All of these questions are addressed more easily, and more equitably, if programs are not put outside the budget process or otherwise made untouchable. Third, the degree of special protection given to highways and mass transit under TEA-21 exceeds that bestowed on any other program. Both are entitlements, both are financed by a trust fund from earmarked taxes, and both are exempt from sequestration under the Budget Enforcement Act. UI and Social Security are privileged because they are important, critically important. Yet neither enjoys the degree of protection provided by TEA-21.
Unemployment insurance is subject to reconciliation.
Finally, the administrative costs of UI can be cut by the Appropriations Committee, and the savings used to meet the overall caps or the cost of other programs, even though the administrative costs are paid from the UI trust fund. Social Security cannot be included in the budget resolution or in a reconciliation bill, which gives it a very high level of protection. But even Social Security benefits can be cut directly by legislation from Ways and Means, or can be cut by Appropriations limitation. And the administrative costs of Social Security can be cut directly by the Appropriations Committee, and the savings can be used to meet the overall caps or cover the cost of other programs, although those administrative costs are appropriated from the trust fund. In contrast, TEA-21 would require action by the Transportation, Budget, and Rules Committee to make direct cuts in the program, and it prohibits by point of order any cuts accomplished through Appropriations action.