House Speaker John Boehner’s Budget Control Act of 2011 is the current plan that congress will soon vote on. It is estimated to raise the debt limit by $2.5 trillion, and will reduce the deficit by about $915 billion, according to its revised version.
Here’s a little break down of what cuts will be made to some social services:
Social Security Administration
- Benefits for SSI, Medicare and Medicaid would fall by $2.5 billion over the 2012-2016 period and by nearly $12 billion over the 2012-2021 period.
- Benefit outlays for Medicare, Medicaid, and CHIP would fall by $1.4 billion over the 2012-2016 period and by about $3.7 billion over the 2012-2021 period.
- Eliminate the subsidized loan program for graduate students. Beginning July 1, 2012, the bill would eliminate the interest subsidy on subsidized student loans for almost all graduate students while a borrower is in school, in the post-school grace period, and during any authorized deferment period.
- Eliminate loan repayment incentives. Beginning July 1, 2012, the bill would terminate, with one exception, the Secretary of Education’s authority to make incentive payments to borrowers to encourage the on-time repayment of their federal loans.
- Cuts To Pell Grants. Significant cuts to student Pell Grants are also expected. Many college students rely heavily on Pell Grants to fund their higher education.