Rule changes under President Obama that have allowed for a huge “stealth expansion” of welfare benefits would be reversed under legislation taking center stage this week in the House.
As part of a package of legislation aimed at avoiding the year-ending threat of sequestration, a budget requirement that would crush the Pentagon and order across-the-board cuts, Speaker John Boehner and his GOP team is taking aim at several welfare-expanding moves pushed by the administration that could save a total of $77 billion over 10 years.
But it won’t be an easy victory. “This promises to be a legislative donnybrook, as the left rejects the idea of placing any limits on access to the modern welfare state,” said Mike Franc of the Heritage Institution. “This fight is simply about enforcing the agreed upon contours of the current law. It’s a huge issue that’s received little public attention,” he added.
The legislative package set for House Budget Committee markup has four key reforms, all coming under the heading “Stop fraud by ensuring that individuals are actually eligible for taxpayer benefits they receive,” according to a GOP memo from Boehner and other House leaders.
First, it closes a loophole that allows states to give food stamps not just to those who need them but to anybody who hints they want them simply by asking for a food stamp brochure or calling the food stamp 1-800 hotline. That could save $11.7 billion over 10 years.
A second move would close the “heat and eat” loophole that lets states expand eligibility for food stamp by up to $130 a month for those who also receive home heating fuel assistance. The scam here: Some states send just $1 assistance checks, making families who apparently don’t need much fuel assistance eligible for bigger food stamp help. Savings: $14.3 billion over 10 years.
The third initiative would prevent abuse of the refundable child tax credit by those immigrants ineligible to work in the United States for a 10-years savings of $7.6 billion.
And the largest money saver would be requiring Americans to repay overpayments of their Obamacare subsidy to buy insurance. The issue: eligibility for aid is based on two-year-old employment info, meaning that those who recently got jobs and receiving aid are still registered as unemployed and will be provided with more support once the full law goes into effect. What’s more, there’s a cap of $250 for singles and $400 for families on overpayments that have to be returned to Uncle Sam. Projected 10-year savings: $43.9 billion.
