March 9, 2004

House and Senate Budget Alert

Senate Budget Update

The FY 2005 budget resolution, currently being debated on the Senate floor, if enacted, will require cuts in Medicaid, cuts to the Earned Income Tax Credit (EITC), and provide tax breaks for the wealthiest Americans (by accelerating repeal of the estate tax -- a windfall for those with estates valued at over $3.5 million -- and making permanent tax cuts that provide benefits to families with the highest incomes). Under the resolution, funding for domestic programs (not including homeland security) such as education, housing, the environment and a host of other services that benefit ordinary families, would be cut by $113 billion over five years. In spite of all these cuts, it will not reduce the deficit.

In an otherwise dismal resolution, nutrition advocates were heartened to find $232 million (over five years) for the continuation of the expiring child nutrition programs that are also contained in the House Education and the Workforce child nutrition reauthorization legislation (H.R. 3873). For more information, click here.

Action Needed

Senate message - Please contact your Senators (Capitol Switchboard: 202/224-3121), and tell them that the cuts in the EITC and Medicaid are unacceptable and to support amendments to restore funding to these critical support programs for low-income families. Urge your Senators to "vote no" on the final budget resolution.

House message - As the House begins its action on its FY 2005 budget resolution this week, urge your Members on the House Budget Committee (list of members), to support inclusion of new annual funding for improvements in Child Nutrition Programs in the House Budget Resolution.

Background

For background information, link to the following resources:

• "Budget Priorities Gone Awry: Proposed Senate Budget Committee Plan Would Cut Taxes on the Wealthiest, Raise Taxes on the Poorest Workers, Cut Most Domestic Discretionary Program Areas, and Likely Increase the Ranks of Those Without Health Insurance -- Yet Proposal Would Increase, Rather than Reduce, Deficits" (Center on Budget and Policy Priorities)
• "No Budget is Better than the Senate Budget" (OMB Watch)
• "The President's FY 2005 Budget: Slamming the Door Shut on Opportunity for All Americans" (Coalition on Human Needs)
  

Click here to visit to FRAC's Child Nutrition Reauthorization website.

Factsheets on Child Nutrition Programs School Breakfast  |  School Lunch  |  Afterschool  |  Summer Food Women, Infants, and Children  |  Child and Adult Care Food Program

Prepared by the Food Research & Action Center, 1875 Connecticut Ave. NW, Washington, DC 20009; 202-986-2200; www.frac.org