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Rep. Jeffries warns Americans will be ‘devastated’ over ‘largest Medicaid cut’

House minority leader Hakeem Jeffries warned Friday that children with disabilities, families, seniors and everyday Americans will be “devastated” after House Republicans this week.

“Children will be devastated in New York City and beyond. Families will be devastated. Elderly people will be devastated. Everyday Americans with disabilities will be devastated,” said Democrats in New York. “Hospitals are potentially closed here in New York, in the countryside of America, and across the country, and nursing homes are certainly closed.

“From New York State in New York City, all House Democrats across the country are opposed to this reckless Republican budget. As long as nutrition aid for children and families is targeted by the extreme Mag Republic, we will continue to do so,” Jeffries added.

Congressional Republicans searching for a $880 billion budget shortfall that needs to be covered to extend President Donald Trump's tax cuts spoke on Friday, Politico said.

Trump's budget bill extending the first term of tax cuts

House minority leader Hakeem Jeffries, DN.Y., to the right, was joined by Senate Minority Leader Chuck Schumer, Dn.Y. for a press conference in the Capitol Statue Hall on February 12th. (AP/Rod Lamkey, Jr./File)

As it stands, states must donate their own matching funds to qualify for federal Medicaid dollars, but Republicans are considering whether to prevent states from taxing insurance companies and healthcare providers as a way to raise that cash, a Politico report said Wednesday. By doing so, the state will leave a $612 billion hole in its budget for the next decade, the report says.

GOP leaders are claiming that states are kicking taxes back to those sources through higher payment taxes, which inflate Medicaid costs, the report added.

“The state and providers plan to ensure that providers win a big flow of federal dollars without state cost exposure,” Paragon Health Institute's Brian Brands told the outlet.

Medicaid will become a flashpoint amid House debate over Trump's budget bill

Mike Johnson and Donald Trump are shaking hands

Speaker Mike Johnson is moving forward with a settlement bill aimed at Trump's priorities through the House of Representatives. (Andrew Harnik/Getty Images)

However, the American Hospital Association has called on Congress to “reject changes to the use of state provider taxes and help fund the Medicaid program.”

“States' approach to funding shares of the program will be subject to state regulations and oversight, including limiting the amount of revenue a state can generate through provider tax. Congress is considering further restrictions on its ability to cover shares in Medicaid spending through such taxes,” it said earlier this month.

“Most states will not be able to fill the funding gaps created by further limiting the capabilities of state tax personnel,” he warned. “States need to significantly cut Medicaid to balance budgets, including eligibility cuts, elimination or limiting profits, and reducing providers' already low payment rates.”

Jeffries speaks at the US Capitol

House minority leader Dn.Y., right, House Whip's Rep. Katherine Clark, joins the center left, bringing together Democrats against the Republican budget plan on Capitol's House steps in Washington on Tuesday, Feb. 25th. (AP/J. Scott Applewhite)

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“States can use a variety of sources to fund non-federal stocks and if Congress limits their ability to use provider tax, they can look to other sources.” “This means that some states must consider other forms of tax increases, such as income and sales taxes imposed on residents of all states.”

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