Threats to CHIP Funding

from National FV:

President Requests Rescissions in CHIP Funding

On May 8, the president sent a "special message" to Congress under a seldom-used 1974 law which establishes a special process through which an administration can propose rescinding appropriations that have already been enacted. Congress has a total of 45 continuous legislative days to act on the proposal under special "fast-track" procedures. During this time period, the president can withhold the funding. If Congress does not approve the rescissions within 45 days, the president must release the funds.

 

The president's May 8 special message proposes spending cuts of $15.4 billion through 38 rescissions in a number of federal departments and agencies. Among the proposed rescissions are two that would cut $7 billion from the Children's Health Insurance Program (CHIP). One of the proposed rescissions would cut about $5 billion from "leftover" funds that were set aside in the 2015 CHIP funding bill. The authority to use these funds expired on September 30, 2017, so could not be spent anyway. The other $2 billion would be taken from the Child Enrollment Contingency Fund, which provides extra CHIP funding to states that experience an unexpected surge in CHIP enrollment due to a natural disaster, economic downtown or other unusual circumstances. The administration says it does not anticipate that these funds will be needed this year, but by nature, the contingencies for which the fund exists are unpredictable.

 

It seems likely that the House will approve the president's request but it is not clear what will happen in the Senate. Unless both chambers approve the cuts, they will not be implemented.   See Trump calls on Congress to pull back $15 billion in spending, including on Children's Health Insurance Program (Washington Post, 5/7/18).