Full Committee Markup of Budget Reconciliation Text Part 1

Committee on Commerce

2025-05-13

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Source: Congress.gov

Summary

This meeting involved extensive discussions and debates over proposed legislative recommendations, encompassing various policy areas from healthcare to energy and communications. Members presented their opening statements, followed by debates on specific subtitles and amendments. A recurring point of contention was the impact of proposed budget cuts on vulnerable populations and the allocation of funds.

Themes

Medicaid Cuts and Healthcare Access

Republicans contend that the proposed legislation aims to strengthen Medicaid by eliminating wasteful spending, fraud, and abuse, as well as implementing work requirements for able-bodied adults without dependents . They argue these measures prioritize Americans in need, ensuring the program serves its intended populations like expectant mothers, children, and people with disabilities, and will save taxpayer dollars . Many Republicans accused the opposition of spreading misinformation and fear-mongering about the impact on those truly in need .

Democrats strongly oppose the proposed Medicaid cuts, arguing that they would strip healthcare from millions of vulnerable Americans, including individuals with disabilities, children, and seniors [ 00:10:57 ]

. They assert that Republicans are breaking promises not to touch Medicaid and are pursuing these cuts primarily to fund tax breaks for the wealthy . Citing non-partisan analyses, such as from the Congressional Budget Office, Democrats claim millions would lose coverage and highlight personal stories of constituents whose lives depend on Medicaid .

Energy Policy and Environmental Regulations

Republicans promote energy dominance through policies like securing infrastructure, refilling the strategic petroleum reserve, and expanding user fees to streamline permitting for various energy pipelines . They believe that repealing current regulations and EV mandates will reduce costs and improve the energy sector . Their argument is that increased supply from diverse energy sources like gas, oil, coal, and hydropower is the most effective way to lower energy prices and ensure reliability .

Democrats argue that the proposed energy policies would undermine progress in lowering energy bills and clean energy development, primarily benefiting large corporations [ 02:08:15 ]

. They criticize the introduction of "pay-to-play" schemes that allow companies to pay fees to bypass environmental laws and permitting processes, which they view as potentially corrupt and likely to increase prices [ 02:54:52 ] . Concerns were raised that increased gas exports could raise domestic prices and impede the shift to cleaner energy sources .

On environmental regulations, Republicans advocate for eliminating what they call "Green New Deal style spending" to make Medicaid more sustainable [ 00:04:00 ] . They challenge the direct correlation between air quality and asthma rates, and suggest that some environmental justice initiatives might inadvertently hinder economic growth in disadvantaged communities .

Democrats argue that the bill would gut critical environmental protections by rescinding funds for EPA programs and repealing clean vehicle standards, thus harming public health and climate goals . They emphasize the detrimental effects on communities with high pollution levels, which could lead to increased health problems and negatively impact education . They contend these cuts are motivated by a desire to fund tax breaks for the wealthy .

Communications: Spectrum Auction and AI Regulation

Republicans propose reauthorizing FCC Spectrum Auction Authority to generate $88 billion in new revenue, which they intend to use for modernizing federal agencies with AI systems and strengthening national security .

Democrats accuse Republicans of abandoning bipartisan goals for spectrum auction proceeds to instead fund tax cuts for billionaires . They advocate for investing these revenues in critical public safety priorities, such as upgrading Next Generation 911 systems and ensuring affordable and accessible broadband . They highlighted the lapse of the Affordable Connectivity Program (ACP), which provided millions with internet access .

On AI regulation, Republicans propose a 10-year moratorium on state-level AI laws, arguing it is crucial to prevent a fragmented regulatory landscape that would stifle innovation and hinder federal modernization efforts . They assert that AI regulation is best handled at the federal level due to the interstate nature of AI systems [ 10:14:13 ]

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Democrats strongly oppose the 10-year moratorium, labeling it an "unprecedented giveaway to big tech" that leaves consumers vulnerable to various harms, including algorithmic bias, privacy violations, and even self-harm promotion by AI chatbots [ 07:48:26 ]

. They argue that states have been compelled to act due to federal legislative inaction and that such a moratorium would undermine existing state laws protecting consumers .

Economic Impact and Tax Cuts

Republicans maintain that their tax policies aim to benefit middle-class Americans, and extending the 2017 tax cuts is essential to avoid tax increases for many families . They emphasize that reducing government spending and eliminating waste, fraud, and abuse is fiscally responsible and ultimately benefits taxpayers [ 00:21:58 ]

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Democrats consistently allege that Republicans are prioritizing substantial tax cuts for billionaires and large corporations at the expense of ordinary Americans [ 00:38:31 ]

[ 02:08:15 ] . They claim these policies will increase living costs, worsen inflation, and escalate the national debt . Democrats propose alternative revenue streams, such as increasing taxes on top earners and corporations or improving tax collection, to fund essential programs without cutting services .

