Washington, DC, United States (AHN) – The Obama administration on Wednesday announced ambitious programs to cut government-wide wasteful spending under a plan it is calling the “Campaign to Cut Waste,” an effort led by Vice President Joe Biden.
With Biden chairing a full cabinet meeting to discuss waste reduction at federal agencies, Health and Human Services (HHS) Secretary Kathleen Sebelius announced the Medicaid Recovery Audit Contractor Program, a waste-cutting program created by the Affordable Care Act.
Addressing a background conference call with journalists, senior administration officials said the HHS program would save $2.1 billion over the next five years, of which $900 million would be returned to states.
Sebelius in a statement said, “We simply can’t afford to see even one penny of our health care dollars wasted and expanding this program will help us reach that goal.”
A White House communique noted that the vice president unveiled “new efforts to track state progress in reducing improper unemployment Insurance payments, and directed each Cabinet secretary to undertake a waste and efficiency review that will target unnecessary, wasteful, and inefficient federal spending.”
“If we’re going to spur jobs and economic growth and restore long-term fiscal solvency, we need to make sure hard-earned tax dollars don’t go to waste,” said Biden.
In addition, the Labor Department would be intensifying efforts with states to reduce improper payments of unemployment insurance.
Expanding on the efforts, Labor Secretary Hilda Solis said, “These new measures, demonstrate our commitment to working closely with states to ensure the integrity of the system, turnaround underperforming programs and save taxpayer dollars.”
“The unemployment Insurance system is a unique partnership between the federal government and the states. States bear the responsibility of operating an efficient and effective benefits program, but as partners the federal government must be able to hold them accountable for doing so,” added Solis.
Earlier during the conference call, a senior administration official noted that the Department of Homeland Security (DHS) was becoming “leaner and smarter” with identification of more than $1 billion in cost avoidances since 2009 and implementation of initiatives – from buying software licenses in bulk to using government offices for meetings instead of renting private space.
“Over the last two years, we have made an unprecedented commitment to efficiency in order to support frontline operations by building a culture of fiscal discipline and accountability throughout the department,” said DHS Secretary Janet Napolitano.
Addressing the full Cabinet for the first time on a single agenda, the Vice President asked the secretaries to report back on wasteful and inefficient agency spending on travel, auto fleets, publications, and office equipment and supplies, from cell phones to software, or in any other areas identified by agencies.
During the conference call, a senior White House official emphasized the Vice President had called on all the Secretaries to be personally involved in these reviews, and would hold Cabinet members “personally responsible” for the performance and results of the process.
The Campaign to Cut Waste was launched by President Barack Obama in June with an executive order. He asked the Vice President to take on a new role holding the Cabinet accountable for cutting waste in their agencies – part of what was termed the Administration’s ongoing effort to make government more efficient and responsive to the American people.
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