Hinojosa Votes to Keep the American Economy Strong

Press Release

Today - Congressman Rubén Hinojosa voted to support the Budget Control Act of 2011 that will reduce the deficit while preserving critical Medicare, Medicaid, Social Security benefits and maintaining vital investments in education.

"This is not the perfect bill by any means, but it is an important step in a bi-partisan agreement that is fiscally responsible, but still protects retirement security, health care, and education for the residents of my Congressional District 15 in Deep South Texas," said U.S. Rep. Hinojosa. "I received hundreds of phone calls from my constituents and spoke face to face with many more who all asked me to please save Medicare, Medicaid and Social Security. Hundreds of students contacted my offices expressing their desire to stay in college and wanted me to save the Pell Grant program and we did."

The plan includes approximately $1.2 trillion of deficit reduction through the establishment of ten-year discretionary caps. Here is a breakdown of some of what the bill includes:

* Establish caps on discretionary spending through 2021;
* Allow for certain amounts of additional spending for "program integrity" initiatives aimed at reducing the amount of improper benefit payments;
* Require that the House of Representatives and the Senate vote on a joint resolution proposing a balanced budget amendment to the Constitution;
* Establish a procedure to increase the debt limit by $400 billion initially and procedures that would allow the limit to be raised further in two additional steps, for a cumulative increase of between $2.1 trillion and $2.4 trillion;
* Reinstate and modify certain budget process rules;
* Create a Congressional Joint Select Committee on Deficit Reduction to propose further deficit reduction, with a stated goal of achieving at least $1.5 trillion in budgetary savings over 10 years, and
* Establish automatic procedures for reducing spending by as much as $1.2 trillion if legislation originating with the new joint select committee does not achieve such savings (Medicare, Social Security, Medicaid, unemployment insurance, civilian, veteran and military retirements would be exempted from the triggers).
"We must show our confidence and demonstrate why the American economy is the standard around the world," said U.S. Rep. Hinojosa. "This is not about partisan politics, or ideology, or extremes. It is about what we said when we took our oath of office, we said we would preserve and protect the United States of America. That includes our full faith and credit."

Republicans were met with much resistance when their original plan placed the sole burden of deficit reduction on lower-income and middle-class families.
"Republicans were prevented from trying to undermine the core commitments of Medicare to our seniors and forcing tens of millions of low-income Americans to go without health insurance through Medicaid cuts," said U.S. Rep. Hinojosa.

The bill will keep the maximum Pell Grant award at $5,500, which Congressman Hinojosa fought for in the Health Care and Higher Education Reconciliation Act of 2010. This will help over 9 million students pay for their college tuition bills by contributing $17 Billion through 2012 and 2013. The deal provides specific protection in the discretionary budget to ensure that there will be sufficient funding for Congress' historic investment in Pell grants. The plan also preserves the student loan repayment assistance program that has lowered student interest rates.

"Keeping our nation from defaulting was essential, especially to our working class Americans. Default would have meant immediate increases in mortgage payments as well as increases in credit card interest rates, and what we pay for gasoline, food and utilities," said U.S. Rep. Hinojosa. "Sometimes compromise is difficult, but we must make responsible decisions for the American people. I feel this is what I did tonight."

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