All posts tagged "budget"

Enough of this gaslighting BS

The Republican budget bill that recently passed the House adds onerous work requirements that would push millions of people off Medicaid. House Speaker Mike Johnson told “Meet the Press” last weekend that they’d only lose their healthcare if “they choose to do so.” But that, according to Charles Gaba, is “gaslighting bull–––t.”

“The entire point of imposing work requirements,” Charles told me, “is to either discourage eligible people from enrolling or to make the requirements difficult to comply with, resulting in millions being kicked off the program even if they are working or volunteering.”

Gaba is “the biggest powerhouse Democratic donor wrangler that nobody has ever heard of,” according to Politico. As the editor and publisher of ACAsignups.net, he’s also one of the country’s leading authorities on Obamacare, Medicaid and healthcare policy.

After the House Republicans passed their budget bill, I got in touch with Charles. I asked him straight up if the legislation guts Medicaid.

Yes, he said, but it does so much more harm than that.

If the congressional Republicans do not extend insurance subsidies passed during the pandemic, Obamacare enrollees will “face massive premium hikes — in many cases, three and four times higher than what they're paying right now,” he said.

That’s impacting some 24 million Americans — most of them, Charles reminds me, residing in red states.

The following is a long interview, but vital to anyone with a stake.

JS: Are the Republicans really going to gut Medicaid? Huge numbers of people who voted for and who support Donald Trump depend on it.

CG: The version of the budget bill passed recently by House Republicans absolutely would, if implemented, gut Medicaid — particularly for around 20 million Americans who are currently enrolled in Medicaid via the Affordable Care Act expansion that’s in effect across 41 states.

Obviously, there will be changes made to it in the Senate, so we don't know what the final version of the bill will be, and even if it passes through both the House and Senate, and is signed into law by Trump, there will no doubt be legal challenges to some provisions within it.

But yes, the current version passed by House Republicans would be pretty devastating to both Medicaid as well as ACA exchange enrollees.

There has been less attention to those ACA exchange enrollees. What does the budget bill do to the Affordable Care Act? What do those changes say about Trump and the GOP’s plans for the safety net?

The first way the budget bill hurts the ACA is what it doesn’t include — extending the improved tax credit formula under the Inflation Reduction Act (IRA), which is scheduled to expire at the end of this year.

If the IRA subsidies expire this year, nearly all of the around 24 million Americans enrolled in healthcare coverage via the ACA exchanges will face massive premium hikes — in many cases, three and four times higher than what they're paying right now.

Millions will be priced out of being able to afford coverage at all, while most of the rest will have to either eat the higher premiums, downgrade to a lower-quality plan with higher deductibles, higher copays, a worse provider network or all of the above. Or they'll have to move to non-ACA coverage via so-called "junk plans," which have few if any of the patient protections required by ACA plans.

That’s what the budget bill doesn’t do to the ACA. What does it do?

It makes a bunch of changes to how ACA exchange enrollment and tax credit eligibility work. Some of these get pretty wonky, and some would "just" be codifying rules that are already being put into place by the Trump administration, but the list includes things like:

  • Denying tax credits via ACA exchange plans to anyone who (ironically) gets kicked off of Medicaid for failing to meet the new "work reporting requirement" provisions.
  • Changing the ACA's formula for determining "maximum out of pocket" costs (MOOP), so that enrollees would face hundreds of dollars in higher deductibles and copays.
  • Weakening the ACA "metal level" rules to let insurance carriers make plans less comprehensive (ie, silver plans are supposed to cover around 70 percent of average enrollee costs; under the GOP changes, a silver plan cold cover as little as 66 percent.)
  • Cutting the open enrollment period nearly in half, from the current 76 days down to 45 days.
  • Mandating a $5 per month premium on some low-income enrollees who are currently eligible for $0 per month premiums.
  • Adding a whole bunch of extra red tape to millions of enrollees for them to remain eligible for tax credits.

All of this illustrates Trump and the GOP's disdain for and hatred of the social safety net as a whole: If they can't get rid of it outright, they'll deliberately make it too cumbersome and complicated to work, thus allowing them to claim government itself doesn't work.

Or, as PJ O'Rourke once put it: The Republicans are the party that says government doesn't work and then they get elected and prove it.

