Fiscal 2016 Budget Resolution - Republican Study Committee Substitute

Stutzman, R-Ind., substitute amendment that would provide for $ 2.804 trillion in new budget authority in fiscal 2016, not including off-budget accounts. The substitute would call for reducing spending by $7.1 trillion over 10 years compared to the Congressional Budget Office baseline. The proposal would call for capping discretionary spending at $975 billion in fiscal 2016, freezing it for two years, and then allowing it to grow with inflation. It would call for setting discretionary defense spending at $570 billion, non-defense discretionary spending at $405 billion and allowing for $58 billion in Overseas Contingency Operations. The measure would call for, after fiscal 2019, OCO spending being incorporated into (non-emergency) discretionary defense spending. The proposal would call for repeal of the 2010 health care overhaul, converting Medicaid and the Children's Health Insurance Program into block grant programs and transitioning Medicare to a premium-support system. It would propose changing the inflationary index for Social Security benefits to "chained" CPI for all government programs and gradually increases eligibility to age 70 for Social Security. It also would propose converting the Supplemental Nutrition Assistance Program into a block grant program and changing it to a discretionary program. The amendment would outline guidance for a tax overhaul, including stating that taxes should be revenue neutral based on dynamic scoring and that the alternative minimum tax be repealed. It also would propose that federal funding for transportation be limited to core federal duties, such as the interstate highway system.