Posts by Newspaper Staff
Federal government investigates 45 universities over Title VI
The U.S. Department of Education has launched investigations into 45 universities for alleged Title VI violations.
In recent months, the department’s Office for Civil Rights have claimed the universities are in violation of Title VI due to alleged racial discrimination on campus.
Title VI of the Civil Rights Act of 1964 prohibits discrimination based on race, color or national origin in programs and activities that receive federal funding.
“The Department is working to reorient civil rights enforcement to ensure all students are protected from illegal discrimination. The agency has already launched Title VI investigations into institutions where widespread antisemitic harassment has been reported and Title IX investigations into entities which allegedly continue to allow sex discrimination,” said U.S. Secretary of Education Linda McMahon. “Today’s announcement expands our efforts to ensure universities are not discriminating against their students based on race and race stereotypes.”
In its recent efforts to combat campus discrimination, the Trump administration has informed Harvard University’s accreditors that the university is violating federal anti-discrimination laws, potentially jeopardizing its accreditation.
“When an institution — no matter how prestigious — abandons its mission and fails to protect its students, it forfeits the legitimacy that accreditation is designed to uphold,” said Health and Human Services Secretary Robert F. Kennedy Jr. in a press release.
Assistant Homeland Security Secretary Tricia McLaughlin blamed Harvard for ongoing discrimination and antisemitic harassments students faced.
“Harvard, like other universities, has allowed foreign students to abuse their visa privileges and advocate for violence and terrorism on campus,” McLaughlin said.
On Thursday, the Department of Education announced an investigation into George Mason University following a complaint alleging that the university’s diversity, equity and inclusion policies provide “preferential treatment” to faculty from “underrepresented groups” in an effort to appear “anti-racist.”
“The Trump-McMahon Education Department’s Office for Civil Rights will investigate this matter fully to ensure that individuals are judged based on their merit and accomplishment, not the color of their skin,” said Acting Assistant Secretary for Civil Rights Craig Trainor.
The University of Washington and Washington State University have also been under investigation due to their ties with the PhD Project, a nonprofit that assists minorities within graduate programs.
“Our vision is to create a broader talent pipeline of current and future business leaders who are committed to excellence and to each other, through networking, mentorship, and unique events,” the PhD Project stated.
In the announcement back in March, McMahon noted the department efforts are to ensure that all students, regardless of race, have the same opportunities to accomplish greatness.
“Students must be assessed according to merit and accomplishment, not prejudged by the color of their skin. We will not yield on this commitment,” McMahon said.
Colleges being investigated by the Department of Education over Title VI also include the University of Nevada, Las Vegas and two colleges in Colorado.
U.S. Forest Service to cut $391M
The U.S. Forest Services plans to cut its budget by $391 million for fiscal year 2026, according to a proposed budget request.
A large portion of the cuts to the forest services budget are expected to be implemented into the new U.S. Wildland Fire Service within the Department of the Interior.
Tom Shultz, chief of the U.S. Forest Service, laid out plans to integrate fire service operations within the department and highlighted its focus on a “back-to-basics approach” at a Senate Energy and Natural Resources hearing on Thursday.
“The fiscal year 2026 President’s budget refocuses forest service efforts on active forest management, critical minerals permitting, recreation [and] energy development,” Shultz said.
Some senators on the committee criticized the forest service’s plans to consolidate fire operations in the Department of Interior.
“Instead of moving quickly, you all have trotted out yet another new and described as improved reorganization in the middle of a very dangerous fire season,” Sen. Ron Wyden, D-Ore., said.
Sen. Alex Padilla, D-Calif., said he was concerned about staffing cuts at the forest service from the Trump administration’s deferred resignation program, which allowed federal workers to resign from their positions while still receiving pay and benefits until Sept. 30.
“The staffing reductions coupled with the president diverting National Guard units in California mean that those resources are no longer available to support our wildfire response capacity,” Padilla said.
Shultz said that most firefighting personnel in the forest service did not take part in the deferred resignation process. He said the forest service maintains 99% capacity for firefighting personnel.
