Majority Leader Harry Reid's plan would make it difficult to again extend emergency unemployment benefits or health insurance subsides for laid off workers. It would also make it harder to render new assistance for state Medicaid payments.
The Nevada Democrat is pressing the plan to get legislation passed permitting the government to continue to borrow money to finance its operations. Under the pay-as-you-go concept, program cuts or revenue increases would be needed to cover the cost of any new policies or programs. If not, across-the-board spending cuts would kick in.
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