How are the Republicans going to justify taking health insurance away from people or making what they do have worse than it is?

GOP House Speaker Mike Johnson has repeatedly used the "lazy young men playing videogames" stereotype, as who he claims they want to force into "getting off the couch to get a job" etc, even though there's no evidence that a lack of healthcare coverage inspires young men to seek employment and plenty of evidence that providing healthcare coverage to people makes them more likely to get and keep a job.

They're also trying to claim that millions of undocumented immigrants are "stealing" healthcare even though federal dollars don't pay for Medicaid for any undocumented immigrants. There's a few states that pay for Medicaid for that population using 100 percent state dollars, which is entirely up to the voters of those states. Yet the House Republican bill tries to blackmail those states into not paying for Medicaid for undocumented immigrants by threatening to withhold federal dollars for US citizens and documented residents if they don't.

I'm going to be generous and say Trump voters seem confused. A recent report by NPR suggested that they don't want Medicaid cuts for people they know, but do want cuts for some kind of make-believe freeloader. This seems to me a recipe for continued support for Trump, even as he's hurting his own people. Thoughts?

Sadly, that sounds likely to be the case. I listened to and read the NPR piece you mentioned, and everyone who talked about "waste" or "abuse" spoke in very vague terms without ever specifying who exactly they think is "abusing" or "wasting" Medicaid dollars.

In addition, they seem to simply flat-out refuse to believe that Republicans and Trump will take away their healthcare, because "that wouldn't be right" and "I need it," regardless of what's in the bill.

I've even read other articles where Trump supporters shrugged off the potential loss of Medicaid/ACA coverage, because they figured that Democrats would stop or reverse the cuts from happening, which seems like a rather twisted sort of justification for supporting Republicans.

That seems to be happening in the interplay between the House and the Senate. Trump voters want cuts for "those people." So the House bill passed. They don't want cuts for themselves. So the bill is stalling in the Senate. I don't know what any Democrat could say to Trump voters when the point for them is theater, not solving problems.

I know that Sen. Josh Hawley (R–MO) has been vocal about opposing any major cuts to Medicaid while Sen. Lisa Murkowski (R-AK) has openly called for the IRA subsidies to be extended.

The House GOP bill does a lot to try to punish Democrats more than Republicans, but it would still be pretty devastating for millions of Republicans no matter what, making it difficult to square the circle.

While I noted there are more Medicaid expansion enrollees in blue House districts, there are more ACA exchange enrollees in red House districts, and even within those, there's still no way of knowing for certain whether a particular enrollees is a "one of their own" or not.

‘I agree with Musk': GOP hardliners back Elon despite voting to pass Trump bill

WASHINGTON — “I agree with Musk,” far-right Freedom Caucus member Rep. Eric Burlison (R-MO) told Raw Story on Wednesday, when asked about Elon Musk’s forceful opposition to Donald Trump’s “Big Beautiful Bill,” the package of tax and spending cuts the House sent to the Senate before Memorial Day — and for which Burlison voted.

Musk, the Tesla and SpaceX billionaire, is the world’s richest man. He left the Trump administration last week, after four months leading attempts to slash government budgets and spending through his so-called Department of Government Efficiency, or DOGE.

On Tuesday, Musk shocked Washington by turning on the Republican budget measure.

Slamming the “massive, outrageous, pork-filled Congressional spending bill” as “a disgusting abomination”, Musk thundered: “Shame on those who voted for it: you know you did wrong. You know it.”

On Wednesday, he added: "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL."

Burlison, a member of the hard-right House Freedom Caucus, cast his vote last month as the bill passed the House by the narrowest tally possible, 215-214.

Regardless, on Capitol Hill he told Raw Story: “I agree with Musk. I welcome his comments and his energy on this.

“We need more people like Elon Musk because being in the arena and being on the battlefield and fighting, that air cover is awesome.”

But many Republicans fear being strafed by Musk, who donated more than $250 million to Trump’s presidential campaign last year and is widely seen to be able to take out most any Republican who crosses him.

“We probably could have gained more ground in spending cuts if we had had [the bill] earlier, but at the end of the day, I welcome [Musk’s comments],” Burlison insisted. “I think it's awesome.”

The two-term Republican also offered an extended baseball metaphor, about why he voted for the bill.

