Feb. 27, 2025 | Vol. 29 No. 2 | Archives
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Five-Alarm Fire: Congress Poised to Make Massive Medicaid Cuts to Fund Tax Breaks for the Wealthy
- Funding Freeze Update
- DOGE Attack Continues
- Trump’s Executive Orders
- Cabinet Nominations
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Research Opportunity for Street Medicine Providers
- Council Awards Nominations Close Feb. 28
- What (Else) We’re Reading
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Coming Up on A Closer Look
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Tell Congress to Keep Their Hands Off Our Medicaid!
Next week on our policy blog, we'll share resources to help you expand and deepen your strategic appeals to lawmakers and community members urging them protect Medicaid, which provides 40% of all funding for Health Care for the Homeless services in the U.S.
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Five-Alarm Fire: Congress Poised to Make Massive Medicaid Cuts to Fund Tax Breaks for the Wealthy |
Let’s separate the smoke from the fire. While the Trump administration’s executive orders have created a lot of fear and chaos, the biggest threat to the Health Care for the Homeless (HCH) community right now is happening on the Hill: Congress is in the process of taking away Medicaid to provide tax cuts to the wealthy.
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We need to act NOW and tell lawmakers that cuts to Medicaid are unacceptable. Call the Capitol switchboard at 202-224-3121 to be connected with your lawmaker. If you want to write to them, tailor this action alert from the Coalition on Human Needs to reflect the needs of our community. Tell Congress three things:
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- No cuts to Medicaid — this includes any policy changes such as work requirements, eliminating the FMAP and per capita caps.
- People experiencing homelessness and safety net health care providers depend on Medicaid — especially the expansion benefit.
- Medicaid drives innovative, cost-effective health system improvements and solutions to homelessness.
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Background on Medicaid Action and Congressional Budget Update |
Congress has only two weeks left to fund the government or shut it down before funding expires on March 14. At the same time, House and Senate Republicans both put forth two (terrible) budget bills to deliver on President Trump’s agenda:
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The Senate's two-bill approach: Advanced bill #1 (aka their skinny bill) that focuses on border enforcement and defense spending, but does not touch the President’s tax wish list (which would have to be done later this year through a second bill). The current resolution permits at most $521 billion in new spending with a minimum of $4 billion in cuts between fiscal years 2025 through 2034. These cuts would take away health coverage and food assistance. Critically for the HCH community, the resolution directs the committees that oversee Medicaid — House Energy and Commerce and Senate Finance — to make $1 billion of cuts.
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The House's one big budget resolution: This bill will advance all of the President’s wishes, allowing for $4.8 trillion in new spending on tax cuts for the wealthy and border enforcement. The budget resolution instructs committees to cut a minimum of $1.5 trillion to offset this spending, with $880 billion coming from House Energy and Commerce committee — aka cuts to Medicaid, which would include work requirements, reducing the state match rate, and per capita caps. Despite previously stating he won’t touch Medicaid, President Trump endorsed the House bill last week.
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The House budget resolution passed late Tuesday night, after Speaker Mike Johnson and President Trump were left scrambling to win over holdout Republicans. Prior to the vote, Republicans began splintering on cuts to Medicaid with Speaker Johnson acknowledging the possibility that multiple Republicans may vote no. Thanks to outreach from advocates, including after portals went down as a result of the funding freeze, some Republicans publicly expressed concerns about cutting the program. Here’s what they said and what we must hold them accountable to:
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Other Republicans worked to convince their colleagues that proposed cuts to Medicaid are to address waste, fraud, and abuse in the program, not cut benefits, but we know this means targeting the single adult expansion population or the “undeserving poor.” Ultimately, Republicans secured the votes, and the blueprint passed with only one Republican (Massie, KY) voting against it. But this is just the first step in the budget process and in our advocacy. Next, committees must decide how and where to cut spending, which will mean cuts to Medicaid unless we speak up. What they call “waste, fraud, and abuse” is actually referring to people’s lives. We need to act NOW. Keep speaking out about the harms of cutting health insurance for millions of people.
Tell your lawmakers NO cuts to Medicaid.
Resources:
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After rescinding the funding freeze last month, community health centers across the country continued to experience delays in accessing funds – impacting their ability to provide care. The outreach and outrage from constituents was loud, and led to some Congressional lawmakers sending a letter to the Department of Health and Human Services asking for clarification and further communication from HRSA.
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If your health center has any difficulty in drawing down funds, please reach out to us at policy@nhchc.org.
Related reading:
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DOGE Attacks HUD and HHS with Cuts |
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The (unofficial) Department of Government Efficiency (DOGE) began targeting two essential agencies this month: Department of Housing and Urban Development (HUD) and Department Health and Human Services (HHS).
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Protect HUD Employees: Add your organization to a national letter urging Congress to oppose the termination of at least half of all HUD employees. Deadline to sign on is Feb. 28.
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HUD Still Hasn’t Released Homelessness Funding: Nearly $3.6 billion in Continuum of Care program awards for projects across the country have still not been disbursed. This is especially concerning given the number of people living in supportive housing who depend on these funds to pay rent. Contact your elected officials today and tell them to urge HUD to disburse these critical funds!
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Legal Challenges to Executive Orders: Lawsuits against the Trump Administration’s Executive Orders are moving fast and can be hard to keep up with. Most major threats have been paused by the court at the time this newsletter was published.
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Temporarily blocked: Ending federal support for gender affirming care for youth under age 19
- Temporarily blocked: Ending government efforts on diversity, equity, and inclusion
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Takeaway: These EOs are meant to cause mass confusion, but it’s important to remember their limited scope and ongoing legal challenges. Here are a few resources to help you stay up to date:
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- Prohibits undocumented immigrants from accessing taxpayer-funded benefits
- Directs federal agencies to identify federally funded programs that allow undocumented immigrants to access public benefits (cash or non-cash) and ensure payments to states/localities do not subsidize or promote “illegal immigration” or “sanctuary policies”
- Directs OMB to identify all other sources of Federal funding for undocumented immigrants
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Likely Impact on the HCH Community: Federal law mandates health centers serve patients regardless of immigration status. This EO does not change that. However, because health centers serve undocumented people, we anticipate the health center program to be on the list being created. It is unclear what implications this action has for the future.
Related reading and resource:
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Research Opportunity for Street Medicine Partners |
If you are a street medicine provider and you’re interested in participating in an online survey examining the impact of criminalization laws on patients and care, please reach out to Sophie Roe, MPH student at the at Harvard T.H. Chan School of Public Health, at SRoe@som.geisinger.edu.
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Know a Health Care for the Homeless hero? Interested in serving on one of the steering committees that help guide and support the work of the National Health Care for the Homeless Council? We want to hear from you!
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What (Else) We're Reading |
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| Laura Brennan
Senior Policy Manager
National Health Care for the Homeless Council
lbrennan@nhchc.org
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| Your support is crucial!
All our advocacy work — including this newsletter! — is funded by dues from NHCHC's members and private donations. Consider joining the Council or donating to support this work!
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Copyright © 2025 National Health Care for the Homeless Council, Inc.
www.nhchc.org | (615) 226-2292
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