Last week the conservative House Republican Study Committee released its Spending Reduction Act of 2011, which would cut federal spending by $2.5 trillion over the next ten years. Sen. Jim DeMint (R-SC) will introduce it in the Senate.
The vast majority of the savings, $2.3 trillion, would come from freezing non-defense discretionary spending at fiscal 2006 levels over the next ten years. The rest would come from cutting the federal civilian workforce, privatizing Fannie Mae and Freddie Mac, repealing the state Medicaid FMAP increase, repealing remaining stimulus funds, and immediately reducing non-security discretionary spending to fiscal 2008 levels.
Of the $2.3 trillion over 10 years that would be saved by freezing nondefense discretionary spending at fiscal 2006 levels, only $330 billion in savings are actually specified, or about $33 billion annually. That’s only about 5 percent of nondefense discretionary spending, and nondefense discretionary spending only accounts for about 17 percent of total federal spending.Details