ICYMI: Kennedy in Newsweek: Congress must hold NATO to its 5% defense spending commitment
Jul 31 2025
WASHINGTON – Sen. John Kennedy (R-La.) penned this op-ed in Newsweek arguing that Congress needs to hold NATO member countries to their 5% defense spending commitments.
Key excerpts of the op-ed are below:
“On the surface, it appeared as though every member of NATO agreed to increase its defense spending to 5 percent of its GDP by 2035—and I'm confident that many of our allies intend to do just that.
“But some of our friends in NATO have already begun to weasel their way out of this commitment.”
. . .
“I am introducing a resolution to commend our NATO allies who agreed to increase their defense spending to 5 percent and to strongly urge every member of NATO to follow through with this commitment sincerely. If we want to deter our adversaries, we need real investments in our defense, not bridges that have little, if anything, to do with national security.
“NATO is one of the greatest defensive alliances in all of human history, but these loopholes make us weaker. The world needs to know we have each other's backs, and that starts by putting your money where your mouth is.”
Read Kennedy’s op-ed here.
The full text of the resolution is available here.
WASHINGTON – Sen. John Kennedy (R-La.) joined Sen. Jim Risch (R-Idaho) and 16 colleagues in introducing the Equal Shot Act, which would prohibit the Small Business Administration (SBA) from discriminating against lawful firearm-related businesses.
“Big Government officials in Washington should never be able to punish small business owners just because they support the Second Amendment. The Equal Shot Act would protect Louisiana’s firearm businesses from out-of-control bureaucrats trying to pick winners and losers based on politics,” said Kennedy.
“The Equal Shot Act defends the Second Amendment rights of Idaho’s small business firearm industry and ensures these law-abiding Americans have fair access to resources that will help them thrive,” said Risch.
The Equal Shot Act ensures that firearm-related businesses are treated the same as any other eligible small business when applying for SBA programs without political or ideological bias.
- The bill responds to reports that the SBA, under the Biden administration, used internal policies to deny financial support to lawful firearm-related businesses that help Americans exercise their Second Amendment rights.
- The bill reinforces that federal agencies must remain neutral and may not withhold access to assistance programs from law-abiding businesses based on their industry.
Rep. Roger Williams (R-Texas), chairman of the House Committee on Small Business, introduced companion legislation in the U.S. House of Representatives.
“The Equal Shot Act ensures every eligible small business is treated fairly and without political bias. Under the Biden Administration, firearm-related businesses were targeted and singled out by federal agencies and financial institutions simply because of what they represent. These law-abiding job creators should not be punished for supporting the Second Amendment. I want to thank Senator Risch for his support on this important legislation. Every business on Main Street deserves the same opportunity to succeed,” said Williams.
Sens. Mike Crapo (R-Idaho), Marsha Blackburn (R-Tenn.), Ted Budd (R-N.C.), Shelley Moore Capito (R-W.Va.), Bill Cassidy (R-La.), Steve Daines (R-Mont.), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), Cindy Hyde-Smith (R-Miss.), Jim Justice (R-W.Va.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Tim Scott (R-S.C.), Tim Sheehy (R-Mont.) and Tommy Tuberville (R-Ala.) also cosponsored the bill.
Full text of the bill is available here.
WASHINGTON – The U.S. Senate Homeland Security and Governmental Affairs Committee (HSGAC) today unanimously voted to advance Sen. John Kennedy (R-La.) and Sen. Gary Peters’ (D-Mich.) Ending Improper Payments to Deceased People Act, which would save hard-earned taxpayer money by curbing erroneous payments to individuals who have passed away.
Kennedy’s original bipartisan legislation set up key provisions to save federal taxpayer dollars by curbing erroneous government payments to individuals for a temporary three-year period, and this new Kennedy-Peters bill would make the temporary provisions permanent. The original bill is expected to save at least $330 million from 2024 to 2026.
“Today’s unanimous Senate Homeland Security Committee vote to pass my Ending Improper Payments to Deceased People Act is a major win for every American worried about waste, fraud, and abuse in our federal budget. There’s no reason hardworking Americans should have to pay for the government’s mistaken payments to dead people. I look forward to the full Senate passing our bill right away,” said Kennedy.
