Friday, May 18, 2018

Trump plans to cut emergency funds from CHIP program

President Trump wants to cut $7 billion from contingency funds in the Children's Health Insurance Plan in an effort to cut the nearly $1 trillion federal deficit. Though the measure wouldn't directly affect the deficit, lawmakers would be able to use those funds for other programs instead of borrowing more money, Phil Galewitz reports for Kaiser Health News.

Critics of the proposal, like Georgetown University law professor David Super, say it's "pure political theater, ugly theater" since it would do little to reduce the deficit, and it could end up hurting some of the 9 million low-income children the program covers.

The program used its contingency funds last year when Congress allowed its funding to lapse for 114 days. Several states ran out of money and needed the contingency cash to keep children covered. It can be argued that taking away contingency funds is a bet that such a situation will not occur again.

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