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"Americans: We just want higher wages and lower costs. Republicans: We are going to take away your healthcare."
Some Democratic lawmakers and other critics of congressional Republicans on Friday pointed to a document obtained by Politico as just the latest evidence that the looming GOP trifecta at the federal level poses a threat to working families nationwide.
"Americans: We just want higher wages and lower costs. Republicans: We are going to take away your healthcare," Rep. Pramila Jayapal (D-Wash.), chair emeritus of the Congressional Progressive Caucus, said in response to the reporting, which came as Republicans have taken control of both chambers of Congress and prepare for President-elect Donald Trump's inauguration in just over a week.
The one-page list originated from the House Budget Committee, chaired by Rep. Jodey Arrington (R-Texas), Politico reported, citing five unnamed sources. One of them explained that the "document is not intended to serve as a proposal, but instead as a menu of potential spending reductions for members to consider."
The document lists various policies that it claims would collectively cut up to $5.7 trillion. Republicans have been discussing how to offset the high costs of top priorities—specifically, Trump's immigration policies and plans for tax cuts that critics warn would largely benefit the wealthy, like the law he signed in 2017.
"In order to make his rich, billionaire buddies richer, Trump wants to kick millions off healthcare coverage and starve families. How does this help working families thrive?"
The policies are divided into eight sections, with headings that critics called "dystopian" and "Orwellian." The first calls for repealing "major" health rules from outgoing President Joe Biden's administration, which would supposedly cut $420 billion. The second section takes aim at Medicare, the federal health program for seniors, proposing policies that would cut $479 billion.
A large share of the potential cuts would come from section three, which lists seven potential changes to Medicaid, a program that provides health coverage to low-income people. The policies include per capita caps, work requirements, and lowering the federal medical assistance percentages (FMAP) floor.
"In order to make his rich, billionaire buddies richer, Trump wants to kick millions off healthcare coverage and starve families. How does this help working families thrive?" Michigan state Rep. Carrie Rheingans (D-47) asked on social media. "In this leaked list of cuts, 'lower FMAP floor' for Medicaid means states pay a higher proportion of Medicaid costs for enrollees—this just shoves [federal] costs to states so billionaires get more yacht money."
Section four of the document calls for "reimagining" the Affordable Care Act (ACA) to cut $151 billion, with changes that include repealing the Prevention and Public Health Fund, limiting eligibility based on citizenship status, and reclaiming $46 billion from subsidies set to expire at the end of the year.
The fifth section lays out $347 billion in cuts by "ending cradle-to-grave dependence," targeting initiatives including Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP), often called food stamps.
Section six claims "reversing Biden climate policies" would cut $468 billion: $300 billion by discontinuing some provisions from the 2021 bipartisan infrastructure legislation, $112 billion by rolling back electric vehicle policies, and $56 billion by repealing green energy grants from the Inflation Reduction Act (IRA).
The seventh section is a catchall, listing up to $1 trillion in potential cuts through moves that include ending student debt forgiveness, restricting emergency spending, and reforming federal employee benefits. Section eight identifies up to $527 in potential tax offsets from requiring Social Security numbers for the child tax credit and green energy credits.
House Speaker Mike Johnson (R-La.), who recently agreed to use the budget reconciliation process to cut $2.5 trillion, "can't afford any Republican defections if he wants to pass a package on party lines," Politico reported. "Even proposed cuts to green energy tax credits, worth as much as $500 billion, could be tricky—as the document notes, they depend 'on political viability.' Already 18 House Republicans—14 of whom won reelection in November—warned Johnson against prematurely repealing some of the IRA's energy tax credits, which are funding multiple manufacturing projects in GOP districts."
Sharing the report on social media Friday, Rep. Nydia Velázquez (D-N.Y.) stressed that "Republicans want to cut vital food and healthcare support programs to pay for a tax cut for billionaires and large corporations. The GOP wants working families to pay for their billionaire handouts."
The outgoing CPC leader is proud of empowering the caucus to fight for "an economic agenda that worked for working people and poor people."
After six years at the helm of the Congressional Progressive Caucus, dedicated to "building the infrastructure" necessary to effectively fight for key policies on Capitol Hill, term-limited Rep. Pramila Jayapal is determined to ensure that the CPC's incoming leaders "are as successful as possible."
