The U.S. Senate voted down the House Budget Resolution by a vote of 40 to 57. The House of Representatives passed this budget plan, known as the Ryan Plan after its author, Congressman Paul Ryan (R-WI), in April. The bill includes drastic cuts and changes to:
- Medicaid: Cuts $750 billion over 10 years and ends Medicaid as a guaranteed benefit by turning it into a “block grant” that leaves cash-strapped states to fill in the funding gaps with very little oversight.
- Medicare: Replaces Medicare with a voucher program for younger beneficiaries that will provide less than the current system.
- Discretionary Programs: Eliminates, over time, most federal government programs outside of health care, Social Security, and defense as the cuts are so deep.
While the Senate rejected the House Budget Resolution, it is expected that similar proposals will continue to surface in coming weeks and months as Congress continues to debate deficit reduction.