Trump lauds Schumer’s ‘guts’ in backing bill to avoid shutdown

“The Senate minority leader, both privately to his caucus Thursday and in a floor speech shortly after, said he would vote to advance a GOP-written stopgap to fund the government through September. He said Republicans’ spending bill is “very bad.” But he argued the “potential for a shutdown has consequences for America that are much, much worse” and would empower President Donald Trump and Elon Musk to further gut federal agencies.”

https://www.politico.com/live-updates/2025/03/14/congress/trump-congratulates-schumer-00230577

GOP gets the upper hand on spending, with improbable help from the hard right

“It took an all-out lobbying blitz that involved promises of future spending cuts, a scattering of presidential threats and 11th-hour policy concessions involving tariffs and visas for Afghan refugees. But in a 217-213 vote, the House passed a seven-month funding patch without needing a single Democrat. Republicans planned to immediately leave Washington and hand Senate Democrats a stark dilemma with the threat of a government shutdown looming early Saturday morning.”

https://www.politico.com/news/2025/03/11/republicans-unite-spending-bill-trump-00225356

The biggest spending cuts in Trump’s new budget bill — and how they could affect you

“Trump’s new budget blueprint, which is also known as a resolution, does three things.

First, it calls for extending the president’s 2017 tax cuts, which would otherwise expire at the end of the year, at a cost of $4 trillion over the next decade. It also makes room for another $500 billion in tax cuts Trump talked about on the campaign trail, such as no tax on tips, for a grand total of $4.5 trillion.

Second, the blueprint greenlights modest spending increases targeted toward immigration enforcement (up to $110 billion), customs and border protection (up to $90 billion) and military involvement in border security (up to $100 million) — top Trump priorities.

And finally, at the behest of conservative deficit hawks, the resolution mandates $2 trillion in spending cuts over 10 years to partially offset new border spending and the trillions in revenue lost to Trump’s tax cuts. (Even then, the new budget would still directly add $2.8 trillion to the deficit.)

For now, Trump’s budget blueprint doesn’t say which programs will be slashed; instead, it instructs specific House committees to cut specific amounts from the programs under their jurisdiction.”

https://www.yahoo.com/news/the-biggest-spending-cuts-in-trumps-new-budget-bill–and-how-they-could-affect-you-172157094.html

Amid staff cuts and budget chaos, more than 700 national park employees take buyout

“The permanent staffers who are fired or taking the buyout include people who collect fees at park entrances, maintenance workers who clean park facilities and rangers who patrol the backcountry and rescue lost and injured hikers.

Adding to the operational chaos for Park Service supervisors, the Trump administration in January notified thousands of seasonal workers who staff America’s 433 national parks and historical sites during peak seasons that their job offers for the 2025 season had been “rescinded.” The move set off panic in the ranks of park employees, and threw into limbo the vacation plans of hundreds of millions of people who visit the parks each year.”

https://www.yahoo.com/news/amid-staff-cuts-budget-chaos-110046115.html

The COVID Bailout of State and Local Governments Was Unnecessary

” In a new report, the Government Accountability Office (GAO) found that states (including Washington, D.C.) had spent just 45 percent of the funding they had received through the Coronavirus State and Local Fiscal Recovery Funds program, a $350 billion line item within the $2 trillion American Rescue Plan Act (ARPA), which passed in March 2021. Local governments had reported spending just 38 percent of their funds received through the same program.”

“”The new GAO study confirms that the ARPA spending was not needed,” Chris Edwards, chair of fiscal studies at the Cato Institute, tells Reason. “By the fall of 2020, it was clear that the states were in good fiscal shape and not facing Armageddon as many policymakers were claiming. They did not need federal handouts.””

“Before the American Rescue Plan passed, there was widespread skepticism about the proposed bailout, in part because three other pandemic-era spending bills had already sent about $360 billion in aid to states and localities.”

“In a National Bureau of Economic Research working paper published in June 2022, a trio of researchers found that pandemic-era aid distributed to state and local governments had cost taxpayers about $855,000 per job saved. The stimulus spending had only “a modest impact on government employment and has not translated into detectable gains for private businesses or for states’ overall economic recoveries,” concluded University of California, San Diego economists Jeffrey Clemens and Philip Hoxie and American Enterprise Institute senior fellow Stan Veuger, the paper’s three authors.”

“Iowa spent $12.5 million of its $4.5 billion cut of the federal bailout on a new baseball stadium near the Field of Dreams movie set. Because that’s an essential public health issue, of course.”