“The best way that I described this bill is that we're 37 runs down, it's the bottom of the ninth, and the question is, do you bunt to get on first base? And you know what it's like, it's not gonna win the game, but you know what, like, I'm gonna take a bunt if that's all I can take.”

Other right-wingers who voted for the House bill now say they agree with Musk.

“I think he’s right,” Rep. Andy Ogles (R–TN) told Raw Story. “It's big, it's not quite beautiful yet. If the Senate makes additional cuts, it'll become beautiful.”

“When you voted, were you voting for an ‘abomination?’” Raw Story asked.

“His words not mine,” Ogles said. “What it does is, it really puts the pressure on the Senate to do more. So for him to criticize the product that's coming over, that gives the Senate ammunition to say, ‘Hey, we should fix this.’”

Other Republicans found themselves tied in knots, trying not to dump on their own work or Musk’s pointed words.

“We're gonna get through it,” Rep. Troy Nehls (R-TX) told Raw Story, puffing a stogie while walking across the Capitol grounds.

“We're gonna get through it. Everybody talks. A lot of people talk, not everybody's happy, but it's gonna be fine.”

Nehls insisted, “This isn't about Elon Musk. Elon Musk is one person, but I will tell you, you got 435 members in Congress, and the House passed it. Thin majority, but we got it done.”

Rep. Dan Meuser (R-PA), more of a moderate, said Musk had turned against the bill because he was “very frustrated” … because “he's a businessman. Trump's a businessman. They want to correct things fast.

“And in government, you can't do that. So, you know, [Musk’s] frustration bubbled over because he's acting like this is the last bill we're ever going to pass. This is four months into the administration. So this is a beginning.”

Where Burlison talked baseball, Meuser looked to football.

“We didn't score a touchdown on this play, but we did run the ball up field 25 yards, and it does have some savings. It's got the taxes, the border, the energy initiatives, everything else,” Meuser said. “So it's a big play, but it's not all of it.”

Meuser added that Musk “doesn’t understand Washington, he understands auditing. He understood what he was tasked with” through DOGE.

Rep. Derrick Van Orden (R–WI) dismissed questions about Musk, telling Raw Story that as “a retired Navy Seal Senior Chief,” he had “had about 50 of my friends killed in training and in combat since 9/11, and I broke my spine. That was painful. Somebody disagreeing with me politically is not.”

Asked if Musk’s intervention might complicate matters in the Senate, Van Orden said: “Dude, listen, I do me.

“I respect Elon Musk. The work he's done is just remarkable, but you know, his 130-day term as a special government employee has expired. Will he continue to give input? I sure hope so.”

Democrats seeking to highlight what they and independent analysts say the Big Beautiful Bill will mean for the national debt (a big increase) and Medicaid (severe cuts) looked on.

Of Musk, Rep. Mark Pocan (D–WI) told Raw Story: “To be fair, I've had Republicans tell me they didn't know what DOGE was up to. They didn't get any updates either.”

Pocan added: “Instead of letting an unelected billionaire and a bunch of outsiders make decisions as an extra-governmental organization, because that's kind of what DOGE has become … [we] should maybe have a bigger policy conversation.”

Back on the Republican side of the aisle, Rep. Byron Donalds (R-FL), a leading Trump ally, pointed to the common absurdity of a House chamber which often twists members into human pretzels, pushed to vote first one way then the other, often opposing bills they recently supported.

“Anybody who comes to this place with a desire to do things that are logical gets frustrated very fast,” Donalds told Raw Story.

'Not ready for prime time': GOP extremists and moderates unite for rare Trump defiance

A long-simmering Republican Party feud is threatening to derail President Donald Trump’s agenda.

Representatives from either ideological end of the GOP U.S. House conference, hard right and moderate center, told Raw Story on Wednesday work on the GOP’s contentious spending bill, covering tax and spending cuts and enshrining Trump's hardline immigration policy, remains a long way from done.

“This one isn't real close,” said Andy Harris (R-MD), chair of the hard-right Freedom Caucus. “It’s not ready for prime time.”

“This as it stands, I’ve been very clear, does not have my support,” said Mike Lawler (R-NY), a prominent moderate demanding a raise in the cap on SALT, the state and local tax deduction key to Republicans from prosperous, Democratic-led states.

