Tax Bill Proposal to Cut Rural Hospital Payments Sparks GOP Ire

June 18, 2025, 9:00 AM UTC

A Senate tax and spending bill proposal that could lead to cuts in Medicaid payments to hospitals is worrying some Republicans and hospital associations, particularly for medical facilities in rural districts.

The Senate Finance Committee unveiled its portions of the reconciliation bill June 16, including changes—and cuts—to Medicaid. While the text took up many of the House proposals, senators drafted a different approach to limit how states could use provider taxes to fund its portion of Medicaid and pay providers.

“There’s nothing for rural hospitals—nothing but bad, nothing but pain, for rural hospitals in this bill,” Sen. Josh Hawley (R-Mo.) ...

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