Jayapal (D-Wash.) spoke with Common Dreams on Wednesday about her time leading the caucus of nearly 100 lawmakers whose legislative priorities include "comprehensive immigration reform, good-paying jobs, fair trade, universal healthcare, debt-free college, climate action, and a just foreign policy."
She was elected first vice chair of the CPC in June 2017, just months into her freshman term in Congress. Explaining her foray into leadership, Jayapal affectionately said, "I blamed it all on Keith Ellison," a Minnesota Democrat who was then a congressman and caucus leader and is now his state's attorney general.
"He was very encouraging," she said of Ellison. "He knew that the whole reason I was running, because he had heard me talk about it on the campaign trail... was because I wanted to strengthen the power of the progressive movement inside Congress and figure out how we could be more effective working on the inside and the outside, which I was coming from."
Jayapal, who was born in India and came to the United States as a teenager for college, founded the immigrant advocacy group Hate Free Zone—which later became OneAmerica—after the September 11, 2001 terrorist attacks. Residents of the Seattle area elected her to Congress in 2016, during her first term in the Washington State Senate.
In politics, Jayapal has shared stories from her own life with the world, publicly writing and speaking about her experiences as an immigrant woman of color, a woman who had an abortion, and a mother to her trans daughter. She has welcomed the mentorship of Rep. Barbara Lee (D-Calif.), the first woman of color to co-chair the CPC and, as Jayapal put it on Instagram earlier this week, "one of the most courageous and effective progressive leaders I have had the privilege to know."
U.S. Reps. Barbara Lee (D-Calif.) Pramila Jayapal (D-Wash.), and Cori Bush (D-Mo.) talk with reporters in Washingotn, D.C. on May 31, 2023. (Photo: Tom Williams/CQ-Roll Call, Inc. via Getty Images)
Backed by leaders like Ellison and Lee—who is leaving Congress after this session—Jayapal jumped into the CPC hoping to transform it into "a caucus that could really have the power to stand up for working people and deliver." In 2018, she was elected co-chair with Rep. Mark Pocan (D-Wis.), and following 2020 caucus rule changes, she became a solo chair.
"What I realized when I came in is that we didn't really have the infrastructure we needed to support us to be powerful as a bloc of votes," said Jayapal, who utilized the skills and connections she developed as an organizer in the role she is now preparing to leave.
"I was able to come in and not only think about how you build power on the inside, but also how you coordinate with the outside," she said. "And that inside-outside strategy, and the trust I had, and the relationships I had, were really critical to my success in building the infrastructure here in Congress and sort of coalescing the movement around a set of priorities that we were then able to fight for and stand up for."
Jayapal recognized the need to hire staff and reform CPC rules to boost meeting attendance and caucus cohesion. She explained that "I felt very strongly about leadership transition to build the bench, and so I put in term limits for the CPC chair as well."
Thanks to that policy, she will pass the torch to Rep. Greg Casar (D-Texas) early next month. Jayapal, who will be chair emeritus, told Common Dreams, "I'm just really proud to have built an infrastructure that I can pass on to the next chair that just wasn't there before and will continue to get better, of course, with new leadership."
The 35-year-old incoming chair will be joined by Reps. Ilhan Omar (D-Minn.) as deputy chair and Jesús "Chuy" García (D-Ill.) as whip. They will face a Republican-controlled Congress and the second administration of President-elect Donald Trump.
"I'm honored to build on the legacy of Chair Jayapal," Casar said after the caucus election earlier this month. "I've fought back against extremist, egocentric autocrats in Texas for my entire adult life. The Democratic Party must directly take on Trump, and it'll be CPC members boldly leading the way and putting working people first."
Related: New Progressive Caucus Chair Ready to 'Fight Billionaires, Grifters, and Republican Frauds'
Trump won his first presidential contest the same day Jayapal was initially elected to Congress. On that night in November 2016, before the White House race was called, Jayapal described her victory as "a light in the darkness" and told supporters that "if our worst fears are realized, we will be on the defense as of tomorrow," according toThe Seattle Times.
After four years of fighting the first Trump administration, CPC members kicked off 2021 with a fresh opportunity to advance progressive policies: Although the Senate was divided, Democrats controlled the House of Representatives and President Joe Biden was sworn in—despite Trump contesting his 2020 loss and inciting an insurrection.
