Debt Ceiling Compromise and Super Committee

Legislative Update

At the beginning of August, President Obama and Congressional leaders passed a bipartisan debt ceiling compromise. This package gives the President the authority to raise the debt ceiling by $2.1 trillion and eliminates the need for another increase until 2013. This was an important political move for those who wanted to avoid another vote until after 2012 election.

The measure cuts $1 trillion in domestic and defense spending over 10 years. While this legislation does not include any upfront cuts to Medicaid, there are still serious lingering threats. The proposal creates a bipartisan committee of 12 members of Congress, tasked with identifying an additional $1.5 trillion in cuts through entitlements (including Medicaid, Medicare, and Social Security) and tax reforms. This “super committee” will need a majority vote to pass a recommendation along to Congress before Thanksgiving of this year. Congress will be required to vote on the committee’s recommendations before Christmas. If the committee comes to a gridlock, an enforcement mechanism will trigger automatic across-the-board cuts, split evenly between domestic and defense spending. However, the enforcement protects low-income programs, such as Medicaid, as well as Social Security and Medicare from cuts. For more information, click here.The super committee held its first logistical meeting on September 8, and its first public hearing on September 13.

The 12 members are Senators Max Baucus (D-MT), John Kerry (D-MA), Patty Murray (D-WA), Jon Kyl (R-AZ), Rob Portman (R-OH) and Pat Toomey (R-PA), as well as Representatives Chris Van Hollen (D-MD), Jim Clyburn (D-SC), Xavier Becerra (D-CA), Fred Upton (R-MI), Dave Camp (R-MI), and Jeb Hensarling (R-TX). If one of the members is from your district or state, you can reach them by setting up visits in his or her local district offices, making phone calls, and/or writing a letter