House Republicans on Sunday proposed a sweeping health-care overhaul that would slash about $880 billion from Medicaid to help finance $4.5 trillion in new and extended tax cuts championed by President Donald Trump.
What Happened: According to a report by The Washington Post, the legislation, described by GOP leaders as the "cost-saving centerpiece" of Trump's "big, beautiful bill," ignites the most consequential fight over U.S. health coverage since the failed 2017 Obamacare repeal push.
What The Bill Does
The 715-page Energy and Commerce section alone meets its $880 billion savings target by requiring able-bodied adults without dependents to log 80 hours a month of work, education, or service and verify eligibility twice a year. According to the Associated Press, it also freezes state "provider taxes," ends a pandemic-era 5 percent funding bonus and bars federal dollars for Medicaid services to immigrants who lack citizenship proof.
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What’s The Human impact?
A preliminary Congressional Budget Office score warns the changes would leave roughly 8.6 million fewer people insured within a decade. Democrats call the package a fresh attempt to gut the Affordable Care Act, according to a separate ABC report. "In no uncertain terms, millions of Americans will lose their health-care coverage," said Rep. Frank Pallone of New Jersey.
What’s The GOP’s Argument?
Republicans counter that stricter screening will curb "waste, fraud and abuse" and free up cash to extend the expiring 2017 tax cuts. "Savings like these allow us to renew the Trump tax cuts and keep our promise to hardworking middle-class families," said Energy and Commerce Chair Brett Guthrie in a statement shared with ABC. The broader bill must identify at least $1.5 trillion in offsets to satisfy the party's budget blueprint.
Why It Matters: More than a dozen House Republicans from Medicaid-heavy districts have signaled they cannot back deep cuts, and Trump recently threatened to veto any bill that "touches" Medicaid benefits.
Even if the measure squeezes through the narrowly divided House, its prospects in the Senate are uncertain, with Democrats unified against it and several moderate Republicans uneasy.
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