Padilla also said he was concerned about the increased roles state and local governments would need to take up in preventing forest fires with less help from the U.S. Forest Service.
“Communities in the United States of America are at increased risk because of the actions of this administration which contradict the supposed goals and objectives,” Padilla said.
Sen. Steve Daines, R-Mont., opposed Padilla and said that state governments should have greater responsibility over public lands, rather than the federal government.
“If you take a look at the landscapes across Montana and look at federal lands versus state lands, I can tell you the state’s doing a much, much better job in terms of stewardship of public lands than the federal government,” Daines said.
As the U.S. Forest Service prepares to make cuts to its budget, state and local governments are looking for ways to address land management.
“Some of these issues that we’ve discussed, it’s just a reminder of the fact that states and tribes are incredible partners. They’re indispensable parties really, Sen. Mike Lee, R-Utah said.
“They’re the ones on the ground, living in communities that depend on these forests, that are right next to them, whose lives are inextricably intertwined with the land in question,” Lee added.
State Department to proceed with ‘relevant and effective’ reorganization
The new leadership at the U.S. Department of State is moving full speed ahead on its mission to “rightsize” and reshape the department to serve its America First foreign policy vision, according to department spokesperson Tammy Bruce.
“We inherited a dynamic that needed reform, and we are taking and implementing reform,” Bruce said at a press briefing Thursday afternoon.
The briefing takes place two days after the Supreme Court issued a stay on a lower court’s decision challenging the administration’s sweeping personnel and staffing cuts, allowing the administration to proceed with mass layoffs and firings for now.
This effort “restores the department to its roots of results-driven democracy,” according to Bruce.
“This is about making sure that the State Department is able to operate in a manner that makes it relevant and effective. That is what the American people want. It’s what all of us want,” she said.
The emergency stay was issued Tuesday evening in an 8-1 decision in response to a request from the administration to enforce a February executive order and memorandum attempting to reform the federal workforce.
“Because the Government is likely to succeed on its argument that the Executive Order and Memorandum are lawful — and because the other factors bearing on whether to grant a stay are satisfied — we grant the application,” the justices wrote.
They added that the order does not represent an opinion from the Court on “the legality of any Agency [Reduction in Force] and Reorganization Plan produced or approved pursuant to the Executive Order and Memorandum.”
Justice Ketanji Brown Jackson dissented.
Bruce emphasized that the cuts were not to be taken as a reflection of those being laid off or terminated — calling her experience working at the State Department “life-changing” — but rather as a reflection of the structure and effectiveness of the organization as a whole.
“I do also want to make a note here as my experience at the State Department now moves into its six month [of] the remarkable experience, the life-changing experience, I’ve had getting to know the people who work in this building,” Bruce said. “In the midst of this, know that the people who have committed to the State Department and to diplomacy — that they know also — that this is not about them.”
The stay will remain in effect until the lawsuit concludes. It’s currently under review by the 9th U.S. Circuit Court of Appeals. If the court rules against the administration, the government will likely appeal to the Supreme Court.
New bill would eliminate federal tax on home sales
Real estate owners looking to sell their homes in the future may be able to avoid paying the federal capital gains tax if newly-introduced legislation passes.
The No Tax on Home Sales Act, introduced Thursday by U.S. Rep. Majorie Taylor Greene, R-Ga., would eliminate the federal capital gains tax on home sales if the home is the seller’s primary residence. This caveat would ensure that house flippers or real estate investors would not take advantage of the change.
Currently, if homeowners sell their property for more than they originally paid for it, the difference is called a capital gain. The federal government will usually tax the gain, depending on the home seller’s income, gain amount, and how long the home was owned. The capital gains tax falls into 0%, 15%, and 20% brackets.
Greene said her bill, by removing what amounts to a tax penalty on home selling, would increase housing market fluidity as well as housing inventory.
“Families who work hard, build equity, and sell their homes should not be punished with massive tax bills,” Greene said in a statement. “The capital gains tax on home sales is an outdated, unfair burden – especially in today’s housing market, where values have skyrocketed.”
