Jordan, Garrett and DeMint Unveil the Spending Reduction Act

Outline $2.5 trillion in spending cuts to help resolve growing debt crisis

Washington, Jan 20 - From House Republican Study Committee

Today, Rep. Jim Jordan (R-OH), Chairman of the Republican Study Committee (RSC), Rep. Scott Garrett (R-NJ), Chairman of the RSC Budget and Spending Task Force, and Senator Jim DeMint (R-SC), Chairman of the Senate Steering Committee, today unveiled the Spending Reduction Act, which begins to address the rapidly growing national debt by making substantial spending cuts immediately and throughout the next decade.

“The national debt has grown from $8.6 trillion four years ago to more than $14 trillion today,” said Jordan.  “This mountain of debt, nearly the size of our entire economy, threatens to create a whole new financial crisis.  Every day we refuse to change course and instill some fiscal responsibility, the problem grows even larger.  Unless Washington acts soon to cut spending, massive tax hikes, economic stagnation, and national bankruptcy will rob our children of the opportunity to reach for the American Dream.”

“The Spending Reduction Act gives us a $2.5 trillion head start in the race to preserve the fiscal stability of the United States,” said Garrett.  “This bill represents the first step in the process, not the last.  To achieve long-term fiscal stability, we must finish the race by making the tough decisions Congress has put off for far too long.  Only after we tear down barriers to job creation and make reforms to our entitlement programs can we truly resolve our debt crisis.”

“Our nation stands on the edge of a fiscal cliff and we face a stark choice: go over the edge into bankruptcy and declining freedom or choose to make the hard decisions today to save our country for our children and grandchildren," said Senator DeMint. "I'm proud to stand with Congressmen Jordan and Garrett against the wave of wasteful Washington spending. The Spending Reduction Act begins the difficult task of shrinking the federal bureaucracy that threatens our future prosperity. Congress must take the steps now to balance the budget, pay off our debt, and preserve freedom for future generations.”

Compared to current projections, the Spending Reduction Act would save taxpayers $2.5 trillion through 2021.  It starts by keeping House Republicans’ pledge to take current spending back to 2008 levels and repeal unspent funds from the failed “stimulus.”  

At the beginning of the next fiscal year on October 1, 2011, spending is further reduced to 2006 levels and frozen there for the next decade.  To help achieve these savings, the bill shrinks the size and cost of the civilian federal workforce and specifically targets over 100 budget items and spending reforms.

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Overview

•  FY 2011 CR Amendment: Replace the spending levels in the FY 2011 continuing resolution
  (CR) with non-defense, non-homeland security, non-veterans spending at FY 2008 levels. The
  legislation will further prohibit any FY 2011 funding from being used to carry out any provision of
  the Democrat government takeover of health care, or to defend the health care law against any
  lawsuit challenging any provision of the act. $80 billion savings.
•  Discretionary Spending Limit, FY 2012-2021: Eliminate automatic increases for inflation from
  CBO baseline projections for future discretionary appropriations. Further, impose discretionary
  spending limits through 2021 at 2006 levels on the non-defense portion of the discretionary budget.
  $2.29 trillion savings over ten years.
•  Federal Workforce Reforms: Eliminate automatic pay increases for civilian federal workers for
  five years. Additionally, cut the civilian workforce by a total of 15 percent through attrition.
  Allow the hiring of only one new worker for every two workers who leave federal employment
  until the reduction target has been met. (Savings included in above discretionary savings figure).
•  “Stimulus” Repeal: Eliminate all remaining “stimulus” funding. $45 billion total savings.
•  Eliminate federal control of Fannie Mae and Freddie Mac. $30 billion total savings.
•  Repeal the Medicaid FMAP increase in the “State Bailout” (Senate amendments to S. 1586). $16.1
  billion total savings.
•  More than 100 specific program eliminations and spending reductions listed below: $330 billion
  savings over ten years (included in above discretionary savings figure).

