited incineration in the senate those that we put our fiscal affairs in danger we never abused this process not once. we rubberstamp whether leadership has already decided and promised mandatory spending reform next year. always next year. two months after the deadline for markup that increases discretionary spending to cover the 18% boost in in discretionary spending this congress decided upon months ago in the absence of a budget. and it aspires to drop to our
responsible trajectory by promising the same reforms we failed to enact year after year. if we are serious about mandatory reforms that reconciliation instructions enforce those changes necessary to make them we include discretionary limits back toward balance with this year's budget. now to its credit the budget does include $300 billion of mandatory reductions over a decade. and with a trillion dollars to balance the budget over these ten years but we don't mean it. if we miss it and those are the reconciliation instructions all this means is the national debt is $33.5 trillion instead of $33.8 trillion neither are number matters because neither is sustainable and we will not get there.
>> we are on a full errand to reform the budget process changing the process will not make these decisions any easier. whatever the process the decisions will get harder and harder every year we don't make them we are the underlings. the only argument for this budget is even though it makes no change in current discretionary spending and a trivial change in mandatory spending the $300 billion of mandatory reductions is better than nothing that is the issue i am still grappling with to get $300 billion of reconciliation even though we know it makes no significant difference in this fiscal crisis that every year looms closer and closer because of a sham budget. unfortunately it doesn't matter the country is bankrupting itself and we are running out of time and sadly at oc this budget getting
serious or changing course. the changes that it recommends are excellent. but not meaningful they are not reconciliation instructions they just promised reform that we have ma and broken every year that i'm here and i find that very disappointing. i yield back. >> the gentleman from ohio is recognized for his opening statement. >> thank you mr. chair for your hard work and to get us here today and i mean that sincerely it was no easy task should be commended for your leadership displayed and for me personally this will be my last budget in the house and therefore my last chance as a member of the budget committee to act as members of this committee we have a responsive ability to american people to put forth a budget that recognizes the fiscal challenges that we face and those proposed solutions for
the next generation of americans spending my career in the business world here are some facts by 2023 we also pay one -- spend more paying off interest in national defense rising to the highest level since 1946 more than twice the average level of the last 50 years the annual deficits are more than 1 trillion adding more than 12 trillion to national debt and mandatory spending is expected to grow significantly over the next decade right now mandatory spending accounts for apprimately 70% of spending by 2028 that increases at 77%. for too long we have abdicated our responsibilities that we are spiraling toward the crisis is just around the corner but we continue to avoid to make the difficult
decisions god help our children and grandchildren we fail to act this is i am pleased to support this fiscal year budget before us today this is a blueprint and a strong step in the right direction balancing within ten years this budget appropriately addresses our spending problem while also ensuring that the armed forces have the resources they need to keep us safe. and i am pleased this year we have strengthened our commitment to reduce mandatory spending for reconciliation i still think more should be done i am pleased this legislation includes an additional 100 billion compared to the house passed 18 budget it is important this committee produce a budget and i am proud to be part of that i believe we need to for fill our promise to tackle the major challenges facing our country this is a blueprint
and a guide and a starting point and encourage them to support this budget and i you back the remaining balance of my time. >> thank you mr. chairman today this committee is meeting its obligation to roll up our sleeves and establish a budget that addresses our increasing debt and deficit and to emphasize our commitment to important national priorities the budget for brighter american future is a responsible plan versus unsustainable spending and it balances in nine years without tax increases at a time when america is facing threats to our homeland and to our allies and interests abroad this makes necessary investments to
the men and women in uniform providing 716 billion for billion for national security to ensure america remains a global force for peace and stability now contrary to the false narrative put out by the media and those opposed, we also put social security and medicare on a sustainable path for future generations and committees to continue the work to curb the opioid crisis in the firm the need for responsible stewardship of federal resources. this is the budget we can be proud to present to the american people and the right thing to do for today and future generations and i urge my colleagues to support it and i yield back. >> the gentleman from pennsylvania. >> i start by extending my appreciation with those countless hours of work 18
months on this committee has underscored the state of the national debt crisis we are in the sovereign debt crisis with the idea that if we do not as a committee or congress address the $21 trillion debt dollar debt there will be severe economic consequences at some point. each american shares the national debt of $64000. put that into perspective that is more than the median american house called one -- household brings in in the entire year this fails the american people they expect congress to spend their hard earned tax dollars in a responsible manner congress can no longer kick the can down the road and sadly future generations with the
insurmountable debt that is why i am proud of this committee's work to get her nation back on a strong fiscal path. last year the committee passed a sustainable budget within ten years and also instrumental to enact comprehensive tax reform to revitalize our economy. now we are building upon the success for the brighter american future which continues to promote progrowth policies to create new jobs complex money back and the jobs of hard-working americans. as a former small business owner i have seen how regulations threaten jobs and hurt small businesses. our budget reduces regulations to encourage job creation than to stimulates economic growth
it balances the budget in nine years to achieve $142 billion surplus by 2028 demonstrating a serious commitment by this committee to address the debt crisis and it ensures the troops have the resources they need to have the home and safe and most importantly the budget resolution get serious about tackling mandatory spending the biggest contributor to national debt, to achieve $302 billion of mandatory savings over a ten-year period. the budget for brighter american future restores regular order putting congress on track to spend within our means. thank you mr. chairman. >> the gentleman from florida for your opening statement. >> every unbalanced budget and every budget that has out-of-control national debt steals from the future to pay for reckless spending today for all the talk of children today appropriately how can we
face america's children knowing that congress has cost the greatest wave of generational theft in all of human history? i am proud of the house budget committee to bring us to a surplus and reduce the deficit by over $8 trillion steering us away from the fiscacliff and most importantly the house budget takes real steps to address the wild unchecked spending habits bringing us to the brink of financial destruction requiring a minimum of $300 billion of mandatory spending cuts this is a great start not a single person believes government spending is 100% efficient 100% of the time we have countless programs are riddled with waste and many more in need of significant reform this budget hurts improper payments to ensure taxpayers money is spent responsibly to direct our committees to focus on outcomes to improve quality of life of the american people
not just deficit spending inputs. work requirements for welfare and other commonsense reforms are crucial we are glad to see these and look at medicaid. why do we keep borrowing money from chi payor healthcare for those able-bodied people without children who could work but choose not to? to restore power back to the states as the tenth amendment promises and as the founders conference -- through other programs through flexibility and better outcomes. so they will claim we are cutting the safety net for the most vulnerable in the opposite is true to be overburdened by waste fraud and abuse for so long it is to the point of breaking we are making the safety net stronger for those who truly need it to ensure it is sustainable for future generations i am very proud of this budget and i was proud of the last budget.
