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Monday, Feb 2 2015

Full Issue

As Obama Unveils His Budget, Rift With GOP On Entitlement Spending Remains

Republicans want a program that drives down federal spending on food stamps, health programs and other safety-net costs, but Democrats argue that the health law is pushing health costs down.

Even before the massive budget books landed on lawmakers鈥 desks, Republicans were on the attack, accusing the president of seeking to revert to tax-and-spend policies that will harm the economy while failing to do anything about the budget鈥檚 biggest problem 鈥 soaring spending on government benefit programs. Obama鈥檚 fiscal blueprint, for the budget year that begins Oct. 1, proposes spending $4 trillion 鈥 $3.99 trillion before rounding 鈥 and projects revenues of $3.53 trillion. (Crutsinger, 2/2)

President Obama will propose a 10-year budget on Monday that stabilizes the federal deficit but does not seek balance, instead focusing on policies to address income inequality as he adds nearly $6 trillion to the debt. ... Republicans will put forward ideas for controlling the main drivers of the deficit 鈥 Social Security and health care programs that are expanding with an aging population 鈥 and will propose a budget that does balance. But, [Rep. Paul] Ryan indicated, they are not likely to force a showdown on entitlements. (Weisman, 2/1)

The administration said it 鈥渁chieves these goals by replacing mindless austerity with smart reforms, paying for all new investments鈥 and seeking new savings. That isn鈥檛 likely to appease Republicans, however, who are expected to quickly dismiss Obama鈥檚 budget request and start drafting their own blueprint that would seek to eliminate deficits entirely over the next 10 years and tackle the biggest drivers of government spending: Social Security and federal health programs. (Mufson and O'Keefe, 2/2)

The Republican preference is for continued austerity and lower taxes, which will probably be reflected in their own budget plans expected next month. To boost Pentagon spending as defense hawks want, their budgets are expected to slash more deeply into food stamps, healthcare and other safety-net programs. Rep. Tom Price (R-Ga.), the House Budget Committee chairman, promised Sunday on Fox News that a Republican budget would re-imagine Medicare, Medicaid and Social Security, and 鈥渨ill do what the American people have to do with their homes and in their businesses every single day 鈥 and that鈥檚 not spend more money than what comes in.鈥 (Mascaro and Hennessey, 2/2)

The White House promised to reap savings from health care entitlements and to 鈥渟upport鈥 the Affordable Care Act in a summary of the president鈥檚 budget put out before the release of the full document Monday morning. (Kenen, 2/2)

The proposal will include new healthcare initiatives aimed at combating diseases, fighting antibiotic-resistant bacteria and overhauling the payment system for Medicare. The president wants to reverse cuts that were part of the sequestration deal hatched with Republicans and that have defined an era of fiscal austerity in Washington. Obama is expected to propose increasing annual spending by roughly $70 billion, or 7 percent, over the current fiscal year. (Demko, 1/30)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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