May 14th, 2025
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Republicans in the House of Representatives in Washington have shown their main idea to save money in President Donald Trump's plan. They want to cut around $880 billion, mostly from a health program for poor people called Medicaid. This money will help pay for lower taxes that cost $4.5 trillion.
The new law is very long and was shown on Sunday. It is causing a big political fight about health care. This is the biggest fight since 2017, when Republicans tried to change the health care law called Obamacare when Trump was president.
Republicans say they want to stop bad spending to save money, but Democrats worry that many people will lose health insurance. A report said about 8.6 million people could lose health care in the next ten years.
Saving money like this helps us use this bill to continue the Trump tax cuts and keep our promise to working families.
But Democrats said the cuts are very bad and are another try to stop Obamacare.
Millions of Americans will lose their health care, said Rep. Frank Pallone. He said hospitals will close, older people will not get the care they need, and the cost will go up for millions if this bill becomes law.
Republicans want to pass a big bill about taxes and spending by the end of May. This week, they will have many public meetings to talk about different parts of the bill before they join them together.
Nobody knows what will happen in politics next.
A Republican senator said it would be wrong and bad for politics to cut health care to pay for lower taxes.
In total, 11 groups in the House have been writing their parts of the plan. Republicans want to save at least $1.5 trillion. This money will help pay for keeping the tax rules from 2017. These rules were started when Trump was president and will finish at the end of the year.
The important Energy and Commerce Committee was watched closely. It had to find ways to save $880 billion. It did this mainly by cutting money for health care. It also stopped some green energy plans from when Biden was president. An early report said the committee's ideas would save $912 billion in ten years. Most of this money, at least $715 billion, would come from changes to health care.
The plan saves money by changing two things: Medicaid, which helps many Americans get healthcare, and the Affordable Care Act, which now helps more people.
To get Medicaid, healthy adults who don't have children might need to work, study, or help others for at least 80 hours each month. They would also need to show they can be in the program two times a year instead of one. The new rules would also check people's money more carefully if they join the health plan from the Affordable Care Act.
This will probably make people leave the program more often and make it hard for them to keep their insurance, especially if they have to go a long way to an office to show how much money they earn. But Republicans say it will make sure the program helps the people who need it.
Some people who get Medicaid and earn more than about $32,000 a year for a family of four might have to pay a small amount for some medical services. They would not have to pay for visits to the emergency room, care for pregnant women, doctor visits for children, or regular health check-ups. The most they would pay is $35 for each visit.
Also, people cannot get Medicaid if their house is worth more than $1 million.
The new law is also for immigrants who don't have the right papers to live here. The government will give states like New York or California 10% less money if they let these immigrants get health help through Medicaid. To get health help under the ACA, people must show they are here legally.
Other changes would mean all states have to pay more.
Many states have more people in their free health programs because the government gave them money. But the new rule would stop the extra 5% money that started during the COVID-19 pandemic.
States would stop a special tax they use to help pay for healthcare for poor people. Some people say this tax helps states get more money from the government, which they think is not fair.
The parts of the new law about energy are shorter, but they change some plans to fight climate change that President Biden made into law before.
It suggests stopping money for some energy loans and programs, but making it faster to get permission for natural gas and oil pipelines.
May 14th, 2025
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