Category Archives: Budget

Six Reasons the President’s FY 2019 Budget Widens the Income Inequality Gap

Six Reasons the President’s FY 2019 Budget Widens the Income Inequality Gap

Tralonne Shorter
March 9, 2018

On February 12, 2018, President Trump submitted his Fiscal Year 2019 federal budget blueprint to Congress. This timing is consistent with the traditional release of the President’s budget, but in recent years the budget process has stalled down the road when Congress must agree on spending levels and appropriations bills. To illustrate: when President Trump’s FY 2019 budget plan was submitted in February, we were well into FY 2018 which began October 1 2017, and we should have had a functioning year-long budget firmly in place. Instead, because of months of delays, this was just days after Congress approved the two-year Bipartisan Budget Act of 2018 that lifts both defense and nondefense spending caps and will finally put the FY 2018 federal budget in place slated for approval by March 23, 2018. President Trump’s FY 2019 budget proposal also comes on the heels of Congress’ recent passage of the largest tax reform law since 1986—which raised the deficit by $1.5 million to provide permanent tax breaks for the super wealthy.

The President’s FY 2019 budget calls for considerable defense spending, amounting to $716 billion, while reducing spending for non-defense programs by at least $57 billion below the bipartisan spending caps agreement that Congress just approved. Subsequently, starting in FY 2020, the President proposes roughly $3 trillion in spending cuts (disguised as deficit reduction) over 10 years to entitlement programs that support the Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income (SSI), Medicare, and Medicaid, among other critical programs people rely on.

Yet again, the President fails to prioritize children, working families, people with disabilities and those simply in need of some help during a difficult time.  If enacted, this budget would exacerbate poverty by placing the burden on the most vulnerable among us while handing out tax breaks to the ultra-rich. The President’s budget proposal is morally deficient and NETWORK Lobby will endeavor to ensure that it’s not passed by Congress as written.

Here are six things every social justice advocate should know about President Trump’s FY 2019 Budget Blueprint:

  1. Proposes massive cuts to Safety Net programs. Despite promises made by Congressional Republican leadership not to attack entitlement programs, deep cuts over the next decade are slated for CHIP, Medicaid, Medicare, Social Security, and Temporary Assistance to Needy Families.  The most significant cut is to Medicaid, which would total $1.4 trillion over 10 years and be converted into a block grant with a per capita cap.  Another concern is funding for the Supplemental Nutrition Assistance Program (SNAP), as the Trump budget proposes a $214 billion reduction over 10 years, including a $17 billion cut in FY 2019. This program nourishes more than 42 million people, including 20 million children, 5 million seniors, and 4 million adults with disabilities in our nation.
  2. Underfunds the 2020 Decennial Census. The next decennial census will take place on April 1, 2020. Despite the Trump Administration adjusted request submitted in FY 2018 for $344 million in increased investments in the decennial census, funding lags behind what is needed to ensure a fair, accurate, and modern census.  Furthermore, delayed appropriations have led to the cancellation of two critical tests in South Dakota and Puerto Rico−the only Spanish-based test.  While the Secretary of Commerce has expressed serious concerns about the efficacy of the 2020 census, the President requests $3.015 billion in FY 2019–which is inadequate to support the volume of work needed for completion by census day. Outstanding issues include preparation for address canvassing, marketing and outreach, and final end-to-end testing which has been scaled back from three locations to only one.  NETWORK requests $3.928 billion for the decennial census activities.
  3. Increases funding to deport and separate immigrant families. President Trump’s budget requests $782 million to hire an additional 750 Border Patrol agents and 2,000 ICE officers and agents. The budget also provides $2.7 billion to fund 52,000 detention beds. Despite frankly impossible campaign promises to make Mexico pay for a border wall, the President’s budget includes a request for $1.6 billion in FY 2019 on top of the $18 billion requested in FY 2018 for the construction a border wall along the southern border.
  4. Eliminates Vital Affordable Housing and Community Development Programs. The President’s budget proposes eliminating the Community Development and Block Grant (CDBG) program ($3 billion), the Choice Neighborhoods program ($138 million), and the HOME Investment Partnerships Program ($950 million). Conversely, the budget includes $2 billion in federal rental assistance programs, including funding to restore 200,000 housing vouchers, sustaining the current level of 2.2 million vouchers that protect elderly and disabled households from rent increases.
  5. Offsets 6-Week Paid Family Leave Proposal Using State Unemployment Insurance Structure. In his budget, President Trump resubmitted a proposal championed last year by his daughter, Ivanka Trump, that would provide workers six weeks of paid family. The budget request includes $700 million in start-up costs for states to assist with developing the infrastructure to establish state-based paid leave programs. The budget pays for this proposal by using Unemployment Insurance as the baseline giving states autonomy for implementation. While most working families don’t currently benefit from paid family and medical leave, many states do not have sufficient reserve funds to support this significant financial obligation without raising taxes.
  6. Imposes Work Requirements for Critical Programs. The President’s budget is callously based on the assumption that there are too many “able-bodied” beneficiaries receiving federal and state-level assistance across 80 different programs. Consequently, President Trump proposes incentives for states to expand work requirements for able-bodied parents with children over age 6, and make it a condition to receive food stamps, Medicaid and public housing assistance. Some states have already imposed stricter work requirements that include no food stamps for those who own a vehicle valued more than $20,000 and require drug testing to qualify for public housing. These requirements are harmful and punitive for families and undermine the purpose of these programs, to assist those who need it the most.

