Michigan Republicans pass bill to carve out tax breaks for the wealthy atop health care cuts

Roughly 750,000 Michiganders are set to lose access to their healthcare coverage under Republican-led legislation approved Thursday morning in the US House. 

MICHIGAN—In a razor-thin, 215-214 vote after an all-night session, US House Republicans passed a sprawling tax and spending package that delivers large tax breaks to the wealthy while slashing funds for essential programs like Medicaid and food assistance.

Now, hundreds of thousands of Michiganders who rely on Medicaid are at risk of losing their health care—and millions more could soon face reduced access and lower-quality care.

All seven of Michigan’s Republican members of Congress voted in favor of President Donald Trump’s “big, beautiful bill,” which extends and expands Trump-era tax cuts while cutting health coverage for low-income families, seniors, people with disabilities, and pregnant women.

The legislation imposes new work requirements for Medicaid and food assistance, rolls back clean energy incentives, and adds red tape that experts warn could push up to 8.6 million Americans off their health coverage, including about 750,000 people in Michigan.

Under the plan, able-bodied adults without dependents would need to complete at least 80 hours a month of work or community engagement to qualify for Medicaid. The same rule would apply to those seeking food assistance through SNAP, and the cutoff age would rise from 54 to 64. Some parents would also face new work requirements.

Under the proposed changes, the nonpartisan Congressional Budget Office (CBO) estimates that about 3 million people would lose access to their SNAP food stamps benefits nationwide.

“This is one of the most consequential bills the Congress has passed in this century,” US Rep. Debbie Dingell (D-Michigan) said in a statement on Thursday morning. “People will die, children will go hungry, and working Americans will continue to struggle to make ends meet.”

Medicaid currently covers about 2.6 million Michiganders—roughly one in four residents—including three in five nursing home patients, nearly half of all births, and 300,000 people with disabilities, according to data provided by Gov. Gretchen Whitmer’s office.

The proposed cuts would gut a key source of funding for nursing homes, hospitals, and providers—especially in rural areas, where more than 60% of births are covered by Medicaid.

Under an executive order, Whitmer has ordered state health officials to assess the full impact of the proposed cuts. Her office has also warned that the bill could force schools to reduce on-campus mental health services, as well as eliminate in-home care for people with disabilities.

“The huge, proposed cuts will terminate coverage for our neighbors, family, and friends who need it most,” Whitmer said in a statement earlier this month. “Michiganders will suffer because these proposed cuts go too far, too fast, and everyone, including those not on Medicaid, will end up paying more for their insurance. Republicans in Congress cannot let this happen.”

At the same time, the bill expands the federal child tax credit and increases the standard deduction, but those benefits skew heavily toward higher-income households.

The nonpartisan Congressional Budget Office estimates the legislation will add $3.8 trillion to the national debt over the decade, with most of the benefits flowing to the wealthiest Americans.

For Michiganders making less than $51,000 a year, the bill would result in a net loss of about $700 in annual after-tax income beginning in 2026, the New York Times reported. Those near or below the poverty line would lose closer to $1,000 a year. Meanwhile, the top 0.1% of earners—those making more than $4.3 million annually—would gain nearly $400,000 a year.

The House bill also includes $350 billion in new federal spending, with about $150 billion directed to the Pentagon, including funding for Trump’s proposed “Golden Dome” missile defense shield. The rest would go toward border security and mass deportation programs.

The bill now moves to the Senate, where more changes will be proposed, and Democratic lawmakers are expected to continue challenging the plan’s more controversial provisions.

The Associated Press contributed to this report.

READ MORE: What happens when Congress slashes Medicaid? Ask a Michigan mom.

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