Congress

States bear the brunt of House GOP Medicaid plan

Published

1 year ago

May 12, 2025

House Republicans opted against some of the most dramatic changes they had been considering for Medicaid, the joint federal-state program covering nearly 80 million Americans. But they are plowing forward with other major initiatives that could leave millions without coverage as the GOP starts laying out key provisions of its party-line domestic policy megabill.

The House Energy and Commerce Committee proposal released Sunday night attempts to strike a balance between satiating conservatives’ thirst for deep cuts to the program and placating moderates wary of major coverage losses for low-income Americans.

It does not include the most controversial ideas, including per-capita caps on federal Medicaid payments to states, but it incorporates new mandates that will likely force states to revamp how they finance their programs or cut benefits. It also includes new work requirements that are expected to lead many people to lose coverage, as well as a new cost-sharing requirement for some beneficiaries in the program, not to exceed five percent of a patient’s income.

The Energy and Commerce plan also hits on hot-button social issues — proposing, for instance, to cut federal funding for groups like Planned Parenthood and ban the use of Medicaid dollars for gender-affirming care for youth. It also scales back funding from states that use their own funds to offer coverage for undocumented people.

“Democrats will use this as an opportunity to engage in fear-mongering and misrepresent our bill as an attack on Medicaid,” Chair Brett Guthrie (R-Ky.) wrote in a Wall Street Journal op-ed Sunday. “In reality, it preserves and strengthens Medicaid for children, mothers, people with disabilities and the elderly — for whom the program was designed.”

The panel has been tasked with finding $880 billion in savings to help finance a massive portion of the GOP’s party-line package of tax cuts and extensions, border security investments, energy policy and more. Committee Republicans have been under significant pressure to make politically difficult cuts to Medicaid as part of that effort. Guthrie told committee Republicans on a call Sunday that the package will create more than $900 billion in savings.

Moderate Republicans have been hesitant to make major cuts to the popular safety net program for vulnerable Americans, while fiscal hawks have been angling for transformative “structural” changes. Democrats and many players in the health care industry, including hospitals — which are major employers in many districts — are expected to fiercely oppose the proposal.

“Republican leadership released this bill under cover of night because they don’t want people to know their true intentions,” Rep. Frank Pallone (D-N.J.), the top Energy and Commerce Democrat, said in a statement. “Taking health care away from children and moms, seniors in nursing homes, and people with disabilities to give tax breaks to people who don’t need them is shameful. Democrats have defeated Republican efforts to cut health care before and we can do it again.”

Guthrie worked behind the scenes to placate both moderates and conservatives to get to a deal that both sides can live with, but it remains to be seen whether he and his leadership have in fact landed on a winning strategy. Energy and Commerce is scheduled to meet Tuesday at 2 p.m. to debate and advance the bill.

One of the largest potential sources of savings will come from a policy curbing states’ ability to levy taxes on providers, which could force states to make major changes since the taxes can pay for a state’s share of Medicaid costs. The legislation would freeze state provider taxes at their current rates and prohibit them from establishing any new taxes.

Conservatives argue that states use the taxes to boost their federal share of Medicaid payments without having to use their own revenue. Doctors and hospitals don’t mind because a state can direct the extra funds back to them, making up for the tax hike.

Every state except for Alaska relies on a provider tax of some form, an analysis from the research firm KFF found. Last year, 32 percent of states’ contributions to Medicaid costs came from other sources such as local government funds and the provider taxes. States cannot levy more than 6 percent of a provider’s income and must tax those on and off Medicaid.

Some states have already warned Washington about what would happen if they can’t levy Medicaid taxes. New Jersey’s Medicaid agency released a model of potential changes back in February and would lead to an estimated $2.5 billion in cuts to federal funding.

It also will mandate every state to install a work requirement for certain beneficiaries. Able-bodied adults without any dependents would have to work at least 80 hours a month or perform other activities such as community service. It would not apply to pregnant women and only adults from 19 to 64. Tribal members are also exempt as well as those with serious medical conditions.

Congress would leave it up to states to verify compliance with the work requirement.

The bill would also target state-directed payments, which gives states more power over provider payments and allows some providers to get reimbursed more in line with what commercial insurers pay them. The goal of the payments is to bolster pay rates for providers and encourage them to enter value-based payment arrangements where doctors are paid based on the quality of care delivered. Conservatives have argued there isn’t enough transparency in the payments.

