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"House Republican leadership put a giant bullseye on Medicaid, with the intent to strip Americans of their healthcare benefits to pay for tax cuts for billionaires and big corporations."
House Republicans unveiled a draft budget resolution on Wednesday that calls for $4.5 trillion in tax breaks that would disproportionately benefit the wealthy while proposing $2 trillion in cuts to Medicaid, federal nutrition assistance, and other programs.
Lawmakers are set to mark up the House GOP's budget blueprint on Thursday as Republicans look to craft a sprawling reconciliation bill that can pass both chambers of Congress with a simple-majority vote. Last week, Senate Republicans released their own budget resolution that proposed significant cuts to Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and other spending that benefits working-class families.
"Instead of tackling rising prices and delivering relief for American families, House Republicans are charging ahead with trillions of dollars in deeply unpopular tax breaks for billionaires like Donald Trump and Elon Musk," Alex Jacquez, chief of policy and advocacy at the Groundwork Collaborative, said Wednesday in response to the House GOP resolution.
"And, they're paying for their billionaire handouts by ransacking healthcare, food assistance, and other vital programs that American workers and families rely on," Jacquez added.
The new resolution released by the Republican-controlled House Budget Committee specifically calls on the chamber's energy and commerce panel to "submit changes in laws within its jurisdiction to reduce the deficit by not less than" $880 billion over the next decade. The House Energy and Commerce Committee has jurisdiction over Medicaid.
The measure also instructs the House Committee on Agriculture, which has jurisdiction over SNAP, to cut no less than $230 billion in spending between fiscal years 2025 and 2034.
"They wanna do a giant tax cut that disproportionately helps the rich while taking away people's health insurance and food while still adding trillions to the debt," Bobby Kogan, a former Senate Budget Committee staffer who is now senior director of federal budget policy at the Center for American Progress, wrote in response to the resolution.
Overall, the House GOP's budget resolution calls for $2 trillion in cuts to "mandatory spending" over the next decade, taking aim at a category that includes Medicaid, Medicare, Social Security, and SNAP. While Social Security benefits cannot be cut through the reconciliation process, Supplemental Security Income (SSI) can.
Congressional Republicans have outlined a number of ways they could slash Medicaid and SNAP, including punitive new work requirements that analysts say would strip benefits from tens of millions of low-income people.
But Families USA executive director Anthony Wright said Wednesday that "we don't need to know the mechanisms of how Medicaid would be cut to know the impact would be catastrophic: The sheer size of the proposed cuts means millions of Americans losing coverage, hospitals and clinics plunged into budget shortfalls, and healthcare services we all depend on being eliminated."
"This budget resolution is a five-alarm fire alert for our healthcare," said Wright. "House Republican leadership put a giant bullseye on Medicaid, with the intent to strip Americans of their healthcare benefits to pay for tax cuts for billionaires and big corporations."
Kobie Christian, a spokesperson for the progressive coalition Unrig Our Economy, issued a similarly scathing statement on Wednesday, arguing that House Republicans "showed us that what they value is more tax breaks for greedy billionaires and giant corporations with everyday people paying the price."
"At a time when everyday Americans face increasingly higher prices, Speaker Johnson and his stooges want to write billionaires a check and force working-class people to foot the bill for their outrageous tax breaks for corporations and the ultra-wealthy," said Christian. "Everyday Americans will not stand for these games—it's time for Republicans in Congress to end their campaign that puts the ultra-wealthy first on the backs of the rest of us."
Defeating Republican efforts to slash health coverage for the nation's poor, said one observer, is also an opportunity "to expose and deepen the fractures in Trump's coalition, and to shatter the illusion that he can't be stopped."
Defenders of Medicaid are sounding the alarm over plans by the Republican Party—led by President Donald Trump and House Speaker Mike Johnson—to eviscerate the nation's healthcare system used by low-income individuals and families, warning that the attack would jeopardize healthcare for tens of millions of the poorest Americans as part of an effort to give the wealthiest individuals and corporations massive tax breaks.
Internal divisions within the House GOP caucus have hinged on the overall size of cuts to federal spending in their yet-to-be-released budget blueprint, with competing proposals ranging from $1.25 trillion in cuts up to $2.5 trillion. Of that overall number, hundreds of billions in Medicaid cuts may come in the form of block grants to states, caps on per capita costs, and work requirements.
"For months," wrote Paul Heideman on Monday in Jacobin, "Republicans have said that their budget will cut spending in order to pay for making permanent Trump's tax cuts for the rich, which are set to expire this year."
One of the key targets of their austerity plan, he notes, is Medicaid, which Republicans, as reported by Politico on Tuesday, believe they can cut by an estimated $800 billion or more over the next decade.
"They are cutting healthcare to pay for tax cuts for billionaires."
