Washington, D.C. – The U.S. Senate Budget Committee today approved a bill that would save about $39 billion in federal spending over five years to help reduce the national deficit. The bill would also pave the way for enhanced grant aid in higher education and improve the safety net for the pension accounts of millions, according to U.S. Senator Mike Enzi, R-Wyo.

The Budget Committee passed the “Deficit Reduction Omnibus Reconciliation Bill of 2005" by a vote of 12-10. Enzi, a member of the Budget Committee, voted in favor of the bill which can now be debated on the floor of the Senate perhaps as early as next week.

The reconciliation bill is the product of the Fiscal Year 2006 Budget Resolution Congress approved in April charging eight committees in each body of Congress to come up with recommendations for $34.7 billion in savings over five years. The reconciliation bill that passed today is a compilation of savings packages from eight Senate committees. The Health, Education, Labor and Pensions (HELP) Committee, which Enzi chairs, was one of the Senate committees called on to recommend savings.

“My committee received the largest reconciliation instruction, nearly 40 percent of the overall target,” said Enzi. “We exceeded the committee’s target of savings with an additional $2.75 billion reduction in spending. I am proud to say this bill makes unprecedented strides in deficit reduction with net savings from my committee totaling $16.4 billion over five years. This reduction in spending is vital to help pay down the national debt, especially with the $75 billion in relief Congress recently approved for Hurricane Katrina victims.”

In addition to providing savings, the HELP Committee’s budget reconciliation package includes provisions for higher education priorities and pension reform. The education portion of the bill boosts new grant aid for low and middle income students and would help make higher education more accessible and affordable, according to Enzi.

“Our savings generate higher education opportunities for those with lower incomes,” said Enzi.

A raise in premiums businesses pay to the Pension Benefit Guaranty Corporation (PBGC) was also included in the bill to ensure the solvency of the federal insurance agency. The PBGC secures the pension plans for many major companies and airlines in the U.S.

Under current funding rules, the PBGC is carrying a deficit of $23 billion, a level expected to climb even higher by the end of this year. The agency estimates that U.S. pension plans are under-funded by a total of $450 billion.

“This bill required making tough choices about which programs to responsibly reform and how to reinvest subsequent savings while still meeting deficit reduction goals,” said Enzi, the only accountant in the Senate.

Congress passes a budget every year to outline spending priorities and allow the federal government to function. Budget reconciliation is an optional process, in addition to the yearly budget, to help reduce the deficit by identifying cuts in mandatory spending programs. Budget reconciliation is helpful when Congress faces deficits or has other unexpected spending measures, such as aid for Hurricane Katrina victims.

“This bill helps to reign in spending and points the federal government in the right direction for being good stewards of the taxpayer dollar,” said Enzi. “Paying down the national debt not only strengthens our economy it requires Congress to re-evaluate budgets, programs and spending. Reducing deficits also helps to ensure our grandchildren are not left to run the government with trillions of dollars in the red.”

The reconciliation bills submitted by the seven other committees included additional provisions to help Americans. The Banking Committee package included Enzi's Safe and Fair Deposit Insurance Act, which would better protect the retirement funds and savings of Americans by increasing amounts covered by the Federal Deposit Insurance Corporation. Enzi said this is especially important for rural towns and communities whose depositors depend on their local credit union or bank to deposit their hard earned money. Enzi is a senior member of the Banking Committee.

When the House passes its Budget Reconciliation package it will go to a conference committee to reconcile differences between the Senate version.