(Cross-posted from Linda Leaks in Taking Action, Empower DC Newsletter Summer 2011)
- THE DEAL, agreed to by the United States Congress, (House of Representatives and Senate), and the President of the United States, Barack Obama, is officially named The Budget Control Act of 2011, signed into law on August 2, 2011;
- THE DEAL prevents the federal government from defaulting on its debt/bills/credit.
- THE DEAL permits the debt ceiling (borrowing authority) to be raised by a $2.2 trillion increase which equals a total debt limit of $14.3 trillion;
- THE DEAL requires spending cuts to be made in two stages: First set of cuts to occur immediately and the Second set of cuts by December, 2011;
- THE DEAL requires the Appropriations Committee to immediately begin making $917 billion in spending cuts to the discretionary budget;
- THE DEAL calls for spending cuts to the federal discretionary budget up to $2.4 trillion over the next 10 years;
- THE DEAL calls for immediate spending cuts of $25 billion to the fiscal year 2012 which begins October 1, 2011, and $47 billion in fiscal year 2013 which begins October 1, 2012 and escalating increases thereafter;
- THE DEAL requires the establishment of a 12-member bipartisan committee with the responsibility of coming up with a list (recommendations) of an additional $1.5 trillion in spending cuts from the federal budget by November 23, 2011, including entitlement programs such as Medicare, Medicaid and Social Security; The Committee is called the Joint Select Committee on Deficit Reduction, nicknamed the Super Committee;
- THE DEAL does not represent a balanced approach to long-term deficit reduction – THE DEAL takes revenue increases and Bush- era tax breaks for the wealthy off the table, and doesn’t even consider closing corporation tax loopholes or ending or even “drawing down” troops from Iraq, Afghanistan, etc.;
- THE DEAL makes harmful spending cuts to affordable housing, among other safety net programs, including project-based section 8, housing vouchers, and public housing. These deep spending cuts will most likely increase homelessness for the most vulnerable people regardless of age, family composition or physical conditions;
- Details of the spending bills for the Department of Housing and Urban Development (HUD) (facing a $5 billion cut) and other agencies, will most likely be released in September, when Congress returns from recess.
TAKE ACTION: Fight for Housing
Call your Congress member at 202-224-3121: (also have your relatives and friends call );
Tell your Congressional Representative:
- To take a fair approach to the budget crisis and don’t just cut spending but also, increase revenues by closing tax loopholes and require wealthy Americans and corporations to pay their share;
- End the wars that the United States is involved in – Iraq, Afghanistan, Libya, others;
- Join with other tenants, both locally and nationally, and FIGHT FOR YOUR HOUSING;
Debt Crisis: Terms of Empowerment
- Appropriation Committee: A Congressional Committee. Among other responsibilities, approves federal funds to be disbursed through a variety of government organizations, agencies and departments, such as Housing and Urban Development (HUD);
- Bills: A statement of money owed for goods or services; A proposed law presented to a legislature, but not yet enacted or passed and made law.
- Debt Ceiling: The maximum borrowing power of a governmental entity;
- Debt: A liability or obligation to pay;
- Default: failure to meet financial obligations;
- Discretionary Budget is the federal government spending that is negotiated between the President and Congress each year. It includes everything that is not in the mandatory budget, which are programs required by law to provide certain benefits, such as Social Security and Medicare.