Sisters Advocate for a Faithful Budget

Sisters Advocate for a Faithful Budget

Catherine Gillette
January 17, 2018

Congress is once again struggling to reach a deal on the federal budget in order to avoid a government shut-down.  With so many important programs and the lives of so many people on the line, NETWORK believes that passing a faithful budget is absolutely essential. And we are not alone in that belief.

This past fall, NETWORK collected nearly a thousand letters written by Catholic sisters to House Speaker Paul Ryan about the federal budget. While the sisters come from different congregations, live in different parts of the country, and work on many different issues, the underlying message of their letters was the same: our federal budget must prioritize programs that help our nation’s most vulnerable people.

In December, Sister Erica Jordan, OP and Sister Ruth Brings, SSSF (both Speaker Ryan’s constituents) flew from Wisconsin to Washington, D.C. to meet with Speaker Ryan’s Deputy Chief of Staff and deliver the letters.  Shortly after they already arrived in D.C., their meeting was abruptly canceled.  They flew back to Wisconsin without being able to share their concerns or the collected letters with Speaker Ryan’s office.

Fortunately, the story doesn’t end there.

NETWORK is committed to working with Members of Congress and our partners to ensure that these stories are lifted up and the letters, delivered. We call on Speaker Ryan and the rest of Congress to listen to these faithful voices and pass a faithful budget.

Here are just a few of the voices and issues raised up in the letters we received:

“Tax cuts for the wealthy do not serve the needs of the most vulnerable and marginalized.  This year, natural catastrophic storms have devastated and impacted thousands of people.  How will your tax cuts rebuild these lives and communities that we know from past storm experience take 5 to 10 years for full recovery? Will these homeless families truly benefit from your budget plans?” –Sister Roberta Feil, SC

“Catholic Social Justice requires all of us to act as our sisters’ and brothers’ keepers.  One way we can meet the needs of our human family is by ensuring all people have access to quality, affordable healthcare.” –Sister Kathleen Quigley, SC

“I have witnessed first-hand the violent and senseless ripping away of parents from their children by ICE.  These are people who are hard-working and contributing members of our church and communities.  Every family deserves stability and security and children in our nation should not have to live with the fear that their parents could be taken from them at any moment.  I urge you to reject additional funding for border enforcement, including but not limited to building a border wall.  As a nation of immigrants, we are called to welcome the stranger and love our neighbor.” –Sister Sharon Costello, CSJ

“I am asking you to promote a federal budget that is a reflection of the values of the nation and the principles of Catholic Social Teaching.  The federal budget is a moral document that reflects the priorities of the nation.  A budget worthy of this nation must prioritize human needs programs, ensure funding to care for the vulnerable members of society, restore economic opportunities, and invest in the common good.” –Sister Colleen Dauerbach, SSJ

Finally, before leaving Washington, Sisters Erica and Ruth took the time to share their message to Speaker Ryan with us at the NETWORK office. Watch the video below:

A Year of Protest, Prayer, and Persistence

A Year of Protest, Prayer, and Persistence

Laura Peralta-Schulte
March 7, 2018

2017 was a tumultuous year for our nation. Following the election of President Trump and with Republicans in control of both the House and Senate, advocates were fearful of what lay ahead for women, people of color, immigrants, and other communities that had been the target of then-candidate Trump’s consistent attacks on the campaign trail.

President Trump began his Inaugural Address talking about “American carnage”, building walls, and making “America first.” The next day, millions of people marched in Washington and around the world to show their opposition to President Trump’s agenda. Sister Simone Campbell addressed the Women’s March in Washington, D.C. asking people of faith to actively engage in the political debate on behalf of the common good. With that historic mobilization, we began the political action of 2017.

