1Center for American Progress | The Federal Budget and Gay and Transgender Families
The Federal Budget and Gayand Transgender Families
Not All Families Are Equal Under the Law
Crosby Burns April 2012
Srenghening he economic securiy o American amilies remains a key policy prior-iy or decreasing povery, reducing inequaliy, and growing our economy hrough asusained and suppored middle class. No all amilies, however, are equal under he law.Unorunaely, many governmen-sponsored programs rea gay
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and ransgenderamilies dierenly han heir sraigh and nonransgender counerpars. Due o narrow deniions o who consiues a “amily,” many o he more han2 million childrenliving wih gay and ransgender amilies do no have he same access o he economic sae-guards aorded o oher children in he Unied Saes oday.Moreover, his discriminaion in governmen programs exacerbaes he economicinsecuriies creaed by he high raes o discriminaion acing he gay and ransgenderpopulaion. Discriminaion inhealh care ,housing , and he workplaceleaves ar oo
many gay and ransgender amilies wihou healh insurance, aordable housing, and a job o make ends mee. Wih inequiable access o saey ne programs and wih persisen and pervasive dis-criminaion, i is no wonder ha gay and ransgender amilies have a lower householdincome , are more likely o nd hemselves in povery, and are more likely o be unin-sured han heir sraigh and nonransgender counerpars.No child should go hungry, uninsured, or homeless in he Unied Saes, regardlesso he sexual orienaion or gender ideniy o heir paren. Sill, gay and ransgenderamilies are among some o he mos economically vulnerable in he Unied Saes.Tese American amilies need more economic suppor rom social saey ne programsand governmen ax breaks, no less. Tis is why he annual budge-making process is socrucial o he healh, wellness, and economic livelihood o gay and ransgender amilies.
2Center for American Progress | The Federal Budget and Gay and Transgender Families
Jus las week, hough, House Republicans passed House Budge Commitee ChairmanPaulRyan’s (R-WI) proposed budge , which would shred he saey ne o aters. Rep.Ryan’s budge calls or an asounding$5.3 rillion in spending cusover he nex 10 years, 62 percen o which come romlow-income programs. Meanwhile, his same budge would give an addiional$265,000 in ax cus o he wealhy on op o he Bushax cus, as well as mainain and even expand ax breaks or corporaions, he ulra-rich,and oil companies. In aggregae, hese ax expendiures or he op 1 percen willcos Americans an asounding $10 rillionover he nex decade.Pu blunly, he Ryan budge is a disaser or gay and ransgender amilies. Tese amiliesneed a budge ha helps hem mee heir nancial needs, no a budge ha worsens analready precarious siuaion. Going orward, lawmakers should use heir power o hepurse o make sure ha no amily alls hrough he cracks during hard economic imes,including gay and ransgender amilies.Tis issue brie examines hree areas o he budge ha are crucial o household eco-nomic securiy—public healh insurance or low-income amilies, ood and nuriionassisance, and nancial aid or higher educaion. In each o hese areas, lawmakers caneiher mainain and srenghen he saey ne or slash and burn he programs ha gay and ransgender amilies rely upon o say aoa and hrive.Beore we examine hese hree issue areas, le us rs ake a closer look a he sae o gay and ransgender amilies in he Unied Saes oday.
The state of gay and transgender families
According o he oundaional repor—“All Children Mater: How Legal and SocialInequaliies Hur LGB Families”—somewhere beween 2 million and 2.8 million chil-dren oday are living wih gay or ransgender parens in 96 percen o all U.S. counies.Same-sex couples in he Souh are more likely o be raising children han hose in oherregions o he counry. Tese amilies are also more racially and ehnically diverse hanmarried opposie-sex couples raising children, according o he repor.Research and daa rom his repor show ha gay and ransgender amilies are amongsome o he mos economically vulnerable in he Unied Saes. Why are hese amiliesespecially vulnerable?Firs, many o he economic programs aimed a bolsering household economic secu-riy rea amilies ha are headed by gay or ransgender parens dierenly han amiliesheaded by sraigh and nonransgender parens. While some governmen programs areully inclusive o gay and ransgender amilies (accidenally, no by design), ohers usea narrow deniion o he amily ha discouns he exisence o same-sex parners andchildren, essenially masking he rue economic realiies o hese amilies when calcula-
3Center for American Progress | The Federal Budget and Gay and Transgender Families
ing household size and income. Tis resuls in boh inequiable reamen under govern-men saey ne programs and imposes a higher ax burden on same-sex couples.In shor, discriminaory reamen under he law creaes a wo-iered sysem o socialsaey ne programs—one or children wih sraigh and nonransgender parens andanoher or children wih gay or ransgender parens.Moreover, gay and ransgender people coninue o experience widespread discrimina-ion in nearly all areas o lie. Recen research shows ha his populaion coninues oexperience high raes o discriminaion inhousing , in he workplace , inhealh care , and
in areas o public accommodaion. Pervasive sigma and discriminaion harms he socio-economic saus o hese amilies by denying hem equal access o healh care, denyingparens a seady income, and denying amilies aordable housing when hey wouldoherwise qualiy or i. Wha resuls aresocioeconomic inequaliies ha hur childrenwih parens who are gay or ransgender. Conrary o common sereoypes, children raised by same-sex couplesare wice as likely o live in povery as children being raised by married heerosexualparens. Similarly, amilies headed by opposie-sex couples make on average $15,000per year more han amilies headed by same-sex couples. Tese economic dispariies areespecially acue or gay and ransgender people o color raising children.In ligh o hese realiies, now is no he ime o diminish access o economic saeguardsand suppors like saey ne programs and amily ax breaks. We mus equalize andexpand hem, no urher limi hem or gay and ransgender amilies.Nex we examine how he Ryan budge reas gay and ransgender amilies and oer our vision o a budge ha values all amilies equally.
Medicaid and SCHIP
Medicaid and he Sae Children’s Healh Insurance Program, or SCHIP, are wo o hemos imporan economic lielines providing essenial healh care and long-erm careo millions o Americans. Low-income children, pregnan women, seniors, and people wih disabiliies are all eligible or Medicaid, which, since is creaion in he 1960s, has been crucial o keeping amilies and heir children insured and ou o povery. Jus asimporan is SCHIP, which was creaed in 1997 and grealy expanded he number o children eligible or public healh insurance.Under curren law, children under 6 years o age areeligible or Medicaidi hey livein amilies wih household incomes a or below 133 percen o he ederal povery guidelines. Children 6 o 18 years old qualiy wih household incomes a or below 100
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The Federal Budget and Gay and Transgender Families
Crosby Burns argues that America needs a federal budget the supports all families, including gay and transgender families.
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