Yesterday, the House of Representatives adopted a budget resolution that paves the way for the federal government to approve up to $1.5 trillion in tax cuts to wealthy people and corporations with only Republican votes.

What’s a budget resolution?

A budget resolution is a piece of legislation that outlines the congressional budget. It establishes how much the federal government is allowed to spend and in which categories (for example, transportation) and how much they can increase the federal debt or deficit. The resolution can also include budget reconciliation instructions, which allow the House of Representatives and the Senate to pass budget-related measures with fewer votes and without filibusters from opponents.

The budget resolution just passed includes reconciliation instructions, which means that Republicans, who have majorities in both houses, could pass major tax legislation without the support of their democratic colleagues. Democrats who disagree with the tax legislation would also be very limited in their ability to delay or stop the vote.

How is this related to health care?

Any tax cuts will eventually have to be paid for. The budget resolution that ultimately passed did not specify which programs would be cut in order to pay for the tax legislation, but an earlier version of the budget resolution introduced in the House gives us a pretty good idea of what the cuts might look like. This earlier version of the resolution called for $5.8 trillion over 10 years in cuts to programs that help low- and moderate-income families. This included a devastating $1.8 trillion in cuts to Medicaid, Medicare, and other health care programs, which would hurt millions of children, families, and seniors.

What does this mean for consumers right now?

Nothing yet. The budget resolution is a set of guidelines. It will not be submitted to the President, and it does not have the force of law. However, Congress is planning on releasing formal tax legislation as early as next week, which if passed by both houses, would affect consumers beginning in 2018.

Check back with HCFANY in the coming weeks for updates on the budget and other federal health care policy issues.