Federal debt-reduction talks continue on Capitol Hill this week where legislators are trying to come to an agreement before the August 2nd deadline.

On the table are Republican plans to impose massive cuts to Medicaid, Medicare, and Social Social security in favor of raising taxes for the wealthy.

Specifically, this would transform Medicaid into a “block grant” – vastly limiting the amount that states will get to offer help to the poor, sick, and disabled.  It will also privatize Medicare by turning it into a voucher system that will leave them at a greater financial risk.  The Republican budget plan aims to cut spending by $4.3 trilllion over 10 years (mostly from programs serving low-income folks) and also cut taxes by $4.2 trillion.  Seems counterintuitive to cut taxes when we’re trying to save money, no?

A new report put out this week by Families USA estimates that the cuts to Medicaid alone would not only have a devastating effect on millions of Americans, but it would also pull billions of dollars out of already-struggliing state economies, putting millions more jobs at risk.

New York would result as the biggest loser in this scenario, according to the report, with maximum potential total losses of $25 billion in state revenue and 190,260 additional jobs lost, depending on the level of cuts pursued by House Republicans.

Not surprisingly, advocates and community leaders in New York are not letting this one go by without a fight.  Starting this week, groups across New York will be holding a series of town hall meetings, rallies, and other events intended to hold members of Congress responsible for these heinous attacks on the social safety net. 

For more information, or to get involved, read below:

• Click here to read the Families USA report, titled “Jobs at Risk: Federal Medicaid Cuts Would Harm State Economies.” 
• For more information on the consumer response in New York, click here: Restoring the American Promise June 29th press release.