and shamefully i believe the house of representatives was derelict in our duty when we accepted the senate budget to continue to pave the way for more reckless deficit spending. i encourage my colleagues to vote forhis budge and i hope this time we will show more guts when dealing with the senate. i yield back. >> the gentleman from texas. >> thank you for your leadership it has been a pleasure to serve on this committee and it's nice to know there is a group of legislators that will heed the call of the american people to do our job and get a budget that works that we can live with in our means like every other american. household, business, community, federal government the only thing that spends like there is a money tree at the treasury and there isn't.
this is a deferred tax. when a saw mom -- when a sovereign debt crisis occurs and it will, it will be cap next on our country and our country's economy and it will be a black one -- bleak and abysmal set of circumstances for kids and grandkids. we know what to do i am pleased with the policies we suggest as we lay out the blueprint like restoring the value and dignity of work and allowing people to come up and out of welfare to realize their greatest god-given potential obviously as mr. gates said there is no 100% efficient program 100% of the time and much reduction
could be realized in improper payments the list goes on. but the reason the national debt is the greatest threat to the future of this country with kids and grandkids is because it is such an event occurs, got help us, us, then we will not be able to have the highways and byways to move people in product efficiently throughout this country andevastating on the economy we don't have the means to project american power and establish the peace through strength that we see even now with this president you don't have to have a president that is willing and then the ability to project american power and we can't do that very well if we should have a sovereign debt crisis.
i am from west texas were agriculture is the lifeblood we produce the food fuel and fiber to feed the american people enclose the american people but you cannot have a safety net or infrastructure with the national sovereign debt crisis. it is the big one and i'm proud that we attack that not only with the blueprint that walks us to a sustainable path of the deficit ultimately reducing the debt in less than ten years, but making a meaningful down payment of a reduction of mandatory spending. we all know that is driving the debt the auto spend 70% of the budget. so mr. chairman, it has been confirmed to me with my first term in congress that we are
not short on policy solutions to address our national debt but we are short on the political courage to do wit collectively we did this last year and senate to one -- sent it to the senate and we put another $100 billion in savings to sustain these programs like social security and medicare to get ourselves back on the path to prosperity. for kids and grandkids. thank you again for your leadership and i'm proud to support the budget for brighter american future because we have decades of spending for the bleak and abysmal future i am all in and count me in to keep pushing this forward god willing to get out of this committee to
the house and senate and president's desk where it is the law of the land. >> the gentleman from virginia is recognized i yield back at this time. mickey does not choose to make an opening statement you are at the tail end of the majority side. when you are finished unless another majority member comes in i will yield who will command 45 minutes of time we are 16 minutes ahead of schedule. >> in that case i'm happy to proceed he has 16 and a half minutes. [laughter] and then i will be really disappointed if he uses all of that. >> i am proud of the work
republicans have done on the budget over the past 20 years my colleagues have noticed the entire intergenerational theft and so i applied our commitment to fiscal responsibility last year there was a lot of talk about that tax cuts pay for themselves in the chicago economist and mainam media all of a sudden found out about the term deficit for the first time in decades. and i was happy with that so at the time saying the tax bill would pay for a third but the more interesting question is what rate of gdp do you pay for the tax cuts? 3%. the tax cut itself may not pay for but the republican agenda will because now three weeks ago the federal coffers are
overflowing the atlanta fed has is growing at four and a half% gdp next quarter which is unheard of and none of this has been reported that coffers will continue to overflow. so i applaud the tax cuts and want to make that clear. however at the end of last year the discussion went away on the deficit because to pass the budget after the house did a fantastic job to pass the appropriation bills then that was about it but at the end of the day to get nine senate democrats we had to close up the budget for hundred billion dollars and not a word about that that was not paid for so the republican tax cuts got plenty of press when they were paid for if you get growth
next quarter industry% for the year in the tax cuts are fully paid for. in contrast in order to get those at the end of the budget cycle last year we had 2+ at 40 sextillion over two years and those are not paid for no mainstream media reporting on the deficit. it provides the perfect contrast do we want pro growth policies or slow growth economy and i thank you couldn't ask for a more stark contrast with all of this on top of the biggest issue of our day taken literally the word that starts the t trillions. unfunded liabilities with entitlement spending over
$100 trillion of unfunded liabilities to place on the back of the kid. one week ago the medicare report came out it will be insolvent in 2026 and eight years upside down. and this committee under republican hands is doing work to address mandatory spending and at least address those issues. medicare social security upside down 2034 so we would love to work across the aisle that will require a bipartisan effort and trust we just don't go politically to blowup the issue. in eight years 2026 with medicare that is a real cut about 20% cut for the next generation. so we need to solve that problem so our committee from last year worked overtime on that issue.
that we didn't need the teamwork we needed on the other side of the aisle for that issue and the senate would not accept any of that work. i tried to get that my goal to get the senate to come on board in a bipartisan fashion and to hear from our own senators they want to go forward with the budget if the senate doesn't, the final piece we do not get to reconciliation we use that for republican policy f the tax cut package now generating 4% growth so i look forward to talking with u.s. senate colleagues. i want them to open up to say yes you will not give up the most powerful tool in the quiver to do reconciliation impasse legislation on the
behalf of the american people and address what will happen this year when we try to address mandatory spending which you know you go from one third of the budget package to now two thirds of the budget package. that is very stand. we have huge problems i want to hear input if we can move forward. we can do work on the side but it will be groundhog's day if the senate will continue to stonewall and not take action on behalf of the american people i upon the work of my colleagues my wing to hear from our colleagues on the senate side to make real world progress. in the most impact in my mind is the deficit next year and i want to make real inroads on that number. that best indicates how much we lay on to the next generation thank you mr. chairman. >> the chair now recognizes my
colleague from arkansas for purposes of an opening statemen statement. >> thank you mr. chairman. i'm grateful to have you and your leadership for your tireless efforts to balance the federal budget with such a task that seems impossible yet we have a framework not only in ten years but nine years i arrived and called on -- and congress seeking to make a better place to raise a family and work i'm committed to the laws that will help americans not just today or tomorrow but in decades to come the cbo has shown under the current system the federal deficit will only continue to grow with each passing year that congress continues to spend more money than it brings in we risk losing credibility in the international marketplace.
