Imminent Sequestration Cuts Jeopardize Critical Programs, Impact Vulnerable Hoosiers
Today, Congress failed to reach a last minute deal toprevent $85.3 billion in across-the-board federal discretionary spending cuts from going into effect Friday. While Republican and Democratic lawmakers alike have stated that sequestration is bad policy, they remain divided on their approach.
House leaders firmly argue that new revenue should not be part of a sequestration replacement package, but Senate leaders join with the Administration in arguing that these cuts are too deep and should be partially buffered by revenues resulting from increased taxes on the wealthiest Americans and closure of corporate tax loopholes. Additionally, House leaders announced a couple of weeks ago that they would only consider replacing sequestration plans if a 10-year balanced budget requirement was included in the proposal.
While there has been much attention paid to the March 1 deadline, it is important to note that this is not a government shutdown, rather a slowdown and March 27 represents the true deadline as it the expiration date of the continuing resolution (CR) that funds all federal agencies’ programs. It is widely expected that Congress will act before this deadline and provide agencies with final funding levels for the second half of the fiscal year, but even though sequestration does not trigger a full shutdown, these extensive cuts are being made on top of deep cuts already enacted in Fiscal Year (FY) 12, the automatic sequestration trigger would cause hundreds of thousands of low-income families would lose rental assistance, and communities would lose $3.5 billion in HUD/USDA housing and community development funding, according to the Campaign for Housing and Community Development.
We urge IACED members continue to reach out to their Member of Congress referencing the state-specific data using the contact information for Members’ Washington, D.C. offices found below
HOOSIER IMPACT BY THE NUMBERS
Nationwide, sequestration of discretionary funds, an across-the-board cut that would decrease HUD and USDA Rural Housing funds by approximately 5.1%, is scheduled to take effect tomorrow. Impacts nationwide are detailed in a White House report released earlier this week, but we have outlined cuts to programs IACED member agencies and their clients rely on to stabilize and rebuild Hoosier Communities.
The following data has been compiled from numerous sources and is attributed accordingly.
Nutrition Assistance
- 11,200 children and mothers would lose urgently needed nutrition assistance through WIC (Coalition on Human Needs)
- Indiana would lose approximately $820,000 in funds that provide meals for seniors. (Coalition on Human Needs)
Housing Assistance
- Indiana will lose $1.3 million in federal homeless assistance grants (Center for Budget and Policy Priorities)
- 1,903 of the 35,952 Hoosier families (those earning 0-30% of area median income) that receive Housing Choice Vouchers through HUD would be cut from the program under sequestration. There are currently only 30 affordable and available homes for every 100 families in this income bracket as it stands now (Center for Budget and Policy Priorities and the National Low Income Housing Coalition)
- Public housing agencies in Indiana that serve extremely low income families would see $2.6 million cut from their budget for unit maintenance, causing the agencies to cut staff and extending waiting periods for families not yet receiving assistance. (Center for Budget and Policy Priorities and the National Low Income Housing Coalition)
- Indiana will lose about $683,000 in funding for job search assistance, referral, and placement, meaning around 24,290 fewer people will get the help and skills they need to find employment. (White House Office of Management and Budget)
Workforce
- Indiana will lose about $683,000 in funding for job search assistance, referral, and placement, meaning around 24,290 fewer people will get the help and skills they need to find employment. (White House Office of Management and Budget)
- 1,860 fewer Hoosiers with disabilities would be served by Vocational Rehabilitation (Coalition for Human Needs)
Healthcare
- In addition, Indiana will lose about $1.7 million in grants to help prevent and treat substance abuse, resulting in around 1,100 fewer admissions to substance abuse programs. And the Indiana State Department of Health will lose about $146,000 resulting in around 3,700 fewer HIV tests. (White House Office of Management and Budget)
- Indiana will lose approximately $619,000 in funds to help upgrade its ability to respond to public health threats. (FEMA and the White House Office of Management and Budget
Education
- Head Start and Early Head Start services would be eliminated for approximately 1,000 children in Indiana, reducing access to critical early education. (White House Office of Management and Budget)
- Around 2,170 fewer low income students in Indiana would receive aid to help them finance the costs of college and around 1,020 fewer students will get work-study jobs that help them pay for college. (White House Office of Management and Budget)
Domestic Violence
- Indiana could lose up to $138,000 in funds that provide services to victims of domestic violence, resulting in up to 500 fewer victims being served through the STOP Violence Against Women Program. (White House Office of Management and Budget)
For in-depth coverage of previous fiscal cliff/sequestration debates, a compilation of our blog posts on this issue can be found here.
| Coats, Daniel - (R – IN) |
| 493 RUSSELL SENATE OFFICE BUILDING WASHINGTON DC 20510 |
| (202) 224-5623 |
| Donnelly, Joe - (D – IN) |
| B33 RUSSELL SENATE OFFICE BUILDING WASHINGTON DC 20510 |
| (202) 224-4814 |
| Web Form: www.donnelly.senate.gov/contact.cfm |
|
District |
Name |
Party |
Room |
Phone |
|
| 1 | Visclosky, Peter | D | 2256 RHOB | 202-225-2461 | |
| 2 | Walorski, Jackie | R | 419 CHOB | 202-225-3915 | |
| 3 | Stutzman, Marlin | R | 1728 LHOB | 202-225-4436 | |
| 4 | Rokita, Todd | R | 236 CHOB | 202-225-5037 | |
| 5 | Brooks, Susan W. | R | 1505 LHOB | 202-225-2276 | |
| 6 | Messer, Luke | R | 508 CHOB | 202-225-3021 | |
| 7 | Carson, André | D | 2453 RHOB | 202-225-4011 | |
| 8 | Bucshon, Larry | R | 1005 LHOB | 202-225-4636 | |
| 9 | Young, Todd | R | 1007 LHOB | 202-225-5315 |
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