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House Approves Budget Reconciliation Package

May 11, 2012—The House of Representatives May 10 approved, 218-199, the Sequester Replacement Reconciliation Act of 2012 (H.R. 5652), the Republicans’ budget reconciliation package, which replaces $98 billion in defense and domestic discretionary spending cuts scheduled to take effect January 2013 under the Budget Control Act (BCA, P.L. 112-25) with $310 billion in cuts to mandatory spending, including Medicaid and other safety net programs, over 10 years.  The package does not prevent the required 2 percent across-the-board cut to Medicare spending under sequestration. 

The House-passed FY 2013 budget resolution (H.Con.Res. 112) instructed six House authorizing committees to find at least $261 billion in savings over ten years to avert the cuts to defense in the sequester.  The Energy and Commerce and Ways and Means committees found the majority of their savings, over $160 billion, primarily by repealing and rescinding portions of the Affordable Care Act (ACA, P.L., 111-148 and P.L. 111-152) [see Washington Highlights, April 20 and April 27].

Democrats tried to offer an alternative plan that would have averted the sequester for one year by eliminating farm subsidies, closing tax loopholes to the oil and gas industry, and setting a minimum tax rate for millionaires, but the House Rules Committee rejected the proposal.

The Senate is not expected to take up the House-passed budget reconciliation package.


Len Marquez
Director, Government Relations
Telephone: 202-862-6281


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Washington Highlights, a weekly electronic newsletter, features brief updates on the latest legislative and regulatory activities affecting medical schools and teaching hospitals.

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Jason Kleinman
Sr. Legislative Analyst, Govt. Relations
Telephone: 202-903-0806