Reagan axe will spare aid for ‘truly needy’

Press, 13 February 1981, Page 7

Reagan axe will spare aid for ‘truly needy’

America’s “truly needy" axe-wkelding economic packwill escape the effects of an axe-wielding economic package being devised to head off what President Ronald Reagan . calls “an economic calamity of tremendous proportions.” Amid fears that Federal spending cuts being prepared would change the face of modern American, society, by demolishing social and welfare programmes built up since the war, the White House has announced a reprieve for those who are worst off in the world’s richest nation.

Seven basic social programmes that have a total of 80 million beneficiaries — and consume SUS2IO,OOO million, or one quarter of the Federal budget — have been decreed "untouchable.”

They are programmes, officials said, that help people who probably could not survive without direct Government benefits.

But the axe being wielded by the 34-year-old Reagan whizzkid, David Stockman, who as director of the White House’s Office of Budget and Management is in charge of the spending cuts package, will still fall on a wide range of Federal programmes. Mr Reagan, who will make the final decisions before presenting his proposals to Congress next week, said this week: “I can assure you by morning I’ll be hung in effigy. The screams will be heard from coast to coast.” The untouchables are: Social Security programmes for 32 million retired people, dependents and survivors; Medicare health payments for 28.6 million elderly people; Federal-paid school breakfasts and lunches for 9.5 million low-income children; benefits for more than three million disabled exservicemen; supplemental

income benefits for 4.2 million blind, disabled, and elderly poor people; education services for 374,000 inner city children; and a programme that provides summer jobs for 665,000 teen-agers. Despite these promises there is no shortage of targets remaining. There has been no word of threatened cuts on food stamps — coupons issued to families below the official poverty line — which currently go to 22 million Americans, about one in ten of the population. ; . There is also no guarantee that the SUSIB,OOO million Medicaid programme, which pays for medical treatment to social-welfare recipients, will be untouched. Students’ grants, Federal aid to schools — slated to be cut 20 per cent over all — and unemployment benefits are in line for drastic cuts.