as a committee of jurisdiction we must protect future generations from such a fate the spending must be reined in and growth must be slowed to be closely aligned with incoming revenues and economic growth here in the united states. i am pleased this resolution addresses both social security and medicaid spending these to account for a huge portion of federal spending and projected to go at the unsustainable rate of congress does not act. this budget resolution slows growth of the federal budget but perhaps it is time to make minor sacrifices now to ensure children and grandchildren don't have to make major ones in the future today i hope members from both sides will take seriously the consequences to fail to limit growth as we pursue our goal of prosperity and i yelled
back. >> the gentleman from arkansas left the records reflect majority site has eight remaining and we will try to top that as i yield for purposes of an opening statement to my friend. >> mr. chairman i would like to yield initially to the gentleman from massachusetts. >> thank you to my colleagues. first, the republicans passed a tax tax bill without a single hearing where the opportunity for democrats second the cbo latest budget estimated the tax bill would increase deficits by $1.9 trillion over ten years even with the savings from any economic growth. i understand the richest americans and corporate ceos would fully support this budget resolution which demands and cuts to
hard-working americans so they can keep the bigger part that kids and seniors do not in rely on access to social security and economic growth of this budget is doomed but it doesn't have to be if we don't have a healthy workforce. the veteran demonstration requires adequate funding so servicemen and women can have the best healthcare and benefits they have earned the young men and women who have served whose lives depend on the support of a fully funded diplomatic effort and they depend on us as well. the second national security requires more than bullets or walls you don't find the state department fully then i need to buy more in munitions strong national security requires diplomacy and for need to prevent war and broker peace in times of conflict and
rational immigration policies and homeland security programs and adequately funded law enforcement programs to keep us safe at home and the economy a source of national strength to be growing inadequate funding of leadership to provide healthcare and benefits earned by those who serve in uniform which i think is commendable they deserve the best healthcare in the world. the state department helps people to be radicalized protecting people at home and also protecting the lives of our troops overseas so let me be clear cutting funding for diplomatic efforts or more american troops will dices this last year over 151 generals and admirals and 12 undergraduates from all 50 states have written congress threatening the importance of foreign agent national security and advocating against the cuts to these
programs in the budget with diplomatic budgets currently only make up 1% of the entire federal budget it is a small price compared to serving them into harms way and i yield back. >> i would like to recognize the gentleman from washington. >> one -- gentlelady from washington. >> those that are struggling to adapt to a rapidly changing economy hours have priority in congress should be helping to ensure every american can succeed in the 21st century to expand opportunity and invest in the foundations we need to sustain long-term economic growth and security. to have robust job growth to expand access to build the economy in which anyone willing to work hard and get ahead to build a future for themselves in the next generation. this means taking a balanced
approach that cuts wasteful spending and investing in the program for families and jobs and provide the economic security for those in need. the majority had an opportunity to work on a bipartisan basis but instead this budget leaves too many citizens out in the cold to make cuts that helps millions of people including working families achieve a basic standard of living that is why i strongly oppose the defense resolution. they ran to their tax bill last year at the ceo estimates will increase $1.9 trillion as predicted the new york times reported companies buy back a record quantity of their own shares during their first three months according to the
report totaling $178 billion of shares that is 42% higher than the same. 2017. now to pay for this reckless tax hike the majority is demanding to see cuts to programs designed to help millions of americans and in fact this budget cut $923 billion overall for mandatory spending that provides assistance to low income individuals and retirees people with disabilities and the unemployed. these programs include the supplemental nutrition and temporary assistance for needy families and supplemental security income program. every dollar we spend or cut is a reflection of our values i'm equally disappointed this partisan extreme budget has a disregard for the middle-class and low income americans and a
complete lack vision for what the future could look like with smart targeted investments with the people and projects that lift up the americans we should be helping. slashing programs in order to slash taxes for the wealthy has never led to jobs or economic growth and it never will. i yield back. >> now to the gentleman from new york. >> spending 45 minutes listening to our colleagues on the other side talk about passing on debt and deficits to the next generation but it will cost $2.3 trillion over the next decade which is the fastest and largest accumulation of debt and deficit in america we are told these tax cuts would pay for themselves through the magic
of dynamic scoring or rebranded supply-side trickle-down economics obviously has not worked and it will not work here not a tax cut in human history that ever pays for itself we are told every household in america will see between four and $9000 annual increase of the annual household income but that is not happening in will never happen. now because of the debt and deficits they have created they are going after, shocker, medicare. to have that voucher to purchase the health insurance policy on the, pre-existing conditions that is the reason why medicare was established in the first place prior to 1965.
it was very difficult for somebody as an older american to purchase a health insurance policy because they didn't want to write a policy with a higher utilization rate with pre-existing conditions. the major objection to all of this that the campaign promise with all the bluster about making america great again talks about a big beautiful infrastructure bill that get proposes to spend $200 billion of federal money over the next ten years that is the equivalent to the american taxpayer spent building the roads and bridges in iraq that is an appalling lack of commitment to this nation and its economic growth. also proposing for every $6.50 of state and local taxpayers come up with the federal government will contribute a paltry one dollar.
