By Larry Jones
October 17, 2005

As members return to Congress this week, following a week-long recess, a very ambitious agenda awaits them. Perhaps the two biggest challenges they will face will be confirming a Supreme Court Justice nominee and passing the remaining 10 (out of a total of 12) appropriations bills. Complicating the process for approving the appropriations bills is hurricane relief. While Congress and the President have approved $69.6 billion to assist individuals from New Orleans and other cities in the Gulf region devastated by Hurricanes Katrina and Rita, they have acknowledged that hundreds of billions more will be needed to help them clean up and rebuild their cities. With some predicting clean-up and rebuilding efforts will exceed $200 billion, the President and Congressional leaders are pushing to off-set hurricane relief with cuts in other areas of the federal budget.

House Speaker Dennis Hastert (IL) plans to introduce legislation calling for deeper cuts in mandatory spending programs such as Medicaid, Medicare and food stamps. This would increase the savings in the existing budget from $35 billion to $50 billion. Representative Jim Nussle (IA), Chairman of the House Budget Committee has also recommended a two percent across-the-board budget cut in defense as well as domestic programs which could save an additional $17 billion. However, Representative C.W. Bill Young (FL), Chairman of the House Defense Appropriations Subcommittee has already voiced opposition to cuts in defense since the nation is at war.

The House leadership’s plan also calls for a package of rescissions to recoup unused federal funds in previously approved appropriations, and the repeal of a number of programs including 14 education programs which cost $246 million last year.

In the Senate, Majority Leader Bill Frist (TN) and Budget Chairman Judd Gregg (NH) are pushing committees to cut mandatory programs but so far moderate Republicans have not supported these cuts. Senate Democratic leaders are fighting deeper cuts in Medicaid and other safety-net programs claiming they will only make matters worse for survivors from the recent hurricanes who are depending on these programs for medical and other critical assistance.

The across-the-board budget cut, the rescissions and calls for repealing certain programs, in the end, could significantly reduce federal funding for many key programs that assist cities and their citizens.