Let me thank you for your tremendous leadership and pulling us all together tonight to talk about this impact of sequestration. And I also want to thank our chair of the Congressional Black Caucus, Marcia Fudge, for once again sounding the…
Let me thank you for your tremendous leadership and pulling us all together tonight to talk about this impact of sequestration. And I also want to thank our chair of the Congressional Black Caucus, Marcia Fudge, for once again sounding the alarm and keeping us on track.
Let me first just start by saying we need to stop the sequestration, and we need to create jobs, lift the economy and reduce poverty.
The sequester will impact my congressional district in my home State of California and every single household in America. It will push 750,000 Americans into the unemployment line and slow our entire economy.
In my home State, for example, it will cut 8,200 children from Head Start and shut the door to college for about 9,600 students. Additionally, 600,000 to 775,000 eligible low-income women and children are going to be denied nutritional assistance because they're going to be cut from the WIC program.
Sequestration will impact everyone, but it will have a particularly harmful effect on communities of color who were hit first and worst by the Great Recession and have yet to significantly feel the effects of the recovery.
Let me just read out 10 reasons which were recently highlighted by the Center for American Progress, and why communities of color and the African American community and Latino community particularly should pay attention to sequestration and the impact it will have in these communities.
First, there are going to be deep cuts to the long-term unemployed and the reduction of benefits will disproportionately affect people of color.
Extended Federal unemployment benefits remain vulnerable under sequestration, and the long-term unemployed--those out of work and searching for a new job for at least 6 months--could lose almost 10 percent, mind you, 10 percent of their weekly jobless benefits if the sequester goes into effect.
Now, 13.8 percent of African Americans and 9.7 percent of Latinos are unemployed. Worse than that, 40 percent of unemployed Asians, 38 percent of African Americans and 28 percent of Latinos have been unemployed for more than 52 weeks.
Secondly, workforce development programs that are vital to communities of color such as YouthBuild and Job Corps face significant cuts. YouthBuild is a program that connects low-income youth to education and training, and it could be cut about 8 percent
Cuts to critical job-creation programs such as Build America Bonds are also on the chopping block. This was created in 2009 and provides incentives for infrastructure investments through the Tax Code.
Fourth, Federal budget cuts under sequestration would quickly mean cuts to Federal, State, and local public sector jobs which disproportionately employ women and African Americans. In 2011, employed African Americans comprised 20 percent of the Federal, State, and local public sector workforce, and women were nearly 50 percent more likely than men to work in the public sector.
Early child care funding could be cut by more than $900 million, impacting thousands of children of color who benefit from these programs, programs that directly help the most vulnerable families and children such as, as I said earlier, WIC. They're threatened by sequestration.
Federal education funding cuts will disproportionately hurt students of color. If sequester goes into effect in the way it has been designed, nearly $3 billion would be cut in educational loans, including cuts to financial aid for students and to programs for our most vulnerable youth.
Cuts to medical research put patients at risk. The National Institutes of Health would lose $1.5 billion in medical research funding, meaning fewer research projects would be aimed at finding treatments and cures for diseases such as HIV/AIDS, cancer, and diabetes, all of which are among the leading cause of death for African Americans.
Since 2010, funding for housing has been cut by $2.5 billion, meaning any additional cuts would significantly hurt low-income families and communities. Many housing programs, such as section 8 housing assistance, provide vouchers to low-income families for affordable housing in the private sector.
Finally, as the Nation continues to endure a cold winter, programs such as the Low Income Home Energy Assistance Program, which helps bring down the cost of heating for low-income households, are critical.
With that, Mr. Speaker, I would like to insert for the Record an article from today's New York Times, headed: ``As Automatic Budget Cuts Go into Effect, Poor May Be Hit Particularly Hard.'' It explains that sequestration cuts, as they are called, still contain billions of dollars in mandatory budget reductions and programs that help low- income Americans, including ones that give vouchers for housing for the poor and the disabled and another that provides fortified baby formula to the children of poor women.
So I think we need to really listen to the Congressional Black Caucus and understand what this means in terms of vulnerable, marginal communities--communities of color and individuals who were hardest hit by the recession and who have yet to feel any of the economic recovery that has taken place and who are going to now have another hit in terms of the safety net and the quality of life. They don't deserve this. We need to get back to the drawing board and do what is right and what is fair.
[From the New York Times, Mar. 3, 2013]
As Automatic Budget Cuts Go Into Effect, Poor May Be Hit Particularly
Hard
(By Annie Lowrey)
Washington.--The $85 billion in automatic cuts working
their way through the federal budget spare many programs that
aid the poorest and most vulnerable Americans, including the
Children's Health Insurance Program and food stamps.
But the sequestration cuts, as they are called, still
contain billions of dollars in mandatory budget reductions in
programs that help low-income Americans, including one that
gives vouchers for housing to the poor and disabled and
another that provides fortified baby formula to the children
of poor women.