that is not an infrastructure plan that would create 35.000000 jobs with a 6.9 million 9 million jobs per year or 575,000 jobs every month for six months. in ad $300 billion annually dollars annually to the economy which would increase in economic growth of 1.5% beyond and 2.5% of what economists project that gets us at 4% economic growth growth in the last time we were at 4% was 20 years ago with 300 billion-dollar budget surplus and we created 22 million jobs. i would respectfully request we get back to rationality doing what is necessary to grow the economy and reduce
debt and deficit to do our jobs and i yield back. >> i yield to the gentleman from california. >> thank you representative. today's budget resolution completes the gop's three step get trillions of dollars to the riches of middle-class working families with the reckless tax plan giving 83% of tax benefits to the top 1% and explodes the federal deficit by $2.3 trillion even after accounting for savings of economic growth and now my republican colleagues point to the huge debt they help created and instead of working in a bipartisan way for solutions to address our fiscal situation, they demand
like medicare and social security and the affordable care act that millions of hard-working americans rely on for healthcare and retirement security and today i was especially disappointed to see this budget as a statement of values ignores immigration reform or the cruel games this administration is playing with family separation over the past six weeks over 2000 children have been forcibly separated from their families by agents and as a parent i cannot imagine anything more horrifying than my children being taken from me and not knowing where they are were who is taking care of them. . . . .
by funding a costly and ineffective border wall and overly aggressive immigration enforcement practices. it fails to implement reform or reinstate the program. those eligible for or enrolled tcontribute $1.8 billion annualy to states and localities. economists say reform could reduce the deficit by $900 billion, increase productivity and grow the
economy by 5.4%. i hope we can address these and put forward a budget that reflects the nation's valley is, a nation built by immigrants. i yield back. >> thank you for the ranking member. every day americans are in active thoughts in this budget. every day brings new examples of the manner in which the current president governs. his zero-tolerance criminalization family separation policy, which i witnessed firsthand in mcallen and brownsville today which he could end immediately if he chooses to do so separate frightened children from their mothers and fathers for no legitimate reason and this is a
spirit of his entire life. there's nthere is no legitimates to strike fear in the hearts and mothers are t or to strike feare hearts of children. but know that some of the deployment of the trump deportation force and other acts are no less cruel. my angela was right when show one day because someone shows you who they are, believe them. how else describe this hope ande and opportunity taken from millions of families that are showering corporations with unnecessary cut. what is alarming and frightening is this budget is dangerous on national security. the cuts in nondefense funding and the budget reveain the budge seemingly narrow understanding of th national security. it involves or is the critical component of the national strength and greatness such as economic opportunity and diplomacy, international alliances, communities and
educated citizenry by the budget a growing economy is the key to the national security foreign policy experts from both sides of the aisle agree with the strong economy it is important that go across education transportation research development as the former director and deputy 2016 the health of the nation's economy is the single most important determinant in its ability to protect itself. this cuts education research 131 billion transportation 317 billio317 billion eliminatek grants, cuts funding for diplomacy and foreign aid by more than 7 million mandatory spending which deals with veterans benefits and services and does nothing for the young people, 3 million of them who are engineers, lawyers and doctors, people in the united states military who are recipients and others waiting in line. it undermines diplomacy and
foreign aid and for example, the debacle of the comments made internationally by the commander in chief is nothing that is in the budget that would have us collaborating and working together. the budget ignores that cuts for the state department u.s. agency for international development by nearly 30% for the nations of honduras, el salvador and guatemala that are those people are fleeing from some of them have been given the resources that those people that are fearful can stay in their country and grow and prosper. if you don't fund the state department and we need to buy more ammunition. finally, let me simply say to all this is a budget that doesn't recognize the need of all of our people and neighbors for nearly 75 years at the end of world war ii, the world has been impressed by examples of
american power and what has inspired people the world over is the power of the inanity and power of our love and power of caring. that is an example that will stand in this budget undermines it was a great lacking in moty. i yield back the. >> to the gentle lady from washington. >> >> i think the ranking member and i have to say i hoped we would be doing something where we could find bipartisan agreement. i am extremely disappointed with your looking at today is a budget resolution from the republicans that does little to help those who are in need. this resolution shredded the safety net and take us swipes are earned benefits and they are earned benefits and not entitlement programs. people pay into programs like social security during tiger working life with the promise they will be taking car taken cn they retire. republicans are backing back and
reneging on that promise, the ae burden that falls on our elderly, black and brown, low-income americans. sadly, this is part of a dance. this has been a dance to help earn benefits for millions of people. step number one was enacting the tax and transferring millions of giveaways to the wealthiest corporations. they exploded the deficit entering the richest in the nation are not paying their fair share. thwhat's tax revenue is the rean our deficit is skyrocketing to nearly $2 billion in the next ten years. they are doing that. step three,/critical programs like medicare, social security, chip and other earned benefits programs. that is what thi to the budget n is all about in just six months
we've already started to see the results of these heartless efforts americans for tax fairness find corporations are spending 42 times as much on the buybacks as they are on worker bonuses and wages when it comes to their savings. authorizations for the buybacks that increased by $279 billion since the tax law was passed. workers are getting very little late if they get it they are getting i it and one-time bonuss and wage increases that are not sustainably implemented. it largely benefit the richest shareholders and not middle-class workers. this republican budget resolution fails to implement comprehensive immigration reform and fails to reinstate the program and take an unbalanced approach to homeland security by zeroing in on immigration and what they call it illegal
immigration. it focuses on an ineffective border wall and aggressive immigration enforcement and ramps up spending on heartless policies. separating children from their parents to deter individuals migrating is not only cruel and inhumane, it is also a legal. people have heard me talk about this all week. i visited a federal detention center with 174 women being held in a federal prison. babies taken away from their parents as young as one year old. these are the approaches that this budget continues, but we know that if we were to pass immigration reform, that we would increase contributions from economic contributions to this country and everybody would benefit. begins at immigration reform plans could reduce the social security shortfall 8%, extend the life of the combined social security trust fund by two years. mr. chairman, democrats are ready to work with the majority
to develop a budget resolution that helps working families across the country. thank you and i will yield back. >> i now yield to the gentle lady from new mexico. >> thank you, mr. ranking member. this budget is the antithesis of fundamental american values that teach us to ensure and the disabled americans have the support they need to live their life to the fullest and independently and everyone has access to health services and tools they need to care for their families and to be financially secure. now, i have fought prior efforts to undermine those values and despite quite frankly this is no different. no matter how much my republican colleagues call this budget a brighter future this proposal jeopardizes the health, wellness and economic well-being of
millions of americans. the only person this budget serves as vice frankly speaker i ryan. the budget accomplishes all three and no state will be devastated more by these extreme cuts than my home state of new mexico. half my state is on medicaid and we have one of the highest rates of seniors and children living in poverty in the nation. cutting medicaid by $537 billion in medicaid by $1.5 trillion lead to a much darker future than the most vulnerable. it will repeal the affordable care act. they were only able to obtain health insurance because of the affordable care act protection.