The Internal Revenue Service does allow some homeowners to exclude gains up to $250,000 for qualifying single filers and $500,000 for joint filers. But that rule has not been updated since 1997, and housing prices have risen 119% since then, subjecting more and more Americans to a tax originally meant for the wealthy.
“Homeowners who have lived in their homes for decades, especially seniors in places where values have surged, shouldn’t be forced to stay put because of an IRS penalty,” Greene added. “My bill unlocks that equity, helps fix the housing shortage, and supports long-term financial security for American families.”
If the bill passes, the federal government would see a significant decrease in revenue. While the number of capital gains tax filers fluctuates from year to year, 26 million tax returns included some capital gains in 2019, amounting to billions of dollars in taxes.
The federal government is already set to lose at least $3.3 trillion in projected tax dollars over the next 10 years due to the passage of Republicans’ “big, beautiful bill,” which makes the bulk of the 2017 tax cuts permanent.
ICE arrests MS-13 gang members hiding in Nebraska
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations arrested one of El Salvador’s most notorious MS-13 gang members in Nebraska.
The suspect, whose name has not been released, is a Salvadoran national. He was wanted by authorities because he had multiple violent charges against him including the killings of five people, unlawful detention, aggravated murder, and a connection to a terrorist organization.
He was arrested along with Rene Saul Escobar Ochoa, a 30-year-old MS-13 terrorist and foreign national who was residing with the suspect in the United States illegally.
Ochoa, also wanted in El Salvador, is alleged to be the ringleader of a network of gang members, directing them to carry out a series of violent crimes like murder, extortion, drug distribution, and imprisonment.
They were both taken into custody without any resistance during a focused operation. Their presence was known in Omaha and posed a severe threat to the community, according to ICE officials.
“These illegal aliens didn’t just sneak into our country; they brought with them a legacy of violence, terror and death,” HSI Kansas City Special Agent in Charge Mark Zito, said in a statement. “They thought they could hide in America’s heartland, but they were sadly mistaken.”
Federal officials are warning that any misinformation about immigration enforcement could have deadly consequences.
“When ICE agents move in to make an arrest, it is extremely important that the public not interfere,” ICE acting Director Todd M. Lyons, said in the release. “The misinformation, and sometimes blatant lies, being spread around the country could result in someone stepping into a federal operation and suddenly finding themselves face-to-face with a killer who has nothing to lose.”
The Trump administration is prioritizing finding and removing TdA members as well as others it’s designated as members of foreign terrorist organizations.
A Homeland Security task force is working to protect Americans “by eliminating criminal cartels, foreign gangs, and transnational criminal organizations operating in Nebraska and Iowa,” The Center Square reported.
One recent arrest was of a Venezuelan national and alleged TdA member charged with attempted murder of special agents in Bellevue, Nebraska, after throwing an ICE agent to the ground, slamming her head on the pavement, ripping off her body armor, and making “repeated and physical violent contact,” The Center Square reported.
This is after more than one million Venezuelans illegally entered the country under the Biden adminstration, including members of the terrorist organization Tren de Aragua, whose criminal activity has been confirmed in at least 22 states, The Center Square exclusively reported.
Retired Air Force generals raise concerns about F-35, E-7 Wedgetail cuts
A group of 16 retired U.S. Air Force generals is asking congressional leaders to increase the purchase of F-35 Lightning fighter aircraft and a replacement for the Air Force’s aging airborne warning and control system fleet.
The Air & Space Forces Association sent a letter on Monday to Congressional leaders, asking them to restore funding for a full purchase of 75 F-35s and to undo the termination of the Boeing E-7 Wedgetail AWACS program.
As part of the U.S. Department of Defense’s $961 billion funding request, the number of Air Force F-35 purchases was cut from 75 to 24, while the E-7 program was canceled.
Gen. Ronald R. Fogleman, the 15th chairman of the Air Force, said on a Zoom call with media that cutting the F-35 purchases could jeopardize the service’s operations if several of the four theaters of operation — the continental U.S., Europe, Asia and the Middle East — flare up simultaneously.
