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Highlights of House GOP budget cuts

Thursday - 5/10/2012, 11:03am  ET

By The Associated Press
Associated Press

WASHINGTON (AP) - Highlights of House GOP legislation cutting spending by $237 billion over the coming decade.

Food Stamps _ Cuts $35.8 billion by eliminating benefit increases in President Barack Obama's economic stimulus and tightening eligibility requirements. Cuts spending by 4 percent over coming decade.

Health Care _ Cuts the president's overhaul law in several ways, saving $66 billion. Cuts include requiring those receiving health insurance subsidies to repay excess subsidies when their income increases, eliminating grants to states to set up health insurance exchanges and repealing a fund for prevention efforts like cancer screenings and immunizations.

Financial Regulation _ Repeals several elements of the 2010 Dodd-Frank law to save $30 billion, including $22.5 billion saved by repealing federal liquidation authority of "too big to fail" banks and other financial institutions, financed by assessments on other large institutions. Also eliminates funding for a new consumer protection bureau and a new mortgage assistance program aimed at helping people modify their home loans.

Federal Employee Pensions _ Cuts deficits by $83 billion over 10 years, requiring federal workers to contribute more toward their pensions in increments phased in over five years. Workers hired after 1983 would contribute an additional 5 percent for a total contribution of 5.8 percent. Workers in the pre-1983 system _ who are ineligible for Social Security _ would also pay an additional 5 percent for a total contribution of 12 percent.

Medical Liability _ Cuts the deficit by $41 billion though lower Medicare and Medicaid costs stemming from new curbs on medical liability lawsuits, including a $250,000 cap on punitive damages and protections for manufacturers of medical devices that meet federal safety standards.

Child Tax Credit _ Raises $7.6 billion by requiring people claiming tax credits of up to $1,000 per child as tax refunds to have Social Security numbers. It is aimed at preventing illegal immigrants from claiming the tax cuts.

Social Services Block Grants _ Saves $17 billion over 10 years by eliminating the Social Services Block Grant to states, which supports numerous programs, including Meals on Wheels, child welfare, day care for both children and adults and help for the disabled.

Automatic Spending Cuts _ Reverses $79 billion in automatic spending cuts to the Pentagon and domestic agencies.


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)