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Government Affairs Home > Washington Highlights > March 21, 2003

Congress Continues Budget Discussions

March 21, 2003 - The House of Representatives passed its FY 2004 budget resolution (H. Con. Res. 95) in the early hours of March 21 by a vote of 215-212. The Senate was expected to approve its version (S. Con. Res. 23) later the same day. Both chambers defeated numerous attempts to add funds for various programs including education, veterans funding, and emergency preparedness.

During the deliberation process, some members of Congress expressed concern about the impact of the budget. Eleven Republican moderates sent a letter March 14 to House Speaker Dennis Hastert (R-Ill.) and House Budget Committee Chairman Jim Nussle (R-Iowa) opposing the House budget resolution because it "reflects a significant imbalance between tax cuts and spending for existing federal mandatory and discretionary programs…."

In response to member concerns, Chairman Nussle prepared a revised budget that "eliminates across-the-board savings that could be attributable to Medicare," according to a summary of his amendment. While the Medicare spending cuts appear to have been minimized, the potential for Medicaid cuts still exist. House Democratic staff report that the amendment still includes reconciliation instructions that would require the Ways and Means and Energy and Commerce Committees to reduce mandatory programs within their jurisdiction by $62 billion and $107 billion respectively in spending. Further, the chairman's amendment leaves the 2.8 percent cut in discretionary health funding in FY 2004 unchanged.

The AAMC, along with 21 other hospital and nursing organizations, March 18 wrote (PDF, 1 page - 59KB) to every Member of Congress expressing concern for the "potential of drastic cuts to Medicare and Medicaid" and urged them to vote no on the budget resolution. In addition, through letters from the Coalition for Health Funding and the Ad Hoc Group for Medical Research Funding, the AAMC urged Congress to work in a bipartisan fashion to increase funding for discretionary health programs.

Information:
Dave Moore, Senior Associate Vice President
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
Lynne Davis Boyle, Assistant Vice President
AAMC Office of Governmental Relations
ldavisboyle@aamc.org
(202) 828-0526

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