"The reserve fund guarantees that we can pay for this legislation if it passes out of the Finance Committee," Grassley said. "That guarantee is critical to the bill's success. The Senate budget rules require that bills like this are funded. I agree that getting a funding guarantee is the responsible way to legislate."
The Grassley/Kennedy amendment created a reserve fund of $7.9 billion over 10 years for the Family Opportunity Act. The money would cover the bill's full cost and becomes available if the Finance Committee reports the bill out of committee. The House-passed budget blueprint also sets aside money for the measure. The Family Opportunity Act is pending in the House as well as in the Senate and has bipartisan support in both chambers. The bill has 67 Senate co-sponsors and 147 House co-sponsors (the House bill is H.R. 600).
Grassley was inspired to pursue the legislation by a family originally from Red Oak, Iowa. The Arnolds moved to the Baltimore-area to obtain medical care for 11-year-old Adam, who was born with a short thigh bone. Adam's mother, Melissa, has worked hard to obtain promotions but can't accept any more pay raises without jeopardizing Adam's Medicaid coverage. Adam's 18-year-old brother, Daniel, can't work even part-time for fear of pushing the family's income over the Medicaid limit.
Grassley's legislation would allow states to create options for families such as the Arnolds to buy into the Medicaid system while continuing to work. Grassley said parents would pay for Medicaid coverage on a sliding scale. In many cases, Medicaid would supplement private health insurance coverage. No one would have to become impoverished or stay impoverished to secure Medicaid for their child.
Grassley said Medicaid is critical to the well-being of children with multiple medical needs. It covers a lot of services that these children need, such as physical therapy and medical equipment. Private health plans often are much more limited in what they cover. Many parents can't afford needed services or multiple co-payments out-of-pocket.
"Parents of children with disabilities should have the same opportunities as adults with disabilities," Grassley said. "Everybody wants to use their talents to the fullest potential, and every parent wants to provide as much as possible for his or her children. We should give states the flexibility to provide families with options, without the federal government getting in the way."
"The bipartisan vote today is a tremendous victory for the President. It's a big step forward in passing a tax bill that will be the third-largest tax cut in 50 years. President Bush's plan will reverse the Clinton tax increase of 1993, which was the biggest tax increase in the history of the country. Today's vote also shows how successful President Bush has been in his campaign to return the tax surplus to taxpayers. Last year, the Democratic leadership on Capitol Hill was opposed to a tax cut. Then, last fall they wanted $500 billion in tax cuts. A couple of months ago, the Democrats said they wanted about $900 billion in tax cuts. And today, Democrats voted for a $1.3 trillion tax cut.
"Taxpayers today bear a record-high tax burden. Washington can clear the path to long-term economic growth by letting taxpayers keep more of their hard-earned money. Cutting tax rates would increase family tax-home pay and spur economic activity. It would enhance consumer purchasing power and help entrepreneurs businesses off the ground and create new jobs. Lawmakers who prefer more government spending over tax relief argue for caution on the tax bill, but caution was thrown to the wind when Congress approved billions of dollars in extra spending before it went home last year. Federal government expenditures jumped 11.9 percent this fiscal year over the last. The bottom line is, if the money stays in Washington, it gets spent."
Three amendments offered by Grassley were included in the final budget resolution passed today. The first provides up to $300 billion in funding and maximum flexibility for lawmakers to craft a responsible Medicare reform and prescription drug proposal. The second Grassley amendment significantly increases spending for agriculture over the next ten years, with an additional $5 billion in this crop year. The third amendment provides the $7.8 billion needed to let children with disabilities and extraordinary medical expenses qualify for health care through Medicaid without forcing their parents to give up their jobs or lower their family income to qualify.
Grassley is the second most senior member of the Senate Budget Committee.