Additional Program Eliminations/ Spending Reforms

•  Corporation for Public Broadcasting Subsidy . $445 million annual savings .
•  Save America’s Treasures Program . $25 million annual savings .
•  International Fund for Ireland . $17 million annual savings .
•  Legal Services Corporation . $420 million annual savings .
•  National Endowment for the Arts . $167.5 million annual savings.
•  National Endowment for the Humanities . $167.5 million annual savings .
•  Hope VI Program . $250 million annual savings.
•  Amtrak Subsidies . $1.565 billion annual savings.
•  Eliminate duplicative education programs. H.R. 2274 (in last Congress), authored by Rep. McKeon, eliminates 68 at a savings of $1.3 billion annually.
•  U.S. Trade Development Agency . $55 million annual savings .
•  Woodrow Wilson Center Subsidy . $20 million annual savings .
•  Cut in half funding for congressional printing and binding . $47 million annual savings.
•  John C. Stennis Center Subsidy . $430,000 annual savings.
•  Community Development Fund. $4.5 billion annual savings .
•  Heritage Area Grants and Statutory Aid . $24 million annual savings .
•  Cut Federal Travel Budget in Half . $7.5 billion annual savings.
•  Trim Federal Vehicle Budget by 20% . $600 million annual savings .
•  Essential Air Service . $150 million annual savings.
•  Technology Innovation Program . $70 million annual savings.
•  Manufacturing Extension Partnership (MEP) Program . $125 million annual savings.
•  Department of Energy Grants to States for Weatherization . $530 million annual savings.
•  Beach Replenishment. $95 million annual savings .
•  New Starts Transit . $2 billion annual savings .
•  Exchange Programs for Alaska, Natives Native Hawaiians, and Their Historical Trading Partners in Massachusetts. $9 million annual savings.
•  Intercity and High Speed Rail Grants . $2.5 billion annual savings.
•  Title X Family Planning . $318 million annual savings.
•  Appalachian Regional Commission . $76 million annual savings .
•  Economic Development Administration . $293 million annual savings .
•  Programs under the National and Community Services Act . $1.15 billion annual savings.
•  Applied Research at Department of Energy . $1.27 billion annual savings .
•  FreedomCAR and Fuel Partnership . $200 million annual savings .
•  Energy Star Program . $52 million annual savings.
•  Economic Assistance to Egypt . $250 million annually .
•  U.S. Agency for International Development . $1.39 billion annual savings .
•  General Assistance to District of Columbia. $210 million annual savings .
•  Subsidy for Washington Metropolitan Area Transit Authority . $150 million annual savings .
•  Presidential Campaign Fund . $775 million savings over ten years.
•  No funding for federal office space acquisition . $864 million annual savings.
•  End prohibitions on competitive sourcing of government services .
•  Repeal the Davis-Bacon Act. More than $1 billion annually.
•  IRS Direct Deposit: Require the IRS to deposit fees for some services it offers (such as processing payment plans for taxpayers) to the Treasury, instead of allowing it to remain as part of its budget.  $1.8 billion savings over ten years.
•  Require collection of unpaid taxes by federal employees. $1 billion total savings.
•  Prohibit taxpayer funded union activities by federal employees. $1.2 billion savings over ten years.
•  Sell excess federal properties the government does not make use of. $15 billion total savings.
•  Eliminate death gratuity for Members of Congress.
•  Eliminate Mohair Subsidies. $1 million annual savings.
•  Eliminate taxpayer subsidies to the United Nations Intergovernmental Panel on Climate Change.  $12.5 million annual savings.
•  Eliminate Market Access Program. $200 million annual savings.
•  USDA Sugar Program. $14 million annual savings.
•  Subsidy to Organisation for Economic Co-operation and Development (OECD). $93 million annual savings.
•  Eliminate the National Organic Certification Cost-Share Program. $56.2 million annual savings.
•  Eliminate fund for Obamacare administrative costs. $900 million savings.
•  Ready to Learn TV Program. $27 million savings.
•  HUD Ph.D. Program.
•  Deficit Reduction Check-Off Act.

TOTAL SAVINGS: $2.5 Trillion over Ten Years

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LINK: http://www.scribd.com/doc/47210123/Spending-Reduction-Plan