May 14th, 2025
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Republicans in the House of Representatives have shown their main plan to save money in President Donald Trump's new law. They want to cut about $880 billion from Medicaid, which helps poor people with healthcare costs. They say this will help pay for tax cuts that are worth $4.5 trillion.
The new law is very long and was shown on Sunday. It is causing a big political argument about health care. This is the biggest argument since 2017. In 2017, Republicans tried to remove and change the health care law called Obamacare when Trump was president, but they could not.
Republicans say they want to save money by stopping waste and cheating. They want new rules for this. But Democrats say many people will lose their health care because of these rules.
Saving money helps us use this law to continue the tax cuts from Trump. This keeps our promise to working families, said Brett Guthrie. He is a politician from Kentucky and the main Republican on the committee for health care money.
But Democrats said the cuts are bad and are like trying to stop Obamacare again.
A politician named Frank Pallone said that many Americans will lose their health care. He also said that if this law passes, hospitals will close, older people will not get the care they need, and prices will go up for many people.
This week, Republicans will have many public meetings to talk about different parts of Trump's big plan for taxes and spending. They hope to pass this plan by the end of May.
The future of politics is not clear.
One Republican senator said cutting healthcare to pay for tax cuts was wrong and would be bad for their party.
Eleven groups in the House are working on parts of a plan. Republicans want to save at least $1.5 trillion. They need this money to help keep the tax cuts from 2017. These tax cuts started when Trump was president and will stop at the end of this year.
The important Energy and Commerce Committee was watched closely. This committee needed to find ways to save $880 billion, and they did. They saved money mainly by changing healthcare rules. They also stopped some green energy programs that started when Biden was president. A first report said their plans would save $912 billion over ten years. Most of this money, at least $715 billion, would come from the healthcare changes.
The plan saves money by changing two main things: Medicaid, which helps over 70 million Americans with healthcare, and the Affordable Care Act, which now helps millions more people after 15 years.
To get Medicaid, adults who can work and don't have children must work, study, or help the community for at least 80 hours each month. People must also show they still qualify for the program two times a year instead of one. The new rules also make it harder to show how much money you earn to get health insurance through the Affordable Care Act.
This could mean people leave the program more often, making it harder for them to keep getting help, especially if they have to travel far to an office to show proof of their income. But Republicans say this will help make sure only people who need the program get it.
Some people who get Medicaid and make more than about $32,000 a year for a family of four might have to pay a small amount for some doctor visits. But they would not have to pay for visits to the emergency room, care before a baby is born, check-ups for children, or regular doctor visits. The most they would pay is $35 for each visit.
And people could not get Medicaid if their house is worth more than one million dollars.
The new plan also affects immigrants who are in the country without the right papers. It gives 10% less money to states, like New York or California, if they let these immigrants get health care through Medicaid. To get health care from the ACA, people would need to show they are living in the country legally.
Other changes would mean all states have to pay.
Many states have more people in their healthcare program because the government gave them money, but the new law would stop a small extra payment that started during the COVID-19 pandemic.
They would stop a special tax for healthcare companies. This tax helps some states pay for healthcare for poor people. People who don't like this tax say it helps states get more money from the government than they should.
The parts of the law about energy are shorter. But they cancel plans to stop climate change that President Joe Biden approved earlier.
It suggests taking away money from some energy programs and making it faster to build things like natural gas and oil pipelines.
May 14th, 2025
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