“And so 72 might not be the right number, but it’s, in my opinion, a minimum number to build back up the fighter force structure to deal with the threats that we face,” Fogleman said.
Air Force leaders have repeatedly said a minimum of 72 fighter aircraft need to be purchased annually to replace the service’s aging fleet. This year’s budget request would only purchase 45, with 21 of those F-15EX Eagle II aircraft.
The Air Force has already spent $2.5 billion on the Wedgetail program, which the retired generals said is a vital system. AWACS aircraft are flying air contact tracking and battle management platforms and have been essential in every U.S. conflict since the Vietnam War. The Wedgetails were intended to replace the service’s aging E-3 Sentry AWACS aircraft, which entered service in March 1977.
Defense Secretary Pete Hegseth told Congress in June that the E-7 is an example of a platform that isn’t survivable on a modern battlefield and that the service would pivot to space-based surveillance systems instead, along with a purchase of the Navy’s Northrop Grumman E-2D Hawkeye AWACS.
The 18th U.S. Air Force chief of staff, retired Gen. Michael Moseley, said space is no longer a free game, it’s a contested combat arena and putting all of eggs into orbit is a bad operational idea.
“But it was basically a notion of what can we move on to orbit, and what can we divest ourselves of?” Moseley said. “Divest ourselves of air breathing? Can we move (now retired E-8) J-STARS? Can we move AWACS? Can we move our sensors into orbit? We spent quite a bit of time on that, and I think we, with 100% agreement, came back and said, that would be a great idea, except for two realities: We don’t have the technology to migrate the air breathing sensors into orbit, and two, the vulnerabilities will eventually become severe.”
Gen. Michael Loh, the first commander of the Air Combat Command and a former Air Force vice chairman, said the vulnerability of the E-7 in contested air space isn’t an issue because Air Force has traditionally “sanitized” areas from both aerial and ground-based threats such as surface to air missiles.
“And that’s just a false assumption, but the Air Force seems to have taken up the fact that if an aircraft can’t operate in contested airspace, it can’t contribute to the battle,” Loh said. We can sanitize areas of operation. We’ve done it in every war. We’ll do it in every war. We can operate in contested airspace. We can clear it out when we have an air operation like we we’ve done very well in Desert Storm.
“We did it in Midnight Hammer. We did it every campaign we’ve been involved in, we can, we can operate in that airspace, with defense suppression, with overwhelming force and with smart tactics, and we’ve done it all the time. So we shouldn’t be afraid of contested airspace.”
The E-2 is designed to operate from the U.S. Navy’s aircraft carriers and has fewer on-board operators, decreased range and a smaller radar than the E-7.
Since the Hawkeye is designed to take off and land on carriers, this design would allow the aircraft to use shorter landing fields closer to the battlespace.
The E-2 also doesn’t use the Air Force’s in-flight refueling method which uses a “boom” flown by an operator into a receptacle on the receiving aircraft.
The Hawkeye can only be refueled via probe and drogue method as are other Navy and Marine Corps aircraft. This refueling method uses a probe on the receiving aircraft, which is flown by the pilot into a basket (known as a drogue) from the trailing aircraft.
The advantage of the boom method is a much greater fuel transfer rate, while the older probe and drogue method allows even fighter aircraft to be fitted with refueling gear (such as the Navy’s F-18 Super Hornet) to act as tankers.
The E-7 is operated by the Royal Australian Air Force, the South Korean Air Force and the Turkish Air Force and will be entering service with the Royal Air Force next year.
The E-7 also has the advantage of more operator stations, with Australian aircraft having 10 and space for four more, while the smaller fuselage of the E-2 only has three.
$35,000 in rewards offered for info leading to arrest of man involved in ICE attack
Rewards totaling $35,000 have been offered for information leading to the apprehension of a wanted man allegedly involved in a planned ambush of federal and local law enforcement officers at a U.S. Immigration and Customs Enforcement detention facility in North Texas.
Texas Department of Public Safety issued a Blue Alert as a manhunt continues for the suspect, Benjamin Song, 32, “wanted in connection to violence against a law enforcement officer,” DPS said.
