FUND HUMAN NEEDS NOT WAR

The Bush administration has already spent $200 billion on the Iraq war with no end in site.. Estimates
for rebuilding the Gulf coast following hurricanes Katrina and Rita exceed $200 billion. Amidst all this,
the Bush administration plans on giving more tax breaks to the wealthy while calling on Congress to
radically cut domestic programs by $35 billion, especially those for the most needy. This week of
October 17, Congress is poised to cut Medicaid, Food Stamps, TANF (Temporary Assistance for
Needy Families) and other vital services for people in need. Hurricane Katrina and Rita have increased
the numbers of people in need. Powerful voices in Congress are calling for even deeper cuts across
domestic programs. At the same time, Congressional leadership plans for still more tax breaks to the
well-off.

BACKGROUND
When Congress passed its budget resolution last May, it required certain committees to come up with
$35 billion in cuts to a variety of programs over 5 years. Big targets for cuts are Medicaid ($10 billion
expected) and agriculture programs ($3 billion), including Food Stamps. The initial deadline for
committees to come up with the cuts was September 16. In addition, Congress required the tax-writing
committees to propose tax cuts costing $70 billion over 5 years, with a deadline of September 23. The
legislation to make the cuts would be on a fast track, with limited debate, even in the Senate.

Hurricane Katrina changed all that. Congress swept most items off its agenda to enact emergency
legislation, and postponed floor action on the spending cuts until mid-October, with the tax cuts pushed
into November. Even members of Congress most intent on making these cuts did not relish the public
reaction to cutting the very programs needed more than ever to cope with the disaster - or the image of
passing tax cuts for the very wealthy while hundreds of thousands of people were losing their homes,
jobs, and communities. So they put off the cuts. They are hoping we won't be paying as much attention.
Here's why we must:

§ Medicaid: Congress may well make the cuts by giving states more authority to deny eligibility or
reduce benefits to low-income people. And there is more pressure to cut now - ironically, because of
the costs of hurricane recovery. But Medicaid is a vital lifeline for millions of people who cannot get or
afford private health insurance, and now is also essential for hundreds of thousands of people with no
other source of medical help because of the disaster. States need more funds to cope with growing
need, not less money. Giving states the power to cut people off or reduce or deny benefits is giving
them the power to kick people when they are down. Some states have already cut benefits - limiting the
number of prescriptions that can be filled each month, for example. This is the wrong choice.

§ Food Stamps: The Food Stamp program is working just as it is supposed to. Food stamps have been
issued to hundreds of thousands of the hurricane survivors. The program has received bipartisan praise
for its record-setting improvements in accuracy. Its benefits are extremely modest - 93 cents a meal.
Cuts in Food Stamps mean people will get less food. This is the wrong choice.


§ Still more domestic cuts: The hurricanes exposed and increased poverty and showed the
importance of investing in jobs, education, health and nutrition, and housing. But some in
Congress are talking about paying for recovery expenses by across-the-board or other stiff cuts in
non-defense domestic programs - cuts that will hit low-income people and communities hard.
This is the wrong choice.

§ Tax cuts: This year alone, the cost of the tax cuts passed from 2001-2003 is $225 billion, with a
huge proportion going to the richest among us. Millionaires are slated for another $20,000 per
year tax break that starts phasing in on January 1st, and Congress is talking about passing even
more tax breaks for wealthy investors (for capital gains and dividends). Meanwhile the middle
class and people struggling to make ends meet get service cuts, not tax cuts. This is the wrong
choice.

IMMEDIATE ACTION NEEDED
Call your congressperson and senators as soon as possible. When you call, follow these steps.

Step 1: Call (202) 224-3121 to the Capitol Switchboard. Ask to speak to one of the Senators
from your state.

Step 2: When the Senator's phone is answered, say:

"Hi, my name is ___________ and I live in [your town/city]. I would like Senator [name] to
oppose $35 billion in cuts to Medicaid, Food Stamps and other vital services, and to oppose $70
billion in more tax cuts."

"The right Congressional priorities include protecting people from sickness, hardship, investing
in housing, jobs, and other services that families need - not squandering billions on tax cuts for
the well-connected."

Step 3: call your other Senator and your representative. If the lines are busy, please be patient and
try again.