Administrative Attacks on our Mend the Gap Agenda

Two areas of NETWORK’s Mend the Gap agenda were under constant attack in 2017:  healthcare and immigration. On both issues, the Trump Administration used all legal means at their disposal to undo the progress of the Obama Administration. For healthcare, the Administration moved immediately to dismantle the Affordable Care Act by changing regulations under the guise of “flexibility” to limit the program. Later in the year, the Administration refused to advertise and engage in ACA enrollment activities, which was an act of sabotage.

On immigration, including in the area of refugee resettlement, the Administration attempted to fundamentally restructure longstanding programs. This began with issuing multiple Muslim travel bans – which were, until recently, stopped by Court challenges – then concluded the year by announcing a historic cut to the number of refugees the U.S. will settle. The Trump Administration also callously rescinded the Deferred Action for Childhood Arrival (DACA) program created by President Obama that has protected Dreamers from deportation and allowed them legal work authorization since 2012. The Administration is currently working to remove Temporary Protected Status for large communities of immigrants including those from Haiti, El Salvador, Guatemala, Honduras, and elsewhere.

Legislative Attacks on Mend the Gap Issues

One of the first and most sustained threats to our agenda came as Republicans in Congress launched their efforts to repeal the Affordable Care Act (ACA). Republican members of Congress have campaigned on repealing the ACA since its passage, so it was no surprise when the House moved to repeal the program. Congress also moved to unravel our broader healthcare system by attempting to fundamentally restructure the Medicaid program into a block grant. This proposal would devastate Medicaid and risk the health of millions of Americans who depend on the program.

What was surprising – and inspiring – was that these efforts failed due to the hard work of a diverse coalition of advocates and the engagement of many people all around the country who responded to the attack with determination. The Republicans had planned to repeal the ACA quickly at the beginning of the Congressional session, but ended up fighting to make changes through the spring and summer until they finally failed in July. Network chaired the national faith healthcare table and played an important role in defeating the effort.

Harmful immigration bills became part of the Republican legislative agenda during the first days of the new Congress. Republicans moved swiftly to increase funding for deportations, detention, and border security as well as pass new legislation to strip sanctuary cities of federal funding. Early on, Democrats united and refused to support a bill that included significant funding to build a border wall. This was an early win for our community, and it became apparent that Republicans would have trouble implementing their agenda because of Senate rules (requiring 60 votes to pass legislation) when operating under regular process. That is why the budget reconciliation process (which only requires 51 votes) has been used to try to pass partisan healthcare and tax legislation.

Crisis set in as the Administration rescinded the DACA program in September. Over 800,000 Dreamers who had signed up for protections and who are fully integrated in American communities, schools, and workplaces face the threat of deportation if Congress does not pass legislation that provides protection. Congress failed to pass this critical legislation in 2017 and it remains a key part of NETWORK’s agenda for 2018.

End of the Year: Tax Cuts or Bust

Because of advocates’ success in blocking major portions of the Republican agenda during the first half of the year, when Congress returned after the August recess, the pressure was on Republicans to deliver a win before the end of the year. They moved quickly to a popular issue for the party: tax cuts. Congressional Republicans worked feverishly for the rest of the year to pass a partisan tax bill that gives significant tax cuts to wealthy people and corporations at a loss of $1.5 trillion dollars for our nation. While there were obstacles to passing the bill, in the end Republicans rallied around the tax bill written by and for lobbyists and their rich donors, marketing it as a middle class tax bill that will spur economic growth and raise wages. Unlike earlier debates, there was little Republican opposition to the tax bill and it moved forward at lightning speed. The bill did not receive any Democratic support.

This was a significant loss for NETWORK for two reasons. First, as part of the tax bill, Republicans achieve a year-long goal of destabilizing the Affordable Care Act by including a repeal of the individual mandate. Experts show that this will increase premiums and potentially lead to 13 million people losing healthcare in the near future. Second, the significant loss of national revenue sets the table for Republican leadership to talk about the need to cut the social safety net programs like Medicaid, Medicare, and nutrition programs next year. Already, President Trump and House Speaker Paul Ryan have indicated that Congress will push for “Welfare Reform” next year.

An Uninspiring Federal Budget Process

Congress did not pass a full federal budget for 2018, deciding instead to put all of their political energy into passing tax cuts for the wealthy and large corporations. Congress adjourned on December 21 after passing a short-term bill to fund the government at current levels through January 19. This sets the stage for further budget action as well as discussions on funding for 2019.

