
Federal agencies are warning that a deal by House Republicans to raise the debt ceiling in exchange for deep budget cuts would eliminate the jobs of tens of thousands of federal employees.
The Department of Veterans Affairs announced Friday that a plan led by House Speaker Kevin McCarthy (R-Calif.) to cut non-defense federal spending will lead to 81,000 job losses across the Veterans Health Administration.
The Department of Veterans Affairs appreciates such a significant reduction of …
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Federal agencies are warning that a deal by House Republicans to raise the debt ceiling in exchange for deep budget cuts would eliminate the jobs of tens of thousands of federal employees.
Department of Veterans Affairs Announced Friday That plan is spearheaded by Speaker of the House Kevin McCarthy (R-Calif.) to cut non-defense federal spending That would lead to 81,000 job losses across the Veterans Health Administration.
The Department of Veterans Affairs estimates that such a drastic reduction in its health care workforce would mean 30 million fewer patient visits annually, and limit veterans’ access to cancer screenings, mental health services, and substance addiction treatment.
Office of Management and Budget estimated Thursday McCarthy’s proposal would result in a 22% cut to non-defense discretionary spending.
Bill McCarthy, W The law of limitation, conservation and growthIt would return discretionary fiscal 2024 spending to 2024 levels, but exempt defense spending. The bill would limit federal spending to 1% growth annually for a decade. The House Republican leadership released the bill on Wednesday.
The bill would raise the debt ceiling by $1.5 billion, or until the end of March 2024 — whichever happens first.
“This bill is ambiguous by design — but that doesn’t obscure the fact that it would force devastating cuts that will harm millions of people, damage our economy, and undermine our national security,” Office of Management and Budget Director Shalanda Young wrote in a blog post. Thursday.
The VA estimates that it will also need to dispose of more than 6,000 employees of the Veterans Benefits Administration.
These cuts would increase the backlog of disability claims by an estimated 134,000 claims, “forcing veterans and their surviving loved ones to wait even longer for the benefits they received.”
The VA will make these drastic workforce cuts at a time when it ramps up hiring to deal with the increased workload under the PACT Act, which aims to expand VA care and benefits for veterans exposed to toxic burn pits during their military service.
The VA said the budget cuts would also force the National Cemetery Administration (NCA) to cut nearly 500 employees, and delay the opening of five new national cemeteries.
The VA stands out as the agency that would see the largest potential loss of federal employees under the spending plan, but other agencies have also stated that they will have to cut staff under the plan.
McCarthy, in a speech at New York Stock MondayHe said that the proposal would not lead to “extreme restrictions,” and that lawmakers under the spending plan “made sure that our veterans and service members were taken care of.”
“The bloated, bloated bureaucracy that has expanded under President Biden needs to be pruned, and that is exactly what we will do. If Washington wants to spend more, it will have to band together to find savings elsewhere — just as every family in America does,” McCarthy said.
The spending plan will also eliminate unspent spending on COVID-19 relief. It will also return all unspent IRS CAPI funds to rebuild its workforce and upgrade aging IT systems.
The IRS, which uses about 1% of the nearly $80 billion received in the Inflation Cut Act, has gone from answering 15% of calls in 2024 to answering 87% of calls this year.
“If we are funded at a flat level or cut, all we can do is maintain our current operations,” IRS Commissioner Danny Werfel told the Senate Finance Committee on Wednesday.
“We have to make investments to deal with the complexity of what we see today.”
Julie Tibbins, legislative director at the American Federation of Government Employees, wrote in a letter to lawmakers that the federal deficit “is not the result of growth in federal agencies or employment,” adding that federal civilian employment remains lower than it was in the 1960s.
“Federal workers have continued to maintain public safety and deliver public services throughout the pandemic, even as their wages lag inflation and continue to trail the private sector,” said Tippens.
AFGE said other agencies told the House Appropriations Committee that they would also be forced to make deep cuts to their workforce under the House Republicans’ spending plan.
The Social Security Administration said it would need to close field offices, reduce hours, and increase wait times by up to 30%.
The Department of Homeland Security will have to reduce service hours at sea and land ports of entry, and that those cuts will likely “increase the amount of fentanyl entering the country.”
TSA will also be forced to furlough front-line employees, increasing wait times at the airport “by over two hours.” AFGE also warns that the budget cuts will also undo the agency’s recent efforts to improve hiring, wages and employee retention (TSA).
The Department of Agriculture warns that it could see a $250 million cut in its food safety and inspection service, and that cuts to its inspector workforce could lead to delays and higher costs of food production.
The Department of Transportation warns that the proposed cuts will force the Fed
The Department of Railways announces a reduction in strength and layoffs of 175 personnel, including 75 safety inspectors.
White House press secretary Karen Jean-Pierre told reporters Thursday that President Joe Biden has not yet planned a meeting with McCarthy on debt ceiling negotiations.
The Treasury Department estimates that the federal government will reach the current debt limit by early June.
If the debt limit is reached, the Treasury is prepared to take several “extraordinary measures,” such as temporarily suspending new contributions to the Civil Service Pension and Disability Fund, as well as the Postal Service Retirees Health Benefit Fund.
The Treasury is also willing to temporarily suspend contributions to the Savings Plan G Fund.