Here’s what else the package would — and wouldn’t — do:

Non-health care policies: The package would allow the federal government to auction off wireless spectrum in a move that is expected to generate $88 billion, Guthrie said. It would also claw back Biden-era green energy spending, including climate spending under the Inflation Reduction Act.
Take on some parts of Medicaid expansion: The package would lower the federal share of payments to states that have expanded Medicaid under the Affordable Care Act if the state allows undocumented immigrants to get Medicaid coverage. It is illegal for undocumented immigrants to get coverage, but several states take on the full amount of coverage without any federal match.
Stricter eligibility checks: The legislation would roll back Biden-era rules limiting Medicaid eligibility checks to once annually, allowing them to be made twice a year. Savings would ensue as more are kicked off the rolls.
Address cuts to doctor pay in Medicare: Doctors have been angling to reverse payment cuts mandated by a formula that lawmakers on both sides of the aisle say doesn’t account for rising costs. The package aims to blunt that.
Pharmacy benefit manager reform: The package includes an overhaul of the business practices in Medicaid of the pharmacy intermediaries, which pharmaceutical companies argue have driven up the cost of prescription drugs. PBMs have argued they help negotiate lower drug prices and the reforms would limit their ability to do so.
Drug price negotiation: The package would also soften Medicare’s new power to negotiate drug prices under the Inflation Reduction Act for certain drugs.

Congress

Mamdani boosts congressional slate ahead of primary election

Published

15 hours ago

June 19, 2026

Blue Light Newsroom

NEW YORK — With just five days to go until the primary election in New York, Mayor Zohran Mamdani issued a stark warning to members of Congress who believe “incumbency is a substitute for action”: Watch out.

“People often ask me what I think of the state of the Democratic Party,” Mamdani said to the crowd at the Kings Theatre in Brooklyn as he boosted his endorsed congressional candidates. “This slate here today is our answer. The Democratic Party must change.”

The democratic socialist framed Tuesday’s election as much more than what that means for New York, though. In recounting how people also ask him about the 2028 presidential election, he put it bluntly: “It starts now. It starts on Tuesday.”

“For far too long, our party has seen its job as managing decline instead of delivering material change for working people,” Mamdani said. “That old way of thinking will lose on Tuesday. And frankly, it will lose in South Carolina and New Hampshire. It will fall short of 270 electoral votes, because the party of the past will not be what leads us into the future.”

Mamdani, joined by Vermont Sen. Bernie Sanders, urged his supporters to show up for his endorsed candidates “the way you showed up for me.” They include former New York City Comptroller Brad Lander, who’s challenging two-term Rep. Dan Goldman; state Assemblymember Claire Valdez, who’s vying for retiring Rep. Nydia Velázquez’s seat; and community organizer Darializa Avila Chevalier, who’s trying to unseat five-term Rep. Adriano Espaillat, the chair of the Congressional Hispanic Caucus.

Mamdani’s endorsed slate of legislative candidates were at the rally, too.

The rally featured standard stump speeches from the candidates, highlighting the need to support working class New Yorkers and immigrants. Speakers called out the American Israel Public Affairs Committee, the pro-Israel group that has loomed over many of these primaries — despite no evident spending from its independent expenditure arm. Sanders also emphasized his call to ban super PACs, which have reshaped primaries across the city.

Taking place just hours after the massive ticker-tape parade celebrating the Knicks’ historic championship, there were also Knicks references galore.

“I hate to break it to you, but OG Anunoby is not here to save the day,” said Mamdani, who was wearing a Knicks jersey under his suit. “The only hands we can count on are ours.”

Sen. Bernie Sanders speaks during a get out the vote rally ahead of New York's primary election on June 18, 2026, in Brooklyn.

Sanders, who is wildly popular in New York, previously endorsed Valdez and Lander. Both Valdez and Avila Chevalier are members of the Democratic Socialists of America and are backed by the city chapter in their bids. Sanders had not officially endorsed Avila Chevalier prior to the rally.

“Why are progressives and socialist candidates winning elections all across this country?” Sanders asked. “The answer in my view is not complicated. The working class of America understands that our current economic system is rigged, that it is designed to benefit the wealthy and the powerful.”

Polling has shown Lander with a lead over Goldman, and a tight race for Velázquez’s seat. Public polling is scarce in the Espaillat race, but recent internal surveys suggest Avila Chevalier is posing a real challenge to the incumbent. Mamdani endorsed her just weeks ago, much later than Lander and Valdez, but his engagement in the race has significantly elevated its profile.

“Six months ago, they told us this race was over before it started,” Avila Chevalier said at the rally. “They told us Adriano was untouchable, that he was an institution, that you don’t run against someone like him and win. That this district was his, and that we should wait our turn. And they said it with such confidence, like the outcome had already been written. Look around. Look at what we’ve built.”

Mamdani’s decision to get involved in congressional races is stress-testing how the new mayor navigates relations with powerful, well-respected party figures — many of whom he’s on the opposite side of.

Mamdani’s endorsement is expected to be a significant asset for his picks; he had dominant performances across these districts in last year’s mayoral primary. And that shine doesn’t seem to have dulled. Recent polling has shown that Mamdani has high approval ratings.

Goldman did not support Mamdani during last year’s mayoral primary or the general election, as Lander has often pointed out. Espaillat backed former Gov. Andrew Cuomo in the primary, but supported Mamdani in the general election. Valdez’s opponents, Brooklyn Borough President Antonio Reynoso and city Council Member Julie Won, both supported Mamdani in the primary.

The mayor has been active on the trail for his congressional candidates of choice in the closing stretch of the campaign. And he touted them all in an advertisement that ran during the first game of the Knicks’ finals run.