the policies are nothing new and are the result of an ideology that portrays hard-working families. if you want to see what happens when you pass a budget like this, look no further than my state. it's the highest poverty rate and food insecurity rate and some ooneof the highest unemplot rates in the nation. to invest in schools and students and teachers because our state ranks 50th in the nation of education and these outcomes which have led to so much suffering are the direct result of hyper partisan policies that have decimated job creating investments, destroyed the healthcare infrastructure he and ignored our children's future. assuming we will have faster economic growth that magically balances the budget after ripping 6 trillion from economic development and poverty education and job training
programs is as harmful as it is absurd and most of all, it is an insult to over 2 million who've been down this destructive partisan road before. i would urge my colleagues to oppose the budget and yield back. >> to the gentleman from new york mr. jeffries. >> the distinguished gentleman from the commonwealth of kentucky thank you for yielding. this further reinforces republicans are committed to a three-step plan to give to the rich and make every other american pay for it. first we passed the republican tax scam were 83% of the benefits to the wealthiest 1% in america. since enacting this reversed robin hood law there was a growing mountain of evidence that the republican tax bill is simply a huge giveaway to
millionaires, billionaires and corporations. second republican tax cuts for the rich. the gop tax scam will increase by $1.9 trillion over a ten year perco even with the so-called potential savings from economic growth. further, republicans now point to the deficit demand huge cuts to crucial programs americans rely on like social security medicare and medicaid. the bureau of labor statistics reports the average number of americans saw a $6.21 increase in the average weekly earnings which would result in $323 of annual wage increases.
short of the $4,000 of annual increase is projected by president trump and house speaker ryan and miniscule when compared to the benefits going to the wealthy corporate shareholders and billionaire boys club. additionally the tax bill would serve as quote unquote rocket fuel for the economy and has inflicted to any lef anyhasn'tlr in average hourly earnings. according to the bureau's support of the average earnings dropped by 0.1% from may 2017 to may of 2018. now that they have worsened the gop budget resolution is step number three in their three-step invidious plan to give to the rich and make everyday american pay for it. rather than working on balanced
solutions to preserve the benefits for american families, the budget resolutio dan unacceptable cuts to things like affordable housing. at-risk households that are eligible for the rental assistance gets no help working families cannot make enough under the laws before they even modest departments in many rural and urban areas. 71% of extremely low income, 32% of the variable income of 8% of low income and 2% of middle income households spend. with a crisis throughout many parts of the country because of the supply of affordable housing has failed to keep pace with rising housing costs and the growing wealth inequality gap.
they face shortages in every single state and every major municipal area of the nation. marceau and the justification impacted neighborhoods in many cities throughout the country including those areas that i represent in brooklyn without the fully funded affordable housing programs are economic results and th in the loss of affordable housing and causes, brand and existing communities to dramatically increase. these trends displace working families that are often longtime members and the lifeblood of their communities. despite the overwhelming affordable housing crisis gripping the nation, the trump administration continues to pursue cuts to the affordable housing. simply to subsidize the tax cuts for the wealthy and for the well
off in the corporations in this country the american people deserve a better deal. i yield back. >> i think the gentle man. we have two members on the way so i will filibuster for just a minute. we still have plenty of time. i would just like to say as mentioned groundhog day this is my tenth year on the committee and i will say that many of these budget markups have resembled groundhog day and we have heard from republicans many of the same arguments and we've heard from our members on the democratic side many of the same arguments. and we have continually talked about the fact that in particular since the republicans have been in the majority that republicans always want to talk about the spending side of the budget that they never want to
talk about the revenue side of the budget. second this budget follows that pattern. the only difference between now and the previous few years they were finally able to achieve the tax cuts that they dealt with the revenue side unfortunately, not in the way that we think is more fiscally prudent because what they did was as many of the members pointed out, they enacted substantial tax cuts for the wealthiest corporations and unfortunately our now trying to pay for the tax cuts for those that serve middle-class americans and struggling families. this is the single most important contrast in our view on the budget, and i'm not necessarily saying there is no
validity to the public argument. certainly, we should always be looking at spending with great scrutiny making sure it does serve the purpose for which it was intended and contributes to the general welfare of the country. when you look at the revenue side to make sure we have a revenue structure that will provide the kind of resources that we need to serve the public the way the public wants to be served. so, that i think is what you will hear reflected in the amendments offered in the amendment through account. just to show you where the sentiment is expressed, i would like to read into the record a letter from the american federation of state and county employees asked the regarding
the budget on behalf of the 1.6 million members of the american federation of state, county and municipal employees, i would urge you to reject the house majority fy 2019 budget resolution being considered at this week by the house budget committee. this is the worst kind of budget for working families. it doubles down on the costly regressive tax cuts while weakening the essential programs for the working families like medicare and medicaid and it includes yet again the repeal of the affordable care act to take away health care for more than 10 million americans and cut health care by $2 trillion. the fy 2019 budget resolution cuts almost $6 trillion from economic assistance and health programs while adding 2 trillion to the deficit is even more tax cuts for the wealthiest among us. the resolution seeks to cut up to $1 trillion from medicaid to destroy the guarantee and eliminate health coverage for
millions of working families. the resolution calls for staggering both a trillion dollar cuts over ten years to the vital initiatives for ents, veters come hungry families an, hungryfamilies and. just months ago, congress came together for a bipartisan spending agreement to support critical programs that have been undermined by a sequestration and austerity in recent years. the house 2019 budget resolution would undo that agreement by going after the very programs working americans rely on the most. the budget undermines traditional medicare while squeezing $537 billion out of the program in ten years. the budget cuts $4 billion from social security by capping the most vulnerable retirees. the changes are distressing the budget would undo much of the expansion that states continue to implement on their own leaving the cash estate and workers on their own.
