President Barack Obama hailed the budget deal brokered with Republicans last Friday to avert a government shutdown, as “the biggest annual spending cut in history”, incorrectly likening the government’s budget to that of a family going through tough economic times.
The last-minute budget agreement reached on Friday, will keep the government running until the end of the fiscal year through September 30, 2011, and cut approximately $38.5 billion from the 2010 budget and $78.5 billion from Mr. Obama’s 2011 budget proposals.
Although the details of the budget deal are now emerging, a closer look reveals hundreds of millions of dollars in cuts that will fall squarely on the middle class and working poor in the U.S. These include cuts to: community health centers, literacy programs, career education, community development programs, state and local police departments and environment protection grants, including clean water projects.
Documents released by the House Appropriations Committee on Tuesday show, below, some of the cuts agreed to compared with the 2010 enacted budget:
- $375 million cuts to Community Service Employment for Older Americans
- $600 million cuts to Community Health Care Centers
- $942 million cuts to the Community Development Fund
- $35 million cuts to Rural Health Programs
- $43 million cuts to Community Block Grants
- $390 million cuts to LIHEAP
- $250 million cuts to the Striving Readers program
- $19 million cuts to Literacy Through School Libraries
- $169 million cuts to Career and Adult Education
- $638 million from Defense Environmental Clean Up
- $414 million in cuts to grants for state and local police departments
- $80 million cuts to FEMA Emergency Food and Shelter
- $149 million cuts to Public Housing Operation Fund
While some programs were spared more draconian cuts, including Head Start and the Pell Grants Program, the bill makes reforms to the latter that are estimated to save more than $35 billion over the next 10 years by eliminating the ability of students to draw down two Pell Grant awards at the same time. NPR, some EPA programs and Planned Parenthood were also spared, although in Washington D.C., the city is prohibited from using federal or local funds for abortions for a 5-month period.
Funding levels for land and water conversation were cut by $149 million and climate change funding took a hit of $49 million, as did the National Endowment for the Arts and the National Endowment for Humanities, which combined were cut by $25 million from last year’s levels. Cuts were also dished out as well to international organizations, including the United Nations to the tune of $377 million.
Republicans held firm too and eliminated four Administrative “Czars” proposed by Mr. Obama, including the “Health Care Czar”, “Climate Change Czar”, “Car Czar” and the “Urban Affairs Czar.”
Mr. Obama’s next big battle with the Republican-controlled House is the increase in America’s debt limit. On Wednesday night he will address the nation on his proposals for long-term deficit reduction.
Many fear, Mr. Obama who has already cut programs that will impact mostly vulnerable and average Americans, will go even further and sacrifice entitlement programs, including Medicare, thereby destroying health care for the poor and elderly, even as he eventually caves, continuing with tax cuts for the rich.
Very few are holding their breath that, Mr. Obama will draw a line in the sand and truly defend the poor and working-class.
