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Senate Scrutinizes Trump’s Tax-and-Spending Bill After Rural Medicaid Alarm

Senators from rural states are pressing to revise provider tax limits ahead of the July 4 deadline

Holton Community Hospital sign stands in Holton, Kansas, U.S., June 11, 2025.    REUTERS/Arin Yoon
Medical personnel work inside the rural Holton Community Hospital in Holton, Kansas, U.S., June 11, 2025.    REUTERS/Arin Yoon
A view shows an emergency room in Holton Community Hospital in Holton, Kansas, U.S., June 11, 2025.    REUTERS/Arin Yoon
Medical supplies are pictured inside the rural Holton Community Hospital in Holton, Kansas, U.S., June 11, 2025.    REUTERS/Arin Yoon

Overview

  • The House bill passed in May would cut Medicaid spending by $785 billion over a decade
  • The Congressional Budget Office estimates that 10.9 million Americans could lose health insurance by 2034 under the current proposal
  • New work requirements for adult Medicaid recipients and caps on state funding could disenroll millions
  • Rural hospitals warn that tighter enrollment standards and frozen provider taxes could force service reductions or closures
  • At least 41 Republican senators representing rural states are pushing to modify key Medicaid provisions before the Senate’s July 4 vote