Tone of the Meeting

The meeting was predominantly contentious and partisan, characterized by sharp disagreements and accusations from both sides . Democrats frequently accused Republicans of cruelty, misinformation, and prioritizing the wealthy, often using emotionally charged personal stories to illustrate the impact of proposed cuts [ 00:10:57 ]

. Republicans, conversely, accused Democrats of fear-mongering and spreading falsehoods, while maintaining that their policies aimed for fiscal responsibility and to strengthen programs for those genuinely in need . There were frequent interruptions and points of order regarding decorum, particularly concerning the use of the word "lies" [ 00:50:26 ] [ 03:23:30 ] [ 03:23:39 ] . The overall mood was one of deep division and a struggle over differing legislative and ideological priorities.

Participants

Transcript

We've worked diligently to meet this target by ending wasteful Green New Deal style spending, supporting the rapid innovation of American industry and federal agencies, and eliminating the waste, fraud, and abuse in the Medicaid that jeopardizes care for millions of women, children, people with disabilities, and elderly Americans.   To ensure American energy dominance, we will secure our energy infrastructure by taking the steps to refill our strategic petroleum reserve, which strengthens our energy security and supports our national security.  In order to support the abundant energy production that will be necessary to secure our grid, and in order to increase revenue, we will expand the use of user fees to help streamline the siting and permitting of new oil, gas, carbon dioxide, and hydrogen pipelines.   We can save $172 billion over the next 10 years by repealing the burdensome Biden-Harris administration regulations and over $100 billion by eliminating the EV mandates imposed by the vehicle emission and cafe standards   that have failed to serve the American taxpayers.  And through investments to modernize the Department of Commerce, we can integrate AI systems to make the department more secure and effective to protect the integrity of this project.  And we're implementing guardrails that protect against state level AI laws that could jeopardize our technological leadership.   Our legislation will raise $88 billion of new revenue through a historic agreement reauthorizing the FCC Spectrum Auction Authority or protecting U.S.  national security.  The Biden era inflation has left Americans struggling to access affordable health care.  The issue has been exacerbated by the decisions of left-leaning state governments to spend dollars on illegal immigrants.  We make no apologies for prioritizing Americans in need over illegal immigrants and those who are capable but choose not to work.   Our priority remains the same, strengthen and sustain Medicaid for those whom the program was intended to serve, expectant mothers, children, people with disabilities, and the elderly.
We are prepared to stop the billions of dollars of waste, fraud, and abuse in the Medicaid program by beginning to rein in the loopholes by ensuring states have the flexibility to remove ineligible recipients from their roles and removing beneficiaries who are enrolled in multiple states.   These are all common sense policies that will return taxpayer dollars to middle class families.  Medicaid was created to protect healthcare for Americans who otherwise could not support themselves, but Democrats expanded the program far beyond this core mission.  That's why we are establishing common sense work requirements for capable but not working adults in the expansion population.   Let me be clear, these work requirements would only apply to able-bodied adults without dependents who don't have a disqualifying condition, encourage them to reenter the workforce and regain their independence.  All of this is part of our effort to strengthen Medicaid for the people that need it most.  When President Trump delivered his second inaugural address, he promised a revolution of common sense that will launch a generation of growth, prosperity, and health.   This reconciliation bill is critical to that promise the president and congressional Republicans made to the American people.  Today, we bring before the committee a package that unleashes American energy dominance, advances innovation, and protects access to care for our most vulnerable.  Each of these is a core part of our effort to re-spark the American dream and ensure our country will always be the land of opportunity.   I have no doubt that we'll have some robust discussions today about these proposals.  These discussions are important, and I look forward to using this time to address the issues that matter most to the American families we serve.  So I thank you all for your hard work as we continue our work to serve the American people.  I now yield five minutes to the ranking member, my friend from New Jersey, Mr. Pallone.
Thank you, Mr. Chairman.  I do want to say that I think hopefully everyone understands that these demonstrations are the people feel very strongly because they know they're losing   their health care and the cruelty that comes from the Republican proposal that makes them lose their health care and their health insurance.  But I would just ask that the police, I don't know if they're in the room, that we not arrest people if possible because many of them are disabled and I don't want to see them further hurt with their disability in the process of being arrested.   But for months now, President Trump and congressional Republicans promised the American people they would not cut Medicaid benefits or strip away people's health care.  In February, President Trump said, and I'm quoting, Medicare, Medicaid, none of that stuff is going to be touched.  House Speaker Johnson doubled down on that promise, stating, and again I'm quoting, the White House has made a commitment.  The president has said over and over, we're not going to touch Social Security, Medicare, or Medicaid.  We've made that same commitment.   Now, I have to say, Mr. Chairman, those are promises that Republicans made to the American people, and it's clear that they have broken that promise.  And I just want to reference on Sunday night, Mr. Chairman, in a Wall Street Journal interview, you actually said that the Republican plan to trim Medicaid spending, you were commenting on the Republican plan to trim Medicaid spending, and you said, and I quote, we're going to go as far as we can go to get 218 votes.   Well, I think the bottom line is you're going pretty far here in either trimming or cutting, however you want to call it.  You refer to it as trimming Medicaid.

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