Republican and Democratic lawmakers largely resigned
themselves to allowing sequestration--a policy meant to force
them to the negotiating table, not to actually reduce the
deficit--to take wider effect after it started on Friday.
That leaves agencies just seven months to carry out their
cuts before the fiscal year ends on Sept. 30. In many cases,
they will eventually have to deny aid to eligible needy
families.
Unless a deal is reached to change the course of the cuts,
housing programs would be hit particularly hard, with about
125,000 individuals and families put at risk of becoming
homeless, the Department of Housing and Urban Development
estimated. An additional 100,000 formerly homeless people
might be removed from emergency shelters or other housing
arrangements because of the cuts, the agency said.
Local administrators are trying to decide how to put the
mandatory 5.1 percent budget cuts into effect by the end of
September. Adrianne Todman, the executive director of the
District of Columbia Housing Authority, said that no person
in her program currently using a housing voucher or living in
a public facility would be affected or put out on the street.
But to absorb the cuts, Ms. Todman plans to defer
maintenance and leave staff vacancies open. She may also not
be able to fill open public housing units as tenants vacate
them. And she may stop rolling over housing vouchers to
families on the waiting list. Eventually, she said, she may
have to furlough employees.
``It's a shame. It's more than a shame, it's despicable,''
Ms. Todman said, noting that her agency already lacked enough
capacity to meet the district's needs. ``These are real
families that we have deemed eligible and are waiting to
receive their voucher from us.''
In Washington and across the country, families and
individuals generally need to have very low incomes to be
eligible for federal assistance. Public housing residents in
Washington have an average annual income of just $12,911.
More than 40 percent are either children or the elderly, and
more than a quarter live with a disability. In the voucher
program, the annual income is even lower, just over $10,000 a
year, and similarly large proportions of residents are
elderly, disabled or young.
``These people are very, very, very poor,'' said Sheila
Crowley, the president of the National Low Income Housing
Coalition, speaking of recipients of federal housing support
across the country. ``They don't have resources to fall back
on.''
In some places, officials have already started carrying out
cuts. For instance, King County in Washington State, which
includes Seattle, stopped issuing new housing vouchers on
Friday.
``Sequestration will result in some 600 fewer families in
our local communities receiving crucial rental assistance
over the next year,'' Stephen Norman, the executive director
of the county housing authority, said in a statement.
``Because rents are so high, many of these families may,
quite literally, find themselves out on the street.''
Members of Congress have indicated that they might give
agencies more discretion in fulfilling the cuts, to help
blunt their impact. But policy experts said that in the case
of many low-income programs, budget cuts would necessarily
mean fewer people get help.
``There's no loose change in the cushions,'' Ms. Crowley
said. ``Anything you take out of HUD is going to reduce
services and cut programs. There's just no fat there. There
hasn't been for a long time.''
Other programs that assist low-income families face
similarly significant cuts, including one that delivers hot
meals to the elderly and another that helps pregnant women.
Policy experts are particularly concerned about cuts to the
supplemental nutrition program for women, infants and
children known as WIC, which provides food and baby formula
for at-risk families.
It is considered one of the most effective social programs
in government, reducing anemia and increasing birth weights.
But up to 775,000 low-income women and their children might
lose access to or be denied that aid because of the mandatory
cuts, according to calculations by the Center on Budget and
Policy Priorities, a nonprofit research group.
The start of sequestration, a policy never meant to take
effect, has left both sides seeking cover, with many
Democrats dramatizing the impact of the cuts and many
Republicans playing them down.
Some Republicans, in fact, have said that whatever the
effect, the cuts are a necessary part of reversing the trend
of the government spending more and taking on more debt.
``President Obama proclaimed that the sequester's `brutal'
and `severe' cuts will `eviscerate' America's domestic
spending,'' Senator Rand Paul, Republican of Kentucky, wrote
in a recent article published by Investors.com. ``But
`eviscerate' is not the adjective I would use; in fact, I
believe the sequester is a pittance.''
The $85 billion in cuts is just a small part of the $3.6
trillion annual budget, but policy experts say that even
those cuts that are being applied to programs that do not
specifically focus on low-income people and communities will
disproportionately affect them.
Other cuts might not hit low-income Americans specifically,
but their impact could affect vulnerable families
disproportionately. Those include cuts to programs that aid
children with special needs; job-training programs that help
unemployed people find a new career; foreclosure prevention
services; and programs that help 150,000 veterans every year
make the transition into the nonmilitary work force.
They also include a reduction in jobless benefits for the
long-term unemployed. Those out of work for more than six
months could see their checks shrink by as much as 11
percent.
The Budget Control Act, a 2011 law that created the
automatic cuts, exempted ``mandatory'' spending programs that
aid low-income Americans, like Medicaid, which receive
automatic federal financing. But it did not exempt
``discretionary'' programs, whose financing Congress
determines in its annual appropriations process.