The federal deficit in January 2007 is about $35 billion less than it was at the same time last year, but this does not include funds to fight the war in Iraq and Afghanistan this year. The President is expected to ask for an additional $100 billion in February which will increase the deficit. On Friday, Congress voted to restore the "pay-as-you-go" rule saying it is crucial to curbing the budget deficit. It was adopted 280-152.
PayGo requires that if there is any funding increase to any program, for example Medicare, then there needs to be a cut from some other government program (or a corresponding tax increase.) Just as, if the government continues with tax cuts, then there need to be equivalent cuts in spending.
This has a significant negative impact on entitlement and federal benefit programs such as Medicare or Medicaid health care programs for the poor and disabled. Therefore, it will be particularly important to follow proposed funding levels for these programs during this year’s appropriations and budget process.
Day Al-Mohamed
Director of Advocacy and Governmental Affairs
American Council of the Blind
1155 15th St. NW
Washington DC 20005
Tel. 202-467-5081
dalmohamed@acb.org