Paul Ryan Announces Balanced Budget Plan With Massive Spending Cuts

Rep. Paul Ryan, the chair of the House Budget Committee, on Tuesday introduced the 2015 House Republican budget, the latest iteration of the Ryan-steered budget that aims to balance the budget within 10 years.

Here are the key points:

  • Overall, the budget cuts government spending by $US5.1 trillion over the next 10 years.
  • It calls for the repeal of the Affordable Care Act.
  • It would turn Medicaid into a “block grant” program for states, which Ryan says will save $US732 billion over 10 years. Almost $US3 trillion of the proposed $US5.1 trillion in savings comes from the repeal of Obamacare and the revamp of Medicaid.
  • It calls for essentially privatizing Medicare, shifting it from an entitlement program to a voucher-style program. Starting in 2024, new retirees would be given the option to stay on traditional Medicare or transfer to choosing among competing plans. The new system would also gradually increase the retirement age. This is similar to other Ryan-led budgets, and it’s the main point on which Democrats have attacked him.
  • It calls for tax reform, but rejects the discussion plan put forth by Republican Rep. Dave Camp, the chair of the House Ways and Means Committee. Camp’s plan has been a source of division within the party.
  • It proposes to reform the national SNAP program into a block grant program “tailored for each state’s low-income population.” It also cuts $US23 billion in agriculture subsidies.

The budget faces a difficult vote in the House, and it’s questionable whether Ryan can earn enough Republican support for the plan to pass.

Here’s the full budget blueprint:

Paul Ryan budget 2015

More to come…

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.