“This bill would help save millions of taxpayer dollars by ensuring that the Social Security Administration can permanently share important data with the Treasury’s Do Not Pay system, preventing wrongful payments to deceased individuals. I have long supported this legislation because I believe it is a vital step in safeguarding taxpayer dollars and ensuring the integrity of our payment systems,” said Peters.
In January 2025, the Treasury Department announced that it recovered $31 million in fraud and improper payments during the first five months of the implementation of Kennedy’s Stopping Improper Payments to Deceased People Act, in which the Social Security Administration shared its Death Master File with the Treasury Department to avoid erroneous payments temporarily.
The Ending Improper Payments to Deceased People Act would permanently amend the Social Security Act to allow the Social Security Administration to share the Death Master File – a record of deceased individuals – with the Treasury Department’s Do Not Pay system. This change would rein in the government’s ability to make improper payments to deceased people in the future.
The bill would also allow the Treasury’s Do Not Pay working system to compare death information from the Social Security Administration with personal information from other federal entities and to share this information with any paying or administering agency that is authorized to use the Do Not Pay system.
Background:
Kennedy has championed the cause of saving billions of dollars in taxpayer money by ending improper payments to deceased Americans in recent years:
- In December 2024, Kennedy urged his colleagues to save taxpayer dollars and support the Ending Improper Payments to Deceased Americans Act on the Senate floor.
- In May 2024, the Senate Committee on Homeland Security and Governmental Affairs unanimously passed Kennedy’s Ending Improper Payments to Deceased People Act.
- Kennedy’s Stopping Improper Payments to Deceased People Act became law in December 2020. The bill mandates the sharing of the Social Security Administration’s Death Master File with the Department of the Treasury’s Do Not Pay working system within three years after enactment. The three-year exchange runs from December 27, 2023, to December 27, 2026.
- In 2021, Kennedy wrote this op-ed sounding the alarm on the government’s sending more than $1 billion to deceased Americans.
- In 2019, Kennedy questioned U.S. Government Accountability Office Comptroller General Hon. Gene L. Dodaro about improper payments sent to deceased people.
Full bill text is available here.
President Trump signs Kennedy, Cortez Masto bill to help Louisianians recover from natural disasters
Jul 30 2025
WASHINGTON – President Donald Trump signed into law Sens. John Kennedy (R-La.) and Catherine Cortez Masto (D-Nev.)’s bipartisan Filing Relief for Natural Disasters Act, which will provide relief for taxpayers in states that have issued state-level disaster declarations.
“I’m grateful to President Trump for signing our bipartisan Filing Relief for Natural Disasters Act into law. Louisianians recovering from hurricanes and other disasters shouldn’t have to wait on Washington to get the tax extensions they need. This law will make sure hard-hit communities can get necessary tax relief without delay,” said Kennedy.
“When a natural disaster strikes, hard-hit families looking for tax relief shouldn’t have to wait for the federal government to act. This commonsense bill will ensure that taxpayers who have been through state emergencies can get the flexibility from the IRS that they deserve while recovering,” said Cortez Masto.
Sens. Marsha Blackburn (R-Tenn.) and Chris Van Hollen (D-Md.) also cosponsored the bill.
“The last thing Tennesseans should have to worry about when a natural disaster like Hurricane Helene strikes is meeting a tax-filing deadline. Now that President Trump has signed our bipartisan Tax Relief for Natural Disasters Act into law, Americans impacted by natural disasters will have the flexibility to focus on recovery, not tax paperwork,” said Blackburn.
Prior to the bill’s signing, the Internal Revenue Service had the authority to postpone tax filing deadlines following a presidentially declared federal disaster but not following a state-level emergency declaration.
The Filing Relief for Natural Disasters Act allows the governor of a state or territory to extend a federal tax filing deadline following a state-declared emergency or natural disaster without waiting for a federal disaster declaration.
