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‘Romney’s Man In Congress’ Falsely Blames Obamacare For High Student Loan Rates

If Congress doesn’t act, the interest rates on government-backed student loan will jump in July, so President Obama has made a big push this week to prevent that from happening. Republicans have thus far held up the extension, though presumed GOP nominee Mitt Romney called for preserving the lower rates Monday.

But Romney’s “man in Congress,” Sen. Roy Blunt (R-MO), seems to misunderstand the issue. In an interview on MSNBC this afternoon, Blunt blamed high student loan rates on the Affordable Care Act:

BLUNT: Why is that rate as high as it is? Because it was one of the pay-fors in the president’s health care plan. If the health care plan goes away, as the court very well might decide, there is no longer an argument about this loan rate, because it was used to take money from students, and pay for health care. … The wrapping up of that student loan thing into the Obama health care deal is the real problem here.

Watch it:

In fact, the rate was set back in 2007, when President Bush signed a Democratic-backed law to lower the rate from 6.8 percent to 3.4 percent. That law expires on July 1 of this year, and the lower rates end along with it. The Affordable Care Act and President Obama are entirely irrelevant.

Blunt is likely thinking of the Student Aid and Fiscal Responsibility Act (SAFRA), a bill that was attached to the Affordable Care Act. And while it did not affect loan rates, it did remove banker middlemen from the student loan process, which will save taxpayers millions of dollars.

Economy

House GOP Would Kick 280,000 Children Off School Lunch Program To Protect Tax Cut For Millionaires

Our guest blogger is Melissa Boteach, director of Half In Ten at the Center for American Progress Action Fund.

House Republicans recently proposed cuts to nutrition assistance that will kick 280,000 low-income children off automatic enrollment in the Free School Lunch and Breakfast Program. Those same kids and 1.5 million other people will also lose their Supplemental Nutrition Assistance Program (formerly food stamp benefits) that help them afford food at home.

Ten years’ worth of these nutrition cuts could be prevented for the price of one year of tax cuts on 3,340 multimillion dollar estates that House Republicans are protecting in their budget.

On April 18 the House Agriculture Committee passed a bill cutting over $33 billion from SNAP over the next decade. About one-third of these cuts ($11.5 billion) comes from putting restrictions on “categorical eligibility,” a provision that enables states to better coordinate between programs and improves access to assistance for low-income families.

By restricting this provision, the bill would kick an average of 1.8 million low-income people a year off of food aid and end automatic enrollment in free school meals for 280,000 children in struggling families.

The Republican budget sells this bill as an effort to “reduce lower‐priority spending” to avert military cuts that will otherwise take place in January 2013 due to the debt deal agreed to last summer. But when it comes to reducing the deficit, it’s clear the House would rather ask low-income kids and families struggling against hunger to foot the bill than asking multimillion-dollar estates to pay their fair share.

Case in point: As part of the 2010 tax-cut compromise, House Republicans insisted on including a tax cut on multimillion dollar estates, adding an estimated $11.5 billion to the deficit this year alone. That’s the same amount they’re now claiming is necessary to cut from low-income families through these restrictions.

By making it more difficult for low-income schoolchildren to access school breakfast and lunch, this bill will likely increase child hunger, which is associated with worse educational outcomes and higher long-term health costs. Both of these trends affect our economy and our deficits over the long run.

We should reconsider reduced spending on “lower priority” items — a.k.a breakfast, lunch, and dinner for low-income children — and instead adopt a deficit-reduction approach that asks everyone to pay their fair share—including multimillion-dollar estates.

GOP Targets Safety Net Programs, Financial Regulations To Avoid Defense Cuts

Committees in the House are busily marking up legislation to avoid the scheduled cuts that lawmakers approved as part of the 2011 Budget Control Act. Those automatic reductions to domestic and defense spending — agreed to by both parties during the effort to raise the nation’s borrowing limit — will go into effect on January 2, 2013 unless Congress can agree on a proposal to lower the national deficit by at least $1.2 trillion over 10 years.