by imposing on the requirements. i would urge you to oppose the 2019 budget resolution signed by ththe director of federal government affairs. i just want to be at a rate that is our primary objection to the budget that after finally getting the tax cuts we have sought after for so many years and as we predicted, they will be paid for by struggling families and hard-working families through the country and we are asking absolute way nothing of the people that have continued to benefit most from the american economy. so, if she is ready, she settles into her seat, i will yield to the gentle lady from illinois is schakowsky. >> if i can ask how much time do
i have. >> we have five minutes left. >> the republicans are committed to their three-step plan to give to the rich and make everyone else pay for it. step number one they pass the republican tax scam to benefit the rich and since the enactment, there has been a growing pile of evidence that the tax law is a huge giveaway to the richest americans and corporations. the tax cuts for the rich was a major factor in exposing the federal deficit. in the latest budget and economic outlook, the estimate of republican tax scam will increase deficits by $1.9 trillion over the next ten years even with the savings from
econom growth and a step number three, they point to the exploding deficit and instead of working on a balanced solution, they demand huge cuts to critical programs americans rely on. i'm going to skip for the second. i want to talk about the 50 million-dollar tax windfall over investors. the pharmaceutical industry is using a large portion of its windfall from republicans, corporate tax cuts to boost its stock prices. drug companies are spending a combined $50 million on new share buybacks from that tower over investors and employees or drug research and development. the bottom line of those who
buybacks were announced during or after the passage of the republican tax bill. that money is enriching hedge fund other investors in the top company executives but it isn't necessarily helping patients. as many as one in four americans report difficulty paying for their medicine. when the price goes up another illnesses go unmanaged. drug companies know this of course, that have been sticking to the business as usual. since trump took office in january, 2017, the prices of over 2500 drugs have increased by at least double digits in almost 40 have increased by triple digits or more according to the new analysis released by senator booker of new jersey.
he should have the remainder of the time. >> i'm sorry. that's fine. i will yield back. >> to the gentleman. >> thank you ranking member. i want to speak about the cuts to the earned income tax credit for the child tax credit. it's not just that this hurts the working class americans but it hurts our economic growth. if you look between 2005 and 2017, 81% of americans have seen their wages stagnate or decline. that is just the fact, 81%. and at the same time the vast majority of americans have seen
stagnant wages you have had the corporate profit at record highs. what this does is take away the money from working-class workins families, those that are working two jobs that may not be a part of a union or are struggling to make ends meet and rely on a childcare tax credit to support their job is making those cuts to fund investors and shareholders. it's the wrong strategy for economic growth that depends on the demand and the hurting and punishing the families that deserves a raise the most and that's why we need to reject this project. i will yield back my time. >> we do yield back the balance of our time. >> to proceed with the question
and answer session of the resolution on the budget. we will have at the witness table very shortly mr. watson director of the budget review. he's been on the committee staff since 2015. welcome to the table. the director is principally responsible for the technical development of the budget resolution of supporting tables and materials and ensuring that the mathematical accuracy of such. also as the policy directo is tr the committee. welcome back. mr. watson is available to answer technical and factual questions members may have. members are asked to only ask factual questions and if they begin to stray too commentary or political comments, the chair
will gavel. there will be plenty of time for the members i promise. >> i appreciate the staff being willing to answer questions about the budget resolution. first question deals with function 600. the mandatory savings of the 923 billion i have some questions about where those come from. do they expect states to pay an increased share of costs and when would the policy store and how much savings is assumed for the policy over the ten year window and what other policy changes are assumed and what are the budget effects?
>> the budget would provide savings to the program through the reform. the first would relate to increasing the requirements and that would save $15 billion over ten years. the second reform would eliminate broad-based categorical eligibility. that would save $10 billion over ten years. the third reform would eliminate the link between the program and automatically increase snap benefits. the fourth reform would be to limit the maximum balance on the account to three months worth of benefits. and the final reform would be to increase state flexibility with
the intention of making the program sustainable. the reforms would save $157 million over ten years. >> how much of the savings comes from the temporary assistance for needy families? >> a couple reforms, first is increasing the enforcement of the work requirements under the program by eliminating the state waivers that would save 12 million over ten years. the second is to eliminate a contingency fund which would save 6 billion over ten years. how much of the savings comes from federal retirement and militaryetirent? >> in terms of federal retirement, the biggest reform in that area would be giving to
a 5050 contribution with relation to the program. >> how much comes from changes to the earned income tax credit and how much from the child tax credit? >> how much of the savings comes from child nutrition program? >> we have one illustrative option in terms of child nutrition programs that reform would refer to changing the community eligibility program. how much comes from changes to the supplemental security income? >> 24 billion over ten years would come from those reforms. >> what is the remaining
difference? >> changing the first formula to the average compared to the current wall in increasing the minimum retirement age to 60. second, the we would eliminate the unemployment insurance and disability insurance. some of the savings from that policy would float into the budget function 600. the budget would also include an illustrative option and eliminating the special retirement supplement and then finally, the budget would include as an illustrative option modernizing child
enforcement. the budget provides numbers to the authorizing committee and the authorizing committees have the full flexibility to make funding decisions within the delegations. >> you have estimates for each of the items for instance the five-year average versus the three-year average? >> that wednesday's $6 billion over ten years. no current receipt of the 600 savings from that policy saves $500 million over ten years. the support enforcement would be $14 billion over ten years and then the special retirement supplement would save 5 billion over ten years. >> thank you. did you have questions?
>> the budget assumes 1.54 trillion in spending cuts from medicaid and other programs over ten years. i wonder if he would walk us through the components that make up the $1.54 trillion. the. it would be the house passed american healthcare act legislation in the total savin savings. there would be two elements wone s. work requirements for medicaid and the other is changing from the district of
columbia. the budget assumes the republican house passed plan to repeal it in place the american healthcare act. its son. he is the son. in other functions? >> at all. in the health function. >> they convert medicaid into a per capita cap or block grant and end of the funding for the medicaid expansion population under the aca and make other changes to the program. you have an estimate of the total amount of the savings in the budget attributed and is that the 1.3? spinnaker that would be the
total. the difficulty is the cbo score of that legislation published off of an older baseline. we worked to come up with the best estimate we could savings that would apply after the passage of time under the new baseline for the aggregate. i don't have because it affects so many things the score for the medicaid compliments under the baseline. >> is there any plan to get a? >> we would be happy to work with your office. >> what is the total amount of savings assumed in the budget from establishing a mandatory work requirements in medicaid?