“I know the speaker is trying,” Lawler added. “I know he's going to continue to negotiate in good faith. But as this stands right now, I am a no, and so they're going to need to come up with a solution quickly if they want to stay on the schedule they have.”

Speaker Mike Johnson first wanted to get the budget — containing all Trump's spending priorities in “one big beautiful bill” – done by Memorial Day, towards the end of May. Amid marathon mark-up sessions and seemingly endless negotiations, that target has slipped to the next big holiday: July 4.

Republicans control the House 220-213, with two Democratic seats vacant. Johnson cannot afford many nos.

A main aim of the Republican measure, which when passed will have to be reconciled with a Senate version, is to extend tax cuts passed under the first Trump administration in 2017. It’s also needed to fund the deportation force Trump is bent on unleashing nationwide.

Right-wingers want to secure such tax cuts while slashing federal spending and reducing the federal deficit. More moderate members see the need to raise the SALT cap and threats to impose major cuts to Medicaid as threatening serious damage back home.

Other members of the Freedom Caucus voiced their skepticism to Raw Story.

“I'm not flexing this because I'm trying to get something to South Carolina,” said Ralph Norman (R-SC). “I'm trying to get the math in order to get this country back on track financially. And it just hadn't happened.”

Eric Burlison, of Missouri, predicted ongoing “negotiations and discussions” and voiced support for Ron Johnson, the rightwing Wisconsin senator who on Tuesday said the bill could go down “like the Titanic.”

“Ron Johnson, he has doubts on this, and he's right to have doubts,” Burlison said, adding that he “expect[s] the Senate to be more squishy than us.”

Republicans control that chamber 53-47.

Burlison said the budget talks presented “an opportunity to fix Medicaid … an opportunity to do a lot of reform that we're leaving on the table.

“This Medicaid situation is unsustainable,” he said, before raising a familiar Republican boogeyman: “California has figured it out. California gets more money from the federal government and Medicaid than Florida spends on their entire state budget.

“It's crazy … they're gaming the system, they're gaming the federal government, and then this bill is going to lock in that gamesmanship that blue states like California and New York have been playing and that's what's frustrating to me.

“We have the opportunity to fix this stuff or get the United States government on a financially balanced footing, and we're not taking advantage of this opportunity.”

Jason Smith (R-MO) is chair of the House Ways and Means Committee — one of the most stressful jobs on Capitol Hill right now.

He insisted that “we’re gonna get it done” and if it’s “a bumpy ride, the whole ride, everyone should expect that.”

“I’m OK for whatever passes the bill,” Smith said, adding: “I will do whatever is necessary. I've said it all along … I'll do whatever this takes.”

Lawler and his fellow New Yorker Nick LaLota would like Smith and other leaders to give ground on SALT.

“People are passionate to support their constituency,” said LaLota, who held his Long Island seat last year by beating the CNN host John Avlon.

“Their passion [is] to put this great country back on the right track. That that passion has led to some frustrations is totally fine. I think we'll get there.

“I think we all want to come to a deal ultimately, but it's got to be a deal that's both good for my constituents and the country.

“My constituents helped pay for the 2017 tax cuts when [Republican leaders] capped SALT unfairly at $10,000. The bill was placed on districts like mine to pay for the rest of the nation's prosperity. We can't make that mistake” again."

U.S. congressional leaders unveil stopgap bill to avert shutdown

WASHINGTON — Democratic and Republican leaders in the U.S. Congress on Sunday unveiled a short-term spending bill that would avert a partial government shutdown and keep federal agencies operating into March.

The agreement aims to avert short-term chaos and buy more time to craft the complex spending legislation that funds government activity.

Government agencies that oversee transportation, housing, and other services are due to run out of funding by midnight on Friday and would have to scale back activity if new funding is not signed into law.

House and Senate reach a 'deal' on budget

WASHINGTON (Reuters) — U.S. congressional leaders are expected to announce a deal on Sunday that aims to avoid a partial government shutdown later this month, U.S. media reported.

U.S. media outlets including CNN, MSNBC, Fox News and Punchbowl News, citing unnamed sources, reported that leadership in the House of Representatives and the Senate had reached a deal on overall funding levels for the federal government.

