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Coalition Letter: Congress Must Honor Sequester Savings and Defund ObamaCare Before It Is Too Late

FreedomWorks has signed on to the following Memo to the Movement by the Conservative Action Project:

Current Event:

The current continuing resolution (CR) funding the government expires on March 27, setting up an opportunity for Congress and President Obama to honor the bi-partisan sequester savings already agreed upon.  It also presents an opportunity to achieve even more savings by defunding and stopping the implementation of Obamacare, which the Congressional Budget Office (CBO) recently reported will force 7 million Americans out of their existing health insurance.


  • Conservatives cannot support a CR that is above the sequester level of $974 billion annually.  While many conservatives would prefer reprogramming defense cuts to other areas of discretionary spending (dollar for dollar cuts in the same year), the current sequester savings are better than none at all.
  • Conservatives should not approve a CR unless it defunds Obamacare.  This includes Obamacare’s unworkable exchanges, unsustainable Medicaid expansion, and attack on life and religious liberty.

A mere “date-change CR” is unacceptable.  Although the Obama administration and others will argue the CR is not the appropriate legislative vehicle to defund Obamacare, it is easily done through a series of appropriation riders.  Because the CR represents one of the best vehicles possible to delay the implementation of Obamacare, it must not be used to bargain on the upcoming sequester.

Issue in Brief:
On October 1, 2013, open enrollment begins for the federally backed health care exchanges. On January 1, 2014, new money from Washington will begin flowing to states and individuals, all but ensuring that these new entitlements will become a permanent fixture of life in America. The window of opportunity to stop the implementation of these massive new subsidies is closing.
Although many of Obamacare’s provisions are now the law of the land, many of the law’s most damaging and irreversible provisions do not take effect until 2014.
Once implemented, the new spending contained within Obamacare, primarily the Medicaid expansion and exchange subsidies, will cost taxpayers more than $1.6 trillion over the next decade, according to the latest CBO estimates.  Given the history of federal entitlement programs and the back-loaded nature of Obamacare spending, some estimate the full implementation cost could reach  $2.6 trillion over ten years. It will increase the federal government’s health spending by 15 percent.
The issue is far from settled in the states, which are tasked with either implementing the wide-ranging mandates and invasive requirements put forth by Obamacare, or deferring such choices to the bureaucrats in Washington.
The fractured opinion amongst the states is one reason the Department of Health and Human Services (HHS) has continually pushed back the deadline for states to make a decision on the exchanges and Medicaid expansion.
The invasive elements of Obamacare are not set in stone; in fact, elements of the law are already under assault from Republicans and Democrats alike. The CLASS Act was repealed and there is bipartisan support for eliminating the devastating Medical Device Tax.
Blueprint to Defunding Obamacare

Obamacare’s funding mechanisms are as complicated as the law itself, but they can be stopped through the appropriation process, which includes the upcoming continuing resolution.

  • Federally Backed Exchanges.  An appropriations rider must eliminate the refundable tax credits for premiums and the cost sharing subsidies that are essentially used to support insurance purchased in the Obamacare exchanges, which starts January 1, 2014.
  • Medicaid Expansion.  An appropriations rider must eliminate the enhance match funding for the Medicaid expansion, which takes effect January 1, 2014.
  • Permanent Appropriations.  Obamacare contains items called “permanent appropriations” which guarantee funding for the Community Health Center Fund (CHCF) and Prevention and Public Health Fund (PPHF).  An appropriations rider turns off funds for these so-called permanent appropriations, which are already in effect.
  • Implementation.  An appropriations rider must block the implementation of Obamacare, covering salaries, rulemaking, enforcement, etc.
  • Life and Religious Liberty. Obamacare is an unprecedented attack on life and religious liberty. An appropriations rider must repeal the HHS mandate that attacks the religious values and principles of countless Americans.
  • Miscellaneous Programs.  An appropriations rider must block all funding for newly authorized discretionary programs contained in Obamacare and return reauthorized programs back to their pre-Obamacare levels.


Edwin Meese III
Former Attorney General
President Ronald Reagan
Chris Chocola
Club for Growth
Jenny Beth Martin
Tea Party Patriots
Penny Nance
Concerned Women for America
The Honorable J. Kenneth Blackwell
Constitutional Congress, Inc.
William Wilson
Americans for Limited Government
Duane Parde
National Taxpayers Union
Susan Carleson
American Civil Rights Union
Andrea Lafferty
Traditional Values Coalition
Alfred S. Regnery
The Paul Revere Project
Lewis Uhler
National Tax Limitation Committee
Brent Bozell
Matt Kibbe
Marjorie Dannenfelser
Susan B. Anthony List
David Williams
Taxpayers Protection Alliance
The Honorable David McIntosh
Former U.S. Representative
David Bozell
Executive Director
Colin Hanna
Let Freedom Ring
Stuart Epperson
Council for National Policy
Heather Higgins
Independent Women’s Forum
Cindy Chafian
The Mommy Lobby
Gary Bauer
American Values
Mike Needham
Heritage Action for America
David Bossie
Citizens United
Mathew D. Staver
Liberty Counsel Action
James Martin
60 Plus Association
Erick Erickson
T. Kenneth Cribb
Former Domestic Advisor
President Ronald Reagan
Becky Norton Dunlop
Former White House Advisor
President Ronald Reagan
Grace-Marie Turner
The Galen Institutue
Myron Ebell
Freedom Action
Craig Shirley
Reagan Campaign Biographer
Rev. Lou Sheldon
Traditional Values Coalition
Richard Rahn
Inst. for Global Economic Growth
Lee Beaman
Nashville, TN
Bob Reccord
Executive Director
Council for National Policy
Angelo M. Codevilla
Professor Emeritus
Boston University
Tom Donelson
America’s PAC
Brian Baker
Ending Spending
Kay R. Daly
Coalition for a Fair Judiciary
Don Devine
Senior Scholar
The Fund for American Studies
Gary Aldrich
Patrick Henry Center for Individual Liberty
Ralph Benko
Center for Civic Virtue
Andresen Blom
Senior Strategist
Center for Civic Virtue
Joe Gregory
Gregory Management Co.
Rebecca Hagelin
(All organizations listed for Identification purposes only)