California House Republican could oppose Trump tax bill over Medicaid changes
Rep. Young Kim, a Republican from Southern California, has made it clear that she will not support President Donald Trump’s “big, beautiful bill” if it returns to the House without the original language on Medicaid. According to a source familiar with her thinking, Kim is among several moderate Republicans who are uneasy after the Senate released updated text of the massive bill which addresses various issues including tax, immigration, defense, energy, and the national debt.
There are concerns among moderate Republicans about the Senate’s version of the bill, with as many as 20 to 30 lawmakers reaching out to Speaker Mike Johnson with serious reservations. Kim has emphasized the importance of protecting vital Medicaid services for the most vulnerable, providing tax relief for small businesses, and addressing the cap on state and local tax (SALT) deductions.
The Senate’s bill differs from the House version on various fronts, including modifications to Medicaid and green energy credits. One of the key points of contention is the provider tax rates and state-directed payments used by states to fund their share of Medicaid costs. The Senate’s bill would require states that adopted the Affordable Care Act’s (ACA) Medicaid expansion to gradually phase down their provider tax rates to 3.5% between 2028 and 2032.
House GOP moderates have raised concerns about these Medicaid provisions, arguing that they undermine the balanced approach taken in the House bill. The Senate Finance Committee included a $25 billion rural hospital fund in their legislation to address some of these concerns, winning support from Senator Josh Hawley.
However, moderate Republicans in the House are still seeking assurances and could pose a challenge for House GOP leaders given the slim majority in the chamber. Despite this, there are indications that the moderates may ultimately fall in line and support the bill, even if the text remains unchanged.
Speaker Mike Johnson has urged the Senate to make minimal changes to the bill to maintain unity in the House. It remains to be seen how the situation will unfold as the bill progresses through Congress. Elizabeth Elkind, a politics reporter for Fox News Digital, is closely following developments in the House of Representatives and can be reached for tips and updates on the matter.
