Should Congress stop scheduled spending cuts to Medicaid and other programs?

This bill has Passed the House of Representatives
Bill Summary

H.R. 1868 is designed to get rid of budget cuts that are scheduled as a result of the American Rescue Plan Act. Due to a rule called “pay-as-you-go”, or PAYGO, Congress can not pass any legislation that would increase the budget deficit or decrease the surplus. Therefore, the recently passed American Rescue Plan Act is set to trigger “budget sequestration”, or spending cuts, to government programs. The PAYGO spending cuts would primarily affect Medicaid. The bill also extends a separate moratorium on budget cuts to Medicaid that was first passed as part of the CARES in March 2020. Sponsor: Rep. John Yarmuth (Democrat, Kentucky, District 3)
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Opponents say

• "The FY 2021 federal deficit is likely to reach 15% of GDP, equaling the FY 2020 deficit as a share of output… Federal debt, which recently surpassed 100% of GDP, will approach 109% of GDP in FY 2021, assuming the US Treasury finances part of the upcoming spending from its unusually large cash balance, while general government debt will reach 127% of GDP in 2021, before surpassing 130% by 2023 … the (US debt) rating could be downgraded in the absence of a credible commitment to addressing medium-term public spending and debt challenges." Source: Charles Seville (Senior Director of Sovereigns at Fitch Ratings)
• "Total public debt is expected to nearly equal the size of the economy this year and to exceed it next year for the first time since the 1940s. The CBO predicts that the public debt will surpass the previous record set in 1946—106 percent of GDP—by 2023… Some economists fear that the United States will become stuck in a ‘debt trap,’ with high debt tamping down growth, which itself leads to more debt." Source: James McBride, Andrew Chatzky, and Anshu Siripurapu (Researchers for the Council of Foreign Relations)

Proponents say

• "The legislation I introduced today is largely technical fixes and sequestration adjustments that have historically been bipartisan and noncontroversial. When Republicans used reconciliation to pass tax cuts for the rich, Democrats voted with them to avoid sequestration and protect Medicare and other programs despite our strong opposition to the Tax Cuts and Jobs Act. This legislation should have the same outcome, but if Republicans play political games and don't do their jobs, Medicare and the seniors that depend on it will pay the price." Source: Rep. John Yarmuth (Democrat, Kentucky, District 3)
• "Congress has provided much-needed assistance to health care providers in the form of Medicare sequester relief through March 2021. This relief helped to improve what was, and continues to be, the relatively dire financial outlook for many hospitals and health systems. However, additional relief is needed. Congress should pass legislation to extend the moratorium on the Medicare sequester cuts so that hospitals and health systems can continue to care for patients, families, and communities." Source: The American Hospital Association