This change will enable states to provide federal tax extensions independent of the federal government’s involvement in an emergency or natural disaster.
The law also expands the mandatory federal filing extension from 60 days to 120 days.
The full bill text is available here.
WASHINGTON – Senator John Kennedy (R-La.), a member of the Senate Appropriations Committee, today introduced a resolution urging North Atlantic Treaty Organization (NATO) member countries to fulfill their commitments to spend five percent of their GDP on defense. He emphasizes the importance of sincerity in fulfilling these obligations, noting that some countries, such as Spain, have refused to meet the five percent commitment, demanding a carveout. Spain struggled to even meet their two percent defense spending target. All NATO members must take this commitment seriously to strengthen our collective security.
“NATO is one of the greatest defensive alliances in all of human history. My resolution commends our allies for their commitment to allocate five percent of their GDP to our shared defense and strongly encourages them to fulfill their promises in good faith. If we want to deter our adversaries, we need real investments in our defense, not bridges that have little, if anything, to do with national security,” said Kennedy.
Sens. Marsha Blackburn (R-Tenn.), Tommy Tuberville (R-Ala.), Roger Wicker (R-Miss.), John Cornyn (R-Texas), Ted Budd (R-N.C.) and Cynthia Lummis (R-Wyo.) cosponsored the resolution.
“Now more than ever, the New Axis of Evil is threatening the security of free nations, and every NATO member country needs to spend their fair share to keep our adversaries from accomplishing their goals. Our resolution urges all NATO members to fulfill their obligation to spend 5% of GDP on defense and address the security risks we are facing,” said Blackburn.
“It’s past time for NATO members to pony up. It’s not the job of the American taxpayers to pay to defend the entire world. Thank God for President Trump who is finally standing up for American taxpayers and fighting to put America First,” said Tuberville.
“NATO members agree: Deterrence is more important now than at any time in recent memory. The axis of aggressors is watching, hoping the West underestimates its threats. I am grateful for the Hague Summit Declaration’s spending commitment, and I will continue pressing member nations to follow through on their word. The free world can achieve peace through collective strength,” said Wicker.
“Conflicts in Europe and the Middle East and tensions in the Indo-Pacific threaten our global stability and security. It’s critical for NATO nations to honor their commitments on national defense, ensuring military readiness within the NATO alliance,” said Cornyn.
Kennedy also penned an op-ed in Newsweek, arguing that Congress needs to hold NATO member countries to their five percent defense spending commitments.
Background:
- The Trump Administration secured a historic win by encouraging NATO member countries to move toward spending 5 percent of their GDP on collective defense.
- However, the Hague Summit Declaration allows countries to evade their commitments in two ways: (1) by not specifying that all allies must meet the five percent requirement, and (2) by permitting 1.5 percent of the total to include spending that is only loosely related to defense.
- Spain has recently said that it will not be meeting the five-percent commitment. Italy has said it may include a bridge to Sicily as part of its non-traditional defense total.
The resolution:
- Congratulates President Trump and NATO leadership on this historic agreement.
- Strongly urges NATO leadership to compel its members to adhere to the five percent commitment.
- Calls on NATO allies to ensure their non-traditional defense expenditures are legitimate defense spending.
The full text of the resolution is available here.
WASHINGTON – Sens. John Kennedy (R-La.) and Jon Ossoff (D-Ga.) today reintroduced the Service-Disabled Veteran Opportunities in Small Business Act to help disabled veterans’ small businesses thrive.
Kennedy and Ossoff have proposed their legislation as an amendment to the National Defense Authorization Act (NDAA), Congress’s annual defense spending and policy bill.
“America owes a debt of gratitude to every veteran who sacrifices for our country. Our bill would do right by service-disabled veterans by making sure government agencies are giving their small businesses a fair shake,” said Kennedy.
“Service-disabled veterans have made huge sacrifices in our national defense. That's why Senator Kennedy and I are introducing this bipartisan bill to support small businesses run by service-disabled veterans in Georgia and nationwide,” said Ossoff.
