Lawmakers Approve Budget Cuts, Alaskan Oil Drilling
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
WASHINGTON – The House voted to cut a thin slice off federal deficits and sink oil drills into the Arctic National Wildlife Refuge early yesterday, quelling Democratic opposition in a marathon struggle ending near dawn.
The votes sent both bills to the Senate, where the GOP leadership vowed to clear them for President Bush’s signature with a year-end flourish.
Mr. Bush sounded eager. “We must restrain government spending. And I’m pleased that the House today has voted to rein in entitlement spending by $40 billion, and I urge the United States Senate to join them,” he said at a White House news conference.
Democrats were scathing. “As the Bible teaches us, to minister to the needs of God’s creation is an act of worship, to ignore those needs is to dishonor the God who made us,” the House minority leader, Nancy Pelosi, said. “Let us vote no on this budget as an act of worship and for America’s children.”
Both year-end bills were crafted to satisfy GOP conservatives who hold sway in the House and Senate. Yet both also were tempered to hold the support of party moderates whose votes are necessary for passage over opposition of Democrats, some of whom have threatened to filibuster the ANWR measure.
The Alaska oil provision was grafted onto a $453 billion spending bill for the Pentagon, a measure that also reflected conservative priorities with a 1% spending cut across hundreds of federal programs. Yet the same legislation included an additional $29 billion in funding for victims of Hurricane Katrina, as well as an extra installment of low-income heating assistance for the poor.
Overall, the deficit reduction bill claimed savings of $39.7 billion over five years, 2.5% of the $1.6 trillion in total red ink that congressional officials estimate will pile up for the same period.
The savings included $4.8 billion from Medicaid, the health care program for the poor, and one key provision is designed to make it harder for beneficiaries to transfer assets to their children in order to qualify for government-paid nursing home care.
Among the Medicare changes was a one-year freeze in home health care payments. A second provision accelerates a previously scheduled increase for better off beneficiaries in the cost of premiums for Part B, which covers physician services.
At the same time, a House-passed attempt to curb food stamp spending and find savings from crop subsidies were dropped in final negotiations in a gesture to senators.
Other savings contained had no relation to federal benefit programs that conservatives have long wanted to limit.
The bill assumed $10 billion in savings through the sale of a portion of the analog spectrum, and another $6.5 billion by reducing federal payments to insurance companies operating HMOs under the two-year-old Medicare law.
Doctors won the cancellation of a scheduled 4.6% cut in Medicare fees, at a cost to the Treasury of $7.3 billion over five years.
And with an extremely tight vote possible in the Senate, negotiators went into overtime to make concessions on Sunday. One restored a sup port program for dairy farmers, as requested by Senator Coleman, a Republican of Minnesota, among others.
The last change, agreed to hours after GOP leaders had announced an overall agreement, erased $1.9 billion in estimated savings. Officials said it was designed to satisfy Senator Voinovich and other Ohio lawmakers concerned about the impact of one provision on an oxygen supplier in the state.
As a result of the late maneuvering, it was after midnight when GOP leaders summoned the House into session.
The Pentagon bill passed, on a lopsided vote of 308-106. Democrats were split as they were confronted with a choice of opposing money for the troops in Iraq or voting for ANWR drilling.
The deficit reduction bill passed a few hours later on a far closer tally of 212-206. No Democrats supported the bill and only nine Republicans opposed it.
The political reaction was predictably divided.
“The Republican Revolution is back,” said Rep. Mike Pence, a Republican of Indiana and leader of conservatives who prodded the GOP leadership this fall to redouble efforts to control spending. “The American people wanted Washington to pay for Katrina with budget cuts, and Washington got the message,” he added in a statement.
“The defense bill should be about delivering equipment and support for our troops. Instead it is being used to deliver a multi-billion dollar bonanza to oil companies,” said Rep. David Obey, a Democrat of Wisconsin.