House Republicans Propose $880 Billion Medicaid Cuts to Fund Tax Breaks

House Republicans have introduced a proposal to cut $880 billion from Medicaid over the next decade, aiming to fund $4.5 trillion in tax breaks and extend expiring 2017 tax cuts.

Credit: AP Photo by Rod Lamkey, Jr.

The plan includes new eligibility requirements for Medicaid, such as mandatory work or service hours and biannual income verification, which could result in 8.6 million people losing health coverage within ten years, according to a preliminary estimate by the Congressional Budget Office.

Democrats have criticized the proposal, warning it could lead to hospital closures, reduced access to senior care, and increased premiums. According to AP News, they argue the plan resembles a renewed attempt to dismantle the Affordable Care Act.

The proposal also includes rolling back green energy programs, freezing certain state-provider taxes, and eliminating pandemic-era Medicaid funding boosts. Additionally, it proposes rescinding clean energy funding and easing fossil fuel infrastructure permitting.

Despite internal GOP resistance and former President Trump's promise not to cut Medicaid, the Energy and Commerce Committee met its $880 billion target, primarily through healthcare cuts.

The legislation is under rapid review, with the House aiming for passage by Memorial Day.

Critics argue the bill disproportionately benefits the wealthiest Americans and significantly increases the federal deficit, projected to grow by $5 trillion through 2034.

The proposal has sparked intraparty division and faces strong opposition ahead of an expected House vote by Memorial Day.