BROAD CUTS IN ENTITLEMENT
PROGRAMS UNDER HOUSE BUDGET PLAN
by John Springer
Revised March 21, 2003 BROAD CUTS IN ENTITLEMENT PROGRAMS UNDER HOUSE BUDGET PLAN
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A new analysis from the Center on Budget and Policy Priorities, House Budget Plan Calls for Cuts in Key Domestic Entitlement Programs, details the cuts in entitlement (or “mandatory”) programs in the budget plan the House passed on March 21. It finds that:
Cuts would average four percent over ten years. While the cuts generally start at one percent in fiscal year 2004, they grow in later years and average four percent for the 2004-2013 period (excluding Social Security and other programs exempted from reductions).
Low- and middle-income families would be heavily affected. Of the $265 billion in entitlement cuts called for by the plan, about $225 billion would come in programs that assist either (a) mostly middle-class, low-income, elderly, and disabled people with the costs of health care, food, other necessities, and post-secondary education; (b) veterans; or (c) farmers. Some of the cuts are shown in the table below.
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Total dollar reduction, 2004-2013 |
Average percent reduction, 2004-2013 |
Percent reduction when cuts are deepest |
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Medicaid |
92 |
3.7% |
7.1% |
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Supplemental Security Income |
19 |
4.6% |
6.6% |
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Veterans benefits |
14 |
3.7% |
5.3% |
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Earned Income Tax Credit |
14 |
4.6% |
6.6% |
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Food Stamps |
13 |
4.6% |
6.6% |
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Temporary Assistance for Needy Families |
8 |
4.6% |
6.6% |
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Farmers’ assistance |
7 |
3.7% |
5.4% |
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Child Nutrition (including school lunches) |
6 |
4.6% |
6.6% |
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Foster Care and Adoption Assistance |
4 |
4.6% |
6.6% |
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Child Support Enforcement |
3 |
4.6% |
6.6% |
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Child Tax Credit |
3 |
4.6% |
6.6% |
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Student loans |
2 |
3.9% |
5.4% |
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State Children’s Health Insurance Program (SCHIP) |
2 |
3.7% |
7.1% |
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Child Care grants to states |
1 |
4.6% |
6.6% |