Still, Lander has tried to keep some distance. When asked at a recent press conference why he would appear in that ad with Avila Chevalier, who attended a pro-Palestinian rally the day after Hamas’ Oct. 7 attack in 2023 — the same rally Lander said he left the DSA over — he said it was an “opportunity to show New Yorkers that politics can be a team sport.” He also clarified that he has not endorsed candidates in any other congressional primaries.

Avila Chevalier told reporters that she went to that rally to “stand against” Israel engaging in “a response that is often disproportionate and creates a greater loss of life.” She added that she has “condemned Hamas” and does “not believe that celebrating the loss of anybody’s life is OK.”

Kings Theatre isn’t located in any of the districts these congressional hopefuls are trying to represent — though it neighbors the seats that Lander and Valdez have their eyes on.

It’s especially far from Espaillat’s district, which includes parts of upper Manhattan and the Bronx.

While handing out campaign literature to people walking out of the subway in Hamilton Heights, Blue Light News asked Espaillat if he had thoughts about Avila Chevalier appearing at the rally.

“I’m rallying right here in my district with my constituents — not in Brooklyn,” he replied.

Jason Beeferman contributed to this report.

Congress

Meta faces calls for Congress to probe scam ads targeting seniors

Published

18 hours ago

June 18, 2026

Blue Light Newsroom

Retirement groups are calling on Congress to investigate Meta over a wave of social media scams targeting older Americans.

In a letter sent Thursday to House Homeland Security Committee Chair Andrew Garbarino (R-N.Y.) and ranking member Bennie Thompson (D-Miss.), the groups alleged Meta has been slow to take down fraudulent ads, leaving seniors vulnerable to financial loss. The letter, shared exclusively with POLITICO, was signed by the Alliance for Retired Americans, the American Postal Workers Union Retirees and the American Federation of Teachers, among others.

“Fraudulent Medicare ads have proliferated on Meta platforms and too many seniors are getting scammed while Meta profits,” said Richard Fiesta, executive director of the Alliance for Retired Americans. “We are calling on Congress to investigate how these scams are allowed to spread, what Meta knew about them, and why stronger protections are not in place. Seniors should not be left vulnerable while scammers and tech companies cash in.”

The letter’s demands follow a report published last month by the Center for Countering Digital Hate, a nonprofit advocacy group, which alleged that Meta has profited by leaving up fraudulent ads, many of which target Medicare recipients.

“Scammers are determined criminals who use increasingly sophisticated tactics to defraud people and evade detection,” Meta spokesperson Andy Stone said in a statement. “We aggressively fight scams on and off our platforms because they’re not good for us or the people and businesses that rely on our services and for years we’ve been one of law enforcement’s strongest partners in the fight against this type of online crime — identifying criminals, disrupting their crimes and helping bring them to justice.”

Stone pointed to several examples of Meta’s efforts to combat scams on its platform, including a recent collaboration with U.S. and Thai law enforcement to disrupt online scams.

It’s not the first time Meta has faced scrutiny over the scams: Sens. Richard Blumenthal (D-Conn.) and Josh Hawley (R-Mo.) urged the Federal Trade Commission and the Securities Exchange Commission to open an investigation into the company in November after Reuters reported that Meta in internal documents projected 10 percent of its 2024 revenue would come from fraudulent ads. And in February, a group of bipartisan lawmakers pressed Meta CEO Mark Zuckerberg over its plans to prevent and combat fraud on its platforms.

Reps. Dan Meuser (R-Pa.) and Lou Correa (D-Calif.) also introduced bipartisan legislation earlier this year to combat predatory scam ads.

Congress

Congress lays out path for final passage of housing bill

Published

18 hours ago

June 18, 2026

Blue Light Newsroom

Congress is expected to send a landmark, bipartisan housing affordability bill to President Donald Trump’s desk by the end of next week as the Senate and House schedule action on the legislation in the coming days.

The Senate has teed up the 21st Century ROAD to Housing Act for final passage on Monday, after completing all its necessary procedural votes this week.

The legislation will then move on to the House where GOP leadership plans to open debate on Wednesday, with a vote expected as early as the same day, according to six people familiar with the vote granted anonymity to discuss plans.

House leadership plans to suspend the rules, requiring a two-thirds majority vote, to speed up the bill’s path to Trump’s desk. Final passage could be pushed to Thursday depending on timing, the people said.

The housing bill aims to tackle housing affordability and boost homeownership and supply ahead of a midterm election dominated by cost-of-living concerns.

The four lawmakers leading the negotiations over the legislation — Senate Banking Chair Tim Scott (R-S.C.), ranking member Elizabeth Warren (D-Mass.), House Financial Services Chair French Hill (R-Ark.) and ranking member Maxine Waters (D-Calif.) — came to an agreement Tuesday afternoon after months of back and forth on the bill’s contents.

The housing affordability legislation, which the White House supports, contains a provision limiting the role of large institutional investors in the single-family housing market, which was a key condition for Trump to sign the bill.