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First Fox: A conservative think tank that played a key role in shaping President Donald Trump’s “one big beautiful bill” is circulating a new roadmap of Republican recommendations for the Second Act.
Styled as an “American epic,” the Center for Economic Policy and Innovation has spread new memos with key figures from the Congressional GOP recently.
The memo, obtained by Fox News Digital, advises lawmakers to broadly promote further Medicaid and regulatory reforms, crack down on federal dollars in government pensions and student loans, and use fiscal policies to expand conservative goals for abortion and transgender treatment.
Passing Trump’s massive agenda bill was a major victory for Republican leaders despite a thin majority of razors in the House and Senate. The epic, which praises the bill as a success, argues that meaningful fiscal reform requires continuous reform.
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The new conservative policy memo proposes the target of a second “big, beautiful bill” that will promote President Donald Trump’s agenda. (Getty Images/AP Images)
“Unfortunately, even with the American victory of the OBBB, our work is far from what we do. We have to rebuild the economy that truly works for all Americans.
“The federal government is rapidly evacuating financial space. It is important to maintain sufficient financial space to respond appropriately to the crisis. Without space between the fiscal cap and current debt levels, elected officials have no room to pilot in the event of war, natural disasters, or recession.”
Regarding Medicaid, the memo advises further reducing the cost-sharing burden of the federal government known as the Federal Government (FMAP) for “large and wealthy states” and Washington, DC.
FMAP refers to the percentage that matches the current 50% state Medicaid payments by the federal government.
The memo calls DC’s “end special Medicaid grant FMAP treatment.”
The Republican’s first budget adjustment bill reduced certain FMAP expansions allowed under the Affordable Care Act (ACA), including state emergency care that provides Medicaid compensation for illegal immigrants.
Similarly, Epic advises lawmakers to strengthen individual and employer-based health care, such as individual coverage health rebates (ICHRAs) and health savings accounts (HSAs).
House Speaker Mike Johnson has publicly stated his goal of passing further settlement bills. (AP Photo/Rod Lamkey, Jr., File)
Medicaid cuts are one of the biggest fixed points during talks on the first legislation, and will be politically challenging for Republicans in the second round. Meanwhile, Democrats use these reforms as political udge officials, denounce the GOP seeking medical care from millions of Americans.
But conservatives view Medicaid as a waste, fraud and abuse, and they argue that their reforms will better protect the program for vulnerable people who really need it.
The memo also encourages Congressional Republicans to use the budget adjustment process to “reform federal official compensation and retirement” and “eliminate public sector student loan forgiveness.”
In terms of socially conservative policies, the epic appears to consider the extension of the taxpayer fund ban to an extension to abortion providers as important for the second settlement bill.
The first bill was seen as a victory for prolife supporters in banning large-scale health providers’ Medicaid funds that provide abortions. However, the ban is only effective for one year.
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Democratic leaders like Senate minority leader Chuck Schumer and House minority leader Hakem Jeffries have already used GOP Medicaid reform as a political embrace. (Kevin Dietsch/Getty Images)
In a section entitled “Life and American Values Protect,” the epic urges lawmakers to block Medicaid funds for gender transition care, as well as “expanding taxpayer funds against abortion providers.”
It also asks lawmakers to “invest in election security” and “impose excise taxes on higher education institutions that allow men to participate in women’s sports.”
The EPIC was founded by Paul Winfrey, director of budget policy in the first Trump administration.
The group also bent during discussions on Trump’s first agenda bill by recommending policy initiatives and adjusting advice through various steps in the budget adjustment process.
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A budget adjustment that can be used three times during a certain parliamentary term allows political parties to enact a wide range of fiscal policy changes, in this case by lowering the Senate threshold for passage from 60 to 51 votes.
Brittany Maduni, the epic executive vice president and former council aide, confirmed the truth behind the notes to Fox News Digital. She said she would use the same “playbook” that the group did during the initial settlement process.
She said Epic “provides lawmakers with their initial suggestions on what to target, and is preparing them to work with Republicans through various steps in the process as details change and evolve.”
“Essential spending reforms are an essential goal for actual financial changes to stem the debt spiral. This is why building a second settlement bill on victory at the OBBB is important,” Madni said.
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Two sources told Fox News Digital that the group’s efforts include staff-level briefings with the Republican Research Committee (RSC), a 189-member strong house GOP group that serves as its own de facto think tank for the Republican Conference.
Many of the aforementioned proposals were discussed at the meeting, Fox News Digital reported, and Epic was invited as part of the second settlement bill as part of the RSC’s new initiative.
House speaker Mike Johnson, R-La. has already publicly stated his goal of passing the settlement bill. However, it is still unclear what the second bill will look like.
Elizabeth Elkind is the main reporter of Fox News Digital’s reporting in the House of Representatives. Previous digital bylines seen on Daily Mail and CBS News.
Follow me on Twitter at @liz_elkind and send tips to Elizabeth.elkind@fox.com
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