Harmful Neglect of the Common Good

Congress’s single-minded focus on partisan priorities continually got in the way of bipartisan legislation that would have advanced the common good. For much of 2017, NETWORK and partners urged Congress to extend funding for the Children’s Health Insurance Program (CHIP) well before the October 1 deadline. For 20 years, CHIP has been a popular, bipartisan program that brought the rate of uninsured children to the lowest level in our history. Congress failed to renew CHIP funding and only passed a temporary funding for the program until March of 2018 when they will try again to achieve bipartisan consensus.

Overall, there are three important lessons we have learned in the past year. First, Republicans are deeply divided on core Mend the Gap issues like healthcare and immigration; it is possible in certain instances to build bipartisan support to block bad bills and, over time, potentially to develop bipartisan legislation to solve problems. Second, in order to be successful, advocates must organize and engage in Washington and, perhaps more importantly, at home. Third, President Trump and Republicans in Washington are fearful of political losses in 2018 and will prioritize “winning” the political fight and the next election over the common good. As we work to resist against unjust policies and to promote the common good, we continue to find our power in diversity and community.

Read NETWORK’s 2017 Voting Record here.

Immoral Tax Plan Makes Its Way Through Congress

Immoral Tax Plan Makes Its Way Through Congress

Mary Cunningham
December 13, 2017

Around 3 A.M. Saturday, December 2, the Senate voted to pass the Republican tax bill, a measure which will undeniably have detrimental effects on low and middle income households.  The bill also costs the U.S. treasury over $1.5 trillion dollars, which will soon be used as a reason to make cuts to Medicare, Medicaid, and Social Security as well as other safety net programs.

With all of this happening, what’s really going on behind closed doors? Both the Senate and House have chosen members who will sit on the conference committee tasked to reconcile the House and Senate versions of the bill. There has already been a lot of back and forth as House and Senate leadership discuss which details to include in the final tax cut bill. These discussions largely surround debates on the repeal of the alternative minimum tax for corporations, concerns about the research and development tax credit, the repeal of the state and local tax deductions, and requests to lower taxes on small businesses.

Every Democrat in the House and Senate and numerous Republican members of the House have come out against the bill, recognizing the adverse effects it will have on their districts. Passing a bill that will increase taxes on their constituents is a large risk, especially with midterm elections approaching rapidly. The incentive to get this bill passed is largely political. Republicans, eager to have at least one major victory, are rushing to get it passed before this year’s end.

The United States Conference of Catholic Bishops has condemned the tax bill, calling it “unconscionable.” They claim it will disproportionately affect working poor families and individuals while protecting the interests of the wealthy. In a letter to the House of Representatives, the Bishops noted that key programs which help people who are economically marginalized are at risk for elimination, including an income tax credit for persons with disabilities and the deduction for state and local taxes. While the Child Tax Credit would be expanded, it’s likely that low-income families will not be able to reap the benefits, especially immigrant families who file their taxes with an Individual Taxpayer Identification Number (ITIN). They wrote, “No tax reform proposal is acceptable that increases taxes for those living in poverty to help pay for benefits to wealthy citizens.”

This bill will lead directly to automatic cuts in healthcare and other vital social programs, in part to offset the estimated $1.5 trillion cost of the bill over the next 10 years. House Speaker Paul Ryan has already signaled that the next step for Congress after passing the bill will be to reduce funding for entitlement programs to pay for the tax cuts. We can learn from other states that have implemented tax cuts experiments and see that they have not worked! In 2012, the Kansas state legislature passed a tax cut plan that they promised would boost the economy and pay for itself over the years. In reality, lowering income and business taxes only hurt the economy, and led to a severely damaging loss of state revenue. Now, the Trump administration’s tax plan poses the same threat on a national level. This is a bill that Republican members of Congress are pushing in order to satisfy their donors. It is not a bill for the 100% and is the wrong direction for our country.

Here are some ways to oppose to GOP tax plan:

  • Call your Representatives! The fight is not over. Call 1-888-422-4555 to speak to your Representative and tell her or him why you oppose the bill. Remember to share your faith perspective!
  • Speak out on social media! Use your Twitter, Facebook, or Instagram accounts to voice your concerns about the tax bill and the effects it will have on our most vulnerable neighbors.
  • Visit your Member of Congress’s office with friends in your community and talk directly to staff about why this bill is wrong for your district and wrong for the country.
  • Get creative: Hold a prayer vigil outside your Members’ office!