(The Center Square) — New York Democrats are criticizing a Republican-led budget package to implement President Donald Trump’s tax, defense and energy policies, saying the massive spending bill would force the state to gut its Medicaid programs.
The U.S. Senate is expected this week to take up Trump's One Big Beautiful Bill Act, which would extend the president’s 2017 tax cuts and increase border security funding while overhauling federal Medicaid and food assistance programs. The spending plan would cost an estimated $4.5 trillion. The House of Representatives narrowly passed the measure two weeks ago.
To pay for it, Trump and other Republicans are calling for up to $2 trillion in cuts over the next decade, including $880 billion from Medicaid. Backers say the savings would come from reining in “unsustainable spending” in a program that provides coverage for low-income people.
"Community engagement requirements" for able-bodied adults without dependents is a significant change.
The White House says the "bill eliminates waste, fraud, and abuse by ending benefits for at least 1.4 million illegal immigrants who are gaming the system."
New York Democrats say the plan will cut benefits for the state’s neediest to provide tax breaks for wealthy individuals, and saddle the nation with trillions of dollars more in debt.
"Republicans in Washington have made it abundantly clear that they are determined to dismantle the social safety net that millions of New Yorkers rely on to secure their basic necessities," Gov. Kathy Hochul said on Sunday. "They are specifically targeting essential and life-saving programs such as Medicaid and food stamps with the consequence that everyday Americans will bear the brunt of this attack."
Hochul said the budget bill would cut $6 billion in federal funding from the state’s Medicaid program, which would result in more than 1.5 million New Yorkers losing health care coverage under those programs and increased costs for everyone.
The cuts would include about $2.5 billion in lost federal funding and $500 million in new state administrative costs, according to the Hochul administration. They also say it would result in more than $3 billion in losses for hospitals across the state.
"The House bill is a devastating blow to New York's health care system that we simply cannot absorb," New York State Medicaid Director Amir Bassiri said in a statement. "This bill doesn't just destabilize health insurance in New York – it abandons our commitment to ensuring health care access for working families and those who need it most."
Democratic members of the state's congressional delegation, who voted in unison against the House budget bill, warned that the cuts could have dire consequences for millions of lower-income Americans.
"Nursing homes will close, hospitals will shut down and Community Health Centers will lose funding," House Minority Leader Hakeem Jeffries, a Brooklyn Democrat, said in a statement. "House Republicans from New York were nothing more than a rubber stamp for Trump’s reckless and extreme agenda, voting to strip health care from their constituents."
The nonpartisan Congressional Budget Office said Trump’s budget bill will increase the deficit by $2.3 trillion over 10 years, and will force a “sequester” – or mandatory reduction – in other spending programs, including Medicare. Medicare will be cut by $490 billion in the next decade, the CBO said.
Trump’s budget bill also does not include an extension of enhanced premium tax credits for subsidized insurance in the state's health exchange. It would also require Medicaid recipients who are "able-bodied" adults without dependents, to fulfill 80 hours a month on a job or in other community activities.
House Speaker Mike Johnson, a Louisiana Republican, has brushed off claims that the plan will force vulnerable people off Medicaid, saying the spending would be reduced by “rooting out fraud, waste and abuse,” and making “sure that illegal aliens who do not qualify are not on the rolls." He has accused Democrats of "fear-mongering" by saying the bill would gut the Medicaid program.
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