Newt Gingrich

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Newt Gingrich : biography

17 June 1943 –

Legislation proposed by the 104th United States Congress included term limits for Congressional Representatives, tax cuts, welfare reform, and a balanced budget amendment, as well as independent auditing of the finances of the House of Representatives and elimination of non-essential services such as the House barbershop and shoe-shine concessions. Following Gingrich’s first two years as House Speaker, the Republican majority was re-elected in the 1996 election, the first time Republicans had done so in 68 years, and the first time simultaneously with a Democratic president winning re-election.

Legislation

Welfare reform

A central pledge of President Bill Clinton’s campaign was to reform the welfare system, adding changes such as work requirements for recipients. However, by 1994, the Clinton Administration appeared to be more concerned with pursuing a universal health care program. Gingrich accused Clinton of stalling on welfare, and proclaimed that Congress could pass a welfare reform bill in as little as 90 days. He insisted that the Republican Party would continue to apply political pressure to the President to approve their welfare legislation.

In 1996, after constructing two welfare reform bills that Clinton vetoed, Gingrich and his supporters pushed for passage of the Personal Responsibility and Work Opportunity Act, which was intended to reconstruct the welfare system. The act gave state governments more autonomy over welfare delivery, while also reducing the federal government’s responsibilities. It instituted the Temporary Assistance for Needy Families program, which placed time limits on welfare assistance and replaced the longstanding Aid to Families with Dependent Children program. Other changes to the welfare system included stricter conditions for food stamp eligibility, reductions in immigrant welfare assistance, and work requirements for recipients. The bill was signed into law on August 22, 1996.

In his 1998 book Lessons Learned the Hard Way, Gingrich encouraged volunteerism and spiritual renewal, placing more importance on families, creating tax incentives and reducing regulations for businesses in poor neighborhoods, and increasing property ownership by low-income families. He also praised Habitat for Humanity for sparking the movement to improve people’s lives by helping them build their own homes.

Balancing the federal budget

Although congressional Republicans had opposed Clinton’s Deficit Reduction Act of 1993, a key aspect of the 1994 Contract with America was the promise of a balanced federal budget. After the end of the government shutdown, Gingrich and other Republican leaders acknowledged that Congress would not be able to draft a balanced budget in 1996. Instead, they opted to approve some small reductions that were already approved by the White House and to wait until the next election season.

By May 1997, Republican congressional leaders reached a compromise with Democrats and President Clinton on the federal budget. The agreement called for a federal spending plan designed to reduce the federal deficit and achieve a balanced budget by 2002. The plan included a total of $152 billion in Republican sponsored tax cuts over five years. Other major parts of the spending plan called for $115 billion to be saved through a restructuring of Medicare, $24 billion set aside to extend health insurance to children of the working poor, tax credits for college tuition, and a $2 billion welfare-to-work jobs initiative.

President Clinton signed the budget legislation in August 1997. At the signing, Gingrich gave credit to ordinary Americans stating, "It was their political will that brought the two parties together."

In early 1998, with the economy performing better than expected, increased tax revenues helped reduce the federal budget deficit to below $25 billion. Clinton submitted a balanced budget for 1999, three years ahead of schedule originally proposed, making it the first time the federal budget had been balanced since 1969.