“Michigan “reported spending $25.6 million on a travel marketing and
promotional campaign,” allegedly to “respond to the impacts of COVID-19 on tourism.” Louisiana, meanwhile, reported spending $115 million to construct roads and bridges.

Tourism is nice and roads are in some ways an essential government function, but the emergency COVID spending was meant to help states address an immediate public health crisis—or to offset the costs of it. It’s not at all clear how highway construction was a victim of the pandemic ”

https://reason.com/2023/10/13/the-covid-bailout-of-state-and-local-governments-was-unnecessary/

The U.S. Credit Rating Just Dropped. It’s Time for Radical Budget Reform.

“Fitch Ratings..downgraded the U.S. government’s credit rating due in part to Congress’ erosion in governance. Indeed, year after year, we see the same political theater unfold: last-minute deals, deficits, and, all too often, the passage of gigantic omnibus spending bills without proper scrutiny, along with repeated debt ceiling fights and threats of shutdown.
But these are just symptoms of a budget-making process that remains in desperate need of reform. With legislators chronically delinquent about following their own rules, the change may need to be as much cultural as procedural. No matter how good the rules are, they’re useless if politicians ignore them. And in a world where politicians are rarely told no when it comes to creating or expanding programs, most simply refuse to have their hands tied or behave as responsible stewards of your dollars.”

“What we need is a comprehensive budget process under which programs like Social Security, Medicare, and Medicaid are no longer permitted to grow without meaningful oversight. Combined with other mandatory, more-or-less automatic spending items, they make up more than 70 percent of the budget. Thus, they must be included in the regular budget process and subjected to regular review. Only then will our elected representatives be forced to stop ignoring the side of the budget that requires their attention the most.”

“Enter a “Base Closure and Realignment Commission (BRAC)”-style fiscal commission, an idea promoted by the Cato Institute’s Romina Boccia. This commission would be staffed with independent experts appointed by the president. It would be “tasked with a clear and attainable objective, such as stabilizing the growth in the debt at no more than the GDP of the country, and empowered with fast-track authority, such that its recommendations become self-executing upon presidential approval, without Congress having to affirmatively vote on their enactment,” Boccia explains.

I’m uneasy about delegating the president power to appoint “experts.” Unfortunately, Congress has proven they will never seriously address the problem unless forced to. The idea is not unprecedented. Congress has already delegated a lot of its legislative power to administrative agencies and the executive branch. It’s also how the political class dealt with the closures of military facilities after the Cold War—another set of hard choices they refused to make on their own.

What’s more, Congress would retain some veto power. If they disapprove of the proposal, the House and Senate can reject it through a joint resolution within a specified period. Whether it’s the best solution to address our fiscal problems remains to be seen, but it’s worth considering.”

“Making continuing appropriations automatic in case of a lapse could remove the threat of shutdowns.”

These Members of Congress Have a Revolutionary Idea: Write and Pass a Budget the Old-Fashioned Way

“The bipartisan Problem Solvers Caucus—made up of 31 Republicans and 32 Democrats—has reportedly crafted a debt limit proposal that calls for Congress to return to so-called regular order for the passage of annual budget bills. That means the dozen appropriation bills that make up the federal budget would go through the full congressional process, including committee hearings and individual votes for each, rather than being rolled together in the massive omnibus packages that Congress has relied upon in recent years.
According to a draft proposal from the caucus published Wednesday by Axios, a return to regular order would be one of several changes the lawmakers in the group would demand as part of a debt ceiling deal. They’re also asking for the creation of a new fiscal commission to make recommendations on stabilizing the federal government’s dangerously high levels of debt, and the adoption of budget controls (similar to those that were in place between 2011 and 2018) to limit future spending increases.

If those terms are agreed to, the group’s framework would raise the debt ceiling to a level that won’t be reached until after 2025—in other words, until after the next election.

On their own, those proposals won’t solve America’s serious fiscal challenges. But they would be a series of good first steps toward taking the mess seriously and would avert the potentially catastrophic debt default that looms over everything in Washington right now.”

To Balance the Budget, Republicans Must Cut Military Spending, Trim Entitlements, or Raise Taxes

“In one scenario outlined by the CBO, Congress would have to cut 86 percent of all discretionary spending if it wanted to balance the budget by 2033 without touching the military, veterans programs, or entitlements like Social Security and Medicare. In a slightly altered version of that same scenario in which the Trump tax cuts were not allowed to expire as intended in 2025, Congress would have to cut 100 percent of discretionary spending—and the country would still face a $20 billion deficit.”

