Unresolved negotiations leave Medicaid funds and E-7 Wedgetail Program in flux

The back and forth in Washington regarding the reconciliation bill raises concerns for rural hospitals and Medicaid funding across the nation. Political Analysts Alex Cameron and Scott Mitchell breakdown the latest in this week's DC Debrief.

Potential Cancellation of the E-7 Wedgetail Program

1. The Department of Defense is considering canceling the E-7 Wedgetail program, which was intended to replace the aging E-3 Sentry AWACS planes based in central Oklahoma.
2. The DoD is exploring a shift toward space-based surveillance platforms using satellites instead of manned aircraft for airborne tracking and command functions.
3. Oklahoma’s congressional delegation, including Senator Lankford, Senator Mullen, and Congressman Cole, are actively opposing the cancellation and advocating to keep the E-7 program on track, citing its importance for both national defense and the local economy.
4. Production delays by Boeing are a factor in the debate, with concerns that slow progress may be contributing to the program’s vulnerability.

Defense Budget Process and Uncertainty

1. The discussion clarifies that these issues are part of the regular defense budget process, not budget reconciliation.
2. The administration’s submitted defense budget proposes eliminating the E-7 program, but the final decision is still pending and subject to legislative negotiation.

Senate Reconciliation Bill and Medicaid Cuts

1. Attention shifts to the Senate’s reconciliation bill, particularly proposed Medicaid cuts and their impact on rural hospitals, disadvantaged groups, the disabled, youth, and the elderly.
2. The Senate parliamentarian has ruled that certain Medicaid cuts included in the House bill do not meet the strict budgetary criteria required for reconciliation and must be removed, resulting in about $300 billion in lost savings.
3. The Senate is working to rewrite or adjust language to meet reconciliation rules and regain some of the lost savings, but this process is slow and complex, involving both the parliamentarian and the Congressional Budget Office.

Timeline and Legislative Challenges

1. The original goal was to vote on the reconciliation bill by Thursday, then Friday, then Saturday, but delays have pushed the timeline further, making it unlikely to meet President Trump’s July 4th deadline for signing the bill.
2. Even if the Senate passes the bill, the House may reject changes and send it back, prolonging negotiations.
3. The legislative schedule remains fluid, with House members on standby for potential votes, reflecting ongoing uncertainty.

Medicaid Impact on Oklahoma and Rural Hospitals

1. Headlines have highlighted a potential $8.7 billion impact on Oklahoma’s rural hospitals from Medicaid cuts, but no final deal has been reached.
2. A proposed $15 billion stabilization fund for rural hospitals is under discussion, but details and adequacy are still being debated.
3. Senator Lankford and others are aware of the risks and are working to mitigate negative effects, possibly requiring increased state support if federal cuts proceed.

Ongoing Negotiations and Political Dynamics

1. The situation is highly dynamic, with the possibility of new developments over the weekend, especially if President Trump intervenes to rally support among lawmakers.
2. Both the E-7 program and Medicaid funding remain unresolved, with advocacy and negotiations continuing at multiple levels.

Conclusion and Next Steps

1. The conversation ends with acknowledgment of the fluidity of the situation, the likelihood of more news in the coming days, and encouragement for viewers to stay tuned for updates.