>> $132 billion. what is the total amount assumed in the budget from changing how federal matching funds are calculated for the district of columbia? >> $8 billion over ten years. >> what is the total amount of savings assumed in the budget for medicaid integrity activities? >> the budget doesn't pursue savings from that area. what policies account for the remainder of the $1.54 trillion, does the budget assumes savings from additional changes to medicaid and if so how much and what are the policy assumption generating the savings? >> it would be a couple items related to the benefit program. the contribution would be sent as inflation and then the
federal employee health benefit program would be based on length of service. >> said they would seso they wor pinch of? >> it would grow with inflation. >> and there's a savings attached to that. >> 37 billion in terms of contribution and then the length of service for the 5 billion entities would be illustrated in the authorizing committees. i know i don't have 49 minutes left but tell me when i need to
stop. >> the recessions package doesn't include any savings assumed or any other proposed changes in the program. >> other than the recession that doesn't cancel any money that would be spent. >> why do you mention that if there is no savings or change? >> because the budget includes the recessions package which included the compliment i wanted to mention that cancels budget
authority but not any that was going to be spent on the outlay. >> doedoesn't assumes savings fm the changes of the medicare eligible health fund? >> it does not. >> doesn't assumes savings for those retired and current civil servants and is that you are whu are talking about in the federal benefits? >> those would be the reforms i just mentioned. >> your budget says it is the policy of the resolution combating opioid abuse using available resources remains a high priority. does this mean you do not intend to provide the resources to combat substance abuse? >> our budget speaks to that to the appropriations committee at the level of 1.244 trillion providing the necessary
resources to fund important priorities which is an increase compared and also through the $5.7 trillion total spending a little over ten years within the health function. >> have failed each other and -- we already determined or do we not know? >> we believe those spending levels would accommodate the priority for this issue. >> and how much is that? >> 1.244 trillion in terms of the allegation in the appropriations committee for which thewhich they've make decd then type .7 trillion within the budget function.
>> so with that in terms of the combating opioid abuse, that is enough? >> that would be included in the total amount i just mentioned. >> thank you, mr. representative. the budgemr. representative. the budget includes 231 billion in cuts in the education area. can you walk us behind the assumption? >> yes, sir. one component would be under 500 related to the social services block grant. that answers part of your question.
>> as a 17 billion-dollar cut. >> the social service block grant as an illustrative office would propose to eliminate. >> what would that mean would be cut? >> block grants to states would be eliminated other sources of federal funding programs that provide similar services. >> without the servicewhat are t would be provided? >> just a couple of examples i could provide i would be happy to talk further to provide more information comes of the programs that a couple would be the various childcare programs.
i just want to understand the. the budget proposes to eliminate obviously the authorizing committees have the discussions to meet the targets under the budget within the function of 600 income security overall we have an increase worse than $5 trillion over ten years. >> so the cuts as i understand are in the temporary assistance for the food stamps food assistance supplemental income.
those are the $231 billion. >> let me speak to the more illustrative policies included in the budget function 500. the first would be related to the pell grant program we would propose to convert a mandatory funding in the program that is in the cbo baseline to the discretionary baseline on the equal basis. the program would be funded in the same amount only about the fund and the discretionary spending as opposed to the mandatory spending. >> meaning so where is the savings coming from? >> it would be converted from the mandatory side to the congressional side which makes the reform subjecting it to the
annual congressional control. >> so the assumption is that at some point it would be cut. >> the assumption is that it is converted from mandatory to discretionary spending in terms of the stock portion of end there continues to be under current law most of the program is discretionary. >> on the budget resolution to assume 157 billion of mandatory cuts in function over a ten-year window can you walk us through the assumption behind that number? the >> in terms of the policy options that the committees may consider, some of them may be the early liquidation authority.
second, eliminating funding for the consumer financial protection board. third, eliminating funding for the financial research fund. fourth, we think it would include as an illustrative policy options appropriating federal financial regulators to rely on the mandatory funding fifth, providing a competitive market in housing finance in other words making reforms to fannie and freddie six requiring federal financial regulators to use the pace scale and the final one i would mention is eliminating the scc reserve fund. in the budget cuts. 59billion in inventory spending. what is the policy assumption
behind that.y within the context of increasing spending. some of the reforms would include one option would be modernizing the individual unemployability program another option would be to reform post- 911 monthly housing allowance is based on family size the third would be reformsbe to the home loan guaranteed funding see rates. and then another option would be reforming the growth of education tuition. and then finally. reinstating the round down of the adjustment.
my understanding is that you assume an annual average growth rate of 2.6 percent. >> yes sir. >> and this is a bit higher than that congressional budget office. the economist i've talked to said if we've had medicare for all public tuition. you had 3.6% economic growth. digger numbers had any more validity than my numbersn how do you come up with 2.6 percent. it's in between the estimate of 1.8 percent. and that's cautious with regard to the historic average of the american economy which is about a fifth 3%. it's just an assumption you're making correct.
the budget projects 2.6% annual average growth that is the projection under the budget.. since 3.6% growth that there be any difference. i could have that assumption you're making your assumption. the rule of thumb have a link between the amount of economic growth that you get in deficit reduction. that flows from that. essentially for each .1 percent of higher economic growth you receive a fiscal dividend of about that much. 22.6 percent. that produces macroeconomic and fiscal benefits of
$1.67 trillion over ten years. the only thing that has ever grown at the american economy and the has been the investment in the middle class. i think there is a false inflation of economic science. republican administrations run it up with false growth rates. and i left with cleaning up those deficitsp and yet you get to have full economic growth assumptions again and again. i think it's important for people to understand that these are just totally made up assumptions and that the only thing that is actually ever grown this american economy is he the humannt in capital and the middle class. it's only forgetting factual information.
