Warnings on PAYGO Impacts to Farm Programs Likely Overblown

Some Democratic lawmakers, a National Farmers Union official and others have warned the Republican tax-reform plan could devastate U.S. farm programs.Those citing that concern are noting a Congressional Budget Office (CBO) analysis in their warning that the increase in the federal budget deficit allowed by the GOP tax proposals could devastate farm programs. The CBO analysis concludes the programs subject to the automatic cuts are not large enough to accommodate the $136 billion in cuts that would have to be made. “That would be a disastrous trade,” said National Farmers Union (NFU) President Roger Johnson.As for those contentions that the PAYGO requirements could have a major impact, House Ag Chairman Mike Conaway, R-Texas, said while spending cuts would be “devastating,” he was confident Congress would waive the budget rules. That is what Congress has done many times, both those led by Republicans and Democrats.Since its enactment in 2010, Congress has waived Statutory PAYGO requirements 29 times in which the budgetary effects, in whole or in part, were excluded from the PAYGO scorecards, according to a Congressional Research Service memorandum. And, both political parties have waived PAYGO when they have been in the majority, and it’s been waived with bipartisan majorities, and often times by unanimous consent.Based on history, Republicans feel that this should be a perfunctory exercise.