Texas DPS also added Song to its 10 Most Wanted Fugitive List, stating, “Subject should be considered ARMED and DANGEROUS!”
DPS released photos of him describing him as approximately 5’6” tall, weighing 150 pounds, with brown eyes and black hair.
Song has ties to Dallas County, including Dallas and Addison, DPS said. On July 8, warrants were issued out of Johnson County for his arrest for “Aiding Terrorism, Aggravated Assault with a Deadly Weapon on a Public Servant, and Engaging in Organized Crime.” On July 9, a federal arrest warrant was issued in U.S. District Court, Northern District of Texas, Fort Worth, after Song was charged with “Attempted Murder of a Federal Officer and Discharging a Firearm During, in Relation to, and in Furtherance of a Crime of Violence.”
The FBI, which is leading the ongoing investigation, has asked members of the public to provide any information about the incident by calling 1-800-CALL-FBI. It’s also issuing a $25,000 reward for information that leads to his arrest, bringing the total reward to $35,000.
Anyone who sees Song is instructed not to approach him and to call 911, the FBI, DPS or Texas Crime Stoppers.
To be eligible to receive cash rewards, tipsters must call Texas Crime Stoppers at 1-800-252-TIPS (8477), submit a web tip through Texas DPS’ 10 Most Wanted website or Texas DPS online form.
Tips are anonymous and tipsters are given a number instead of using their name.
On July 4, the Alvarado Police Department announced that one of its police officers had been shot in the neck after responding to a call without stating the incident occurred outside of an ICE detention facility. What occurred was “a planned ambush with the intent to kill ICE corrections officers,” involving 10 to 12 people dressed in black, wearing tactical gear and body armor, who shot 20-30 rounds at unarmed corrections officers and the police officer, Acting U.S. Attorney for the Northern District of Texas Susan Larson said.
Ten individuals were each charged with three counts of attempted murder of a federal officer and three counts of discharging a firearm related to a crime of violence. Each defendant faces a mandatory minimum 10 years in prison and up to life in prison. One co-conspirator was charged with obstruction of justice and conspiracy for attempting to conceal and destroy evidence and faces up to 10 years in prison, The Center Square reported.
It was the first of two officer involved shootings outside of a federal immigration facility in Texas this week, The Center Square first reported. The second occurred on Monday after a Michigan man opened fire on a Border Patrol facility in McAllen, Texas, shooting a McAllen Police officer in the knee who responded to the call. The shooter was killed by Border Patrol agents and a multiagency investigation is ongoing.
Josh Johnson, acting field office director for ICE Enforcement and Removal Operations-Dallas said, “This type of vigilante lawlessness is emblematic of the dangers federal, state and local law enforcement officials face every day. Within ICE alone, our officers and agents are facing a 700% increase in assaults.”
That’s a 200 percentage point increase from three weeks ago when attacks were up by 500%, The Center Square reported.
California’s Newsom latest governor auditioning South Carolina audiences
Tim Walz and Wes Moore came to South Carolina earlier. This week it is Gavin Newsom. Andy Beshear is on the schedule, too.
The sitting governors are in the mix as candidates for the 2028 presidential election, and this state – politically red as it may be – was lifted in importance by former President Joe Biden. First he resurrected his primary chances ahead of the 2020 election, then he sought to make it the first stop in the calendar saying it was more representative of the nation’s voters.
“What we’re experiencing is America in reverse,” Newsom told the Kershaw County Democratic Party crowd. “They’re trying to bring us back to a pre-1960s world on voting rights. You know it well. Civil rights. LGBTQ rights. Women’s rights. And now just access to abortion but also access to simple reproductive care contraceptives.”
Newsom’s meet and greets have been a contrast to the Minnesota governor’s visit to the state party’s convention May 31. Walz told his audience, speaking of second-term Republican President Donald Trump, they should “bully the s— out of him back.”
His speech was laced with profanities in a state where Republicans are in both U.S. Senate seats, seven of eight U.S. House seats, seven of the eight state executive office seats including governor, and hold General Assembly majorities of 34-12 in the Senate and 88-35 with a vacancy in the House.
