GOP megabill in limbo as conservatives seethe



Rep. Ralph Norman rubs his eyes during the overnight House Rules Committee meeting on the reconciliation bill. Photo: Kevin Dietsch / Getty Images
The reconciliation bill appears stalled in the House Rules Committee as hardline conservatives still unhappy with the level of spending cuts in the package press for changes in a manager's amendment.
Why it matters: The hardliners have been pushing for deeper Medicaid cuts and may be applying maximum leverage, knowing they could be the key to passing the bill out of the House.
What they're saying: "This bill actually got worse overnight; there is no way it passes today," House Freedom Caucus Chair Andy Harris said on Newsmax on Wednesday morning, following an all-nighter in Rules.
- He said conservatives were angered by an emerging deal Tuesday night with moderate lawmakers to increase the State and Local Tax Deduction cap, without sufficient accompanying spending cuts, including on Medicaid.
- Rep. Ralph Norman texted Axios' Andrew Solender on Wednesday morning that "THINGS ARE NOT LOOKING GOOD!"
- House Freedom Caucus members said at a Wednesday morning press conference that the bill wasn't ready, with Rep. Chip Roy reiterating that he still wants to reduce the federal share of Medicaid costs (FMAP).
- A source familiar said the Freedom Caucus has been invited to a meeting at the White House at 3pm ET.
Driving the news: In a highly unusual move, the House Rules Committee began meeting on the bill at 1am ET Wednesday, even before final bill text was released.
- As of publication time, the manager's amendment reflecting final changes still had not been released. It's expected to include a two-year acceleration in the start date for Medicaid work requirements.
- "How do we get a handle on the growth in Medicaid, and make it sustainable, and protect it for pregnant women, mothers, children, the disabled, what the program was originally intended for?" Energy and Commerce Chair Brett Guthrie told the Rules Committee on Wednesday.
- Ranking Member Frank Pallone countered that the bill is a "reverse Robin Hood scheme that takes from the poor in order to give handouts to those who really don't need them."
By the numbers: Updated CBO estimates released Tuesday put the total projected health insurance coverage losses from the bill at more than 10 million people, once the 8.6 million from Energy and Commerce provisions are combined with the 2.1 million from Ways and Means.
- The Ways and Means provisions include measures to tighten requirements around getting ACA subsidies and enrolling in marketplace coverage.
Between the lines: Analysts also noticed that an updated version of the reconciliation bill released this week would have expanded a 10-percentage-point FMAP penalty.
- The new version would apply to any state that covered immigrant pregnant women and children who are in the country legally, not merely to states that provide Medicaid coverage to undocumented immigrants.
- Asked about the provision, Energy and Commerce spokesperson Matt VanHyfte said the issue would be remedied in the coming manager's amendment. "We expect the manager's amendment will explicitly clarify those covered through that pathway wouldn't be affected," he said.