According to sources, the US president is planning to pull back $15 billion including spendings on Children’s health insurance program. Half of the amount would cut down from the two accounts of Children’s Health Insurance Program, according to White House Officials. This means $800 million will come from the money of Affordable Care Act established in 2010.
According to White House Officials, there are more than 30 programs which are noted to the Congress for cancellation. Trump administration is canceling these programs for taking back the funds once authorized in previous years. As soon as the White House sends the request, the lawmakers will have 45 days to either vote in favor of the policy or reject it. These funding will make up almost 0.4% of the total expenditure of the US govt if approved by the Congress.
According to a congressman Mark Walker, the conservatives were given assurance that this program would be one of many to come. All the lawmakers were anxious about the start of the cutting, said Walker. He further said that this cutting should not be painted as a political gesture and this is a legitimate program started by Trump administration. The Democrats should understand that these cuttings would produce benefits for the govt without affecting any major operation, said a senior administration official.
According to some resources, Democrats have doubts over these cutting programs as they are watching this process skeptically. Many Democrats want the expansion of programs like Children’s health insurance program. They do not want the cutting of such programs. While giving an interview on Monday, Charles E. Schumer, the leader of minority said that Trump administration is looking to tear apart the programs like CHIP and most of the middle-class families will be affected with this cutting. This cutting will only provide a tax break to the wealthiest, said Schummer.
In response, the White House Officials said that cutting down payments of CHIP will not affect the healthcare. The cutting package was surrounded by the controversies before it was released in the Senate. While giving an interview, Susan M. Collins said that CHIP will be one of the programs involved in cutting and that’s what hurting me the most. There is no good reason to cut the funding of CHIP, said Collins.
Republicans will need a unanimous support as they have a thin majority in the Senate. The money that Republicans are planning to cut down through these programs was calculated a year ago and White House officials are planning not to touch bill of $1.3 billion Trump signed in March. According to resources close to the White House, Trump administration is looking to start more cutting programs later this year and the target set for claw back money is $25 billion. However, both Democrats and Republicans are going to midterm November elections without a proper budget strategy.
The situation is tough for the Republicans as they must agree on a new spending deal with the Democrats by September 30 in order to avoid govt shut down. Last week while speaking to the press, Trump said that he would welcome government shut down if he didn’t get enough funds to build a wall on US-Mexico border. However, Congress has the power to revoke all the money previously authorized. This can only be done if Congress succeeded in getting the majority of votes. This is the biggest rescission request received by the Congress in last 20 years, said by senior administrators.
According to the proposal, almost $5 billion would be recovered from CHIP and the money will be used for certain govt expenses. But White House officials fear that Govt will not be able to use this money as the money spending ability of the administration would expire in September. CHIP is a program created by Congress which helps poor children in their healthcare problems. A few months ago, the program was extended for 6 years by Congress. Another program that would involve in this cutting is railroad unemployment program which was expired in 2012. And Trump administration is looking to cut $133 million of this program.
No doubt Republicans are in majority in the House but their majority in the Senate is very thin. Therefore, to approve this cutting bill, Republicans may well need the support of the Democrats.