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The Sequester Replacement and Reconciliation Acts of 2012

Date: 
Monday, May 7, 2012 - 2:00pm
Location: 
210 Cannon House Office Building
Budget Reconciliation

 

The Van Hollen Democratic Alternative

Savings in the Van Hollen Alternative
 

Based on CBO estimates, the Van Hollen substitute would reduce the deficit by $10 billion over 10 years while stopping the meat-ax sequestration in 2013. 

The official CBO cost estimate shows savings of $30 billion because it assumes current law when calculating the impact of repealing the 2013 sequester.  Because Congress has not yet enacted regular 2013 appropriations, only very limited budgetary resources currently face the across-the-board reduction, so rejecting the sequester for 2013 costs $82 billion.  Assuming that appropriations are enacted at the level permitted under the BCA -- which allows the full sequester reduction to be taken -- then the cost of repealing the sequester increases to $106 billion, as shown in the memorandum on CBO’s table.  In addition, based on direction included in the budget resolution, savings from increasing flood insurance premiums ($4.9 billion) are included.  These two adjustments to better reflect the impact of the Van Hollen substitute result in total savings of $10 billion.

 

The Republican Reconciliation Package

  • Fact Sheet - May 10th, 2012 | PDF
  • Analysis of Republican Reconciliation Package - Minority Views | PDF
  • Ranking Member Van Hollen Speaks in Opposition to the Republican Reconciliation Bill - Text | Video

Budget Committee Mark-Up of Republican Reconciliation Package - May 7th, 2012

Democratic Motions on Republican Reconciliation Package

Motion #1: Protecting Health Care Coverage for At Least 300,000 Low-Income Children and Lowering the Deficit by Eliminating Certain Tax Subsidies for Big Oil
PDF | Video | Votes

A motion by Rep. Castor that the Committee on the Budget direct its Chairman to request on behalf of the Committee that the rule for consideration of the Sequester Replacement Reconciliation Act of 2012 make in order an amendment that would strike from Title II of the bill section 213, which repeals the maintenance of effort requirements for children in the Children's Health Insurance Program (CHIP) and children and adults in Medicaid; and section 215, which repeals CHIP performance bonus payments; and replaces them with a provision that increases revenue by eliminating a wasteful tax break that encourages big oil companies to produce oil in foreign countries rather than here at home.

Motion #2: Protecting the Health of Women and Children While Closing Tax Loopholes that Reward Corporations that Ship American Jobs Overseas
PDF | Video | Votes

A motion by Rep. Schwartz and Rep. Wasserman Schultz that the Committee on the Budget direct its Chairman to request on behalf of the Committee that the rule for consideration of the Sequester Replacement Reconciliation Act of 2012 make in order an amendment that would strike from Title II of the bill section 202, which repeals the Prevention and Public Health Fund under the Affordable Care Act, and replace that section with changes in law to reduce the deficit by closing loopholes in the U.S. international corporate tax system that encourage companies to ship jobs overseas.

Motion #3: Rejecting the Elimination of the Social Services Block Grant While Ending Taxpayer Subsidies to Big Oil
PDF | Video | Votes

A motion by Rep. Doggett and Rep. Bonamici that the Committee on the Budget direct its Chairman to request on behalf of the Committee that the rule for consideration of the Sequester Replacement Reconciliation Act of 2012 make in order an amendment that strikes Subtitle C of Title VI – the elimination of the Social Services Block Grant – of the bill, and replaces that section with changes in law that reduce the deficit by repealing the tax subsidies for the "Big 5" major integrated oil companies.

Motion #4: Protect Food and Nutrition Support for Struggling Children and Families While Cutting Taxpayer Direct Payments to Agricultural Interests
PDF | Video | Votes

A motion by Rep. Blumenauer and Rep. Yarmuth that the Committee on the Budget direct its Chairman to request on behalf of the Committee that the rule for consideration of the Sequester Replacement Reconciliation Act of 2012 make in order an amendment that (1) would strike Title 1, which reduces spending in the Supplemental Nutrition Assistance Program, and (2) replaces it with changes in law to reduce the deficit by reforming agricultural commodity and crop insurance programs.

Democratic Amendments to the Sequestration Replacement Act

Amendment #1: Taking a Fair and Balanced Approach to Reducing the Deficit and Replacing the Sequester
PDF | Video | Votes

An amendment by Rep. Van Hollen that replaces the sequester for the entire 10-year period called for under the Budget Control Act with balanced, bipartisan legislation that:

  • increases revenues without increasing the tax burden on middle-income Americans,
  • decreases spending while maintaining the Medicare guarantee and protecting Social Security and the social safety net for vulnerable Americans, and
  • promotes economic growth and jobs.

Amendment #2: Prevent Mindless Cuts to Medicare
PDF | Video | Votes

An amendment by Rep. McCollum and Rep. Tim Ryan (OH) that exempts Medicare from the 2013 sequester, preventing across-the-board payment cuts to doctors, hospitals, nursing homes, home health aides, and others that provide critical care to Medicare beneficiaries. The amendment pays for protecting Medicare from sequester by eliminating wasteful tax breaks for big oil and gas companies.