“Maybe it’s time for us to be a little meaner, a little bit more fierce,” said Walz, the vice-presidential half of the Kamala Harris ticket scrambled together following Biden’s July exit from the race.
Newsom was quizzed as he traveled about Harris, and if he would support her should she choose to run for president a second time. He was noncommittal.
And, for the record, the official purpose of his trip was to support local Democrats and disaster-torn communities. He was in many community settings, from county party gatherings to stops in small local businesses.
Still, Walz and Maryland’s Moore were definitely in front of audition audiences at the party state convention. Kentucky’s Beshear next Wednesday visits the University of South Carolina in Columbia, an AFL-CIO event in Greenville, a dinner with the Georgetown County Democratic Party, and Charleston.
Expect the same narrative as those before him.
Newsom targeted Trump at every turn, told his audiences the “legislative agenda is effectively over” because of voter power in the midterms, and called California “the most un-Trump state.”
It’s still two years before the Democratic National Committee confirms whether South Carolina, Iowa, New Hampshire or Nevada goes first in the primary schedule. That said, it’s never too early to prime the pump.
Next week is Beshear’s turn.
New Hampshire judge blocks Trump’s birthright citizenship ban
A federal judge in New Hampshire has again blocked President Donald Trump’s executive order ending birthright citizenship and expanded the injunction nationwide.
The bench ruling Thursday by U.S. District Court judge Joseph Laplante sides with immigration advocates seeking to certify plaintiffs facing a loss of citizenship as a class-action lawsuit, and set a preliminary injunction indefinitely blocking Trump’s order from being enforced against born and unborn babies. The ruling does not include parents.
Laplante, who was appointed by former Republican President George W. Bush, was expected to issue a written ruling later Thursday. He would stay the ruling for a week to give the Trump administration time to appeal.
The ruling came despite a 6-3 U.S. Supreme Court ruling that district court judges can’t issue nationwide injunctions unless the plaintiffs in the case had been certified as a nationwide class. Justices didn’t rule on the constitutionality of Trump’s order ending birthright citizenship. The executive order is set to go into effect on July 27 under the high court’s decision.
A Supreme Court ruling more than a century ago held that children born in the U.S. to foreign parents are U.S. citizens under the 14th Amendment. But the Trump administration claims the 14th Amendment has “never been interpreted” to give universal citizenship to everyone born in the country.
Trump’s executive order, signed during his first day in office in January, directs federal agencies to refuse to recognize U.S. citizenship for children born in the U.S. to mothers who are in the country illegally or here legally on visas, if the father is not a U.S. citizen or lawful permanent resident. The order denies U.S. citizenship to those children born in the U.S., if at least one parent isn’t an American citizen or green card holder, according to the Trump administration.
The lawsuit, one of dozens challenging Trump’s order, was filed by the American Civil Liberties Union’s chapters in Massachusetts, Maine and New Hampshire on behalf of an unidentified woman from Honduras who has a pending asylum application and is due to give birth to her fourth child and and a man from Brazil whose U.S. citizen wife gave birth to their first child earlier this year.
The ACLU argues that Trump doesn’t have the authority to end birthright citizenship and is “flouting the Constitution’s dictates, congressional intent, and long standing Supreme Court precedent.”
“Neither the Constitution nor any federal statute confers any authority on the President to redefine American citizenship,” the ACLU’s lawyers wrote in the 17-page complaint. “By attempting to limit the right to birthright citizenship, the Order exceeds the President’s authority and runs afoul of the Constitution and federal statute.”
Illinois hospitals fear massive cuts under Trump domestic policy law
Capitol News Illinois
Article summary
President Trump’s domestic policy bill contains massive cuts in federal Medicaid spending over the next 10 years.
One analysis predicts $48 billion in spending reductions in Illinois over a decade.
The cuts limit states’ ability to raise money through provider taxes to fund their share of Medicaid costs.
The cuts also limit the way states use Medicaid to direct additional payments to hospitals.
