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Chocola Calls Deficit Reduction Act a Good First Step

Date: Feb. 8, 2006
Location: Washington, DC
Issues: Unemployed and Low-Income Entitlements and the Safety Net Health Insurance


Chocola Calls Deficit Reduction Act a Good First Step

Washington, Feb 8 -

Rep. Chris Chocola today said the Deficit Reduction Act which was signed by the President earlier this morning will reduce the deficit by $39 billion and reform important government programs to eliminate waste, fraud, and abuse.

"This is a good start, but there is much more reform that needs to be done before we can say that our fiscal house is in order" said Rep. Chocola. "We need to commit ourselves to reforming the budget process. We have a spending problem in Washington and the only way to avoid huge tax increases is if we get our spending under control."

Highlights of the Deficit Reduction Act:

* Expands welfare reform by reauthorizing the successful welfare reform policies in TANF and providing an additional $1 billion for child care;

* Lowers the government's prescription drug costs by setting more realistic reimbursement rates for medicines based on the average manufacturers' price;

* Rebuilds community first-responder capabilities by freeing up vital spectrum airwaves;

* Protects workers' pensions by placing the Pension Benefit Guarantee Corporation (PBGC) on a more solid financial foundation and protecting taxpayers from the cost of a massive bailout;

* Increases heating assistance for low-income Americans by assuming $1 billion in additional funding for the Low-Income Home Energy Assistance Program (LIHEAP);

* Prevents Medicare physician payment cuts in 2006 by freezing payment rates for physician services and includes significant new quality reporting initiatives for hospitals and home health agencies as well as increased transparency on quality measures;

* Increases student loan limits to allow more students access to higher education, reduces fees, and finds savings by reducing excess lender subsidies; and

* Enacts reforms based on the cost-saving recommendations of the bipartisan National Governors Association to slow the growth of the Medicaid program. However, the amount spent on the Medicaid program will continue to rise.

http://chocola.house.gov/News/DocumentSingle.aspx?DocumentID=39306

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