During Biden's term, which ends next month, the Jayapal-led caucus has successfully encouraged the Democratic president to pursue various executive actions promoting access to contraception, climate action, corporate accountability, higher wages, lower costs for essentials, and relief for immigrants from countries in crisis, among other priorities.
The caucus also played a significant role in enacting major pieces of Democrats' Build Back Better agenda. In the summer of 2021, Jayapal made clear to Congress and the president that House progressives would withhold votes from what became the Bipartisan Infrastructure Law—also known as the Infrastructure Investment and Jobs Act—unless they also passed legislation on the climate emergency and social issues.
Biden signed the infrastructure bill in November 2021—followed by the Inflation Reduction Act in August 2022. The delay was largely due to obstructionist then-Democratic Sens. Joe Manchin (I-W.Va.) and Kyrsten Sinema (I-Ariz.), who ditched the party in the aftermath and are both leaving Congress at the end of this session.
Although Jayapal wishes the second bill would have passed sooner, and tackled the country's childcare and housing crises, she said that she is still "particularly proud" of what the caucus was able to accomplish with that battle. As she told Common Dreams, "There would be no Inflation Reduction Act without Build Back Better, and there would've been no Build Back Better without the CPC."
Rep. Pramila Jayapal (D-Wash.) speaks at a "Go Bigger on Climate, Care, and Justice" rally on July 20, 2021 in Washington, D.C. (Photo: Shannon Finney/Getty Images for Green New Deal Network)
Those two legislative packages were "about changing the way that we thought of government's ability to fight for working people," she continued. They "were about delivering results to people that would matter, whether it was in terms of great jobs, whether it was in terms of taking on climate change, whether it was in terms of driving down the cost of prescription drugs, [or] unrigging the tax system so that the wealthier began to pay their fair share."
"All of those things were kind of fundamental and core to an economic agenda that worked for working people and poor people," said Jayapal, who has personally championed legislation including the College for All Act, Dignity for Detained Immigrants Act, Housing Is a Human Right Act, Medicare for All Act, Transgender Bill of Rights, and Ultra-Millionaire Tax Act—partnering with Senate progressives such as Sens. Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.), the founding chair of the CPC.
While the Congressional Progressive Caucus will have new leadership next year, Jayapal plans to remain engaged by providing advice and support as chair emeritus and by co-chairing the CPC Political Action Committee with Casar and Rep. Maxwell Frost (D-Fla.). Under the PAC's current heads—Jayapal, Pocan, and Rep. Jamie Raskin (D-Md.)—it "has grown from a $300,000 budget in the 2016 election cycle to raising $12 million over the past three election cycles," the group said Wednesday.
Jayapal told Common Dreams that she is "really proud of the fact that we've had an incredible record" for CPC PAC endorsements. Over the past decade, a majority of pre-primary backed candidates have won their general election races—often "pushing back on big money that came in, dark money that came in, sometimes in the millions," she said, pointing to Reps. Summer Lee (D-Pa.) and Delia Ramirez (D-Ill.) as examples.
Lee, Ramirez, and Jayapal were all reelected last month, but overall it was a devastating cycle for Democrats, who failed to win control of the White House and both chambers of Congress. The outgoing CPC chair is among those who have responded to the results by urging the Democratic Party to reject super PACs and uplift working-class voters going forward.
In a memo earlier this month, Jayapal, Casar, Frost and fellow CPC member Rep. Chris Deluzio (D-Pa.) called on the next Democratic National Committee chair, whoever it is, to "create an authentic... brand that offers a clear alternative and inclusive vision for how we will make life better for the 90% who are struggling in this economy, take on the biggest corporations and wealthiest individuals who have rigged the system, expose Trump's corporate favoritism, and create a clear contrast with Republicans."
Noting Republicans' aim to use their forthcoming federal trifecta to pass another round of tax cuts for the rich, Jayapal said that "when we fight against the tax cuts, the Trump tax scam 2.0, we should tie it to this: The Democratic Party is not beholden to corporate PACs and dark money. We are fighting for the people."
"There's a clear contrast between Trump and his billionaires... and Democrats who are fighting for the vast majority of Americans, the 99% of Americans who are out there struggling every day," she added. "That's the contrast we need to be able to draw."
In her final days as CPC chair, Jayapal is highlighting that contrast by slamming Trump and the billionaires who have his ear, like Elon Musk, for risking a government shutdown—which could begin Saturday—by derailing a bipartisan spending bill this week.
