GOP Plans to Slash $5 Trillion Could Devastate Healthcare, Climate Efforts

On Friday, several Democratic representatives and critics highlighted a document leaked to Politico as further proof that the upcoming Republican dominance in federal government is a significant threat to working families across the United States.

“Americans: We just want higher wages and lower costs. Republicans: We are going to take away your healthcare,” stated Rep. Pramila Jayapal (D-Wash.), former chair of the Congressional Progressive Caucus, in response to the report. This comes as the GOP has recently taken control of both congressional houses and is gearing up for President-elect Donald Trump’s inauguration, which is just around the corner.

The document, a one-page list from the House Budget Committee chaired by Rep. Jodey Arrington (R-Texas), was discussed in Politico based on information from five anonymous sources. One source noted that the document is not meant to be a proposal but rather a collection of possible spending cuts for members to consider.

It outlines various policies that could slash up to $5.7 trillion in spending. These discussions are part of an effort to balance the hefty costs of Trump’s immigration policies and planned tax cuts, which have been criticized for primarily benefiting the affluent, similar to the tax legislation he signed in 2017.

“To enrich his wealthy friends, Trump is ready to strip millions of their healthcare and let families go hungry. How does this benefit working families?”

The listed policies are categorized into eight sections, with headings that have been described as “dystopian” and “Orwellian” by critics. The first section proposes repealing significant health regulations from the outgoing administration of President Joe Biden, aiming to save $420 billion. The next targets Medicare, suggesting cuts amounting to $479 billion.

A significant portion of the proposed reductions is found in the third section, which includes seven potential modifications to Medicaid, such as introducing per capita caps, enforcing work requirements, and lowering the federal medical assistance percentages (FMAP) floor.

“To make his billionaire friends richer, Trump intends to push millions off healthcare and leave families in need,” commented Michigan state Rep. Carrie Rheingans (D-47) on social media. She explained, “In this list of cuts, lowering the FMAP floor for Medicaid means states will bear a greater share of Medicaid costs, effectively pushing federal expenses onto states so billionaires can buy more yachts.”

The fourth section discusses “reimagining” the Affordable Care Act (ACA) to save $151 billion, with strategies such as repealing the Prevention and Public Health Fund, restricting eligibility based on citizenship status, and recovering $46 billion from expiring subsidies.

Section five outlines $347 billion in savings by “ending cradle-to-grave dependence,” targeting programs like Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP), commonly referred to as food stamps.

Section six suggests that “reversing Biden climate policies” could save $468 billion. This includes abandoning certain elements of the 2021 bipartisan infrastructure legislation ($300 billion), rolling back electric vehicle policies ($112 billion), and eliminating green energy grants from the Inflation Reduction Act (IRA) ($56 billion).

The seventh section serves as a miscellaneous category, listing up to $1 trillion in possible reductions through actions such as ending student debt forgiveness, limiting emergency spending, and reforming federal employee benefits. The eighth section proposes up to $527 billion in potential tax offsets by requiring Social Security numbers for child tax credit and green energy credits.

House Speaker Mike Johnson (R-La.), who recently committed to using the budget reconciliation process to cut $2.5 trillion, “cannot afford any Republican defections if he wants to pass a package along party lines,” Politico reported. “Even proposed cuts to green energy tax credits, potentially worth $500 billion, could pose challenges—as the document notes, their feasibility depends on political viability.” Already, 18 House Republicans, 14 of whom were re-elected last November, have cautioned Johnson against hastily repealing some of the IRA’s energy tax credits, which support numerous manufacturing projects in GOP districts.

Sharing the report on social media Friday, Rep. Nydia Velázquez (D-N.Y.) emphasized, “Republicans want to cut essential food and healthcare support programs to fund tax breaks for billionaires and major corporations. The GOP expects working families to foot the bill for their billionaire giveaways.”