Republicans in Democratic House districts beg far-right colleagues to shut up

After a disappointing round of 2023 off-year elections, Republicans in Democratic districts are begging their far-right colleagues to shut up about fringe abortion laws, the New York Times reported Friday.

The 2023 election results Tuesday revealed to 18 Republicans, who claimed blue districts in 2022, that voters aren't happy about the Supreme Court ruling that eliminated abortion rights.

States across the country have passed or blocked measures that protected the rights of political leaders and left decisions up to the patients and doctors.

Abortion posed a new problem as Republicans battled another budget bill with far-right Republican Speaker Mike Johnson (R-LA) at the helm and the inclusion of a controversial amendment that would strike down laws that make it illegal to fire someone for using birth control or other family planning-related treatments.

It played right to Democratic complaints that Republicans are pressing abortion laws far outside of the mainstream, and Johnson was forced to kill the funding bill entirely.

“The American people are speaking very clearly: There is no appetite for national abortion law,” said Rep. John Duarte (R-CA), who serves a district Biden won in 2020. “And there’s enough of us in the Republican Party that are going to stand against it.”

Duarte told the Times that center-leaning Republicans want abortion addressed in own stand-alone legislation, not at the core of a budget bill.

Rep. Brian Fitzpatrick (R-PA) told reporters he agrees and doesn't want abortion anywhere near the funding bills.

"The rare pushback from members who represent the political middle of the Republican conference came two days after Ohio voters resoundingly approved a ballot measure enshrining a right to abortion in the state’s Constitution," said the Times.

Republicans lost big in Tuesday's election, where abortion became an issue. Ohio voted to enshrine abortion rights into the state's Constitution. Virginia Gov. Glenn Youngkin (R) had pressed to take back the state Senate so he could pass an abortion ban in the state. Not only did he lose the Senate he sought, but he lost Republican control in the House of Delegates as well. GOP strategist Doug Heye told MSNBC that the far-right Republicans at the local level are hurting the national party.

Gov. Andy Beshear (D-KY) fought off a Republican challenger, an anti-abortion activist attorney general. Beshear ran an ad with a young woman who talked about being abused by her stepfather and ultimately raped at 12. The ad says she should have the right to an abortion if his molestation resulted in a pregnancy. In February, Kentucky Republicans pressed for a law that would charge women who got abortions with homicide.

The Times goes on to say that due to gerrymandering, far-right extremists have become safe seats in Congress because the lines are drawn to marginalize Democratic voters. So, those members continue to press fringe policies that Americans have voted against or polling shows they oppose.

Read the full report at the New York Times.

U.S. nears government funding deadline, again risking shutdown

Washington (AFP) - Less than two months since the US federal government narrowly avoided running out of funding, the deeply divided Congress once again faces a tight deadline to approve a new budget -- just one week. Neither the Democratic-controlled Senate or the Republican-led House of Representatives has passed a bill to extend government funding, which expires at midnight next Friday into Saturday. Without an agreement by November 17, the world's largest economy will instantly begin pumping the brakes: 1.5 million government employees will go without pay, most federal facilities including ...

The GOP has two plans to end debt ceiling crisis — and both are dangerous: columnist

House Republicans on Wednesday showed themselves to be unserious about resolving the debt ceiling crisis, and now they’re offering up two plans, both of which risk plunging the global economy into catastrophe, MSNBC Opinion Writer/Editor Hayes Brown writes.

Brown notes that the budget House Speaker Kevin McCarthy (R) pushed across the finish line Wednesday by the narrowest of margins calls for a $1.5 trillion debt ceiling raise that wouldn’t even pay the nation’s bills for a full year, meaning lawmakers would be relitigating the same problem that they are today.

But the budget plan Republicans passed is all but certainly going nowhere with Democrats in control of the Senate and the White House. Brown believes that Congress should eliminate the debt ceiling.

“Instead,” Brown writes, “the GOP seems to be pursuing one of two strategies these days, neither of them sensible.”

The first strategy is to play a game of political chicken, hoping Democrats capitulate and accept the terms of the Republican budget plan.

“No, these antics won’t balance the budget or anything, but if this current hostage-taking works, it will set a precedent for further spending cuts next year once the ceiling is hit again,” Brown writes.