Reps. Nick LaLota (R-N.Y.) and Morgan McGarvey (D-Ky.) introduced the companion bill in the U.S. House of Representatives.
The Small Business Administration (SBA) currently offers a program to allocate certain contracts to service-disabled veterans’ small businesses. The Service-Disabled Veterans Opportunities in Small Business Act would:
- Require the SBA to issue guidance to meet goals for extending contracts to small businesses owned by service-disabled veterans more effectively.
- Provide training for federal agencies that fail to meet contracting goals.
- Require the SBA to issue a report to Congress detailing a list of each federal agency that failed to meet its contracting goals.
Full text of the bill is available here.
Full text of Kennedy and Ossoff’s amendment to the NDAA is available here.
Watch Kennedy’s comments from this morning’s Senate Banking Committee hearing here.
WASHINGTON – The U.S. Senate Banking Committee today voted unanimously to advance Sen. John Kennedy’s Build Now Act, which would incentivize new home construction by tying federal funds to cities’ rates of home construction.
During the Banking Committee’s first bipartisan markup of housing legislation in more than a decade, committee members approved Kennedy’s legislation as part of the ROAD to Housing Act of 2025. The package, which includes several other changes to housing policy, is now pending before the full U.S. Senate and will require the U.S. House of Representatives’ approval before reaching the president’s desk.
“Today’s unanimous Senate Banking Committee vote to pass my Build Now Act is a win for every young family in America looking to buy a home. I’m looking forward to the steps ahead for this much-needed reform, and am grateful to my Banking Committee colleagues for their support as we take on the red tape getting in the way of new home construction,” said Kennedy.
Sen. Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking Committee, joined Kennedy in introducing the Build Now Act.
“Americans are suffering under sky-high housing prices caused by a worsening housing shortage. The Federal government should use the tools at our disposal to reward communities that are taking bold action to build more housing and reduce families’ biggest monthly expense. It’s time for Congress to act—and this bipartisan proposal is a call to action to communities across the country to build housing now,” said Warren.
“Senator Kennedy, you and Ranking Member Warren took a novel idea to reward communities for the good work they have done to increase housing supply and turned it into legislation. Thank you both for working on an innovative approach called the Build Now Act,” said Sen. Tim Scott (R-S.C.), Chairman of the Senate Banking Committee, during this morning’s committee markup of the ROAD to Housing Act.
Currently, the Department of Housing and Urban Development (HUD)’s Community Development Block Grant Program (CDBG) provides annual grants to states, cities and counties irrespective of their rate of homebuilding.
The Build Now Act would:
- Require HUD to remove 10% of CDBG funding from cities that fail to improve their rate of homebuilding above the national median rate.
- Direct HUD to proportionally reallocate those CDBG funds to cities that exceeded the national median rate of homebuilding. Under the Build Now Act, cities with the highest rates of growth would receive larger shares as funds are reallocated.
- Allow metropolitan areas two years to start building homes before HUD determines their level of CDBG funding.
The bill would not apply to cities where the median home value is below the national median or cities that issued an emergency disaster declaration in the last year.
The Niskanen Center, the National Association of Home Builders and the Mortgage Bankers Association, in addition to Harvard University Professor of Economics Edward Glaeser, support the Build Now Act.
“The Build Now Act challenges the status quo in a smart and timely way—tying federal block grants to housing growth gives local governments both the tools and the incentive to reform. It’s bold in concept yet careful in execution, targeting only the most expensive, over-regulated cities while leaving high-performing communities untouched. We commend Senator Kennedy’s leadership and vision in advancing this much-needed legislation,” said Alex Armlovich, Senior Housing Policy Analyst at the Niskanen Center.
“NAHB commends Sens. John Kennedy (R-La.) and Elizabeth Warren (D-Mass.) for introducing bipartisan legislation that will promote construction of sorely needed housing in metropolitan areas across the nation. Increasing the housing supply is key to combating America’s housing affordability crisis and the federal incentives established by the Build Now Act of 2025 will help to reduce regulatory barriers that are stifling new construction and expand the production of affordable, attainable housing,” said Buddy Hughes, Chairman of the National Association of Home Builders.
