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House Republicans narrowly passed a budget resolution that paves the way for significant Medicaid cuts while approving $4.5 trillion in tax breaks that overwhelmingly benefit the wealthy. The measure, which passed 217-215, would also raise the federal debt ceiling by $4 trillion, despite GOP rhetoric about fiscal responsibility.

The resolution directs the Energy and Commerce Committee to cut $880 billion, a move Democrats warn would likely gut Medicaid services for millions of low-income Americans. Republican leadership avoided directly mentioning Medicaid in the resolution, instead promoting work requirements as a cost-cutting measure.

While reducing healthcare funding, the budget preserves tax cuts from 2017’s Tax Cuts and Jobs Act, which disproportionately benefited corporations and high-income earners. The proposal also includes new tax breaks, bringing the total price tag to $4.5 trillion—less than what is needed to fully extend the previous Trump tax cuts.

Democrats strongly opposed the resolution, arguing it prioritizes the wealthy at the expense of working families. Minority Leader Hakeem Jeffries warned that the GOP plan sets the stage for deep cuts to social programs while ballooning the deficit. The resolution now heads to the Senate, where further negotiations are expected.

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