May 3, 2017

Latest idea in House to cut the deficit

Photo by AP's J. Scott Applewhite

The House Budget Committee is considering options to use reconciliation to reduce the deficit, two sources close to the committee told Axios. The committee could include instructions for every authorizing committee to find a total of $500 billion of mandatory savings over 10 years one source close to the budget committee said. Medicare is one of dozens of mandatory programs under discussion for the cost reductions.

Why this matters: It would be the first time reconciliation has been used to reduce the deficit since 2006, said the source close to the committee. Some lobbyists say the cuts could be the way to pay for tax reform, though a source close to committee said that wasn't the goal.

Reality check: It's unclear how involved Republican leaders are in these plans.

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