GOP senator introduces bill to repeal federal Medicaid cuts
Sen. Josh Hawley (R-MO) introduced new legislation to the Senate on Tuesday that would repeal provisions in the “One Big, Beautiful BIll Act” that cut federal Medicaid spending.
Hawley, who voted for the Republican-backed budget package that was signed by President Donald Trump on July 4, expressed concerns over parts of the bill that would reduce federal spending on safety-net healthcare programs and cut provider taxes, which are used by states to fund Medicaid programs.
Before the act was approved by the Senate, Hawley was able to carve out a $50 billion fund for rural hospitals to ease the pain from the inevitable loss in revenue. However, it's not clear if that will be enough to stop many of them from cutting services.
A report from the Chartis Center for Rural Health warned that 50% of rural hospitals operate at a loss, and many are at risk of closing their doors outright due to slashed spending. In introducing his new bill, Hawley is attempting to undo the Big, Beautiful Bill's damage.
The GOP senator’s legislation, titled the Protect Medicaid and Rural Hospitals Act, would completely void the Medicaid cuts and allow states to levy provider taxes. Further, it would double the rural health fund, extending it to $100 billion over ten years. Currently, it's scheduled for only five years of payouts.
Seeking Trump's support
In announcing the act, Hawley pointed to statements from Trump, who has said on many occasions that he opposes cuts to Medicaid and Medicare.
“President Trump has always said we have to protect Medicaid for working people. Now is the time to prevent any future cuts to Medicaid from going into effect,” Hawley said in a statement. “We should also increase our support for rural hospitals around the country. Under the recent reconciliation bill, Missouri will see an extra $1 billion for hospitals over the next four years.”
“I want to see Medicaid reductions stopped and rural hospitals fully funded permanently,” he added.
As it stands, states are set to see a slow decline in Medicaid funding that will total roughly 20% over the next few years, leaving them looking for ways other than provider taxes to make up the shortfall.
It’s unclear if Hawley’s act will find any support among his fellow Republicans in Congress. However, given that the Big, Beautiful Bill narrowly passed—with Vice President JD Vance delivering the tie-breaking vote in the Senate—it’s not out of the realm of possibility that the Protect Medicaid and Rural Hospitals Act will find a base of support.
The full text is available here.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.