Echoing the call of other progressive voices, Heideman argues that opponents should seize on the tensions within the GOP—where right-wing hardliners are openly calling for cuts while those in more swing districts have expressed increasing anxiety about what happens politically if they take the axe to a program that is resoundingly popular with voters.
CNNreporting on Monday about the behind-the-scenes maneuvering within the caucus quoted one unnamed Republican lawmaker who said that some members want "to cut to the bone" when in it comes to Medicaid and other programs. While the lawmaker said they were "willing to cut a lot" from the federal budget, "if you cut the essential stuff that affects people every day, you will lose the majority in two years. I can guarantee it.”
Meanwhile, Politico offered more evidence that Trump and House Republicans are still not on the same page:
GOP leaders told senior Republicans in a series of private meetings Monday that Trump wasn’t yet on board with the major Medicaid cuts it would take to secure up to an additional $800 billion in savings, according to three people familiar with the conversations who, like the others, were granted anonymity to describe the private talks.
Johnson and senior Republicans are wary of pursuing the Medicaid reforms only for Trump to publicly bash the move. GOP leaders indicated in private meetings Monday that "they need to work with Trump" on the Medicaid issue before proceeding, according to one of the people.
As Heideman notes, one can't fully understand the attacks on Medicaid—which could boot tens of millions of people out of the program—without recognizing the GOP's parallel strategy for massive tax giveaways for the rich and corporations:
Republicans are hoping to extend the tax cuts passed in Donald Trump's first term. These tax cuts, which were the only substantial legislative accomplishment of Trump's first term, were massively skewed toward the rich. The average household in the top 1 percent of income earners received about $60,000, while the average of the bottom 80 percent of households received only $762.
All of this largesse for the rich was expensive; estimates are it will cost the government nearly $2 trillion over ten years. Because of this, a number of Republicans in Congress insist that any extension of the tax cut must be accompanied by spending cuts to prevent it from adding massively to the deficit. With a razor-thin majority in the House, these deficit hawks could sink any attempt by Trump and the GOP leadership to ram the cuts through in spite of their impact on the deficit. Finding a way to substantially cut Medicaid spending has thus become central to the larger GOP budget plan.
On Tuesday, the Center on Budget and Policy Priorities (CBPP) detailed how one Republican approach to cutting Medicaid—a federal spending freeze that would cap per capita costs—would drastically increase financial pressure on the state programs that administer Medicaid programs.
"If federal funding drops sharply," warned Elizabeth Zhang, a CBPP research assistant, "states would be forced to scale back Medicaid by cutting people from the program, slashing benefits for remaining enrollees, reducing payments to hospitals and physicians—or a combination of all three. This would harm Medicaid enrollees across the program."
Pushing back against the proposed assault on a program that serves over 80 million people each year, all 47 members of the Senate Democratic Caucus on Monday sent a letter to Majority Leader John Thune (R-S.D.) saying he and his Republican colleagues should "reject proposals that use Medicaid as a piggy bank for partisan priorities and continue to defend the importance of this vital program." According to the letter:
Republicans are proposing cuts to the Medicaid program from hundreds of billions to multiple trillions of dollars. Cuts to Medicaid through drastically changing the program's financing structure or imposing additional barriers to coverage are dangerous to the millions of people who rely on the program. These proposals will also force states to make difficult decisions that will result in millions getting kicked off their coverage and providers struggling to keep their practices open. States simply cannot absorb these massive funding cuts without hurting children, seniors, people with disabilities, tribal populations, patients with chronic illnesses, and many other Americans who rely on Medicaid.
"The American people should be assured," the letter concluded, "that Medicaid will be protected."
Last week, as Common Dreamsreported, a separate CBPP report estimated that a GOP proposal to institute work requirements for Medicaid recipients could result in 36 million people being axed from the life-saving program. Predictions such as this could be why, as Politico noted, "Trump and his team are worried those cuts will invite political blowback."
The problem for progressives is that Republicans have discovered that while cuts to Medicaid are demonstrably unpopular with the voting public, the implementation of so-called "work requirements" has received more traction in opinion polls. As such, GOP leaders, including House Majority Leader Rep. Steve Scalise (R-La.), may believe they have a new way to trick people into helping them undermine or destroy the program.
This is why Heideman argues it is key for Medicaid defenders to be adamant in their opposition and clear in their messaging when it comes to work requirements or other deceptive messaging about Republican intentions.
Work requirements for Medicaid, Heideman argues, should be called exactly what they are: cuts. As he explains:
During the first Trump administration, states were granted waivers to institute work requirements. Only Arkansas actually implemented the policy, and the results are instructive. About a quarter of Medicaid recipients subject to the requirement (about 18,000 people) lost coverage while the waiver was in effect. Yet the requirement produced zero effect on employment. People kicked off Medicaid were no more likely to have jobs than they were while they were on it.
