Trump Admin Rescinds Federal Funding Freeze, A Major Source of Confusion for Medicaid Recipients in Nursing Homes

Days after the Trump administration issued an executive order to freeze federal aid, it has been rescinded. The order affected Medicaid funding, with at least 20 states on Tuesday unable to draw funds.

More than six out of 10 nursing home residents rely on Medicaid to cover their daily care; it’s a critical safety net for America’s seniors to access long-term care, Michael Bassett, senior vice president of government relations for the American Health Care Association (AHCA), told Skilled Nursing News.

The White House Office of Management and Budget (OMB) in a memo on Wednesday urged organizations to contact their agency counsel with any further questions about President Trump’s executive orders. Multiple news outlets received the memo, which was shared by Democracy Forward; this organization led a legal challenge over the effort.

Advertisement

Karoline Leavitt, White House spokesperson, said in a press briefing that efforts to “end the egregious waste of federal funding” will continue, and that the original memo announcing the freeze was rescinded “to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” NPR reported.

Prior to rescinding the order, U.S. District Judge Loren AliKhan blocked it from being implemented, minutes before it was to go into effect at 5pm. The judge’s order was set to expire on Feb. 3 at 5 p.m.

The freeze could have affected trillions of dollars in government spending and potentially impacted the nursing home sector as many public programs were halted.

Advertisement

Confusion and panic were rampant among organizations that rely on Washington as a financial lifeline, not the least of which are Medicaid recipients. A prolonged freeze would have prompted states to rely on their own funds, especially those with less taxpayer money coming in.

The White House still plans a far-reaching ideological review of federal spending, reports said. State officials told the Washington Post that the reliability of their federal partner in the Medicaid program is a wider concern.

And, the fight to maintain Medicaid isn’t over either. Aside from the funding freeze, Skilled Nursing News reported on potential Medicaid cuts under the Trump administration just yesterday. House Republicans seek to cut more than $5 trillion from Medicaid, Medicare, the Affordable Care Act, climate initiatives, and welfare, in favor of more funding for tax cuts and border security.

Analysts believe there’s a good chance that some cuts will make it into a massive party-line reconciliation bill along with efforts to reform government spending.

State representatives were poised to take on the federal freeze, among other Trump administration executive orders, with 23 state attorneys general filing a lawsuit over the pause.

Anecdotal reactions from state lawmakers and other officials were weighing the fallout since Monday.

NJ Rep. Mike Sherill, for one, said the freeze steps on Congressional authority and is a “gut punch” to taxpayers while also injecting “chaos” into the state’s economy, according to Townsquare Media.

“I have never seen, in my decades covering health policy issues, this level of confusion in what the federal government is doing with Medicaid and other health programs,” Larry Levitt, executive vice president of KFF, a health policy research organization, told the Washington Post.

Companies featured in this article:

, , , , , ,