“This bill is exciting legislation that should nudge cities and towns to permit the housing America needs to become affordable again,” said Edward Glaeser, Fred and Eleanor Glimp Professor of Economics at Harvard University. Glaeser is also a nonresident senior fellow at the American Enterprise Institute and a former senior fellow at the Manhattan Institute.
In his role on the Senate Banking Committee, Kennedy has championed the cause of making homeownership easier for families, raising the issue frequently during recent hearings:
- In Jan. 2025, Kennedy questioned then-HUD Secretary nominee Scott Turner about the failures of previous affordable housing policies. During this hearing, he suggested an approach that would incentivize localities to allow more new home construction without affording excessive power to the federal government.
- At a hearing one week later, Kennedy outlined a potential “carrot-and-stick” system that would spur new home construction while allowing local governments to determine their exact means of doing so.
- In Feb. 2025, Kennedy questioned then-Director of the Federal Housing Finance Agency nominee Bill Pulte on the consequences of Americans borrowing large amounts of money to buy homes, noting that “we’ve got a house of cards here.”
- At today’s Banking Committee markup of the ROAD to Housing Act, Kennedy discussed his proposal, stating, “Senator Warren and I have a provision in this bill that would, I think, help generate housing in America. The most stunning statistic to me is the fact that the median age of a . . . first-time homeowner in America today is 38. Wow. That’s almost 40 [years old] before you can afford a home. . . . We’ve got a problem.”
Full text of Kennedy’s Build Now Act is available here.
Full text of the ROAD to Housing Act of 2025, of which Kennedy’s Build Now Act is a part, is available here.
WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, today introduced the Build Now Act, which would incentivize new home construction by tying federal funds to cities’ rates of homebuilding. Sen. Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking Committee, joined Kennedy in introducing the bill.
“In my book, homeownership shouldn’t be a pipe dream for the average American family. Unfortunately, not everyone agrees with me. Government overregulation has brought homebuilding to a grinding halt and left ordinary people twisting in the wind as existing home prices went through the roof. I’m proud to introduce the Build Now Act to discourage pointless roadblocks and incentivize cities to help make the American Dream possible again,” said Kennedy.
“Americans are suffering under sky-high housing prices caused by a worsening housing shortage. The Federal government should use the tools at our disposal to reward communities that are taking bold action to build more housing and reduce families’ biggest monthly expense. It’s time for Congress to act—and this bipartisan proposal is a call to action to communities across the country to build housing now,” said Warren.
The United States today faces a housing crisis. Since 2021, the annual income needed to qualify for a mortgage has increased by 60%, driving the median age of a first-time home buyer to a record-high 38 years old.
By May 2025, new home construction rates had collapsed to their lowest level since the pandemic. On an annual basis, new home construction has fallen nearly 5%.
Currently, the Department of Housing and Urban Development (HUD)’s Community Development Block Grant Program (CDBG) provides annual grants to states, cities and counties irrespective of their rate of homebuilding.
The Build Now Act would:
- Require HUD to remove 10% of CDBG funding from cities that fail to improve their rate of homebuilding above the national median.
- Order HUD to proportionally reallocate those CDBG funds to cities that exceeded the national median rate of homebuilding. Under the Build Now Act, cities with the highest rates of growth would receive larger shares as funds are reallocated.
- Allow metropolitan areas two years to start building homes before HUD determines their level of CDBG funding.
The bill would not apply to cities where the median home value is below the national median or cities that issued an emergency disaster declaration in the last year.
In his role on the Senate Banking Committee, Kennedy has championed the cause of making homeownership easier for families, raising the issue frequently during recent hearings:
- In Jan. 2025, Kennedy questioned then-HUD Secretary nominee Scott Turner about the failures of previous affordable housing policies. During this hearing, he suggested an approach that would incentivize localities to allow more new home construction without affording excessive power to the federal government.
- At a hearing one week later, Kennedy outlined a potential “carrot-and-stick” system that would spur new home construction while allowing local governments to determine their exact means of doing so.
