On a nearly party-line vote, the House of Representatives passed a budget resolution (H Con Res 34) for Fiscal Year 2012 on Friday, April 15. The budget resolution would cut taxes by $4.2 trillion over 10 years and would cut Medicaid, Medicare, and other critical programs by $4.3 trillion over 10 years. Over the ten year period, only $155 billion would go toward reducing the federal deficit. However, to make such major program cuts, the Medicaid program would be cut by 20 percent and would be converted to a block grant which would grow annually at less than the health care cost of living. The budget resolution passed on a vote of 235 – 193. No Democrats supported it, while 4 Republicans opposed it. The budget resolution does not have the force of law (the President does not sign it), but it sets the guidelines for other legislative action for the Fiscal Year.
On Wednesday, President Obama had called for a bipartisan negotiation process to reach agreement on the FY 2012 budget. He announced a framework for reducing the deficit by $4 trillion over 12 years which includes a balance between spending cuts and tax reform. The framework would not include a Medicaid block grant or privatizing of Medicare or Social Security.