“This is a gamble, to say the least, given that there’s little chance that Republicans stay united should the contents of Wednesday’s bill be changed during negotiations.”

The other option, which Brown describes as “even more bonkers,” is to allow the debt ceiling to be breached, an approach former Trump official Rush Vought advocates for.

Proponents of this plan think breaching the debt ceiling wouldn’t be as consequential as most experts believe.

“And besides, say the economists advocating for Republicans to hold firm, the effect of more debt and spending will be significantly worse than the U.S. not making honoring its debts,” Brown writes.

“That stance also assumes that the most important payments will be prioritized, despite officials saying that it’d be almost impossible to sort through all the payments that the government makes each day. It also assumes that the global economy wouldn’t nosedive at the sight of America struggling to pay its debtors.”

Biden signs budget bill approving billions more in Ukraine aid

US President Joe Biden walks back after a break during the 48th G7 Summit. Peter Kneffel/dpa

US President Joe Biden has signed his administration's new budget legislation, which includes billions more in aid for Ukraine.

The budget approved by both chambers of Congress comes to a total of $1.7 trillion.

About half of the budget signed off by Biden on Thursday - almost $858 billion - is for defence spending. About $45 billion of this is earmarked for assistance to Ukraine.

The passage of the budget bill is a success for Biden's Democrats. The budget provides slightly more support for Ukraine than the president had originally requested from the House of Representatives and the Senate.

Last Wednesday, Ukrainian President Volodymyr Zelensky made an impassioned speech in person to Congress in Washington to appeal for more support.

Included in the money for Ukraine is about $9 billion earmarked for military aid and nearly $16 billion for economic and humanitarian aid.

In addition, $12 billion is planned to replenish the US military's ammunition stocks and warehouses following its deliveries to Ukraine.

Another $7 billion is earmarked for additional spending by US troops in Europe.

US Congress approves bill to avert major freight rail strike

US Senators approved a bill to avert a freight rail strike, but failed to green-light a measure on paid sick days

Washington (AFP) - The US Congress passed legislation Thursday to avert a freight rail strike that could have been devastating for the economy, intervening to break an impasse between workers and management as the holiday season approaches.

The bill, overwhelmingly approved by the Senate Thursday after passing with a bipartisan majority in the House of Representatives a day earlier, effectively forces hold-out unions to accept a deal on higher wages, which a majority of unions already agreed to.

After the 80-15 Senate vote the measure now heads to President Joe Biden for his signature.

Under a 1926 law, Congress is empowered to resolve disputes between railroads and labor unions as part of its power to regulate commerce.

A strike would have seen almost 7,000 freight trains come to a halt, costing more than $2 billion a day, according to the American Association of Railroads.

Around 28 percent of goods transported in the country are by rail, and a large-scale strike would have had repercussions on multiple sectors.

Biden's administration had taken a hands-on approach to the long-running deadlock over a contract between organized labor and railroads, with cabinet secretaries in September taking part in all-night negotiations alongside union leaders and rail executives.

After the lengthy session, leaders from both sides announced a tentative agreement.

But since then, members of eight of the 12 rail unions approved the deal, while four voted it down.

While the House earlier backed a separate measure to add mandated paid sick time to the agreement, addressing a major sticking point identified by unions, this did not pass in the Senate on Thursday.

The Senate also failed to approve an amendment for a cooling-off period between workers and management.

But Biden told reporters Thursday that he "negotiated a contract no one else could negotiate."

"We're going to avoid the rail strike, keep the rails running, keep things moving," he added, at a news conference with French President Emmanuel Macron.

Political risk

The agreement includes a 24 percent pay increase for workers. However, critics in organized labor had slammed a lack of guaranteed paid sick leave, an omission seen as evidence of "unchecked corporate greed," as one leading union put it.

The failure of the agreement to win universal approval among unions had set the stage for a potential strike on December 9, putting the White House in an awkward spot.

Biden has been dubbed "Union Joe" for his strong affinity for organized labor.

The prospect of rail paralysis presented a major political risk for Biden, whose administration is already grappling with decades-high inflation and risks of a slowing economy.

A freight freeze would also have impacted passenger service because some passenger trains run on tracks owned by freight companies.

"I made it really clear. I'm going to continue to fight for paid leave for not only rail workers, but for all American workers," Biden said Thursday.