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Trump unveils plan to cut $15.4 billion--includes $7 billion in cuts to CHIP Program

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Recently President Trump unveiled his plan to introduce a rescission package to cut $15.4 billion in previously approved spending, which includes $7 billion in cuts to the Children’s Health Insurance Program (CHIP). (Source: Washington Post)

Proposed CHIP Program Cuts

These cuts represent the largest single rescissions request in our country’s history. What’s more, they counter the bi-partisan agreement reached by Congress in February to extend the CHIP program for 10 years. Here in California, these cuts endanger the program more than 2 million children depend on.

 

The proposed cuts will include:

  • $5 billion in cuts to the CHIP Children’s Health Insurance Fund—used to offset costs in cases where state spending is higher than expected
  • $2 billion in cuts to the CHIP Child Enrollment Contingency Fund aka “Rainy Day Fund” which assures that states have sufficient funding if they face a higher-than-expected enrollment due to events such as a natural disaster or an economic downturn

 

Congressional Actions Expected

We expect the House of Representatives to bypass the appropriations process and send the package directly to the House floor for a vote and passage. The situation is more contentious in the Senate since 51 votes are required for passage, and some Senators have already voiced their concerns. At this time, Senate passage is uncertain.


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