As President Donald Trump’s tax bill makes its way through the Senate, Illinois Democrats, along with various advocates and experts, are sounding alarms over the potential repercussions on health care coverage and food assistance for many residents in the state.
The proposed legislation, which includes $1.2 trillion in cuts, could jeopardize health care for more than half a million Illinoisans and threaten food assistance for approximately 427,000 individuals.
Republican leaders are racing to pass the measure by Trump’s self-imposed Fourth of July deadline, despite a turbulent legislative process.
The bill successfully advanced procedurally late Saturday night after intense persuasion from Trump and Vice President JD Vance.
Senator Thom Tillis of North Carolina announced he would not seek reelection, which followed his vote against advancing the measure, amid a threat from Trump to primary him.
Voting on the bill was expected to continue throughout Monday.
Should the Senate approve the legislation, it will then revisit the House for further deliberations.
The Senate bill outlines approximately $4 trillion in cuts while rendering Trump’s 2017 tax rates permanent, and it introduces new tax measures, including eliminating taxes on tips.
Additionally, the proposal allocates $350 billion for border and national security, inclusive of funding for deportations.
An assessment from the Congressional Budget Office, a nonpartisan entity, indicates that if the bill is enacted, 11.8 million Americans could become uninsured by the year 2034.
Furthermore, the legislation is projected to increase the federal deficit by nearly $3.3 trillion over the next decade.
One of the bill’s most substantial cuts involves $1.2 trillion reductions to Medicaid and food stamps, requiring states to cover up to 25% of Supplemental Nutrition Assistance Program (SNAP) costs.
According to state data, this significant shift in financial responsibility could force Illinois lawmakers to reduce either the benefits provided or the number of recipients.
In Illinois, the Department of Agriculture reports that 1,884,107 individuals in 1,028,197 households received SNAP food benefits during the 2022 fiscal year, where the average monthly benefit stood at $157 per participant.
A staggering 75% of those beneficiaries had incomes at or below the federal poverty line.
Governor JB Pritzker’s office estimates that the overhaul of SNAP could cost Illinois $1.2 billion and potentially cut food assistance for 427,000 low-income residents.
Pritzker expressed concern that such cost shifts could place a massive strain on the state’s budget, threatening crucial funding for essential services such as education and healthcare.
His administration stated that up to half a million Illinoisans might lose their Medicaid coverage under the proposed federal guidelines.
This legislation would require many of Illinois’ over 3 million Medicaid enrollees to verify they have worked, volunteered, or been in school for at least 80 hours before signing up for coverage.
The Illinois Department of Healthcare and Family Services (IDHFS) currently does not track the work status of Medicaid recipients, raising questions about the state’s ability to implement the new requirements effectively.
Nonetheless, around two-thirds of the non-disabled users aged 19-64 do report having some form of income, as noted by state records from February.
According to an IDHFS representative, the work requirement proposals could result in between 270,000 and 500,000 Medicaid customers in Illinois losing coverage, mainly due to administrative issues.
This aligns with projections from the Joint Economic Committee, which estimates that 163,674 individuals might lose coverage through the Affordable Care Act, while 335,000 would lose their Medicaid benefits with the bill’s passage, totaling nearly 499,674 individuals affected.
A more recent estimate from June 30 indicated that the number could surge to 535,849 losing health insurance in Illinois.
The current arrangement allows the federal government to cover 90% of the costs for many Medicaid programs associated with the Affordable Care Act.
Should this percentage be cut, Illinois would find itself unable to afford billions in additional expenditures, which would trigger state laws compelling Illinois to withdraw from supplementary ACA matching.
Moreover, the Joint Economic Committee discovered that the new proposal would eliminate home energy and efficiency tax credits currently benefiting households, leading to average annual savings of up to $1,080 for families.
The legislation would also slice over $350 billion from investments in higher education, with changes to Pell Grants possibly affecting 48,700 low and middle-class Illinois students, in addition to 106,200 students losing some degree of federal aid.
Some vulnerable groups, including refugees, asylum seekers, and certain victims of domestic violence and trafficking, would also see losses in financial aid.
In Chicago on Monday, U.S. Representative Raja Krishnamoorthi engaged with advocates at a Planned Parenthood office, stressing the importance of Medicaid for essential health care services including birth control, cancer screenings, and abortions.
Tonya Tucker, the interim CEO of Planned Parenthood of Illinois, highlighted that nearly 30,000 patients depend on Medicaid for necessary healthcare.
She pointed out that without Medicaid, the organization would face a $16 million annual shortfall to maintain current services, an amount that would be difficult to cover solely through donations.
Without Medicaid funding, Planned Parenthood would likely be compelled to close additional health centers, diminishing access to vital health services for many deserving individuals.
Krishnamoorthi stated that the Trump bill could slash roughly $1.1 trillion from the social safety net, including monumental cuts to Medicaid, potentially leaving approximately 17 million individuals without health insurance.
Reflecting on his own background of relying on food stamps and public housing, Krishnamoorthi expressed his profound opposition to the proposed cuts.
Meanwhile, Senator Dick Durbin took to the Senate floor on Sunday, emphasizing the adverse impacts the bill would have on hospitals in rural communities.
Durbin warned that hospitals, particularly in small towns and rural areas of Illinois, might be forced to downsize their services or even shut down completely.
He remarked that the cuts to Medicaid programs pose a severe threat to healthcare facilities, hurting the most vulnerable communities in the state.
As the Senate debates this significant legislation, the stakes remain high for the health and welfare of countless Illinois residents, with advocates urging for a reconsideration of the proposed measures.
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