State and Local Leaders Oppose H.R. 1, Warn of Service Cuts and Impact

The Facts -

In a sweeping expression of concern, state and local officials have voiced strong opposition to the proposed reconciliation bill, H.R. 1. The bill, which proposes significant cuts to key public services such as Medicaid and SNAP, is said to threaten the stability of local and state budgets while potentially offering substantial tax breaks to the wealthiest Americans.

According to the officials, the proposed cuts would require states to make severe reductions in essential services. Medicaid, noted as the largest contributor of federal funding to state budgets, is at the forefront of these concerns. The Congressional Budget Office (CBO) has projected that approximately 15 million individuals could lose their health coverage by 2034 if these cuts are implemented. This scenario not only risks the loss of crucial health care services but also threatens jobs within the health care sector. The financial burden of approximately $48 billion in uncompensated care costs would have to be borne by hospitals and medical providers, compounding the strain on local governments and potentially resulting in loss of lives.

The imposition of work requirements for Medicaid beneficiaries is another contentious aspect of the bill. Based on experiences in Arkansas and Georgia, these requirements have historically led to decreased coverage for workers due to bureaucratic hurdles, without significantly increasing employment. Officials argue that these measures would inflict unnecessary harm on vulnerable populations who rely on Medicaid.

Furthermore, the bill proposes a $300 billion shift in costs to states for both SNAP benefits and administrative expenses. Such a shift places the food security of over 40 million Americans, including a significant number of children, at risk. The inability of state governments to absorb these additional expenses could necessitate cuts to vital services like education and infrastructure.

The potential automatic cuts to Medicare also raise alarms about the fate of seniors who depend on these services. As these health care services erode, families may face increased burdens in caring for elderly members, impacting economies and communities at large.

The collective impact of the bill, as described by the officials, would impose unsustainable demands on states. Every facet of local economies, spanning health care, education, public safety, and more, would be negatively affected, and the repercussions could lead to job losses among those who deliver these indispensable services.

Echoing the concerns expressed in the letter, the officials emphasize the importance of addressing fraud, waste, and abuse to maintain robust public services. However, they argue that the current plan fails in this regard, jeopardizing the nation’s social safety net and the welfare of veterans, seniors, children, people with disabilities, and workers across the country, all for the benefit of the wealthiest few.

In conclusion, the state and local leaders are urging a rejection of H.R. 1, underscoring the critical importance of protecting the health, safety, and well-being of communities nationwide.

---
Read More USA Works News