- In Feb. 2025, Kennedy questioned then-Director of the Federal Housing Finance Agency nominee Bill Pulte on the consequences of Americans borrowing large amounts of money to buy homes, noting that “we’ve got a house of cards here.”
Full text of the bill is available here.
Kennedy on Jimmy Graham: “He gave my people in Louisiana a lot of joy at a time they really needed it”
Jul 24 2025
Watch Kennedy’s comments here.
WASHINGTON – Sen. John Kennedy (R-La.) delivered the following remarks on the U.S. Senate floor:
“I just want to briefly thank Jimmy Graham. Who's Jimmy Graham? I know, Mr. President, you know who Jimmy Graham is. He was one of the best tight ends who ever played the game.
“Now, he was a New Orleans Saint, I think, for six or seven seasons. He played elsewhere. I looked it up. He played for the Seahawks. He played for the Packers. He played for the Bears, but he was a total beast in the best sense of the word, playing for the New Orleans Saints. And he has retired.
“After 13 years in the NFL, Jimmy has decided to retire. He was a big boy—he is a big boy—but he started out as a basketball player. He didn't play football. He played basketball. And he transformed himself.
“The numbers that Jimmy put up are just out of this world. They're other worldly. He is clearly one of the most prolific pass-catching tight ends in the history of the game.
“As you know, Mr. President, many tight ends just block. That's their job. Jimmy not only blocked, but he caught passes. And he caught a bunch of them. He is number seven in NFL history in receptions at 719. He ranks number eight in receiving yards at 8,545. He ranks fourth in touchdowns at 89.
“When he was with the Saints . . . in six seasons, Jimmy Graham caught 392 passes for 4,791 yards and 55 touchdowns. And he was a tight end. His first job was to block. He also caught a few balls. And he gave my people in Louisiana a lot of joy at a time they really needed it.
“And I just wanted to thank Mr. Graham for the joy that he brought to anybody and everybody who watched him play football, but especially when he played for the New Orleans Saints. I want to wish him well, and I wanted to end on some good news tonight.”
Watch Kennedy’s speech here.
Kennedy debunks Big Beautiful Bill myths: ‘Unless your soup of the day is gin, you know that is a lie’
Jul 24 2025
Watch Kennedy’s comments here.
WASHINGTON – Sen. John Kennedy (R-La.) delivered the following remarks on the U.S. Senate floor:
“Let me start with the reconciliation bill, which President Trump and others called the One Big Beautiful Bill.
“I continue to go through the bill, and every time I do, I’m impressed. This is a breathtaking bill in the sense that it covers so many subjects. I think each of us could spend hours talking about this bill. I'll just hit the highlights. This is one of the most far-reaching pieces of legislation that this body will ever pass.
“We extended the 2017 tax cuts—no small feat in itself. Had we not done that, the American people would have suffered under a $4.3 trillion tax increase. So, we stopped that tax increase. And some of my friends and colleagues talk about, ‘Well, all you did was stop a tax increase on the billionaires.’ That is nonsense. That is nonsense on a stick.
“Unless your soup of the day is gin, you know that is a lie.
“Half of that tax increase would have hit working men and working women and working families in this country. The other half would have hit our small businesses. And, yes, some of our large businesses. We stopped that. We made some of those tax cuts permanent.
“We cut taxes on tips. In this bill, we cut taxes on overtime. We cut taxes on Social Security. We cut taxes on car loans. We expanded a tax credit for childcare to help moms and dads pay for the childcare so they can work. We increased the child tax credit. We increased the standard deduction—and that's going to take effect immediately.
“We funded school choice. For years and years and years, I have tried—we all have tried, many of us have tried—to provide the American people, moms and dads, with school choice. This bill did it.
“I went to a public school. I'm proud of that, but competition makes all of us better. I can go to my overpriced Capitol Hill apartment or Capitol Hill grocery store and choose from six or seven types of mayonnaise. Why shouldn't we give parents, moms and dads, choices for their education? We're doing that with the school choice portion of this bill.
“We increase money for the border, and we increased money for defense.
