House sends budget cut bill to Bush’s desk

But Democrats attacked the measure, especially for its cuts to the federal child support enforcement program and for allowing states to reduce Medicaid coverage and charge increased fees for the Medicaid program for the poor and disabled.

Democrats contend the budget cut bill concentrates spending cuts on vulnerable groups like Medicaid beneficiaries while protecting powerful corporate interests such as drug makers and health insurance companies, which won big victories in end-stage negotiations carried on behind closed doors.

‘Stench of special interests’
“This is a product of special interest lobbying and the stench of special interests hangs over the chamber,” said Rep. John Dingell, D-Mich.

Democrats also said the measure, when combined with an upcoming bill cutting taxes by about $70 billion, would lead to an increase in the deficit.

As if on cue, the Senate kicked off debate on a tax cut bill that would revive some expired tax breaks and safeguard millions more families from paying the alternative minimum tax. The House version of that bill would extend tax cuts for capital gains and dividends.

The powerful AARP seniors lobby, student groups, pediatricians and others have mounted a monthlong campaign against the bill, making some lawmakers uncomfortable with their votes in December.

“Over the intervening month, people that I know and respect have gone through the details of this legislation ... and they’ve said, ‘This is really a disaster,”’ said Rep. Rob Simmons, D-Conn., who switched his vote from “aye” to “nay.”

The bill comes as Capitol Hill Republicans are trying to burnish their party’s budget-cutting credentials amid increased concern about the rising deficit and the costs of the Iraq war and Hurricane Katrina.

Bush likely to propose new cuts
Bush is anxious to sign the bill and move on to next year’s budget cycle. On Feb. 6, he is to release his 2007 budget plan, which is likely to call for new cuts to benefits programs like farm subsidies, Medicaid, food stamps and Medicare. Many lawmakers and budget experts are skeptical of the chances for another budget-cut bill during an election year.

AARP is opposed to a provision tightening Medicaid nursing home care rules regarding people who shed assets to qualify for such care. It argues that money given to charities, churches and family members within the previous five years could unfairly disqualify seniors from long-term care.

Pediatricians say provisions allowing states to eliminate some guaranteed Medicaid child health care services and charge new and increased co-payments end up hurting children. Their argument was bolstered by a new Congressional Budget Office study that predicts that much of the Medicaid savings would accrue because new co-payment requirements would drive tens of thousands of beneficiaries out of the program.

Student groups charged the bill harmed college student through $11.9 billion in cuts to the student loan program, including higher fees on student and higher interest rates on parent loans. But Republicans countered that the lions share of the savings came from lender subsidies.

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