Skip to content

Ryan Reveals House FY15 Budget

House Budget Chairman Paul Ryan unveiled the House FY15 Budget today. The measure proposes to cut $5.1 trillion over a decade in a bid to erase the federal deficit, while calling once again for dramatic changes to Medicare, Medicaid, and the tax code.

The House proposal would significantly reduce federal support for college access. The Ryan Budget would  eliminate the interest subsidy for all subsidized undergraduate student loans — based on a CBO estimate last year,that would increase loan costs to students by some $50 billion over ten years. The proposed budget would eliminate all mandatory funding for Pell, shifting it totally to discretionary funding, while freezing the maximum Pell grant for the next decade. That essentially means that $870 in the maximum grant would have to be funded by increased discretionary funds or the maximum be cut from $5,730 to $4,860.

Additionally, the Ryan Budget proposes to cut Non Discretionary Defense (NDD) funding by $761 billion below the current caps, and more than doubles down on the sequester cuts by shifting all of the cuts scheduled for defense starting in FY16 to NDD funding. In FY 16, the NDD cap would be cut from $492 billion to $450 billion, an 8.5% cut.  By the end of the ten year window, NDD would be cut by 22%.

The nearly 100-page blueprint is likely be the last formal budget proposal from Ryan, the Republican chairman of the Budget Committee who wants to move to the more powerful Ways and Means Committee next year.

The House Budget Committee is expected to mark up the legislation Wednesday in a session expected to last well into the night.

The Office of Federal Affairs is continuing to review the legislation and will provide updates as the measure changes in the legislative process.

 

This Week in Congress

Here are a few hearings that we’re looking forward to this week. The appropriations process is moving forward and a full list of appropriations hearings can be found on the Senate Appropriations Committee website and the House Appropriations Committee website.

TUESDAY, APRIL 1

Senate Budget
Economic Mobility and Inequality
Full Committee Hearing
10 AM, 608 Dirksen Building
 
WEDNESDAY, APRIL 2

Senate Appropriations: Labor, HHS, Education
National Institutes of Health
Subcommittee Hearing
10 AM, 192 Dirksen Building

House Education and Workforce
Keeping College Within Reach: Meeting the Needs of Contemporary Students
Full Committee Hearing
10 AM, 2175 Rayburn Building

THURSDAY, APRIL 3

House Natural Resources
Fiscal 2015 Budget: Department of the Interior
Full Committee Hearing
10 AM, 1324 Longworth Building

This Week: Doc Fix, Unemployment Benefits, and Budget

The House is not in session today, but the Senate is and is expected to advance another short-term fix to Medicare’s payment system, or the “doc fix.” The yearlong patch (HR 4302) would extend Medicare payments to physicians and prevent cuts to Medicare payment rates that were expected to take place in April without congressional intervention. Members of both bodies had hoped to clear a long-term proposal (HR 4015), but lawmakers never agreed on a way to pay for it. The current short-term patch expires tonight, so the Senate is under pressure to get the next short-term patch in place.

Later today, the Senate will likely begin debating a five-month extension to unemployment insurance. Senate Democrats plan to use a House-passed bill (HR 3979) as a vehicle for the extension to the benefits, which kick in after a person exhausts standard unemployment assistance. Under the proposal, the five-month extension would be paid for by a combination of offsets including temporarily reducing companies’ pension payments and extending US Customs and Border Protection user fees through 2024. The bill would also provide retroactive payments to those whose benefits have already been cut off. Though the measure seems to have enough support to pass the Senate, House Republicans have been cool to the proposal, in part because they consider it too difficult to implement given the now three-month lapse in benefits.

House members will return to the Capitol Tuesday and spend most of the week focused on their Budget Resolution. The FY2015 spending plan House Budget Chairman Ryan (R-WI) plans to release this week will include $1.2 trillion in additional deficit reduction to balance in 10 years. As a result, lawmakers say the new budget blueprint will recommend deeper and more accelerated cuts in spending necessary to make up for slower projected revenue growth over the next decade. That could take the form of deeper cuts to Medicaid, which would be converted to a block grant program in the House budget, or from speeding up the conversion of food stamps into a block grant program. The plan will, however, abide by the $1.014 trillion discretionary spending limit, as well as $521 billion defense and $492 billion nondefense caps, in the two-year budget agreement Ryan negotiated with Senate Budget Chairwoman Patty Murray (D-WA) late last year.

House Budget Resolution Emerging

Congress returns work today after a one-week recess. They face a full agenda that includes figuring out how to respond to the situation in Crimea and deciding if a deal can be found to permanently address the “doc fix,” or if another short-term patch is needed (likely). Lawmakers have also scheduled a number of appropriations hearings. They will start with a trickle today but turn into a flood Tuesday and Wednesday. The FY 2015 appropriations season is officially underway!

In related news, the House Republicans are likely to propose a budget resolution in coming weeks that seeks deeper or accelerated cuts to entitlement programs and tighter constraints on discretionary spending as they aim to build support for the fiscal blueprint within the GOP. The budget resolution typically sets the stage for appropriations work, but the December budget deal already established spending caps for FY 2015 making the budget resolution moot. The plan taking shape in the House will almost certainly will stick with the higher FY 2015 discretionary cap of $1.014 trillion in the December budget deal, but will identify future cuts that could help to eliminate the deficit by the end of the decade. Budget experts say the most likely targets are reducing discretionary spending after 2015 and making deeper or faster reductions in entitlement and assistance programs such as Medicare and food stamps.

The House Budget Committee is likely to mark up their budget resolution during the first week of April, with the measure going to the House floor the following week.

Senate Confirms New Leadership at NSF

Last night the U.S. Senate confirmed a new director of the National Science Foundation, Dr. France Cordova. She succeeds Subra Suresh, who stepped down from NSF one year ago to become president of Carnegie Mellon University in Pittsburgh, Pennsylvania.

An astrophysicist, Dr. Cordova earned a Ph.D in physics from the California Institute of Technology. She went on to become the first female chief scientist at NASA before returning to the academic world. She was vice chancellor for research at UC Santa Barbara, chancellor of UC Riverside, and later president of Purdue University.  A more in-depth biography can be found on the NSF website here.

Also in NSF leadership news, NSF named Northwestern University Professor Fay Lomax Cook to lead the Social, Behavioral, and Economic Sciences Directorate on Thursday. Dr. Cook will begin her appointment as Assistant Director in September of this year. More information can be found here.