Trump Administration Proposes $7 Billion Cut from CHIP
Earlier this week, President Trump proposed $15 billion in spending cuts, with roughly half of that coming from CHIP and another million coming from Affordable Care Act programs. If all of these spending cuts are approved by Congress, the cuts will still represent less than one percent of the $1.8 trillion deficit increase projected due to the 2017 Tax Act.
The proposed CHIP cuts include $2 billion from the Child Enrollment Contingency Fund, which helps buffer state budgets against higher-than expected enrollment, due for example, to a natural disaster or unexpected economic conditions that increase the number of moderate-income working families. An additional $5 billion will be cut from funds that are authorized for CHIP but not expected to be expended.
Over the last several years, Congress has come to bipartisan agreements about how to reallocate this budget authority to invest in other programs that serve children. Rescinding these funds is unlikely to impact states’ CHIP programs immediately, but it violates that bipartisan agreement on CHIP and means that these funds will not be available to invest in children and families in other ways.
CHIP, or CHP+ as Colorado’s program is called, provides health insurance coverage for tens of thousands of kids and pregnant women in working families in Colorado. CHIP is a strong program with a track record that has proven its value to our country, our state, and Colorado’s working families. Congress has 45 days to vote on the Administration’s plan or a compromise version of it through a simple majority vote. The Children’s Campaign signed onto a national letter opposing these CHIP cuts organized by the American Academy of Pediatrics and encouraged other advocacy organization in Colorado to add their names as well. You can see the final letter here.