House Panel Approves FY 2005
Budget and Spending Control Plans
March 19, 2004 - The House Budget Committee March
17 passed its version of the FY 2005 budget blueprint after
approving a proposal to give federal spending controls the
force of law.
By a party-line vote of 24 to 19, the committee approved
its FY 2005 budget resolution, after rejecting a number of
Democratic amendments to add funds for a variety of programs.
The committee's budget would freeze domestic spending at FY
2004 levels and fully fund the president's request of $401.7
billion for defense. The plan also calls for a budget-reconciliation
bill to permit consideration of $138 billion in tax cuts over
5 years and to instruct authorizing committees to identify
$13.2 billion in savings from mandatory spending programs
over the next 5 years (see related article).
Among the amendments rejected by the committee were proposals
by Rep. Tammy Baldwin (D-Wis.) to link the NIH budget to the
rate of inflation to protect the agency's purchasing power
(defeated 23 to 17), and by Rep. Chet Edwards (D-Texas) to
add $2.5 billion for veterans medical care (defeated 21-16).
The committee also rejected an amendment by Rep. Mike Thompson
(D-Calif.) to require offsets for any new tax cuts or entitlement
spending increases.
Prior to approving the budget resolution, the committee passed
the Spending Control Act of 2004 (H.R.
3973), which requires caps (to be set in the FY 2005 budget
resolution) on discretionary spending through FY 2009. The
bill also extends through FY 2009 the pay-as-you-go (PAYGO)
provisions that require any increases in mandatory spending
to be offset by reduction on other spending, and not financed
by raising taxes. However, the committee rejected an effort
to require additional tax cuts to be offset.
The GOP leadership plans to have the House vote on the budget
as early as March 24.
Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
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