$50B in Federal Benefits on the Line as House Starts Budget Markup
Cuts to federal benefits, including healthcare and retirement, are on the line as House committees start markup on budget legislation.
House Speaker Mike Johnson (R-LA) set an aggressive schedule and wants to have the markup in progress within two weeks, with final passage of the “one big, beautiful bill” as President Trump calls it by Memorial Day.
On Wednesday, the House Committee on Oversight and Government Reform will begin markup on its budget bill. Instructions in the budget framework call for the committee to find over $50 billion in cuts over ten years.
“The House Oversight Committee is taking a critical step to advance President Trump’s America First agenda and ensure taxpayer dollars are used effectively, efficiently, and responsibly,” said Chairman James Comer (R-KY).
Since most of the programs under the committee’s jurisdiction fall under Title 5, that leads to few options but to cut federal pay and benefits.
Among the options being considered:
Raise the Federal Employee Retirement System (FERS) contribution to a mandatory 4.4 percent for all employees.
Eliminate the FERS annuity supplement that is currently paid to those who retire before they reach age 62, when they can start receiving Social Security benefits.
Extorting new hires to waive civil service rights.
Switch to a High-5 average salary instead of a High-3 average salary when calculating pensions.
Audit employees and dependents currently covered by FEHB.
Charge a filing fee for filing appeals with the Merit Systems Protection Board (MSPB).
Federal employee groups like the Federal Law Enforcement Officers Association (FLEOA) told members that switching from a High-3 to a High-5 and raising the FERS contribution are the two provisions most likely to be included in the final legislation.
“It's unacceptable to fund other priorities at the expense of law enforcement officers who risk their lives daily for public safety,” said FLEOA National President Matthew Silverman, who noted that this will be a key issue for the National Police Week lobby days in May.
“Republicans are targeting the people who make sure Social Security checks go out on time, who make sure veterans get the benefits they deserve, who safeguard our nation’s defense, who care for our sick and injured, who help parents get the services they need to make ends meet, and more—all to subsidize tax giveaways for billionaires and force upon the American people their extremist, cost-raising agenda,” said Rep. Gerry Connolly (D-VA), House Oversight committee ranking member who announced he will be stepping down from that post and retiring at the end of Congress due to a reoccurrence of cancer.
Tough Questions Face Appropriators
More broadly, House Republicans are starting markup on less controversial portions of the legislation, including boosts to border security and military funding, which both enjoy broad support among Republicans.
Republicans are expected to face a tougher time dealing with issues such as extending the 2017 Trump tax cuts. The president wants to eliminate taxes on tips, overtime, and Social Security, which would all drive up the cost of the final bill and rankle some fiscal hawks.
Another pending headache is the $880 billion in cuts that the Energy & Commerce Committee must find. That could include cuts to Medicaid to meet the number.
The Energy & Commerce Committee, which will tackle Medicaid, has not scheduled its markup yet. Nor has Ways & Means, which will handle the tax cuts. Also without a date yet is Agriculture, which needs to cut about $230 billion. Given that number, the Supplemental Nutrition Assistance Program (SNAP), could face the chopping block.
