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Skriven 2006-02-08 23:33:14 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (0602089) for Wed, 2006 Feb 8
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Fact Sheet: President Bush Signs the Deficit Reduction Act
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For Immediate Release
Office of the Press Secretary
February 8, 2006

Fact Sheet: President Bush Signs the Deficit Reduction Act



Today, President Bush Signed The Deficit Reduction Act Of 2005. This
legislation restrains Federal spending and leaves more money in the hands
of the American people. Earlier this week, the President proposed a
disciplined Federal budget for 2007 to keep taxes low, fund critical
priorities, and build on the Administration's record of restraining
government spending.

Provisions Of The Deficit Reduction Act

The Deficit Reduction Act Is An Important Step Forward In Bringing
Mandatory Spending Under Control. In the long run, the biggest challenge to
the budget is mandatory spending - or entitlement programs like Medicare,
Medicaid, and Social Security. Together, these programs are now growing
faster than the economy and the population - and nearly three times the
rate of inflation. By 2030, spending for Medicare, Medicaid, and Social
Security alone will be almost 60 percent of the entire Federal budget. The
annual growth of entitlement programs needs to be slowed to affordable
levels, but these programs do not need to be cut. Through reforms that will
reduce the annual growth of mandatory spending, the Deficit Reduction Act
saves taxpayers nearly $40 billion over the next five years - about $300
per taxpayer.
  þ The Deficit Reduction Act Is Estimated To Slow The Pace Of Spending
    Growth In Both Medicare And Medicaid While Maintaining Our Commitment
    To Beneficiaries. These two programs provide vital services to millions
    of Americans, but their costs are straining budgets at both the Federal
    and state levels. The Deficit Reduction Act restrains spending for
    entitlement programs while ensuring that Americans who rely on these
    programs continue to get needed care.
      þ Taxpayers Will Save More Than An Estimated $6 Billion On Medicare
        Over The Next Five Years. The Deficit Reduction Act, together with
        the Medicare Act of 2003, requires wealthier seniors to pay higher
        premiums for their Medicare coverage. The savings created by this
        reform and others will make it possible to increase Federal funding
        for important areas like kidney dialysis and rural hospitals.
      þ The Deficit Reduction Act Will Also Reduce The Growth In Medicaid
        By Nearly $5 Billion Over The Next Five Years. The Deficit
        Reduction Act helps restrain Medicaid spending by reducing Federal
        overpayment for prescription drugs so that taxpayers do not have to
        pay inflated markups. The bill also gives governors more
        flexibility to design Medicaid benefits that efficiently and
        affordably meet their states' needs, and tightens the loopholes
        that allowed people to game the system by transferring assets to
        their children so they can qualify for Medicaid benefits.

  þ The President Is Committed To Finding Additional Ways To Make Medicare
    And Medicaid More Efficient. The President's FY 2007 budget proposes
    another $36 billion in savings on Medicare and more than $1 billion in
    savings on Medicaid. The President's proposals slow the average annual
    growth in Medicare over the next five years from 8.1 percent a year to
    7.7 percent a year. Together with the Deficit Reduction Act, the
    President's budget will slow Medicaid's average annual growth over the
    next five years from 6.9 percent a year to 6.6 percent a year.
      þ In The Long Run, Ensuring The Stability Of Medicare And Medicaid
        Requires Structural Reform. In his State of the Union Address, the
        President proposed a bipartisan commission to examine the full
        impact of Baby Boomer retirements on Medicare, Medicaid, and Social
        Security. This commission will include members of Congress from
        both parties and will recommend long-term solutions.

Providing New Resources For Those With The Greatest Needs. The Deficit
Reduction Act includes $1 billion in additional mandatory spending for the
Low Income Home Energy Assistance Program (LIHEAP) to help low-income
Americans pay heating bills; $2 billion in new funding to cover health care
costs for Hurricane Katrina victims; and more than $1 billion in new
funding for low-income disabled children.

Improving Federal Student Loan Programs And Increasing Benefits To
Students. The Deficit Reduction Act cuts excess government subsidies to
lenders and makes other reforms that will help reduce overall student loan
costs by about $22 billion. This will save taxpayers $12 billion and
increase student aid by $10 billion.

Reauthorizing Welfare Reform For Another Five Years. Welfare reform has
proved a tremendous success over the past decade. By insisting on programs
that require work and self-sufficiency in return for Federal aid, the
Federal government has helped cut welfare cases by more than half since
1996. Building on this progress, the Deficit Reduction Act includes a $1
billion increase in child care funding, as well as new grants to support
healthy marriages and responsible fatherhood.
  þ Extending Charitable Choice. One of the reasons for welfare reform's
    success is a policy called charitable choice - which allows faith-based
    groups that provide social services to receive Federal funding without
    altering their religious identity or changing the way they hire.
    Charitable choice also safeguards the religious freedom of
    beneficiaries. Welfare was the first Federal program to include
    charitable choice, and the Deficit Reduction Act extends it for another
    five years. Charitable choice will also apply to the bill's new
    programs that focus on promoting healthy marriages and responsible
    fatherhood, two areas in which faith-based and community groups are
    particularly effective in providing services. By reauthorizing welfare
    reform with charitable choice, the Deficit Reduction Act helps millions
    more Americans move from welfare to work and find independence,
    dignity, and hope.

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