Since the demise of the super committee tasked with identifying the savings, the GOP has relied on the House-passed Budget Resolution to initiate a budget reconciliation process that would eliminate or disperse the $600 billion of proposed reductions to military spending to other federal agencies. Now, in a memo from the Republican leadership to its members, House Speaker John Boehner (R-OH), Majority Leader Eric Cantor (R-VA), Whip Kevin McCarthy (R-CA), and House Republican Conference Chairman Jeb Hensarling (R-TX), spell out how they plan to generate “savings” in mandatory programs that “would first be used to offset the cost (approximately $78 billion) of replacing the automatic across-the-board discretionary spending cuts” and “further reduce the deficit.”

As it turns out, Republicans’ plan to protect the ballooning defense budget will come at a significant cost to lower-income Americans, women, and children, as well as the nation’s financial security. ThinkProgress has compiled a table of just some of the consequences of the GOP’s cuts:

CUT CONSEQUENCE
$11.9 billion from the Prevention & Public Health Fund: Would eliminate a special fund designed to help communities fight chronic conditions like heart disease, cancer, stroke, and diabetes. Chronic conditions are “responsible for 7 of 10 deaths among Americans each year and account for 75 percent of the nation’s health spending.” Investing in prevention will help reduce national health spending on costly acute care.
$600 million by reducing Medicaid enrollment: Would repeal the Medicaid Maintenance of Effort (MOE) provision, which requires states to maintain their existing enrollment eligibility in Medicaid and the Children’s Health Insurance Program (CHIP) or risk losing federal funding. The Congressional Budget Office (CBO) estimates that allowing states to kick people off the Medicaid rolls before the Affordable Care Act is fully implemented would cause 400,000 people to lose their Medicaid and CHIP coverage. Two thirds of those dropped from coverage would be children. By 2016, the number of those expected to lose CHIP coverage will climb to 1.7 million people, with 700,000 left uninsured.
$43.9 billion from recapturing exchange subsidies: Families or individuals who are receiving affordability credits through the health care exchanges would have to pay back the government if their incomes fluctuate throughout the year. The change could dissuade people from purchasing insurance, disproportionately impact women (who are more likely to experience income fluctuations), and could even increase costs for the entire population.
$33 billion by cutting food stamps: Via a handful of changes, the GOP would cut about $33 billion from the Supplemental Nutrition Assistance Program (SNAP), i.e. food stamps. The cuts would knock two million people off of food stamps entirely, while reducing benefits for 44 million others. In September, every beneficiary of food stamps would see their benefits cut by $57.
$11.7 billion by restricting “categorical eligibility” in the food stamp program: States would be prevented from automatically enrolling families in food stamps if they qualify for other assistance programs. The bill would knock about 1.8 million low-income people per year off of food aid and end automatic enrollment in free school meals for 280,000 children.
$22 billion by repealing the resolution authority: The authority for the government to dismantle failing financial firms, which was included in the Dodd-Frank financial reform law, would be eliminated. Without this power, the government would have to resort to the ad hoc bailouts of 2008, as it would be have no process to unwind a failed mega-bank. The savings here are also fabricated, based on a bizarre Congressional Budget Office score that has little basis in reality.
$2.8 billion by eliminating foreclosure prevention: The Home Affordable Modification Program (HAMP), one of the Obama administration’s key foreclosure prevention programs, would be terminated. HAMP has been underwhelming due to design flaws and bank intransigence, but the New York Federal Reserve estimates that 3.6 million foreclosures will occur in the next two years, while billions of dollars are still available for HAMP to actually make a difference.
$5.4 billion by cutting the budget of the Consumer Financial Protection Bureau: In addition to ending the CFPB’s independent stream of funding, the bill would cut the Bureau’s budget by more than half. The CFPB can craft regulations for any financial product, and is already working on new rules aimed at reining in credit card, mortgage, and student loan abuses.

Justice

How A Decision Upholding SB 1070 Could Also Save Obamacare

The good news at today’s Supreme Court argument on Arizona’s SB 1070 immigration law is that the justices appeared likely to strike some of the law down. States are not permitted to set their own immigration policy because immigration, like all other foreign policy matters, is reserved to the national government. There are probably not five votes to eliminate this rule altogether and allow Arizona to criminalize the mere act of being an undocumented immigrant.

