SEIU Members Mobilize: Hands Off Medicaid!

SEIU Members Mobilize: Hands Off Medicaid!

WASHINGTON D.C. – Members of the Service Employees International Union (SEIU) are coming out in full force after Senate Republicans advanced a budget resolution that sets the stage for cuts to Medicaid, SNAP and other vital services to fund tax breaks for billionaires. SEIU President April Verrett blasted the budget resolution as an attack on working people in a thread on X.

Workers Take to the Streets for Hands Off! Mass Mobilization

As federal lawmakers move one step closer to enacting a disastrous budget, SEIU members are mobilizing across the country in dozens of cities to fight back against the administration’s attacks on critical programs. In major cities and small towns in every state, working people are taking action on April 5 to fight back against Trump and Elon Musk’s shameless power grab at the expense of Americans’ wellbeing. At marches, rallies and protests, they are demanding an end to the slashing of federal funds for Medicaid, SNAP, Social Security and other programs.

Why This Matters to You

Cuts to Medicaid could be catastrophic to the American healthcare system and take away access to health insurance for 1 in 4 children and healthcare services for students at 4 out of 5 schools. Medicaid cuts would squeeze state budgets, result in the loss of over one million American jobs and cause harm to those who rely on critical public services. With grocery prices rising and the economy uncertain, this Senate vote that continues the path to gut healthcare and put jobs in jeopardy is an irresponsible move that will only harm millions of Americans and our communities.

The Economic Impact

The proposed cuts to Medicaid and other vital services could have a significant impact on the financial stability of healthcare providers and hospitals, particularly those in underserved communities. According to the information provided, hospitals, especially rural and safety-net hospitals, could lose billions in Medicaid reimbursements, pushing many toward closure. This is because Medicaid is a major source of funding for these hospitals, and any reduction in federal Medicaid spending would leave states with tough choices about how to offset reductions through tax increases or cuts to other programs, like education. If states are not able to offset the loss of federal funds with new taxes or reductions in other state spending, states would have to make cuts to their Medicaid programs. This would mean fewer services, higher costs, and loss of access to essential health and long-term care for older adults, people with disabilities, and their caregivers. For example, the Commonwealth Fund and the George Washington University Milken Institute School of Public Health report that 477,000 healthcare jobs would be eliminated, impacting hospitals, nursing homes, and doctors’ offices, due to reduced Medicaid enrollment and revenue losses for health care providers. Another 411,000 jobs would be lost in other businesses, as losses ripple out through state economies. This would exacerbate fiscal challenges for states and further strain an already overburdened healthcare system.

The Long-Term Consequences

Reducing federal funding for Medicaid, SNAP, and Social Security could have severe long-term economic consequences for the U.S. economy. These programs are not only essential for the health and well-being of millions of Americans but also play a crucial role in supporting the economic stability of communities and businesses nationwide.

1. Job Losses and Economic Activity:

- A report from the Commonwealth Fund and the George Washington University Milken Institute School of Public Health warns that potential budget cuts to Medicaid and SNAP could lead to one million jobs lost and a $113 billion decline in states’ gross domestic products in 2026 alone. This economic downturn would be particularly severe for health care and food-related industries, leading to widespread job losses and additional strain on state budgets. For instance, "477,000 healthcare jobs would be eliminated, impacting hospitals, nursing homes, and doctors’ offices, due to reduced Medicaid enrollment and revenue losses for health care providers. Another 411,000 jobs would be lost in other businesses, as losses ripple out through state economies." (Commonwealth Fund and the George Washington University Milken Institute School of Public Health, March 25, 2025)

2. State and Local Tax Revenues:

- The reduction in federal funding for these programs would also lead to a significant drop in state and local tax revenues. For example, "State and local tax revenues would drop by $7 billion due to lower business and individual income from job losses, exacerbating fiscal challenges for states." (Commonwealth Fund and the George Washington University Milken Institute School of Public Health, March 25, 2025) This would further strain state budgets, potentially leading to cuts in other essential services like education and infrastructure.

3. Healthcare System and Public Health:

- Medicaid cuts would have a ripple effect across the entire healthcare system. Hospitals, especially rural and safety-net hospitals, could lose billions in Medicaid reimbursements, pushing many toward closure. Uncompensated care is a greater threat to systems in lower-income communities. Doctors and nurses treating Medicaid patients could see reduced payments, making it harder to sustain care in underserved areas. Hospitals absorb most of the approximately $900 in additional costs from each uninsured individual. (CHC: Creating Healthier Communities, March 25, 2025)

4. Economic Instability and Increased Medical Debt:

- The economic instability caused by these cuts would lead to increased medical debt and bankruptcies, further crippling the economy. For example, "Increased medical debt and bankruptcies could cripple the economy." (CHC: Creating Healthier Communities, March 25, 2025) This would not only affect low-income individuals but also create a ripple effect across the entire healthcare system, small businesses, and state economies.

5. Impact on Small Businesses and Employers:

- Small business owners depend on Medicaid for their own coverage and for employees who may not have access to employer-sponsored plans. The majority of Medicaid enrollees work full or part-time. Many Medicaid adults are employed by small organizations that have fewer than 50 employees and are not required to offer employer-sponsored health insurance. Without Medicaid, workforce health declines, leading to absenteeism and lower productivity. (CHC: Creating Healthier Communities, March 25, 2025)

What You Need to Do

SEIU members are making it clear to Congress that they do not support any budget that includes or makes way for massive cuts to the healthcare and public services Americans depend on daily. They are demanding that the leaders we sent to Washington DC stand with working families during this critical time or be prepared to be held accountable. You need to join them in this fight. Contact your members of Congress. A phone call, email or letter can help change the course of this discussion. If you’re unable to reach your members of Congress by phone immediately, do not get discouraged. Apps and services such as 5Calls, which helps you build a script and make calls to all of your members of Congress, can help guide you. Make your concerns heard and help preserve this essential service for Americans.