Dear Valued Member of the DC and DMV Business Community,

House Republicans have passed a budget resolution that includes major changes to the Medicaid including a reduction in DC’s reimbursement rate from 70 percent to 50 percent. It was Republicans in Congress, led by Newt Gingrich, in the mid-1990s, that first okayed the city’s 70 percent match. It recognized that the District—a city—shoulders state responsibilities without the ability to raise the same revenues because of legal barriers imposed by the federal government.

Undoing this longstanding agreement would be catastrophic for the Nation’s Capital. The reduction in FMAP would result in a cut of $1.1 billion of local funds and $2.1 billion of program funds to local hospitals, universities, and providers across the District each and every year. This equates to a 40 percent cut in funding directly for those health care professionals. In addition to health care, DC would have fewer resources to invest in all of its priorities including public safety, education, transportation, infrastructure and human services.

 A strong response by the business community is essential to heading off this action. The budget process is moving quickly on the Hill and this issue will be decided during reconciliation over the next week. This is an urgent issue and time is of the essence. We encourage you to please add your name to the business community letter by Wednesday, March 12 (linked here OR below).

Thank you for supporting DC,

Tony Williams

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DRAFT LETTER:

Dear Name of Member of Congress, 

We write to you in unison, representing some of the District of Columbia’s largest businesses and employers, and urge you to protect the city’s 70 percent federal Medicaid match (FMAP).

It was Republicans in Congress, led by Newt Gingrich, in the mid-1990s, that first okayed the city’s 70 percent match. It recognized that the District—a city—shoulders state responsibilities without the ability to raise the same revenues because of legal barriers imposed by the federal government.

Undoing this longstanding agreement would be catastrophic for the Nation’s Capital. The reduction in FMAP would result in a cut of $1.1 billion of local funds and $2.1 billion of program funds to local hospitals, universities, and providers across the District each and every year. This equates to a 40 percent cut in funding directly for those health care professionals. Those that live, work, and visit the District would experience reduced services that could result in someone not getting the care they need, especially in a crisis. There would be less DC government money to invest in infrastructure, public safety and cleanliness. There could then be less private money interested in investing in the city as well.

This all cuts against exactly what President Trump wants—a beautiful, clean and safe Nation’s Capital. With the country’s 250th Anniversary Celebration just over a year away, Congress should focus on investing in the District to make it stronger rather than undercutting its fiscal, social and economic foundation.

Signed, 

List of Members, DC Business Community