U.S. House budget strips trillions from everyday Americans while giving huge tax cuts to the wealthy

For Immediate Release
July 19, 2017

Contact:
Alex Rossman
arossman@milhs.org
517.487.5436

Michigan’s congressional delegation should reject the House budget and instead work toward a bipartisan plan that matches our state’s needs and priorities

LANSING—The U.S. House Republicans’ new budget proposal being debated today would make it harder for millions of Michigan families to make ends meet, with drastic cuts to healthcare and key assistance programs. Despite attempts to distance themselves from President Donald Trump’s horrendous budget, House Republicans are advancing a budget that would strip trillions of dollars from middle class and working families while providing tax giveaways to the very wealthy and profitable corporations. The budget also creates a special fast-track process that would allow Republicans to force through massive cuts in public investments and big tax breaks without bipartisan support.

“The House Republican budget proposal has the same fatal flaws as President Trump’s budget plan. It attacks support programs and economic opportunity for millions of struggling Michiganians to pay for huge tax cuts for the wealthy,” said Karen Holcomb-Merrill, vice president for the Michigan League for Public Policy. “It would also shift massive costs and likely bring massive cuts to the Michigan budget at a time when our state is already struggling to invest in education, transportation and other services hardworking Michigan residents rely on.”

For Michigan, the budget plan could result in devastating cuts to programs that expand economic opportunity for Michiganians, including job training, education and economic development programs in cities and rural communities. The budget would fall hardest on Michigan residents struggling in today’s economy, with cuts to programs that provide income assistance to help families get back on their feet and help nearly 1.4 million people in Michigan—including 563,753 children—afford groceries through the Supplemental Nutrition Assistance Program (SNAP). As Republicans continue their efforts to sabotage healthcare access, the budget includes additional cuts to Medicaid, which helps 2.5 million people in Michigan, including more than 650,000 through the Healthy Michigan Plan.

And underlying the whole budget proposal is a set of false assumptions about economic growth to hide that the proposed tax cuts would dramatically increase deficits and shift ballooning costs to states when revenues fall short of projections.

“The people of Michigan deserve a responsible federal budget proposal from our members of Congress—one that is based on real economic conditions and addresses the real challenges faced by struggling families, not one that uses fuzzy math to justify big tax breaks,” said Holcomb-Merrill. “Instead of fast-tracking cuts that shortchange Michiganians and threaten our state budget and economy, Michigan Republican members of Congress should focus on creating a bipartisan plan that makes investments in programs that match our priorities.”

The League has been tracking the potential disastrous impact of the federal budget on Michigan residents since President Trump’s “skinny budget” came out in March. The League has asserted that the Trump budget is an attack on people living in poverty and the programs that help them provide for their families. The Trump budget would have harmful effects on food assistance, energy security and health, and other programs. While the House’s budget proposal is not an exact replica of the Trump budget, it is largely a continuation of these devastating cuts.

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The Michigan League for Public Policy, www.milhs.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.

Trump budget is anti-poor people, not anti-poverty

From the First Tuesday newsletter
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This past month saw two disastrous pieces of public policy come out of Washington: the American Health Care Act (AHCA) passed by Republicans in the U.S. House of Representatives and President Donald Trump’s federal budget proposal.

three fifths cuts in trumps budgetWe provide a more substantive update on the AHCA below, but here’s what you really need to know: It raises costs, reduces coverage and slashes funding for states. In short, it’s bad, and we’re hopeful that leveler heads in the U.S. Senate will agree.

But that was just the appetizer. On May 23rd, President Trump released his budget proposal, and it is an all-out assault on people who are struggling in our state and our nation. We were expecting significant cuts to vital programs based on the president’s “skinny budget,” but it is far worse than anyone could imagine.

If the president is looking to make history and leave his mark, this awful budget will certainly do that. Our colleagues at the Center on Budget and Policy Priorities say that his budget “contains the largest dollar cuts to programs for low- and moderate-income people proposed by any president’s budget in the modern era,” cutting these programs by an estimated $2.5 trillion over the next decade. About 59% of the president’s budget cuts would come from programs and services that help struggling families build a better life and keep food on their tables, clothes on their backs and a roof over their heads.

SNAP cutsFood assistance through the federal Supplemental Nutrition Assistance Program (SNAP) would be slashed by $193 billion over 10 years, targeting the elderly, working families and workers struggling to find a job. On top of the massive cuts to Medicaid in the House-passed AHCA, Medicaid would be cut by an additional $600 billion over 10 years. Possible per capita caps on Medicaid would make it even worse.

People who are struggling economically are not the only vulnerable residents who are being exploited by this budget. Disability programs would be cut by $72 billion, including Social Security Disability Insurance for workers with disabilities and their families and Supplemental Security Income, which provides income assistance to individuals with low incomes, including children, with disabilities.

There are also significant cuts to Great Lakes funding, other protections for our air, land and water, and other programs that are essential to our quality of life and our way of life in Michigan.

As our recent 2017 Kids Count in Michigan Data Book and Making Ends Meet report show, millions of people and kids in Michigan are either living in poverty or barely getting by. Many families have yet to feel any economic recovery and are one emergency or unexpected expense away from financial disaster. More people are working, but in lower-paying jobs, and they depend on food assistance, Medicaid and other programs to survive—programs that would be decimated under President Trump’s budget. Michigan is particularly vulnerable to President Trump’s budget cuts, as we’re the second most reliant on federal funds of any state in the nation.

Our congressional delegation must oppose this budget and any others that follow in this same direction of harming our state’s most vulnerable residents, especially our children. They need to hear from the people that these appalling cuts will hurt and put names and faces to the lives that hang in the balance. If you or someone you know depends on food assistance, Medicaid, disability services or other federal programs, I urge everyone to share their story at Handsoff.org. And whether you use these programs yourself or just know that they are vital to a better Michigan for all, I encourage you to contact your congressperson directly and tell them to oppose the Trump budget or any other proposal that includes massive cuts to these programs.

— Gilda Z. Jacobs

Hunger grows at time of thanks

From the League’s First Tuesday newsletter
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It’s November and time to look forward to Thanksgiving — a treasured American holiday, symbolized by the bounty of the pilgrim harvest. For my family, that means turkey, stuffing and all the trimmings.

For too many in Michigan, however, Thanksgiving will be a reminder of the ongoing struggle to put enough food on the table.

Nearly one in every seven Michigan households reported difficulty affording food at some point last year. And a plan before Congress, if adopted, will worsen hunger and jeopardize Michigan’s fragile economic recovery as well. (more…)