“it should be clear that any attempt at bringing the federal budget deficit under control must kill (or at least wound) the Republicans’ sacred cows of military spending, entitlements, and the recent Trump tax cuts. Right now, however, leading Republicans including former President Donald Trump and Speaker of the House Kevin McCarthy (R–Calif.) have vowed to keep Social Security out of any long-term spending deals. Rep. Jim Banks (R–Ind.) has promised to oppose any bill that cuts defense spending.
As for the tax cuts, they’re technically temporary—a gimmick that allowed Republicans to game the CBO’s scoring of the tax cut bill—but keeping the lower individual income tax rates in place past 2025 is a top priority for Republicans.”

“the CBO’s numbers aren’t partisan and neither is the blame for America’s massive budget deficits. These latest projections only reveal how difficult the choices ahead will be. If Republicans are serious about trying to balance the budget, there can be no more sacred cows.”

Biden’s budget goes all in on protecting Medicare. Just how much danger is it in?

“It is true that, as of right now, Medicare is projected to be unable to pay all of its bills as early as 2028. Without congressional action, a stronger economy, or more likely, both, the government could end up without enough money to cover everything it promises enrollees within five years.
That would be unprecedented and would likely provoke a political crisis. But it is not quite the same thing as Medicare going bankrupt and ceasing to exist entirely. Alarm bells have sounded about Medicare’s trust fund for decades, with the exact date of when it would run out of money moving forward and back. But, eventually, Congress will need to act.

To understand the program’s financial situation, start with how Medicare is structured. Medicare is broken down into several different parts. Part A covers hospital care, stays at skilled-nursing facilities, and home health care. Part B pays for outpatient physician care. Part D is the prescription drug benefit, which is administered by private insurance plans. Most Medicare beneficiaries — anyone over age 65 — get their insurance directly through the government. But almost half are now insured through Medicare Advantage (also known as Part C) in which patients sign up for a private plan, paid for largely by the federal government, which provides a comprehensive suite of benefits. (Those plans are also more expensive to the government and their growing enrollment is contributing to the solvency problem”

“Different parts of Medicare are funded in different ways, but when we’re talking about a Medicare funding crisis, we’re talking about the benefits paid by Part A: hospital services. Hospital bills for Medicare enrollees are funded almost entirely through the program’s dedicated payroll taxes. If those benefits cost more than the government receives in Medicare payroll taxes in a given year, as can happen in an economic downturn, the difference comes out of a trust fund earmarked specifically for Part A. The Medicare trustees, who issue annual reports on the program’s finances, project that Medicare spending will begin outpacing revenue again in 2024, requiring the program to dip into the trust fund. The trust fund is projected to be fully depleted by 2028 without further policy changes.”

“Part B and Part D, however, are not facing the same financial crunch. They are funded primarily by general tax revenue, instead of an earmarked payroll tax, and premiums paid by beneficiaries. Their trust funds are projected to be sufficient for the foreseeable future.”

“Medicare Advantage plans receive funding based on the type of service provided to their customer, which means money for hospital care comes from Part A. Annual Part A payments to Medicare Advantage plans is expected to increase from about $176 billion in 2022 to $336 billion by 2030.

Separate from the new budget proposal, the White House is attempting to rein in the payments to Medicare Advantage plans (from an 8 percent increase last year to a proposed 1 percent increase in the coming year). Republicans and the health insurance industry have slammed that proposal as a cut to Medicare, an example of how it can be politically difficult to get Medicare spending under control.

Biden’s budget will likely jumpstart a new debate about Medicare solvency. But it’s only a beginning.

Congress has passed provisions to reduce Medicare spending in recent years, such as the Inflation Reduction Act’s plan for the program to negotiate some prescription drug prices. But lawmakers have also acted to avert any cuts to how much the program pays doctors, hospitals, and other medical providers.

Both tax increases and any spending reductions can be a tough sell in Congress. So can increasing the eligibility age, an oft-floated idea that still amounts to cutting benefits for seniors.

Biden is going with tax hikes in his budget plan. But it’s not yet clear if lawmakers are really willing to act on his or any proposal to improve Medicare’s finances.

They still have five years before the Part A trust fund will run out, according to the latest available projections. The Medicare trustees urged Congress to act soon to avert the crisis, in order to minimize the risks for patients and providers. But unfortunately, lawmakers have a habit of waiting until the last minute to act.”