Support Medicaid Not Millionaires Act draws emotional testimony; committee lays bill over

The House Taxes Committee on April 2 received robust testimony and member discussion on House File 2,591, the "Support Medicaid Not Millionaires Act," a proposal from Representative Gomez to add a contingent fifth individual income tax tier that would raise revenue if federal Medicaid funding to Minnesota is cut.

Representative Gomez introduced the bill by citing a U.S. House budget resolution and potential reductions to Medicaid nationwide. "There are almost 200 employees at the Minnesota Department of Health who are losing their jobs," Gomez said in opening remarks, and added that the bill would create a contingent tax tier "sufficient to offset any cuts in federal Medicaid funding that flow to the state of Minnesota."

The bill would add a top marginal rate applied to very high earners: Representative Gomez described thresholds of $1,667,000 for married filing jointly, $1,000,000 for single filers, and approximately $1,300,000 for head-of-household filers. Committee discussion frequently returned to estimates provided during testimony: witnesses and members cited a potential federal cut figure of about $880 billion and a Minnesota exposure of roughly $1.4 to $1.6 billion in fiscal year 2027.

A dozen public witnesses testified in favor. Symone Blaylock of SEIU Healthcare Minnesota and Iowa described personal reliance on Medicaid for family caregiving and her own health care: "Medicaid is a lifeline for me, my family, and the people I care for. So please support this bill," she said. Pahua Yang, vice president of Community Mental Health and Wellness at Wilder Foundation, recounted clinical and school-based services funded largely by Medicaid and warned that cuts could force clinics and nursing homes to close.

Marika Dekuir, an epidemiologist at the Minnesota Department of Health testifying for the Minnesota Association of Professional Employees (MAPE), said recent state and federal staffing and funding reductions already had forced layoffs and weakened disease investigation capacity. "These people are experts in their field and many of them work in areas of infectious disease prevention and control," she said, adding that further Medicaid reductions would make impacts reversible and permanent.

Labor and advocacy organizations also testified in support. Eric Bernstein, director of We Make Minnesota, said the state should consider total levels of investment when evaluating tax competitiveness and urged considering broader revenue options as well as the bill.

Committee members questioned details of eligibility and funding flows. Representative Anderson asked about Medicaid coverage for undocumented residents and distinctions between programs such as MinnesotaCare and Medicaid; Christy Grama of the Department of Human Services replied that MinnesotaCare, not Medicaid, covers some noncitizen populations and said staff would supply detailed data to the committee.

Representative Johnson asked about the certification timing and how a state response would apply if federal action occurred after the certification date; committee nonpartisan staff explained the bill ties certification to the Commissioner of Management and Budget's annual certification by Dec. 31; a certified revenue shortfall would then be applied by the Commissioner of Revenue to set the contingent fifth tier for the following tax year.

Several members voiced concerns about tax flight and unintended consequences. Representative Weiner warned of historical examples where taxes intended for high earners produced mixed results; Representative Johnson expressed concern about signaling and federal relations. Representative Gomez and other supporters countered that the U.S. House budget resolution under discussion would transfer sizable tax cuts to the very top while proposing deep program cuts, and that Minnesota needed a mechanism to protect health and long-term-care funding.

The committee did not take a roll-call vote. Chair Gomez renewed her motion that House File 2,591 be laid over for possible inclusion in the 2025 taxes bill; the motion was laid over.

Ending

Proponents urged the committee to act to protect Medicaid-funded services and public health capacity; the bill's author and supporters signaled openness to alternative revenue measures to meet any federal-driven shortfall. The bill remains under consideration for the omnibus taxes package.