"The past 24 hours is the clearest demonstration yet of what Trump 2.0 will entail: The president of the United States allowing his unelected billionaire friends to control the government and enrich themselves at the expense of working people," she
said in a Thursday statement. "We cannot succumb to a government by billionaires, for billionaires."
"For the second straight year, President Biden and the Democrats are poised to sacrifice a significant chunk of one of their biggest accomplishments," one critic lamented.
Economic justice advocates are urging House Democrats to do more to defend Internal Revenue Service funding after leaders of the minority party agreed to Republican draft legislation that would continue a freeze on more than $20 billion in IRS modernization and enforcement funds in order to avert a government shutdown.
The $20.2 billion freeze is part of a continuing resolution that would guarantee funding for the federal government through March 14. Although the Inflation Reduction Act signed into law by President Joe Biden in August 2022 allocated $80 billion in supplemental funding to the IRS, Congress subsequently rescinded $21.6 billion of that and added a rider for the $20.2 billion freeze in an earlier continuing resolution.
The freeze means that the funds are neither permanently rescinded nor available for use. According to the Institute on Taxation and Economic Policy, the effective $20.2 billion funding reduction would increase the federal deficit by $46 billion "due to a drop in the agency's capacity to enforce taxes on wealthy individuals owed under existing federal law."
As Dylan Gyauch-Lewis wrote Wednesday for The American Prospect, "For the second straight year, President Biden and the Democrats are poised to sacrifice a significant chunk of one of their biggest accomplishments: funding for the IRS to go after wealthy tax cheats."
"With the latest maneuver, more than 90% of the money invested to scale up IRS auditing and oversight could be gone before it can even be used," Gyauch-Lewis added. "Yet again, Democrats seem to have been outplayed by Republican leadership."
Conversely, the infusion of IRA funding has boosted IRS recovery of unpaid taxes.
"The IRS has collected $4.7 billion in back taxes from wealthy tax cheats thanks to funding from the Inflation Reduction Act," Groundwork Collaborative executive director Lindsay Owens said in a statement Wednesday. "But since its passage, Republicans have clawed back nearly half of the enforcement budget to make it easier for the ultra-wealthy to get away with not paying their share."
Democrats helped this happen. In order to secure a 2023 debt ceiling deal with then-House Speaker Kevin McCarthy (R-Calif.), Biden agreed to multi-year spending caps in the so-called Fiscal Responsibility Act, as well as the $21.6 billion IRS funding recision. Now it is uncertain whether the outgoing Biden administration or congressional Democrats will fight to defend IRS funding or once again acquiesce to GOP cuts in order to keep the government running.
House & Senate Dems told us they were fighting to add a provision in the CR to fix the frozen funding, but it didn't make the cut. Republicans have made no secret of targeting the expanded IRS funding from the IRA - an effort very likely to continue in 2025 under a GOP trifecta.
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— Cady Stanton (@cadystanton.bsky.social) December 18, 2024 at 5:10 AM
IRS Commissioner Danny Werfel warned during a recent media call that Republicans' proposed cuts to the agency's funding would "be critically damaging to our capacity to do the work we need to do to make sure that large corporations and complex partnerships are paying what they owe."
Owens said "it's clear congressional Republicans are paving the way for the Trump administration to make it open season for tax cheats."
Such fears mounted this month after Republican President-elect Donald Trump tapped former Rep. Billy Long (R-Mo.) to head the IRS. Long sponsored multiple bills to dismantle the IRS and legislation to repeal all estate taxes, which are overwhelmingly paid by the wealthiest Americans. He has also promoted a dubious pandemic-era tax credit that the IRS has called a magnet for fraud.
"Even before the new administration takes office, we are seeing Republicans take steps to hamstring the IRS to ensure the ultra-wealthy can continue to evade their taxes," Anna Aurilio, senior director of campaigns at Economic Security Project Action, said in a statement Wednesday.
"A well-funded IRS is vital to administering a fair tax code. Slashing funding for the agency, which recently collected nearly $5 billion from wealthy tax evaders and crime rings, only hurts the efficiency and efficacy of the government," Aurilio added. "By starving the agency that helps deliver vital tax credits to the American people, Congress will make it more difficult for people to file their taxes and get the credits they qualify for—all while making it easier for the wealthiest individuals and big businesses to avoid paying their fair share."