Here's How the GOP Could Cut Over $5 Trillion—And Gut Healthcare, Climate Action

MAGA legislators want to take a meat cleaver to green energy, healthcare and families

$479 billion cut from Medicare, another $420 billion from Obamacare. $468 billion from green energy programs.

Jessica Corbett for Common Dreams

Some Democratic lawmakers and other critics of congressional Republicans on Friday pointed to a document obtained by Politico as just the latest evidence that the looming GOP trifecta at the federal level poses a threat to working families nationwide.

"Americans: We just want higher wages and lower costs. Republicans: We are going to take away your healthcare," Rep. Pramila Jayapal (D-Wash.), chair emeritus of the Congressional Progressive Caucus, said in response to the reporting, which came as Republicans have taken control of both chambers of Congress and prepare for President-elect Donald Trump's inauguration in just over a week.

The one-page list originated from the House Budget Committee, chaired by Rep. Jodey Arrington (R-Texas), Politico reported, citing five unnamed sources. One of them explained that the "document is not intended to serve as a proposal, but instead as a menu of potential spending reductions for members to consider."

The document lists various policies that it claims would collectively cut up to $5.7 trillion. Republicans have been discussing how to offset the high costs of top priorities—specifically, Trump's immigration policies and plans for tax cuts that critics warn would largely benefit the wealthy, like the law he signed in 2017.

The policies are divided into eight sections, with headings that critics called "dystopian" and "Orwellian." The first calls for repealing "major" health rules from outgoing President Joe Biden's administration, which would supposedly cut $420 billion. The second section takes aim at Medicare, the federal health program for seniors, proposing policies that would cut $479 billion.

A large share of the potential cuts would come from section three, which lists seven potential changes to Medicaid, a program that provides health coverage to low-income people. The policies include per capita caps, work requirements, and lowering the federal medical assistance percentages (FMAP) floor.

"In order to make his rich, billionaire buddies richer, Trump wants to kick millions off healthcare coverage and starve families. How does this help working families thrive?" Michigan state Rep. Carrie Rheingans (D-47) asked on social media. "In this leaked list of cuts, 'lower FMAP floor' for Medicaid means states pay a higher proportion of Medicaid costs for enrollees—this just shoves [federal] costs to states so billionaires get more yacht money."

Section four of the document calls for "reimagining" the Affordable Care Act (ACA) to cut $151 billion, with changes that include repealing the Prevention and Public Health Fund, limiting eligibility based on citizenship status, and reclaiming $46 billion from subsidies set to expire at the end of the year.

The fifth section lays out $347 billion in cuts by "ending cradle-to-grave dependence," targeting initiatives including Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP), often called food stamps.

Section six claims "reversing Biden climate policies" would cut $468 billion: $300 billion by discontinuing some provisions from the 2021 bipartisan infrastructure legislation, $112 billion by rolling back electric vehicle policies, and $56 billion by repealing green energy grants from the Inflation Reduction Act (IRA).

The seventh section is a catchall, listing up to $1 trillion in potential cuts through moves that include ending student debt forgiveness, restricting emergency spending, and reforming federal employee benefits. Section eight identifies up to $527 in potential tax offsets from requiring Social Security numbers for the child tax credit and green energy credits.

House Speaker Mike Johnson (R-La.), who recently agreed to use the budget reconciliation process to cut $2.5 trillion, "can't afford any Republican defections if he wants to pass a package on party lines," Politico reported. 

"Even proposed cuts to green energy tax credits, worth as much as $500 billion, could be tricky—as the document notes, they depend 'on political viability.' Already 18 House Republicans—14 of whom won reelection in November—warned Johnson against prematurely repealing some of the IRA's energy tax credits, which are funding multiple manufacturing projects in GOP districts."

Sharing the report on social media Friday, Rep. Nydia Velázquez (D-N.Y.) stressed that "Republicans want to cut vital food and healthcare support programs to pay for a tax cut for billionaires and large corporations. The GOP wants working families to pay for their billionaire handouts."