The following is a statement by Joan Alker, Executive Director of the Georgetown University McCourt School of Public Policy Center for Children and Families, on the release of the House Budget Resolution
| February 12, 2025 FOR IMMEDIATE RELEASE: |
| Statement by Joan Alker, Executive Director of the Georgetown University Center for Children and Families “In conflict with President Trump’s promise to protect Medicaid and despite growing concerns among moderate House Republicans, the just released draft House budget resolution includes punishing cuts of at least $880 billion over ten years to Medicaid. This equates to roughly an 11% cut in federal Medicaid spending. As always specific policies are not included in the budget resolution, but the Budget Committee clearly envisions damaging Medicaid cuts that go well beyond what public discussion has focused on – i.e. work reporting requirements. In isolation, work reporting requirements would add onerous red tape and result in loss of coverage among millions of eligible people, but the previously leaked Budget Committee options list claims that work reporting requirements would generate approximately $100 billion in ten-year savings – only 11% of the assigned cuts in the budget resolution. In fact, this level of Medicaid cuts (i.e. $880 billion over ten years) matches almost exactly the amount of savings that would be generated from imposing a per capita cap on Medicaid which would end the guarantee of federal financing to states that has existed for 60 years. (“Up to $900 billion in 10-year savings” according the Budget Committee document, p. 21). Alternatively, the House Energy and Commerce Committee, which has jurisdiction over Medicaid, could impose a range of other devastating cuts to Medicaid that could include slashing states’ matching funds in a variety of ways including for the Medicaid expansion, restricting states’ ability to raise the state share, and repealing Medicaid regulations designed to promote access to coverage and care. The Energy and Commerce Committee is required to make the largest cuts of any committee by far in service of generating $4.5 trillion in tax cuts that will disproportionately benefit the wealthy. Cuts of this magnitude will have devastating impacts on state budgets as well as the more than 70 million children, families, pregnant women, low-income adults, people with disabilities, and seniors who rely on Medicaid for their health insurance. States will be forced to deeply cut eligibility, benefits and reduce provider rates. These cuts will especially harm rural communities who are more reliant on Medicaid, and where hospitals are already operating on tighter margins.” |