The bad news is that the “show me your papers” provision requiring police to determine the immigration status of many people they have “reasonable suspicion” to believe is not in the country legally, is likely to be upheld. And it is likely to be upheld due to a fairly strained reading of federal law.

A majority of the Court appeared sympathetic to Republican superlawyer Paul Clement’s argument that, even if the Court does not eliminate the longstanding rule against states’ setting their own immigration policy, federal law effectively deputizes Arizona to seek out and discover undocumented immigrants within its borders. Under the provision Clement relies on, states are permitted to “cooperate with the Attorney General in the identification, apprehension, detention, or removal of aliens not lawfully present in the United States.” So Clement claims that SB 1070 simply “cooperates” with the federal government by helping to identify undocumented immigrants that federal officials can then detain or deport.

There are a number of problems with this argument, but the most important one is that Arizona is not “cooperating” with the Attorney General in anything — a reality that is pretty conclusively demonstrated by the fact that the Attorney General is suing the state of Arizona to get them to stop enforcing SB 1070. It is a bizarre form of “cooperation” that leads your partner in an endeavor to seek a federal court order to get you to stop trying to lend a hand.

An equally important problem, which Solicitor General Don Verrilli relied upon heavily in Court, is that it’s also not true that federal law calls for the kind of sweeping “attrition through enforcement” regime that SB 1070 expressly states is its goal. The federal government does not deport people who are likely to be tortured in their home country, for example, or many victims of domestic violence. Likewise, federal immigration law delegates authority to set immigration enforcement priorities to the executive branch of the federal government, and the executive branch has used that authority to focus enforcement on high priority groups such as violent criminals and repeat offenders. SB 1070 forces the federal government to waste limited resources deciding how to handle low-priority immigrants that it has no intention of pursuing enforcement actions against — resources that could instead be spent on higher priority targets such as violent felons.

One silver lining came early in the argument when several justices, including crucial swing vote Justice Kennedy, appeared bothered by the fact that the “show me your papers” provision might permit Arizona to detain an individual longer than they would normally be detained while the state is trying to figure out whether or not the person is undocumented. A few of these questions even suggested that the provision could be unconstitutional if it extends the period when someone can be detained. Chief Justice Roberts, however, also seemed to find a way to resolve this dilemma that the Court’s conservatives could find appealing.
Read more

Obamacare Opposition Contributes To Blue Dogs’ Primary Losses

Rep. Jason Altmire (D-PA)

Last night, Rep. Jason Altmire lost his Democratic primary battle against fellow congressman Mark Critz. Altmire, who currently represents the state’s 4th District, was forced into a primary challenge against Critz after redistricting. Critz represented the original 12th District.

Altmire was considered the early favorite, but soon Critz was boosted by the support of several unions — including the SEIU and the United Steelworkers — who were upset that Altmire voted against the Affordable Care Act. Critz took office after it had already passed; he has said he opposes the bill but will not vote to repeal it.

In the race for the Democratic nomination in the 17th District, progressive attorney Matt Cartwright defeated Rep. Tim Holden. Cartwright had frequently attacked Holden for his vote against Obamacare, at one point claiming Holden was “voting with the insurance companies and against health care reform.”

-Zachary Bernstein

Note To Romney: Health Reform Won’t Dramatically Expand Government Health Care

Mitt Romney reiterated his critique of Obamacare during a “victory” address celebrating his primary night wins in Connecticut, Delaware, Rhode Island, Pennsylvania and New York, last night. The speech sounded like a recitation of his usual misrepresentations, but included one particularly surprising nugget:

ROMNEY: With Obamacare fully installed, government will come to control half the economy, and we will have effectively ceased to be a free enterprise society. This President is putting us on a path where our lives will be ruled by bureaucrats and boards, commissions and czars. He’s asking us to accept that Washington knows best – and can provide all.

