Congress passed a fiscal year 2016 conference budget resolution, S. Con. Res. 11, which would cut $5 trillion in spending and balance the budget within the decade without raising taxes and represents the reconciled agreement between the House and Senate. The House passed the legislation by a vote of 226-197, with 14 Republicans and every Democrat opposing the resolution. The Senate passed the resolution by a vote of 51-48.
The Budget Agreement
The agreement keeps the budget caps that were included as part of the Budget Control Act that established sequestration levels in spending. Eighty percent of the spending cuts come from mandatory spending programs, including $430 billion in cuts to the Medicare program, and while the budget resolution limits spending on domestic programs, the plan increases funding for defense by using emergency war spending.
The agreement gives Congress the authority to repeal the Affordable Care Act (ACA) under the process of reconciliation, which allows Congress to pass legislation without the necessary 60 votes in the Senate, but with a simple majority. The resolution gives the authorizing committees over the ACA until July 24 to draft legislation to repeal the law and presents Congress with a contingency plan should the Supreme Court rule against the administration in King v. Burwell. If Congress enacts a temporary transition plan for subsidy recipients, the cost would not be scored as increasing the deficit.
The Senate is expected to vote on the budget agreement this week.
What It Means
While the budget resolution is not a binding resolution, it does provide guidance to the appropriators for setting spending priorities and limits during that process. Given the caps on discretionary spending, programs such as NIH, FDA, CDC and other public health programs will likely see little or no increases.
President Obama has already indicated that he will not support many appropriations bills under these spending caps and Republicans will have a difficult time generating Democratic support. AGA will continue to monitor the budget and appropriations process and will to advocate for appropriate increases to federal research programs, like the NIH.
AGA is Advocating for GI
AGA members are meeting with congressional offices before DDW® and over the summer to stress the importance of funding NIH and the benefits that it generates for improved health care and economic competitiveness. If you’re interested in getting involved, please contact Navneet Buttar or visit the AGA website.
