Overall Spending Caps Would Dismantle and Defund Programs for Hungry and Poor People

Flickr image by Bread for the World

Along with other Christian leaders, Bread for the World recently asked Congress to form a circle of protection around programs for poor and hungry people. Instead of focusing on enacting spending caps that harm these families, we must look to Congress to take responsible action on deficits with a holistic whole-of-budget approach that also includes revenue increases and that ensures the budget is not balanced on our most vulnerable populations.

Right now, members of Congress are looking at how to best to reduce the federal government’s long-term deficits. One idea that has re-emerged, despite being rejected in previous budget debates, is creating a cap on all federal spending. This proposal has serious consequences for how the government provides aid to needy families.

An overall spending cap, also known as a global spending cap, would limit the total amount of money the federal government can spend each year. Although it could be implemented in different ways, the most prominent plan for a cap by Senators Bob Corker (R-TN) and Claire McCaskill (D-MO) would restrict spending to 20.6 percent of Gross Domestic Product (GDP). This cap, while representing a 40-year average in spending, does not reflect a federal government with greater responsibilities nor the costs of rising health care and retiring baby boomers. Today, spending is closer to 25 percent of GDP, meaning that hundreds of billions of dollars would have to be cut to reach the Corker -McCaskill target. As we’ve seen from recent attempts to cut spending, those cuts would disproportionally come from low-income programs.

Undoubtedly, the country faces difficult fiscal decisions. In the long term, debt is expected to increase to unstable proportions, putting government assistance at risk. Congress must take action to reduce future deficits. Yet the economy is still recovering, and many who can’t find work rely on government programs to put food on the table and pay healthcare expenses. It’s important to recognize that not only do caps do nothing to energize the economy, they also put struggling families at further risk by cutting critical programs.

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