Rep. Jim Jordan of Ohio, the chairman of the Republican Study Committee, will unveil the bill in a speech at the Heritage Foundation on Thursday morning.
Jordan’s bill, which will have a companion bill introduced in the Senate by Sen. Jim DeMint, South Carolina Republican, would impose deep and broad cuts across the federal government. It includes both budget-wide cuts on non-defense discretionary spending back to 2006 levels and proposes the elimination or drastic reduction of more than 50 government programs.
Jordan’s “Spending Reduction Act” would eliminate such things as the U.S. Agency for International Development and its $1.39 billion annual budget, the $445 million annual subsidy for the Corporation for Public Broadcasting, the $1.5 billion annual subsidy for Amtrak, $2.5 billion in high speed rail grants, the $150 million subsidy for the Washington Metropolitan Area Transit Authority, and it would cut in half to $7.5 billion the federal travel budget.
But the program eliminations and reductions would account for only $330 billion of the $2.5 trillion in cuts. The bulk of the cuts would come from returning non-defense discretionary spending – which is currently $670 billion out of a $3.8 trillion budget for the 2011 fiscal year – to the 2006 level of $496.7 billion, through 2021.
Other cuts in the Jordan proposal include putting the $45 billion remaining in the stimulus toward deficit reduction, eliminating federal control of mortgage giants Fannie Mae and Freddie Mac to the tune of $30 billion in savings, and clawing back $16 billion currently scheduled to go toward helping state governments pay for Medicaid recipients.
There are clear cut significant costs to such a proposal. Getting rid of the $6 billion or so in stimulus that is reserved for state governments in the upcoming fiscal year, along with the $16 billion in state Medicaid payments, would compound what is already set to be the worst year of fiscal problems yet in this economic downturn for state governments. They face their biggest deficits of the recession already because stimulus money has for the most part run out, and are in the process now of figuring out what services they will have to cut.
But Jordan said Wednesday that the nation must endure short term pain of its own choosing to avoid long term pain that it is far more serious and beyond its control.
So America, are you ready for some pain? Get ready as your newly elected Rethuglicans gut every domestic program in their quest to return us to the Robber Baron era. You know, child labor, no pollution controls, mandatory 70 hour work weeks, etc. A good time to be a banker, an insurance CEO, or an industrialist, not so good for the rest of us.