“Now, we also addressed the problem in Medicaid. And I’ve been very disappointed because some commentators have said that we're going to throw off from the Medicaid rolls, I read, anywhere from 10 to 12 million people. And the implication in some of these articles and some of these comments is that we're just going to look at the Medicaid rolls and go through and say, ‘You're gone. We can't afford you.’ And that's not what this bill does.
“The first thing you have to realize is that actually Medicaid is not going to be cut at all under this bill. Under our bill that we just passed, our spending on Medicaid over the next 10 years is going to go up 20%. So, nobody is cutting Medicaid.
“There are some people, as a result of the new provisions that we have put into law, who will no longer be eligible for Medicaid and will no longer get Medicaid, but they weren't entitled to get it in the first place. So, when you say, ‘Well, you're throwing people off from Medicaid.’ They weren't entitled to it in the first place.
“You're not entitled to Medicaid if you're making $200,000 a year, and you didn't tell the truth when you signed up for the Medicaid in your state, and your state didn't verify your statements.
“But let me give you one example. CMS just put out a report. . . . 2.8 million of those Americans who will lose Medicaid are double dippers. They signed up twice. We have 1.2 million people on the Medicaid rolls who are signed up in two states. And the American taxpayer is paying twice. . . . Most states use Managed Care, and they pay per Medicaid patient. So, if a state is paying—let's say, I’ll pick a number—$18,000 per Medicaid patient per year to the health care organization to provide their care, and that person is signed up in two states, they're double dipping, and it's costing the American taxpayer two $8,000 payments a year. That's cheating.
“So, from one perspective, ‘You're throwing these people off Medicaid.’ They weren't entitled to double-dip in the first place. CMS also came out with a report—by CMS, I mean the Centers for Medicare and Medicaid Services, which is the federal agency that administers Medicare and Medicaid.
“CMS has also found that there are 1.6 million people who are on Medicaid today who are receiving both Medicaid and Obamacare.
“Well, what's Obamacare? I'll refresh everyone's memory. Medicaid is supposed to be for the poor and disabled. And Medicare is for the elderly. And a lot of other Americans have health insurance through their job. But there are certain numbers of Americans who don't have health insurance because they're not old enough for Medicare, and they're not poor enough for Medicaid, and maybe their employer doesn't offer health insurance. So, they can go to an exchange—we call them the Obamacare exchange—and buy health insurance.
“Now, President Obama and some of my colleagues—I wasn't here then—but when we passed Obamacare, the Obamacare exchanges, the Affordable Care Act, we were told health insurance would be cheaper. And we were told it would be more accessible. It's been neither. We were also told, ‘If you like your doctor, you can keep your doctor.’ That wasn't true either. But the point is that we have a number of Americans who—if they don't qualify for Medicare, they don't qualify for Medicaid, they don't get insurance through their employer—they go to the Obamacare exchanges.
“But CMS found we've got 1.6 million people who are getting both health insurance through the Obamacare exchanges, which we subsidized, taxpayers do, and through Medicaid. That's called double dipping. It's illegal. And CBO [Congressional Budget Office] can put out all the reports that they want to, saying, ‘Oh, you're throwing all of these people off Medicaid.’ Technically, they're right, but they're not eligible to be on Medicaid.
“I just gave you an example: 2.8 million people who are double-dipping. It's illegal to double-dip. It's immoral to double-dip. It's unfair to taxpayers to double-dip. All our bill does is say, ‘You can't double-dip.’ Cheating is wrong.
“Is that throwing people off Medicaid? Technically, yes, but once again, as the other provisions in this bill also do, we're taking people off Medicaid who weren't eligible for it in the first place. As a result of these 2.8 million people, I think CMS—I’m looking for their figure—I think it costs the American taxpayers, because of these 2.8 million folks who are double dipping, $14 billion a year over a ten-year window, which is the horizon we used. That's $140 billion that we're going to save, and that savings is going to go back into Medicaid to make it even stronger.
“That's just one example of how much of the reporting on our bill is misleading.”
Watch Kennedy’s speech here.