House Approves Continuing Appropriations Bill that Would Defund Affordable Care Act, Slash Agency Budgets

calculator.jpgEarly Saturday morning, the House of Representatives approved by a 235-189 margin the Full-Year Continuing Appropriations Act (H.R. 1) – otherwise known as the Continuing Resolution (CR) – that would fund the federal government through September 30, 2011. For days the House debated more than 150 of the nearly 600 proposed amendments to the legislation, including several that would deny funds to various agencies to implement the new health care reform law. The amendments to deny federal agencies the money and manpower to implement the new health care reform law that were ultimately approved are as follows:

  • Two amendments offered by Rep. Steve King (R-IA) would prohibit the use of funds in H.R. 1 to carry out the provisions of the Affordable Care Act and to pay the salary of any officer or employee of any federal department or agency charged with enforcing the law. The first bill was approved by a vote of 241-187; the second by a vote of 237-191.
  • Similarly, an amendment offered by Rep. Denny Rehberg (R-MT) and approved 239-187 would prohibit the use of funds to pay any employee, officer, contractor, or grantee of any department or agency to implement the provisions of the health care law.
  • In the same vein, an approved (246-182) amendment offered by Rep. Jo Ann Emerson (R-MO) would deny the IRS the funds it needs to implement and enforce the individual mandate portions of the Affordable Care Act.
  • An amendment offered by Rep. Tom Price (R-GA) would prohibit funds from being used to carry out the medical loss ratio (MLR) restrictions in the Act. This amendment was approved by a 241-185 vote.
  • Rep. Michael Burgess (R-TX) introduced an amendment that was approved 239-182 that would prevent funds from being used to pay the salary of any officer or employee of the Department of Health and Human Services’ (HHS) Center for Consumer Information and Insurance Oversight (CCIIO), which administers the insurance provisions created by the Affordable Care Act.
  • Finally, Rep. Joe Pitts (R-PA) introduced an amendment that prohibits the use of funds to pay for the salary of any officer or employee of the HHS, the Department of Labor, or the Department of the Treasury who takes any action to specify or define – through regulations, guidelines, or otherwise – essential benefits as required under the Affordable Care Act. This amendment was approved by a vote of 239-183.

In addition to the health care act de-funding amendments, the underlying bill makes drastic cuts to several federal agency budgets. According to a statement issued by the National Labor Relations Board, the proposed 18 percent cut ($50 million) from the NLRB’s budget would result in a nearly 3-month shutdown of the agency’s operations. “Nearly all of the agency’s budget is spent on salaries and rents; there are no programs to eliminate or postpone,” Board Chairman Wilma Liebman and Acting General Counsel Lafe Solomon said in their joint statement. “The only way to meet this extreme and immediate reduction would be to furlough all of NLRB’s 1,665 employees for 55 workdays, or nearly three months, between now and the end of September.” If implemented, this budget cut “could force the NLRB to curtail all agency operations, including investigating alleged illegal practices by private sector employers and unions, conducting workplace elections, and helping to settle election-related disputes.” An amendment offered earlier in the week would have de-funded the NLRB altogether. That measure failed by a vote of 250-176.

The Department of Labor’s budget would also be significantly reduced. In a statement, Rep. George Miller said that:

Rolling back funding levels to 2004 levels for the Occupational Safety and Health Administration (OSHA) would mean reducing staff by more than 415 people, including 200 inspectors and 17 whistleblower investigators. As a result there would be approximately 8,000 fewer workplace hazard inspections and 740 fewer whistleblower discrimination investigations. No more data would be collected on workplace health and safety trends. OSHA’s website would be eliminated.

Both the House and Senate will be in recess through the week of February 21. When it reconvenes on February 28, the Senate is expected to reject the proposed budget, and the President has vowed to veto any measure that seeks to dismantle the Affordable Care Act. Should the disagreement persist before the current appropriations expires on March 4, the federal government could face a temporary shutdown, unless Congress agrees to a temporary funding extension.

This entry was written by Ilyse Schuman.

Photo credit: Bartek Szewczyk

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.