Arkansas’ Womack questions Biden administration officials on spending plan

He questions officials about Biden budget

U.S. Rep. Steve Womack (left), R-Ark., is shown in this undated courtesy photo. Womack and other lawmakers questioned Treasury Secretary Janet Yellen (center) and Shalanda Young, director of the Office of Management and Budget, on Capitol Hill in Washington on Thursday, March 23, 2023. Yellen and Young are shown in photos taken during that hearing. (Left, courtesy photo; center and right, AP/Jose Luis Magana)
U.S. Rep. Steve Womack (left), R-Ark., is shown in this undated courtesy photo. Womack and other lawmakers questioned Treasury Secretary Janet Yellen (center) and Shalanda Young, director of the Office of Management and Budget, on Capitol Hill in Washington on Thursday, March 23, 2023. Yellen and Young are shown in photos taken during that hearing. (Left, courtesy photo; center and right, AP/Jose Luis Magana)

WASHINGTON -- With Republicans interested in curbing spending amid high inflation, Arkansas U.S. Rep. Steve Womack has questions about the budget proposal President Joe Biden unveiled earlier this month.

The congressman from Rogers and other lawmakers questioned Treasury Secretary Janet Yellen and Office of Management and Budget Director Shalanda Young about the proposal during a House Appropriations Subcommittee meeting on Thursday.

"I will not be able to support the level of spending included in the president's budget," Womack said during the hearing. "Our members are taking a hard look at the spending request line by line and will determine what level of funding can be appropriated that puts our fiscal house on a sustainable path."

The budget plan includes steps to reduce the federal deficit by $2.9 trillion over the next 10 years. It also incorporates tax increases affecting the richest Americans and eliminating tax breaks from the 2017 tax law, as well as $2.6 trillion in new spending.

House Republicans have yet to propose their own budget, but some members have suggested reducing spending to fiscal year 2022 levels. During Thursday's hearing, Republican lawmakers mentioned a February Congressional Budget Office report, in which analysts stated the federal deficit would increase by $20.2 trillion from 2024 to 2033 if spending patterns are not changed.

Womack, chairman of the Financial Services and General Government Subcommittee, has expressed caution about making broad cuts -- noting the possible effects on defense programs -- but advised the Biden administration to reevaluate its proposal.

An experienced appropriator, Womack has been a leader among Republicans regarding budgetary matters. He served as chairman of the House Budget Committee through 2018 and as the committee's ranking member from 2019 to 2021.

"I have consistently advocated for solutions to chart a responsible way forward," Womack said. "We must change gears and get going in the right direction to help Americans get the relief they need."

A repeated contention from Republicans regards inflation during the Biden administration. The year-to-date consumer price index reached 6% in January 2022 and a 6.6% peak last September. The Federal Reserve has attempted to combat inflation with interest rate increases, including a quarter-point rise last week.

The Biden administration is optimistic inflation will decline; the White House forecasts in its budget the consumer price index will fall to 4.3% this year and further decrease to 2.4% in 2024 before stabilizing at 2.3%.

The president and administration officials have credited the Inflation Reduction Act with saving Americans money. The sweeping legislation -- which Congress passed last year along party lines -- includes multiple provisions aimed at lower consumer costs, including an extension of health insurance subsidies and tax credits for installing energy-efficient technologies.

Republicans, including Womack, have tied inflation to federal spending.

"It is disappointing that the administration not only proposes higher spending, but also incorporates higher economic assumptions," Womack said.

Yellen and Young rejected arguments connecting inflation to government spending, noting inflation is not a uniquely American issue, but a problem facing many countries.

"What that tells us is that coming out of the pandemic, supply chain shortages had much more to do with inflationary pressures we see across the globe," Young said.

Yellen, a former Federal Reserve chair, mentioned economic progress since the country hit a peak consumer price index, including reduced pressures on supply chains and stabilizing housing costs.

"These factors are lowering it, and the administration has taken actions to bring down health care costs, to bring down energy prices, and to lower the costs that burden American families," she added.

Womack questioned Yellen and Young about when the federal government will need to reduce federal spending, adding he "doesn't necessarily subscribe to that notion" that the United States should deal with high inflation alongside other countries.

"We have some unique opportunities to control it ourselves, to include the federal budgets," he said.

Young said the Biden administration shares Womack's concerns and that federal investments and programs are targeted at helping families by lowering certain costs. The budget director additionally expressed unease about the potential impact of spending cuts.

"What happens to those families if those federal programs are pulled back so far that they hurt the very people that all of us want to help?" she asked.

Intertwined in the spending debate is the issue of the debt ceiling, or the maximum amount of money the federal government can borrow. The federal government reached its limit in January, triggering the Treasury Department to execute "extraordinary measures" to prevent a default, which could happen between July and September if Congress fails to act. Some Republicans oppose raising the ceiling without spending cuts. Biden has refused to negotiate on raising the ceiling.

Yellen has cautioned Congress about not raising the ceiling. The secretary reiterated her concerns Thursday, saying an increase is necessary for the federal government to cover outstanding costs.

"It has nothing to do with future spending," she told Rep. Steny Hoyer, D-Md. "A failure by the government to pay the bills it's incurred is something that would be economically and financially catastrophic."

Yellen issued an additional warning about making spending cuts if Congress fails to raise the debt ceiling, saying "we would be certain to have a recession or worse" in that situation.

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