SPRINGFIELD — Hospital officials in Illinois say they will have to make some difficult decisions in the next few years that could involve laying off staff, cutting back services and even closing some facilities entirely.
That’s the expected result of federal funding cuts built into the recently passed domestic policy bill that President Donald Trump signed into law July 4, a law that will cut federal spending on Medicaid by more than $1 trillion over the next 10 years.
A.J. Wilhelmi, CEO of the Illinois Health and Hospital Association said in an interview with Capitol News Illinois that the financial pressures will fall heaviest on hospitals that serve rural areas, where a larger share of the population is covered by Medicaid.
“The hospitals in these communities are already on the brink, based on some of the increases in labor, drug and supply costs coming out of COVID, a continuation of claim denials by payers and relatively flat reimbursement rates,” Wilhelmi said. “So, all of that is creating significant pressures. And when you add these Medicaid cuts to an already challenging situation, we know that there are several hospitals that close because of these changes.”
Enrollment, reimbursement reductions
The new law contains provisions that are expected to reduce the number of people enrolled in Medicaid, particularly in states like Illinois that expanded eligibility for the program under the Affordable Care Act, the 2010 law commonly known as Obamacare.
Those include work requirements for people who enrolled through the expansion as well as requirements that they verify their continued eligibility for the program twice a year instead of annually.
But the law also includes changes in aspects of the program that most people outside the health care industry never see. Those mechanisms – known as provider taxes and directed payments – affect the way states finance their share of the cost of Medicaid and the way they direct additional payments to certain health care providers such as hospitals.
Like many states, Illinois levies special taxes on certain health care providers, including hospitals. The money those taxes generate is used to draw down additional federal matching funds, then is paid back to the providers in the form of directed payments to increase their overall reimbursement rate and to reward them if they meet certain performance or quality standards.
Currently, IHA estimates the hospital tax generates about $2 billion a year in revenue. This past session, lawmakers passed a bill to increase the assessment in order to fund a 54% increase in hospital payments, subject to federal approval of the state’s plan. But state lawmakers passed that bill before Congress passed Trump’s domestic policy bill, dubbed the “One Big Beautiful Bill Act.”
Prior to passage of the new federal law, the tax rate states could levy was effectively capped at 6% of a hospital’s net patient revenue. But under the new law, for states like Illinois that expanded Medicaid under the ACA, that cap will gradually be lowered by half a percentage point each year starting in 2028 until it reaches 3.5% in 2032.
In addition, Wilhelmi said, the new law imposes a cap on the directed payments that expansion states like Illinois can send to hospitals so that the total does not exceed the maximum allowed under Medicare – the federal health insurance program for seniors, which has a lower reimbursement rate than Medicaid.
“And that will result in a significant reduction in Medicaid reimbursements for hospitals,” Wilhelmi said. “It means literally hundreds of millions of dollars in less reimbursement to hospitals.”
$48 billion impact over 10 years
According to the nonpartisan health policy research organization KFF, federal Medicaid spending in Illinois is expected to be reduced by about $48 billion over 10 years under the new legislation. That includes an estimated $6.73 billion in spending cuts in rural parts of the state.
Democratic Gov. JB Pritzker has been harshly critical of the new law, and particularly the Medicaid cuts contained in it.
“Donald Trump isn’t just cutting health care — he’s also closing hospitals in Illinois and across the country with his latest scheme,” Pritzker said in one social media post while the bill was moving through Congress. “Hard-working Illinoisans will spend more time in overcrowded waiting rooms and lose access to life-saving care.”
Wilhelmi, meanwhile, said there is still time before the cuts begin to take effect, and he is urging state officials to begin work immediately to develop strategies to adapt to the changes.
“I think the state will need to work with stakeholders like IHA and our hospitals, other provider groups, to identify creative options to ensure that the Medicaid program can continue to be that lifeline for vulnerable patients and communities,” he said. “And that will include identifying options to fortify those programs and services, as well as identify working with our congressional delegation on ways to mitigate or further delay these changes.”
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
The post Illinois hospitals fear massive cuts under Trump domestic policy law appeared first on Capitol News Illinois.