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Hawley Introduces Bill to Repeal Medicaid Cuts He Backed

His Protect Medicaid and Rural Hospitals Act aims to restore provider tax authority by boosting rural hospital funding to $100 billion, prompting lawmakers to reexamine the law’s 2026–2028 rollout.

Sen. Josh Hawley (R-Mo.) gestures toward a crowd of supporters of President Donald Trump gathered outside the U.S. Capitol to protest the certification of President-elect Joe Biden's electoral college victory Jan. 6, 2021 at the US Capitol in Washington, DC. Some demonstrators later breached security and stormed the Capitol.
Sen. Josh Hawley, R-Mo., talks with reporters after the Senate luncheons in the Capitol on Tuesday.
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Overview

  • Sen. Josh Hawley filed the Protect Medicaid and Rural Hospitals Act on July 15 to overturn provider tax moratoriums and revoke limits on state-directed Medicaid payments included in the July 4 reconciliation law.
  • The proposal would double the Rural Health Transformation Fund from $50 billion over five years to $100 billion over ten years to shore up underfunded rural hospitals.
  • The move renews GOP conflicts over the law’s $1 trillion in Medicaid savings and highlights CBO projections of up to 11.8 million coverage losses by 2034.
  • With most Medicaid reforms scheduled to take effect between 2026 and 2028, senators are exploring shifts to key implementation dates before cuts begin.
  • Republican divisions over provider taxes and rural hospital viability signal potential bipartisan talks to adjust health-care provisions ahead of the phase-in.