Republican Study Committee Chairman Rep. Steve Scalise (R-La.) and RSC Budget and Spending Task Force Chairman Rep. Rob Woodall (R-Ga.) released their 2015 fiscal year budget on Monday.
The budget proposal, called “Back to Basics,” would balance the federal budget in 2018 and reduce spending to 18.1 percent of gross domestic product.
“By removing roadblocks to job creation and replacing President Obama’s healthcare law with reforms that lower costs and put patients back in charge of their medical decisions, our proposal lays out a bold roadmap to preserve the American dream for future generations,” Scalise said. “Washington needs to get back to basics by living within its means and getting re-introduced to fiscal responsibility. The window to rescue our economy is closing, and we cannot allow more time to pass without decisive action towards a balanced budget….”
Medicare would be transitioned to a solvent premium-support system and an increase in the eligibility age would be phased in at a rate of two months per year beginning in 2024 until it reaches 67. The proposal would reform Medicaid to allow states to determine eligibility and benefits.
“The federal government’s excessive spending has created an enormous debt that weighs heavily on the American taxpayer, and continuing on that path is unsustainable,” Woodall said. “The time to act is now, and the RSC budget fully embraces that reality. For our economy to thrive it must have firm financial footing, and that is what this budget provides….”
The proposal calls for Social Security and disability insurance reform that would gradually raise the full retirement age to 70 and change the formula used to determine cost of living adjustments.
Military funding would grow from $521 billion in fiscal year 2015 to $696 billion in fiscal year 2024 under the proposal.