A report released Thursday by the Congressional Budget Office showed that trimming federal subsidies to Fannie Mae and Freddie Mac would reduce the federal budget deficit by $8.4 billion over 10 years. As the soon-to-be Republican Congress looks to pass legislation that will further a limited-government agenda or force President Obama to veto popular legislation, reducing subsidies for these outdated government-sponsored enterprises presents a viable option.
The GOP’s main goal in the coming session of Congress is to prove it can govern competently before the 2016 elections. To do so, the party must identify limited-government policy reforms that are effective and popular. Obama will not sign overly ambitious policy proposals, which will only provide fodder for Democrats when they court independent voters in 2016. Republicans will be on record voting for legislation, but because the legislation won’t go into effect, there won’t be an opportunity for Americans to experience real world benefits of any policies, making them more susceptible to Democratic scare tactics.
