Dear Community Member,

A budget is more than just numbers on a page, it’s a statement of values. It shows how we plan to move the country forward and who we choose to prioritize. Unfortunately, the Republican majority’s partisan budget resolution does exactly the wrong thing by outlining broad cuts that could threaten Medicaid, food assistance, and student loan relief while giving massive tax breaks to billionaires. At the same time, it irresponsibly adds trillions to the deficit without a serious plan to pay for it.

The Majority and Speaker Mike Johnson are using a partisan process called budget reconciliation to push through a reconciliation package with these extreme cuts and as little debate and bipartisan input as possible. Budget reconciliation allows the majority party to enact major tax and spending changes with a simple majority vote in the Senate, bypassing the usual 60-vote requirement. This fast-track process means that broad policy changes affecting millions of Americans can be implemented without bipartisan consensus or adequate scrutiny.

That’s why I voted against this budget resolution, first in the Budget Committee and, again, on the House Floor. The following email details the impacts of this budget resolution on our community in California’s 19th Congressional District.

Rep. Panetta spoke at a press conference on the Majority’s budget resolution. Press play on the above photo or click HERE to watch his remarks.

Broadly, the Republican majority’s budget topline figures include:

• $4.5 trillion in tax cuts for billionaires.
• $1.8 trillion in discretionary spending cuts.
• $1.2 trillion in mandatory spending cuts.
• $2.6 trillion in magic “macroeconomic” cuts.
• $4 trillion debt limit increase.
• A $1.6 trillion increase in the deficit.

The budget resolution provides a set of instructions for committees in Congress to craft a final reconciliation bill. While the resolution does not give details about how committees should write bills to achieve their instructed cuts/spending targets, the Majority has already leaked their menu of options for the following committees:

Energy and Commerce Committee: At least $880 billion in cuts that could include Medicaid, Affordable Care Act premium assistance, as well as the repeal of key climate resiliency and health care provisions created by the Inflation Reduction Act.

Education and Workforce Committee: At least $330 billion in cuts that could include student loan programs, Pell Grants, Head Start, and school lunch assistance.

Agriculture Committee: At least $230 billion in cuts that could include reductions to the Supplemental Nutrition Assistance Program (SNAP), which supports over 40 million Americans, including children, seniors, veterans, and working parents.

Committee on Oversight and Reform: At least $50 billion in cuts that could include federal employee retirement benefits and other harmful changes to the federal workforce.

Transportation and Infrastructure Committee: At least $10 billion in cuts that could include new restrictions on infrastructure investment, limitations on rural air service, increased taxes on cargo, and the raiding of the Oil Spill Liability Trust Fund which pays for environment damages from serious pollution incidents.

Financial Services Committee: At least $1 billion in cuts that could include reductions to the Consumer Financial Protection Bureau (CFPB) and funding for financial regulators overseeing the banking sector.

Natural Resources Committee: At least $1 billion in cuts that could include reductions to key public lands and conservation programs created by the Inflation Reduction Act, as well as expanded oil and gas leasing.

Ways and Means Committee: Up to $4.5 trillion in new spending that could include tax cuts for billionaires, the repeal of key tax provisions for working families, cuts to the Temporary Assistance for Needy Families (TANF) program, reductions to the Social Services Block Grant (SSBG) fund, and lower Medicare payments for providers.

These Republican-proposed cuts could have devastating impacts on our community. In California’s 19th Congressional District, 163,164 people rely on Medicaid, including 50,417 children and 26,000 seniors, who could see their coverage at risk. Additionally, 36,000 people receiving Affordable Care Act coverage may face rising costs. Food assistance is also under threat, with 81,000 CA-19 residents who rely on SNAP at risk of losing vital support.

Meanwhile, working families are already feeling the squeeze of rising costs, and instead of offering solutions, this budget threatens to rip away critical lifelines. Schools face uncertainty about federal funding, families are paying more at the grocery store, and now the Majority wants to make deep cuts to essential programs.

Rep. Panetta joins House Democrats at a press conference opposing the Majority’s budget resolution.

The nonpartisan Congressional Budget Office (CBO) estimates that the Republican budget resolution will increase deficits by at least $2.8 trillion through FY 2034 (or $3.4 trillion, including interest). As a result of this increase, debt held by the public would reach 125% of Gross Domestic Product (GDP) by FY 2034, compared with 117% under current law. Deficits under the Republican plan would average 6.8% of GDP over the decade, compared with 5.8% under current law.

Their plan relies on unrealistic economic projections, falsely claiming that massive tax cuts for billionaires will pay for themselves. Instead of reducing the deficit, the Republican budget resolution will likely add to it, forcing future generations to bear the burden of reckless decision-making.

The Republican majority is proving itself to be submissive to President Trump, destructive to working families, and irresponsible with the country’s fiscal future. Instead of tackling real issues, they are advancing an agenda that threatens American values by making it harder for people to afford health care, access education, and put food on the table.

I will oppose these harmful cuts at every turn, in committee, on the House Floor, and in our community. Instead of cutting vital programs, we should be working together to protect health care, lower costs, invest in education, and ensure a fair tax system. Instead, I will continue to fight for policies that strengthen our economy and secure the future of our country.

Sincerely,

Jimmy Panetta
United States Representative
19th Congressional District, California