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House narrowly passes cuts aimed at social spending

NewsABPnews  |  February 1, 2006

WASHINGTON (ABP) — The House of Representatives gave final approval Feb. 1 to a deficit-reduction package that cuts programs for the poor and elderly — over the objections of religious leaders and Democrats, who called the bill “immoral.”

The measure's margin of victory was razor thin, passing on a 216-214 vote. That mirrored the Senate's action on the same bill Dec. 21, when that chamber deadlocked 50-50 on the $40 billion in cuts to growth in federal programs. Vice President Dick Cheney had to cut short an overseas trip to return and cast the deciding ballot in favor of the cuts.

Because most of the programs being squeezed — such as Medicaid and student-loan programs — serve the poor, many religious and anti-poverty leaders have spoken out against the budget package.

“My colleagues, the truth is, almost every religious denomination in this country has been lobbying against this legislation,” said House Minority Leader Nancy Pelosi (D-Calif.), in debate on the measure. “They call it a budget deprived of spiritual hope and nourishing resources. That is the truth about the Republican budget, and Democrats insist that the public know it.”

Among those voting against the bill were 13 Republicans — many of them moderates, but also some conservatives who said they had been motivated to split from their party's leadership after hearing constituents who would be hurt by the cuts.

But President Bush, who backed the cuts, issued a statement praising the action. “The House today passed a significant spending reduction package that will curb the growth of entitlement spending for the first time in years and help us stay on track to cut the deficit in half by 2009,” he said. “I look forward to signing this bill into law. The budget I propose next week will continue to build on the spending restraint we have achieved.”

The bill also contained a little-noticed feature that concerned some religious leaders because it could discourage charitable giving by some elderly people on Medicaid.

The Baptist Joint Committee for Religious Liberty sent a letter to members of Congress Jan. 26 asking them to remove the provision before passing the final bill. According to BJC officials, the provision in question would change the so-called “look-back period” for Medicaid eligibility and alter the program's rules in ways that could cause seniors to fear their church offerings and other charitable gifts would count against them.

“While this legislation is intended to prevent wealthy individuals from taking advantage of the Medicaid program, it, in fact, punishes routine charitable giving by seniors of all income levels,” the letter said. “For many people, giving to their church is a tenet of their religion. For many churches and non-profit entities, contributions by senior members are critical. One should not have to modify his or her religious practice out of fear of losing necessary Medicaid support.”

Bush is required by law to provide his budget proposal for the following fiscal year to Congress on the first Monday in February.

He also is backing further tax cuts that could increase the federal deficit by $60 billion over the same five years for which the cuts are intended.

-30-

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