Critics are trashing a new idea from Republicans on the Senate Finance Committee for President Donald Trump's 2026 budget bill.
Politico reported that Republicans plan to brief their colleagues Monday night on lowering the "Medicaid provider tax to 3.5 percent." The measure would be a "huge" change from what the House passed, the report said about Trump's megabill. It "would put a moratorium on states’ ability to raise their provider tax beyond the current 6%."
One economic analyst said the provision would disproportionately harm rural hospitals.
"Senate's Medicaid provider tax cuts will devastate rural hospitals already on life support," wrote Tahra Hoops, the director of economic analysis at the Chamber of Progress. "Seven hundred rural hospitals risk closure; this move would accelerate that crisis. Rural communities thus lose jobs, healthcare access, + economic stability all to fund tax cuts for the wealthy!"
Others pointed out the political impact for the 2026 election.
"This cut to Medicaid is basically a message to New York and California House Republicans that the Senate sees their seats as expendable," The Atlantic's Jordan Weissmann said on X.
Politico reporter Meridth Lee Hill spoke to one moderate House Republican who is against the measure. "Hell no," they said.
It's "already triggering a major Medicaid fight," she assessed.
Radio host Mat Smith wondered if "those folks in the sticks" will ultimately blame repercussions on former President Joe Biden when "their local hospital closes down, putting them, in some cases, hours away from the next nearest medical facility."
Another individual called it, "Losing your hospital to own the libs."
Sen. Mike Crapo (R-ID) plans to brief other GOP senators on the provision Monday night.
