Senate Okays Bill That Cuts Spending By $36B, Permits Alaska Oil Drilling

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WASHINGTON – The Senate yesterday narrowly approved the first cuts since 1997 to benefit programs such as Medicare, Medicaid, and farm subsidies, giving Republicans a modest victory against ever-rising government spending.


The bill, passed by a 52-47 vote, makes mild cuts to the health care programs for the elderly, poor, and disabled, but leaves the food-stamp program untouched.


The measure also permits exploratory oil drilling in an Alaskan wilderness area. Five Republicans in the GOP-controlled Senate who oppose the drilling vote against the bill.


The spending battle now heads to the House, where Republicans are divided over whether to cut more deeply across a broader range of social programs. Also, House GOP leaders may remove a provision that allows drilling in the Arctic National Wildlife Refuge.


The Senate bill is estimated to trim $36 billion, or 2%, from budget deficits forecast at $1.6 trillion over five years. The cuts total $6 billion for the plan’s first year, with deficits predicted to exceed $300 billion.


Still, Republicans said the debate was an important moment for their party, which gained control of Congress 11 years ago with promises to balance the budget. The return of intractable deficits and surging spending has caused heartburn for many Republicans over their record on holding the line on spending and addressing budget deficits.


The long-planned budget measure would make the first cuts to mandatory programs since 1997. These programs account for 55% of the budget and include Medicare, Medicaid, farm subsidies, and student loan subsidies.


“After years of allowing spending to grow unchecked, I am gratified to see the Senate take a step in the right direction toward serious fiscal discipline,” the chairman of the Senate Budget Committee, Senator Gregg, a Republican of New Hampshire, said.


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