thank you to our ranking member. i have some questions on some other functions piece of this. the numbers that you have both mandatory and discretionary. let's start with government wide savings. $948billion million dollars in mandatory savings. what does that representt and there also seems to be a strange pattern in the savings there is a big dip in 2024. can you explain for that pattern as well. within budget function 930 mandatory savings. the largest proposed mandatory savings would come from reducing a government wide improper payments by 50%.
the budget would propose the return to the short-term treasury security under the thrift savings plan. which would save $29 billion over ten years. third, the budget control act includes a mandatory sequester the budget would propose to extend that sequester s through the window. and then for the getting to your question in terms of the date you mentioned. that relates to counseling timing shifts that are in the budget and standardizing to 12 monthly payments on a yearly basis.
under current law you have some years where you had 11 that of has your effect. in terms of canceling that timing shift. you'd had to take that into account. the improper payments that you mentioned. how do you come up with that. according to the gao. there's a hundred $40 billion of improper payments last year. the projection is that over the ten years that would be
improper payments of $1.7 trillion over ten years. the policy goal of the budget in the last five years of the budget is to eliminate half of improper payments and that leads to the number. on the government wide discretionary item. this shows increases in outlays through 2021. but the budget at the ready reductions in the same years. what assumptions account for those patterns. in terms of discretionary spending the overall budget is to be there for 2019. and then for defense we have growth and base defense spending.
nondefense discretionary spending and then it revertss to the 2021 freezes. in terms of your question the budget function 930 works out the math. between the rest of the discretionary budget functions. and the amounts needed. but you are assuming 5% growth. for base defense spending it would grow by 5% and 2020 and 2021. i have a question about the special discretionary categories.
and do they get cap adjustments or they just assumed based on that. >> the budget would provide those.>> for reconciliation i will start on that. it calls for hundred $50 billion in savings. can you walk us through the assumptions behind that target. the reconciliation target is set by the budget recognition. the committee could not bind those decisions.
oversight and government reform. thirty-two. the budget resolution sets the targets and the authorizing committees have the power and flexibility to decide how to meet it. the budget assumes $537 billion in medicare mandatory spending cuts. i need to drill down into the components that make up the $537 billion. how much of that comes from policies affecting payments and providers.
we had $380 billion of reforms within the medicare program that make structural reforms that we would include as illustrated options. as well as equalizing the medicare retirement age with so security.we so honing inse you are assuming an increase in the eligibility age the budget would include an illustrated option. being able to make the ultimate decision. specifically does the budget
assume an increase. from 65 to 67 and what are the budgetary effects associated with that.ff does the budget assume an increase in elevatedelig y age what are the budgetary effects associated with that w for medicarege and health and revenue. the policy individually but those three policies combined would have $380 billion in savings. the stats had just indicated that the proposed budget cuts
in benefits by increasing the eligibility age and making people wait longer in their lives to be able to access the benefits as a medicare offers. you mentioned premiums and deductibles. what are the impacts. the three policies that would relate to the structural that structural reform would be premium support and equalizing that age. translating your. actions into english.
as well as an increase in the eligibility age from 65 to 675 assumed in the budget that is being considered here today. i would say it has the reforms needed to make it. does the budget assume increases in premiums increases in deductibles and cautionary as well as what you've already acknowledged an increase in the eligibility age from 65 to 67.
the budget would not do what you said. it would propose reforms in terms of combining the medicare part a and they would propose as an optionnd premium support also. please define premium support. to take advantage of a competitive market.ld in other words this budget assumes that we would turn medicare into a bachelor system essentially. that's essentially what you just described. i would not agree with that characterization. if you putting them into the private market when they are not in the private market now. essentially changing the safety net in nature how is
that not turning medicare into a voucher system. it provides the option premium support. remind my colleague it is only to get factual information about the budget it's not to engage in debate i'm try to get that staff to answer my question. does a budget as proposed and medicare as we currently know it sounds exactly the same as it is now.
the concept of premium support. with the authorizing committees having the power and flexibility to decide how to implement that we have premium support as an option now. it is a proposed reform. i would yell back. i had one last question we have talked after quite a lot of function sedate but there are others with significant reductions in the past you've shared the table. you've made you have made for mandatory programs would you do that again. that concludes our questions of the staff.
instructions for $300 billion in the mandatory side. it sounds like were 5% serious and 95% not serious. they are 5% of the mandatory spending reductions that are claimed in this budget. the one thing i would add on that server is assumed in the budget. the house pass legislation through the process to achieve as the 5.4 trillion dollars over the next ten years only $300 billion is actually in the reconciliation bill. the remaining 95% is going to require action. g
and the remaining 95% were not. it's going to be $33.8 trillion on the trajectory that we are currently on. the reconciliation will take us there the overall policies included in the budget would reduce the debt by 8.1 trillion dollars. we are not enacting those policies. the reconciliation total mean $302 billion. if you make the assumption
that only that amount of savings would be achieved. we just can't bear to make those decisions.s.agn, at the br $302 billion. it would take that tenure debt which is currently protected at $33.8 trillion down to 35.5 trade dollars. if you assume a 300 billion-dollar assuming that were actually serious about that. so all this argument is really
over reducing the production by about one and a half percent. the budget proposes to reduce the debt by $8.1 trillion. the budget is not as i sat said in my opening remark. it's an operational process we do it on two sides. we control on the discretionary side and the appropriators can only mark to those limits and no further. and we do it or are supposed to do it on the mandatory side we send those instructions to the authorizing committees. if they refuse to report back the budget committee can do that itselfs. but in either case they go into the reconciliation bill which then has expedited consideration on
the senate floor. the reconciliation process provides for a different process for consideration. of actual reductions. f roughly $5.1 trillion of mandatory spending reductions. and we are going to rely on future congresses to do that. >> the budget provides for a $302 billion total recognition target. it has previously been passed by the house as part of the seconciliation process. i find this very frustrating.
thank you. i yelled back. hearing and no further questions at this stage of the day just a few minutes before 3:00 eastern time we will be having votes within about a half hour i had consulted with the ranking member we are both in agreement that this would be a really good place to recess in advance of the next round of votes on the floor of the house but before we recess let me just remind all members that are committee rules require that we have a quorum to conduct business. we ensure we always have a quorum president that is essential as we continue to move through this particular market. without any further to do at