The charge is particularly disingenuous because Romney almost certainly knows that government is already heavily invested in health care and that the Affordable Care Act — much like his own reforms in Massachusetts — doesn’t dramatically expand its reach. Instead, it builds on the existing public/private partnership, in which public health already comprises more than 40 percent of the nation’s health care spending:

As the Congressional Budget Office (CBO) concluded, after the law’s initial boost of coverage expansion in the first decade (as the uninsured enter the health care system), “the increases and decreases in the federal budgetary commitment to health care stemming from this legislation would roughly balance out, so that there would be no significant change in that commitment.” By 2014, private sector growth is projected to accelerate — thanks to health care reform — but even then, “private health insurance is anticipated to account for roughly 31 percent of national health spending, or about the same share as was expected without enactment of the Affordable Care Act,” actuaries at the Center for Medicare and Medicaid estimate. “For 2011–13, government outlays (averaging 5.2 percent growth) are projected to roughly maintain a 45-percent share of total health spending.” The public/private balance, in other words, remains the same.

Remember that Romney sold his 2006 Massachusetts reforms by arguing that the state could take the the tax dollars it’s already spending on uncompensated care and — together with additional federal funding approved by the Bush administration — expand and subsidize private coverage for the uninsured. The Affordable Care Act does something very similar, while also raising additional revenue to pay for the law and reduce the federal deficit. So if using tax-payer dollars to provide care to the uninsured constitutes “government control,” then Romney himself could be considered a fan of the so-called nanny state.

Update

As a general point, Romney’s claim that the government will control “half the economy” through health care spending is particularly inaccurate. National health spending is projected to continue to grow faster than growth in the economy, increasing from 17.7 percent of GDP to 19.8 percent of GDP in 2020 — nowhere near Romney’s 50 percent mark.

NEWS FLASH

California Advances Bills To Expand Access To Abortions | While states across the nation are imposing new restrictions on abortion procedures, California advanced legislation yesterday to expand access to a first-trimester abortions. Under a senate measure, “nurse practitioners, nurse midwives and physician assistants would be able to perform what is known as an ‘aspiration’ abortion, which is the most common abortion procedure and takes place in the first trimester of a pregnancy.” A separate bill advanced in an Assembly Committee “passed a separate bill that would expand access to birth control by allowing registered nurses to dispense the medication.” Supporters of both measures hope that the bills would expand the accessibility and affordability of the procedures, especially for women who live in rural areas (where 97 percent of rural counties have no abortion provider). Significantly, the expansion is also safe: a five-year study conducted by researchers at the University of California, San Francisco “found that nurse practitioners, midwives and physician assistants can perform the abortions as safely as physicians.”

Morning CheckUp: April 25, 2012

Republicans continue to pass health cuts in the House: “The House Appropriations Committee said Tuesday that healthcare programs will absorb major cuts as the panel tries to meet spending caps in the House-passed budget, sponsored by Rep. Paul Ryan (R-Wis.). The full Appropriations Committee capped its healthcare bill at $150 billion — $7 billion lower than the cap the Senate is working with.” The Energy and Commerce Committee meets Wednesday morning to vote on its recommended healthcare cuts. [The Hill]

Illinois governor defends proposal to raise cigarette taxes for health care: “Democratic Gov. Pat Quinn today defended his call to raise cigarette taxes as part of an effort to restructure the state’s health care program for the poor, saying the $1-a-pack increase will prevent the need for deeper cuts that could harm hospitals or spill over into other areas of spending, including education.” [Chicago Tribune]

Louisiana advances abortion restrictions: “The Louisiana Senate agreed Tuesday to change the sonogram requirements for a woman seeking an abortion in the state, including asking her if she would like to hear the fetal heartbeat. Women in Louisiana already are required to get an ultrasound before they can have an abortion. At the time, they are asked whether they want to view the sonogram and get a photo of the image.” [WJHG]

Arizona sends Planned Parenthood funding ban to Brewer: “Considering the multitude of anti-choice and anti-rights measures that have passed the Arizona state legislature this session, including the country’s earliest so-called fetal pain ban, it should not be surprising to learn that the state senate has approved a ban on all funding to Planned Parenthood, despite the fact that the provider does not use public dollars for abortions.” [RH Reality Check]

Jobs for Christians: “Across the country, crisis pregnancy centers that refuse to hire non-Christians are receiving taxpayer funding and other forms of government support.” [American Independent]

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