last week with a provision to enact new work requirements for those seeking federal assistance, claiming the measure would help cut federal spending.
Republicans have not budged in their refusal to raise the debt limit unconditionally. Pressure is mounting on President Joe Biden and lawmakers to reach an agreement to raise or suspend the debt limit, with the Treasury Department warning on Monday that the U.S. could run out of money to pay its bills as early as June 1, a few weeks earlier than expected.
The Republican debt ceiling package would also require certain adult Medicaid recipients to work, perform community service, or participate in an employment program for at least 80 hours per month or earn a certain minimum monthly income. It would apply to those ages 19 to 55, but not those who are pregnant, parents of dependent children, those who are physically or mentally unfit for employment or enrolled in education or in substance abuse programs, among other exceptions.
Despite these claims, economists warn that the government can incur additional costs when low-income people lose access to federal benefits, particularly access to health care. “If folks lose Medicaid, it becomes an issue of uncompensated care,” Roberts says. “The government will pick up those costs often in another way.”