WASHINGTON, DC – Today, on the 60th anniversary of the Medicare and Medicaid programs, U.S. Senator Jack Reed joined Democratic colleagues in introducing new legislation to repeal the health care cuts in President Donald Trump and Republicans’ ‘Big, Ugly Betrayal’ tax and budget law and permanently extend the Affordable Care Act’s (ACA) enhanced tax credits, which expire at the end of the year.

The sweeping billionaires-first tax law, which Senator Reed strongly opposed, was passed using a legislative process known as reconciliation that only required a 50 vote majority to pass. The law includes nearly $1 trillion in Medicaid cuts over the next decade, with Rhode Island projected to lose $4 billion in federal Medicaid funding over that timeframe, according to projections from experts at health policy organization KFF.

Nationwide, Trump’s law will result in an estimated 15 million people losing their health insurance under Medicaid and the Affordable Care Act. It will have significant repercussions for many health clinics, hospitals, patients, seniors and nursing homes.

“Sixty years ago, President Johnson signed the landmark law establishing Medicare and Medicaid. These programs have helped save lives, but now they are under partisan attack and need protection. President Trump and Congressional Republicans enacted a law to kick millions of hardworking people off their health insurance under Medicaid and the Affordable Care Act, denying them coverage when they need it most,” said Senator Reed. “While billionaires get a bigger tax break, average Americans will be forced to pay more for health care and so will states. Democrats are offering a bill to reverse that trend, and expand access to health care. I am pleased to join my colleagues in introducing legislation to repeal the Medicaid cuts in the ‘Big Ugly Betrayal’ law and extend the Affordable Care Act’s enhanced tax credits so every American has access to affordable, cost-effective health insurance that meets their needs.”

Studies show that people without health insurance are more likely to delay or forgo the care they need, which often leads to worse health outcomes that are more expensive in the long run. Hospitals will also face higher costs because federal law requires them to provide emergency care to patients who can't afford it.

While billionaires and millionaires reap trillions of dollars from the Trump tax bill, young workers will no longer have access to the enhanced premium tax credits that helped them afford health insurance under the ACA. Those credits made ACA health coverage more affordable for roughly 22 million Americans by lowering monthly premiums an average of $705 annually, according to KFF. Congressional Republicans refused to extend those credits, which are now set to expire at the start of 2026, and could force millions of Americans to be hit with higher health insurance premiums.

The Providence Journal reported: “An additional 40,000 will see their insurance premiums balloon by an average of 85% when tax credits that expanded Obamacare coverage expire at the end of 2025, leading to more Rhode Islanders uninsured or underinsured.”

In addition to taking away people’s health care, the Republican tax law makes massive cuts to nutrition assistance and other critical programs that Rhode Islanders rely on in order to provide a larger tax windfall for the ultra-wealthy. According to the Providence Journal, the Trump tax and budget law means: “An estimated 144,000 Rhode Islanders losing some form of SNAP benefits, according to the Center for Budget and Policy Priorities. More than two-thirds of SNAP recipients are children, the elderly or people with disabilities.” The budget package cuts federal SNAP funding by 20 percent through 2034 -- the largest cut in SNAP history. Rhode Island could be required to contribute more than $51 million annually in state cost-share for benefits, which have always been fully federally funded.

The law also jeopardizes clean energy jobs in Rhode Island by phasing out clean energy and energy efficiency tax credits and incentives that were passed in the Inflation Reduction Act.