May 14th, 2025
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WASHINGTON (AP) — Republicans in the House of Representatives have presented their main idea for saving money in President Donald Trump's healthcare plan. They want to cut around $880 billion, mostly from the Medicaid program, to help pay for $4.5 trillion in tax cuts.
The new law, which is many pages long and was shown on Sunday, is causing a big political argument about health care. This is the biggest fight since 2017 when Republicans tried but couldn't get rid of the Affordable Care Act, also known as Obamacare, while Trump was president.
Republicans say they want to stop wasted money, cheating, and mistakes to save money with new rules, but Democrats are worried that many Americans will lose their health care.
These savings mean we can use this money to continue the tax cuts from President Trump. This helps Republicans keep their promise to ordinary families who work hard," said Rep. Brett Guthrie. He is a Republican from Kentucky and is in charge of the committee that handles health care money.
But Democrats called the cuts "terrible" and said they were basically another try to cancel Obamacare.
Congressman Frank Pallone from New Jersey, a main Democrat on the committee, said clearly that millions of Americans would lose their health care. He said that if the bill passes, hospitals would close, older people would not be able to get the medical help they need, and health care prices would go up for many people.
Republicans want to pass a big bill with tax cuts and spending reductions before the deadline set by House Speaker Mike Johnson. This week, they will have many public meetings, day and night, to discuss different parts of the bill before combining them into one large package.
The future of politics is unclear.
One Republican senator, Josh Hawley from Missouri, wrote in an article on Monday that cutting healthcare money to pay for tax cuts would be "morally wrong and politically dangerous."
In total, 11 committees in the House have been working on their parts of the plan. Republicans are trying to save at least $1.5 trillion to help pay for keeping the 2017 tax cuts. These tax cuts were approved when Trump was first in office and will finish at the end of this year.
But the important Energy and Commerce Committee has been watched closely. This committee was told to find $880 billion in savings and they did, mostly by cutting healthcare costs, but also by ending some green energy programs from when Biden was in charge. A first report from the CBO said the committee's plans would lower the government's debt by $912 billion over ten years, with at least $715 billion coming from changes to healthcare.
The plan saves money by changing Medicaid, which gives free healthcare to over 70 million Americans, and the Affordable Care Act, which has helped millions more people get healthcare in the last 15 years.
To get Medicaid, healthy adults without children would need to work, study, or volunteer for at least 80 hours a month. They would also have to prove they still qualify for the program twice a year instead of once. The new law also makes it harder for people to show how much money they earn when they sign up for health insurance through the Affordable Care Act.
This will likely cause more people to leave the program and make it hard for them to keep their health coverage, especially if they have to drive a long way to an office to show how much money they earn. But Republicans say this will make sure that only people who should get help from the program actually receive it.
Some people who receive Medicaid and earn slightly more than the lowest income level might need to pay a small fee for some health services.
Also, people cannot receive Medicaid if their home is worth over $1 million.
The suggested law would also affect immigrants living in the country without legal permission. It would lower by 10% the money the national government gives to states like New York or California that let these immigrants get healthcare. To get this healthcare, people would need to show they are legally living there.
Other changes would mean all states have to pay more.
Many states have added more people to their Medicaid programs because the government gave them extra money, but this new law would stop a 5% increase in funding that started during the COVID-19 pandemic.
There would be a stop to a tax that some states use to help pay for their healthcare programs for people with low incomes.
The energy parts of the law are much shorter, but they cancel some plans to fight climate change that President Joe Biden approved in the Inflation Reduction Act.
It suggests stopping money for different energy loans and projects, while also making it faster to get permission for natural gas development and oil pipelines.
May 14th, 2025
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