April 26, 2023

MEMO: The Impact of Republicans’ Debt Ceiling Vote on Arizona

FROM: The Office of Rep. Ruben Gallego (AZ-03)

TO: Interested Parties

DATE: April 26, 2023

RE: The Impact of Republicans’ Debt Ceiling Vote on Arizona

This week, House Republicans will move forward with a vote to raise the debt ceiling. Despite routinely and anticlimactically raising the debt ceiling three times under President Trump, House Republicans are using the debt ceiling vote as a vehicle to push forward with draconian budget cuts.

 This spells bad news for Arizona. If the Republican debt ceiling vote were to become law, Arizonans would see a dramatic decrease in the support they rely on. These cuts would impact communities and efforts across the state including service members and military families, children, and our state’s ability to combat the Western water crisis.

 This isn’t hyperbole, it’s fact. To help understand how these cuts will directly impact Arizonans, the office of Rep. Ruben Gallego has prepared this memo highlighting the impact of House Republicans’ budget cuts.

 As a member of the House focused on improving the lives of all Arizonans, Rep. Gallego opposes any efforts to implement these cuts and supports a clean debt ceiling raise—no strings attached.

 In Arizona, the impact of Republicans’ cuts will be felt statewide. For example, the bill:

  • Puts 316,000 people at risk of losing Medicaid coverage in Arizona. 
  • Threatens access to food assistance for 17,000 people aged 50-55 in Arizona. 
  • Eliminates preschool and child-care for at least 5,600 children in Arizona. 
  • Increases housing costs for at least 5,300 people in Arizona. 
  • Makes college more expensive for at least 275,700 students in Arizona. 
  • Eliminates at least 6 air traffic control towers in Arizona. 
  • Cuts at least 90 rail safety inspection days in Arizona.
  • Repeals investments in cleaner, cheaper energy — threatening at least 12,300 clean energy and manufacturing jobs announced in Arizona since the passage of the Inflation Reduction Act.

HOUSE REPUBLICANS’ SPENDING CUTS

Seniors with Longer Medicare Call Center Wait Times: 24 million

  • Seniors would face 40% longer wait times to get their health and coverage questions answered, including on their claim’s status and coverage inquiries.

 Layoffs at the Social Security Administration: 6,000

  • These layoffs would lead to unacceptable delays in Social Security retirement claims, issuing of new Social Security cards, and employment eligibility verification.

  • Cuts to the Social Security Administration would also lead to a 30% increase in processing times for Social Security Disability Insurance – forcing Arizonans with disabilities to wait 9 months or longer to receive their benefits.

 Combatting the Fentanyl Crisis: $750 million

  • Comprehensive Opioid, Stimulant, and Substance Use Program: $40.7 million
    • This proposal cuts almost 1/3 of grants to State, local, and Indian tribal governments to expand programs to identify, respond to, and treat those impacted by illicit opioids.

  • DEA’s Organized Crime Drug Enforcement Task Force (DEA at large): $620 million
    • The reduced funding level would amplify the supply of illicit drugs, specifically fentanyl, at a time when Arizonians are experiencing almost 3,000 drug overdose deaths a year. 

  • Office of Terrorism and Financial Intelligence / Financial Crimes Enforcement Network: $89.3 million
    • Greatly reduces the Dept. of Treasury’s ability to implement and enforce sanctions, jeopardizing our national security and ability to cut off the illicit fentanyl supply chain.

 Securing our Border: 2,400 Customs and Border Protection Layoffs

  • Across the Board Cuts to Drug Smuggling Prevention.
    • Republican cuts will harm DHS’s ability to prevent drugs from entering the country. At a time when the fentanyl epidemic is getting worse, we need more drug smuggling prevention - not less.

 Drought Mitigation Efforts: Ended

  • Increased Likelihood of Lake Mead “Dead-Pool” Status.
    • The Department of Interior would have to forego critical drought operations. This includes current investments in water management, storage feasibility studies, and repairing aging water infrastructure and would drastically increasing the likelihood that Lake Mead would reach to "dead-pool" status, jeopardizing the water supply and power sources of thousands of Americans- including the hardest hits to Arizona.

 Wildfire Fire Management: $515 Million

  • 2,700 Wildland Firefighters Furloughed.
    • This would drastically reduce our ability to fight and prevent fires, at a time when the frequency and severity of wildfires is only rising.

 Federal Aviation Administration Facilities and Equipment: $650 Million

  • The FAA would be forced to reduce maintenance of its navigation, automation, and surveillance systems, increasing the risk of outages like the one that caused 60 flights to be canceled and another 200 delayed at Phoenix Sky Harbor International Airport in January 2023.

  • Cuts to the FAA would also lead to furloughs of air traffic controllers and safety inspectors, causing flight delays and a backlog of safety inspections and certifications.

 Medicare Call Centers: 40% Longer Wait Times 

  • Approximately 24 million seniors and Medicare recipients would face longer wait times to get their health and policy questions answered.

  • The Center for Medicare & Medicaid Services (CMS) would also not be able to conduct 38% or more of its required health and safety inspections at nursing homes and assisted-living facilities.

 Early Childhood Development: $2.86 Billion

  • Child Care and Development Block Grant Program: $1.9 Billion
    • Thousands of Arizona families would lose access to child-care, preventing many parents from working to support their families because they must stay home. As many as 101,000 child-care slots would be eliminated nationwide.

  • Head Start: $960 Million
    • 200,000 slots for children would be eliminate. Children across Arizona would begin school ill prepared to learn and less likely to succeed.

Entrepreneurial Development Program: $70.4 Million

  • Cuts to the Small Business Administration would cause 295,000 entrepreneurs and small businesses to lose access to free business counseling, particularly veteran, women, minority, and Native-owned businesses.

Affordable Housing: At least $3.85 Billion  

  • Tennant-Based Rental Assistance: $2.88 Billion
    • Cuts to Housing Vouchers would eliminate funding for as many as 640,000 families.
  • Project-Based Rental Assistance: $967 Million
    • Cuts to affordable housing will cause existing housing units to become unaffordable and lead to the eviction of thousands of Arizonans. Nationwide, funding for as many as 286,000 families would be eliminated.

State and Local Law Enforcement Assistance: $531.7 Million  

  • Nationwide cuts towards staffing and resources for law enforcement, as well as crime prevention funding include:
    • Anti-Opioid Initiative: $98 Million
    • Byrne Memorial Justice Assistance Grants: $170 Million
    • STOP School Violence Act: $18 Million
    • Tribal Law Enforcement Assistance: $13 Million