Cantor Opposes Bankruptcy for States

By CQ Staff

A top House leader on Thursday applauded a proposal by conservative Republicans to reduce federal spending by $2.5 trillion over 10 years, but stopped short of endorsing the specific cuts recommended. “I applaud the Republican Study Committee for proposing cuts in federal spending, and I look forward to the discussion on reducing spending that our country so desperately needs to have,” Majority Leader Eric Cantor said in a statement. “As promised, we will have an open process when it comes to spending bills. I look forward to these cuts and others being brought to the floor for an up-or-down vote during consideration of the CR [continuing resolution], and I support that effort.” The Virginia Republican’s expression of general support marked the first leadership statement on the spending cut proposal by the RSC, the group of the most conservative House Republicans. During a Thursday press conference formally unveiling the plan, Rep. Jim Jordan of Ohio, chairman of the RSC, acknowledged he had not discussed the package with House leaders.

But he said he was “cautiously optimistic that they’re going to like a lot of the elements in this proposal and hopefully include them as we move forward, whether it’s in the context of the CR, the debt ceiling vote or the budget process.” A bill to make the cuts proposed by the RSC was expected to be introduced later Thursday by Jordan and Scott Garrett, R-N.J. Six other cosponsors of the plan appeared at the news conference. The lawmakers said they see the plan as just the first attempt at cutting spending, reducing the deficit and gaining control of the national debt. They all said that rising federal spending is the cause of the deficit, and that cutting discretionary spending was the first step in getting the nation’s fiscal house in order. “What we have here is a start,” said John Campbell of California. Mick Mulvaney of South Carolina, a freshman Republican, said he views the GOP pledge to cut an initial $100 billion in non-security discretionary spending as “simply a start, a floor. We want more.” Republicans Tom McClintock of California, Jeff Flake of Arizona, and freshmen Joe Walsh of Illinois and James Lankford of Oklahoma also appeared at the event. The lawmakers made clear that they plan to hold leaders’ feet to the fire in pursuing spending cuts. Some conservatives are concerned that GOP leaders may not attempt to cut a full $100 billion in discretionary spending in fiscal 2011, as originally pledged. Upcoming deadlines will put that promise to the test. The current stopgap spending bill (PL 111-322), which continued most funding at fiscal 2010 levels, expires March 4, and lawmakers will need to clear another spending bill before then to avoid a government shutdown.

The House GOP is likely to press for a stopgap funding measure to cover the rest of fiscal 2011 that includes deep spending cuts. But Senate Democrats are almost certain to rebuff the GOP’s preferred reductions, meaning lawmakers would have to clear another short-term CR as they work on a broader spending deal. A House GOP aide said the first take on the stopgap spending bill from Republicans would be a “credible CR.” “We’re not the kind of committee to put something out there in terms of dog and pony exercise,” the aide said. “The chairman hopes to get this done by the March 4 deadline. The chairman’s intention is to do specific cuts to get to level the budget committee gives us. We’d like to get that sooner than later...But as you know, this is a negotiation.” Jordan said the RSC was working on a letter to send to leaders to “encourage them to go for the full $100 billion.” Although House GOP leaders did not rush to embrace the proposal, the RSC counts more than 165 Republicans as members. That suggests that a sizable chunk of the new GOP majority plans to try to follow through on a campaign pledge to reduce spending. The RSC proposal would hold fiscal 2011 non-security discretionary spending to fiscal 2008 levels, saving a total of $80 billion, according to a summary. In the following fiscal years, the legislation would hold non-defense discretionary spending to fiscal 2006 levels, a move estimated to save $2.29 trillion through fiscal 2021.

Paul M. Krawzak writes for CQ. Frank Oliveri contributed to this story.