From DC: Update on Litigation to Halt Federal Funding Freeze & Access to Treasury Data, Medicaid and SNAP Cuts, and more

February 7, 2025

From DC is Justice in Aging’s weekly roundup of national news and resources about issues impacting older adults. To receive From DC in your inbox as soon as its published, sign up for our mailing list.

Here’s what we’re watching in Washington:

Update on Litigation to Halt Federal Funding Freeze and Access to Treasury Data

Two federal courts have issued temporary restraining orders (TROs) in two cases opposing the Office of Management and Budget (OMB)’s efforts to freeze all federal financial assistance.

These TROs prevent federal agencies from pausing or cancelling any awards and obligations on the basis of recent presidential executive orders and OMB’s now-rescinded memo about the funding freeze. Further, the TROs prohibit the federal government from trying to reinstate the OMB memo’s directives in a different form.

In another case concerning Elon Musk’s access to the U.S. Department of Treasury’s payment systems, a federal judge issued an interim order limiting how Treasury may share payment records with Musk’s staff. These records contain information about federal payments for a wide range of programs and services.

Advocates can use this resource from Just Security to track these and other legal challenges to the Trump Administration’s actions. Justice in Aging is also monitoring relevant litigation and will continue to update our network with significant developments.

Medicaid and SNAP Cuts Continue to be in Budget Bill Negotiations

Republicans in Congress are continuing to discuss cuts to Medicaid and other public benefits in their plans for budget reconciliation.

This week, Speaker Johnson met with the White House and other caucus members and announced that the House Budget Committee will mark up its budget resolution early next week. Meanwhile, Senator Graham announced the Senate Budget Committee will also mark up a budget resolution next week. Both chambers must approve the same budget resolution to begin the budget reconciliation process, which allows Congress to fast-track legislation related to spending and taxes by bypassing the Senate filibuster.

Both the Senate and the House are contemplating Medicaid cuts to offset spending on tax breaks for the wealthy and corporations and immigration enforcement. The cuts being discussed include work requirements, capping and reducing federal funding to states, and removing enrollment and eligibility protections. All of these cuts would take away health and long-term care from older adults. Cuts to the Supplemental Nutrition Assistance Program (SNAP) are also at risk.

Now is the time to take action to stop Medicaid and SNAP cuts from being included in the budget legislation. Tell your Members of Congress to oppose work requirements and any other cuts to Medicaid or SNAP.

A new survey on Americans’ views on Social Security was recently released by the National Academy of Social Insurance, AARP, the National Institute on Retirement Security, and the U.S. Chamber of Commerce.

The survey found that Americans strongly value Social Security and consider it an important source of income in retirement and in case of disability. The survey also showed strong support for bringing more revenue to the Social Security system, even if that means raising taxes on some or all Americans.

Respondents were also broadly opposed to benefit reductions, and they supported updating outdated rules in the Supplemental Security Income (SSI) program.

Justice in Aging advocates for the expansion and improvement of Social Security and SSI. Read more about our commitment to ensuring economic security for low-income older adults.

New Medicare Part D Out-of-Pocket Cap Projected to Save Enrollees $7.2 Billion in 2025

Beginning this year, the Inflation Reduction Act (IRA) caps Medicare Part D annual out-of-pocket drug costs at $2,000.

A U.S. Department of Health and Human Services (HHS) report projects that about 11 million Part D enrollees are expected to reach the $2,000 out-of-pocket cap in 2025 and each enrollee is expected to save about $600. This cap will be especially helpful for individuals who are not eligible for the Part D Low-Income Subsidy (LIS or Extra Help), who will on average save about $1,100.

People with certain conditions such as cystic fibrosis, multiple myeloma, and metabolic and immune disorders will save three to six times as much out of pocket. The report also includes savings by demographic characteristics and by state.

Learn more in Justice Aging’s fact sheet: How Medicare Prescription Drug Reforms in the Inflation Reduction Act Help Low-Income Older Adults.