The House Republicans’ Spending Reduction Act of 2012 Will Hurt Middle Class Families

The House Republicans introduced a bill last night, The Spending Reduction Act of 2012, that would negatively impact the American people in several ways. Let’s take a quick look:

  • It entirely eliminates the Social Services Block Grant, which serves 1.7 million seniors through programs like Meals on Wheels. This would also cut federal funds for child care and related assistance for 4.4 million children; services for nearly 1 million disabled individuals; and child protective services which serve 1.8 million at-risk children
  • They also dismantle programs that help homeowners and prevents foreclosures, one of the most critical sources of federal assistance for homeowners who are struggling with foreclosure and need loan modifications. Not only would this limit the home preservation options available to struggling homeowners but would also undermine efforts to support the housing market’s fragile recovery
  • And they eliminate guaranteed funding for the Consumer Financial Protection Bureau, significantly weakening its ability to make sure that the financial products and services that Americans depend on every day —including credit cards, mortgages, and loans—work better for the people who use them.

The bill also advances Rep. Paul Ryan’s approach to domestic discretionary spending, cutting the discretionary cap level far below the bipartisan Budget Control Act total for 2013. The Ryan Budget approach would ultimately impose deep cuts on federal support for education, scientific and medical research, clean energy programs, key infrastructure investments, public safety protections, women’s and public health programs, and critical services for families in need.

This bill is a step backwards and it’s nothing more than a dangerous diversion.

There’s a big, balanced deal on the table that the Speaker should take. It’s reasonable, and it meets them more them halfway. This bipartisan deal reduces the deficit in a balanced way that is consistent with our values and lays the foundation for middle class job growth. That means certainty for businesses so they can plan around their strategic growth objectives. That means that everyone, including millionaires and billionaires, does their fair share. That means security for middle class families. And that means our government lives within its means and doesn’t mortgage our children’s future. It’s time for Speaker Boehner to come to the table and take action that’ll benefit the American people.

Amy Brundage is the Deputy Press Secretary for the Economy
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