House Budget Committee hearing spotlights Medicaid, SNAP reforms and risks to hospitals

The House Budget Committee on June 24 heard competing views on GOP reconciliation proposals to tighten eligibility and add work requirements for Medicaid and SNAP, with Republican lawmakers and witnesses describing widespread improper payments and state “money‑laundering” schemes and Democrats and other witnesses warning that the changes could cause millions to lose coverage and force rural hospitals and clinics to close.

Republican Chairman Jodey Arrington framed the hearing around what he called a mission to “rein in waste, fraud, and abuse” in entitlement programs and to preserve funding for the most vulnerable. He and witnesses urged verification of eligibility and limits on state financing mechanisms that claim extra federal matching dollars.

"Improper payments in Medicaid were identified at $31,000,000,000 last year," said Chairman Arrington in his opening remarks, citing Government Accountability Office figures discussed at the hearing. He described a package — repeatedly called during the hearing the “1 Big Beautiful Bill” — that would restore eligibility checks, curb provider tax schemes and introduce community engagement or limited work requirements for able‑bodied adults without dependents.

Supporters argued the reforms would reduce what they described as perverse incentives that have diverted federal dollars away from children, seniors and people with disabilities. Brian Blaise, president of the Paragon Health…