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ARTER SUPPORTS BILL TO CUT DEFICIT BY MORE THAN $39 BILLION

12/19/05

Washington, Dec 19, 2005 -

WASHINGTON, D.C. - U.S. Congressman John Carter (TX-31) on Sunday joined colleagues in passing the conference report to the Deficit Reduction Act, which reduces the deficit by more than $39 billion in mandatory spending. This is the first time since 1997 that the House has taken such strong action to restrain federal spending.

“The Republican party has long been the party of responsible fiscal spending. The vote to reduce the federal deficit once again demonstrates our commitment to fiscal discipline and reform,” Congressman Carter said. “Passage of the Deficit Reduction Act will reduce wasteful spending and encourage a more efficient government, while continuing to support the needs of Americans.”

The Deficit Reduction Act takes the following action:

  • Strengthens and simplifies student loan programs by reducing lender subsidies;
  • Rebuilds community first responder capabilities by freeing up vital spectrum airwaves;
  • Protects workers’ pensions by placing the Pension Benefit Guarantee Corporation (PBGC) on a more solid financial foundation and protecting taxpayers from the cost of a massive bailout;
  • Expands Welfare Reform by reauthorizing the successful welfare reform policies in TANF;
  • Lowers prescription drug costs by imposing penalties for middle and upper-income seniors who transfer or hide assets to appear impoverished and attempt to qualify for long-term care services under Medicaid; and
  • Lowers the cost the government pays for prescription drug costs by setting more realistic reimbursement rates for medicines based on the average manufacturers’ price.