House Votes to Cut Children’s Health Insurance Funding as Advocates Keep Watch

House Votes to Cut Children’s Health Insurance Funding as Advocates Keep Watch

Education Week logoLast week, the House of Representatives voted to approve a package revoking about $7 billion in funding reserved for the Children’s Health Insurance Program. The decision hasn’t gone over well in the children’s advocacy community. But what’s next for this controversial proposal?

First, some background: The House vote last week dealt with a $15 billion “rescissions” package proposed earlier this year by President Donald Trump. The Trump team is seeking to slash the government’s bottom line—even though Trump signed a big spending increase into law for fiscal 2018. Most of the cuts would come from unspent federal funds.

Nearly half of that rescissions package, part of a bill that the House passed 210-206, comes from CHIP, which provides health care to kids from low-income families. As we reported earlier this year, $5.1 billion of the rescission would come out of a part of CHIP that reimburses states for certain expenses. Roughly $2 billion would be cut from CHIP reserves, which help states deal with higher-than-expected enrollment in the program. The Trump team has argued this unspent money is no longer needed. The rescissions would not impact current payments to states.

But when the Republican-controlled House moved to approve the rescission package, including the CHIP cut, opponents of the Trump administration’s move re-upped their previous criticisms of the proposal.

After House passage of the rescissions bill, Child Health USA, an initiative started by the child advocacy group First Focus, published a series of tweets blasting the vote:

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Budget Tangles Ensnare Key Early-Childhood Programs – Education Week

Budget Tangles Ensnare Key Early-Childhood Programs – Education Week

October 10, 2017

Congress is late in turning in two important assignments that affect young children: Both the Children’s Health Insurance Program and a federally funded program that provides counseling to vulnerable families expired Sept. 30, the end of the fiscal year.

Neither program will run out of money immediately, and both programs have support from Republicans and Democrats. But the expiration, even if it proves temporary, illustrates how difficult it has been for Congress to address other legislation as it has wrestled, unsuccessfully, with repealing the Affordable Care Act.

The highest-profile of the two programs to expire is the Children’s Health Insurance Program, which Congress failed to extend by the end of September, could put a financial strain on states—and eventually jeopardize coverage for the roughly 9 million children covered by the program…

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