H.R.408, the Spending Reduction Act of 2011 Introduced in the House of Representatives

The new Republican majority in the U.S. House of Representatives has revealed its first attempts to begin to resolve the huge federal budget deficit.  On Jan. 24, 2011, Congressman Jim Jordan (R-OH/4^th), Chairman of the Republican Study Group, introduced H.R. 408, “The Spending Reduction Act of 2011,” into the U.S. House of Representatives.  The objective of this legislation is to reduce federal spending by $2.5 trillion through FY 2021.  Chairman Jordan’s bill would repeal funding from the American Recovery and Reinvestment Act of 2009, including eliminating all remaining “stimulus” funding, totaling $45 billion.   The bill would rescind all unobligated balances of the discretionary appropriations made available by ARRA effective on the date of the enactment.

According to the Republican Study Committee, “The Spending Reduction Act of 2011 reduces federal spending by $2.5 trillion over 10 years. The bill will specifically hold FY 2011 non-security discretionary spending to FY 2008 levels, hold non-defense discretionary spending to FY 2006 levels thereafter for the rest of the 10-year budget window (the same level as in effect during the last year of GOP control of the Congress), and include more than 100 other program eliminations or savings proposals.” 

H.R. 408 has been referred to 14 different House committees for an undetermined period of consideration and refinement prior to moving to the House floor for action.

Included in the projected $2.5 trillion savings is about $45 billion in unspent health information technology stimulus funding, including funding provided by the HITECH portions of ARRA.  Some of the HITECH appropriations have already been obligated and spent.  However, Congressional attempts to cut off health IT funding, including CMS EHR incentive funding, adds to industry confusion, compounds our efforts, and further delays our American healthcare benefiting from the quality improvement and cost control benefits that would ensue from health IT. 

While H.R. 408 may be passed by the Republican-controlled House of Representatives at some point, it is very unlikely that such a bill would pass the Democrat-controlled Senate.  In addition, the President would veto this legislation, and it does not appear that there would be support to override a Presidential veto. 

As our Board-approved HIMSS Public Policy Principles clearly supports EHR incentive payments to spur adoption, staff is preparing our HIMSS Legislative Action Center to oppose H.R. 408 and to help members learn more about this federal legislation and to take action to inform their elected representatives about why they are opposed to this legislation.  We are also working with key House and Senate members/staff to let them know that H.R. 408 does include rescission of EHR incentive funding.  We will keep you posted on developments and working with communications on ways to share this news in a factual setting without adding to the confusion and concerns this news is raising.  

A summary of the bill will be available at the HIMSS Legislation Action Center http://capwiz.com/himss/home/ under “Issues and Legislation.”

RSC Spending Reduction Act – Two Page Summary  
RSC Spending Reduction Act – Extended Summary