The House Budget Committee on Tuesday unveiled a spending proposal that would boost defense funding but dramatically reshape social welfare programs such as Medicare and food stamps.
The fiscal 2018 budget — which the committee said would result in a $9 billion surplus after a decade — reflected compromise between defense hawks and fiscal conservatives, but risked alienating moderate Republicans loathe to embark on the politically perilous process of reforming popular entitlement programs.
In fact, the budget ran into its first roadblock even before it was officially released Tuesday. The proposal assumes $204 billion in deficit reduction over a decade from the passage of the House bill to repeal and replace the Affordable Care Act. But the bill appeared to die in the Senate on Monday evening after Republican Sens. Mike Lee of Utah and Jerry Moran of Kansas came out against it.
The collapse of the health-care bill could place even more pressure on GOP lawmakers to pass a budget — not just to keep the government running, but also because Republicans plan to use the process to push through what is arguably their top agenda item: tax reform.
"The budget resolution is no longer a theoretical outline with little chance of implementation," Budget Committee Chairwoman Diane Black said. "It is the major governing document of the 115th Congress, and it is the concrete fulfillment of our promise to the American people."
The proposal calls for $621 billion in defense spending in fiscal 2018, including money for President Donald Trump's signature border wall. That is more than the White House had requested, but it is still below the $668 billion that the conservative Republican Study Committee would like. The budget also outlines $203 billion in spending reductions to social safety net programs — an amount that GOP Rep. Charlie Dent of Pennsylvania, head of the moderate Tuesday Group, has signaled is too steep.
The House proposal mirrors the White House budget in imposing new work requirements for programs like food stamps. But it goes beyond the administration's blueprint by also outlining changes to Medicare — one of the programs that Trump vowed on the campaign trail not to touch. Among the reforms detailed in the budget are limiting Medicare benefits for wealthy seniors and allowing more private insurers to compete for coverage.
Although the House budget does not address Social Security retirement, it does call for changes to the disability insurance program, such as barring recipients from also collecting unemployment benefits.