The reason for this is simple. Most people on Medicaid are already working. Among those that aren’t, most are either disabled, taking care of a family member, or going to school. There simply aren’t that many people on Medicaid who could go get a job, even if their health care is cut off. Moreover, work requirements often lead to people who technically shouldn’t be removed from the program being kicked off because they haven’t supplied the proper paperwork establishing their employment. Work requirements do nothing to make people work more. They simply kick people off the rolls.
Larry Levitt, executive vice president for health policy at Kaiser Family Foundation, pointed out last week that "92% of Medicaid adult enrollees are working, or are not working due to caregiving, an illness or disability, or school attendance."
So while Speaker Johnson and other Republican leaders have tried to say they are not proposing cuts to Medicaid in their pending budget blueprint, informed critics are pointing out that this a blatant falsehood.
Heideman says that the battle to defend the program is important in its own right but also has broader political implications.
"Defeating Medicaid cuts is an urgent priority over the coming months," he argues. "It's an opportunity to reestablish the popularity of the welfare state as a principle of American politics and to hand Trump and the GOP a much-needed defeat. Because of the GOP's disarray, it also has the potential to hamstring the party's only substantive legislative priority. Finally, this kind of work can provide some balance and ability for longer-term coordination amid the daily outrage that the administration is committing. The Left should not let this opportunity slip by."
Critics of a House appropriations bill that guts environmental agencies warn it's a sign of what the Republicans will do if they retake the Senate and the presidency next year.
Democrats and watchdog groups reacted with outrage on Friday as a U.S. House environmental subcommittee led by Republicans approved an appropriations bill that would reduce funding for two federal agencies and limit their ability to protect the environment.
The House Appropriations Interior, Environment, and Related Agencies Subcommittee voted to advance a bill to weaken the regulatory capacities of the Department of the Interior and the Environmental Protection Agency (EPA), cutting funding for conservation, climate action, national parks, and environmental justice initiatives.
"This bill sticks a finger in the eye of the American people who care deeply about clean air, climate change, endangered species, and responsible use of public lands," said Greta Anderson, deputy director of Western Watersheds Project. "It's a nasty wishlist to defund the priorities of protecting a livable future."
The fiscal year 2025 bill proposes a 20% cut to the EPA's annual budget, from $9.2 billion to $7.4 billion, including a $749 million cut to state and tribal assistance grants. It also proposes reductions to many Interior agency budgets, including a $210 million cut to the National Park Service and a $144 million cut to the U.S. Fish and Wildlife Service.
Taking aim at the government's ability to regulate industry, most of the Republicans' spending allocations are below fiscal year 2024 and almost all of them are below the amount requested by the Biden administration.
Rep. Chellie Pingree (D-Maine), the subcommittee's ranking Democrat, said in a statement that the proposed EPA cut was "irresponsible" and that she was "greatly disappointed and frustrated" by the bill, which "completely disregards the reality of a warming planet and ignores the need for us to do more, not less."
Pingree's Democratic colleague, Rep. Rosa DeLauro (D-Conn.), the ranking member of the full appropriations committee, agreed.
The bill "promotes dirty energy, taking the side of fossil fuel companies and those who deny the scientific reality rather than address the escalating risk to our economy and national security presented by the changing climate and growing number of extreme weather events," DeLauro said in the statement.
Critics of the bill also objected to the large number of "poison-pill" riders that seek to undo Biden administration rules and undermine the Endangered Species Act by naming specific animals for which listing can't be funded. Per a Trump-era Interior rule, the legislation also delists most gray wolf populations from the ESA.
"This proposal is a hatchet job of disastrous proportion that in an unprecedented scale, targets our nation's most imperiled species and the law saving them from extinction," Robert Dewey, vice president of government relations at Defenders of Wildlife, said in a statement.
The Republicans' bill includes proposed reductions to funding for clean water infrastructure projects, which Food and Water Watch (FWW) said was a step in the wrong direction—water and sewer systems need huge infusions of money just to meet current water quality standards.
"The proposed cuts would leave many with unsafe water and exacerbate the nation’s water affordability crisis, adding more pressure on household water bills at a time when families are already grappling with soaring costs for essential services," Mary Grant, a FWW campaign director, said in a statement, calling safe water "non-negotiable."
Grant said that to safeguard Americans' clean water from "foolishly political annual appropriations battles," Congress should pass the Water Affordability, Transparency, Equity, And Reliability (WATER) Act—a call she also made last year, when the same subcommittee advanced a similar bill.
The full appropriations committee will consider the bill on July 9. If the bill passes through the committee and then the full chamber, as last year's version did, it's unlikely to make headway in the Democratic-controlled U.S. Senate. However, critics of the bill warned that it's a sign of what the Republicans will do if they retake the Senate and the presidency.
Earlier this month, presumptive Republican nominee Donald Trump said that he plans to gut federal agencies dealing with climate, such as the Interior Department. A union of EPA workers rebuked Trump for the remarks.