House Republicans’ Cuts Would Cost Jobs, Slow Economic Growth, CBO Finds
Leader Schumer and Senators Wyden and Whitehouse slam House Republicans for appropriations bills that would result in 500,000 lost jobs and slower GDP growth
Washington, D.C. – Reneging on the bipartisan budget agreement that was signed into law to avoid a catastrophic default, House Republicans are proposing cuts to Fiscal Year 2024 spending bills that would cost a half a million jobs and reduce GDP growth by $138 billion next year, according to analysis published today by the nonpartisan Congressional Budget Office. The analysis was requested by Senator Sheldon Whitehouse (D-RI), Chairman of the Senate Budget Committee.
Although President Biden signed into law a bipartisan agreement negotiated with Speaker McCarthy that set top-line spending limits for the next two fiscal years—part of a package that also suspended the debt limit—House Republicans are ignoring the legislation. Instead, they are marking up spending bills that align with their draconian Default on America Act, which would roll back appropriated 2024 spending to 2022 levels.
“Democrats have spent the last two years lowering energy costs, lowering the price of prescription drugs, bringing manufacturing jobs to our shores, while Republicans are dead set on pushing tax giveaways to large corporations and the ultra-wealthy and gutting essential programs that American families rely on,” said Senate Majority Leader Chuck Schumer (D-NY). “Despite the agreement President Biden signed into law to avoid a default, House Republicans are ignoring the deal and proposing devastating funding cuts that would hurt American families, result in 500,000 jobs lost, and slow economic growth. This has no chance of passing in the Senate, and Democrats will fight these MAGA Republican proposals tooth and nail.”
“Even by the low standards of Congress in 2023, it’s shocking how quickly House Republicans ripped up their end of the bargain that steered the country clear of default last month. We ought to take this as a clear indication that Republicans cannot be trusted to stand by any of their commitments, especially when it comes to protecting Medicare and Social Security,”said Senator Wyden (D-OR). “Right now wages are up, unemployment is down, and inflation has cooled off, but the plans House Republicans are committed to passing would destroy half a million jobs and slam the brakes on our economy. It’s a recipe for slower growth and financial hardship for families all across the country.”
“With this rinse-and-repeat of their Default on America Act, Republicans put their willful disregard for the wellbeing of Americans on full display,”said Senator Whitehouse (D-RI).“Republicans shower the wealthy with budget-busting tax giveaways, then claim to care about deficits. These new cuts, in addition to being wildly unpopular, are shown to inflict widespread economic pain and drag down American economic growth. In their anti-government, pro-polluter crusade, MAGA Republicans have no problem harming workers and families as collateral damage. On what planet is that fiscally responsible?”
As with their Default on America, House Republicans are again proposing to reduce federal spending on important programs and services by 12 percent after accounting for inflation. CBO’s analysis finds that those cuts to discretionary spending would cut 500,000 jobs, slow GDP growth immediately, and have no meaningful effect on inflation.
As reported by The Washington Post, House Republicans’ appropriations bills would “hamstring some of the most urgently needed public-works projects across the country, from improving rail safety to reducing lead contamination at schools.” In addition to clawing back investments in the Inflation Reduction Act and undermining the development of domestic clean energy manufacturing, House Republicans are moving forward with legislation that would cut funding for law enforcement, affordable housing, education programs for students in low-income communities, Amtrak, and the National Park Service and eliminate funding for the largest federal job training and employment services program.
Read the full report here.
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