A new conservative policy memo is suggesting targets for a second "big, beautiful bill" promoting President Donald Trump's agenda. (Getty Images/AP Images)
"Unfortunately, even with the victories for the American people in the OBBB, our work is far from done. We must rebuild an economy that truly works for every American, while protecting the nation’s financial foundation to ensure lasting resilience," the memo said.
"The federal government is rapidly running out of fiscal space. Maintaining sufficient fiscal space is critical in order to respond appropriately to a crisis. Without space between the fiscal limit and the current level of debt, elected officials will not have room to maneuver in the event of war, a natural disaster, or a recession."
On Medicaid, the memo advises further cuts to the cost-sharing burden on the federal government – known as the Federal Medical Assistance Percentage (FMAP) – for "large, wealthy states" as well as Washington, D.C.
FMAP refers to the rate at which the federal government matches state Medicaid payments, which is currently 50%.
The memo calls to "end the special Medicaid subsidy FMAP treatment" for D.C., whose minimum is 70%.
Republicans’ first budget reconciliation bill reduced certain FMAP expansions permitted under the Affordable Care Act (ACA), including for emergency care for states that provide Medicaid coverage to illegal immigrants.
In turn, EPIC advises lawmakers to enhance personal and employer-based healthcare, like Individual Coverage Health Reimbursement Arrangements (ICHRAs) and Health Savings Accounts (HSAs).
Democratic leaders like Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries are already using GOP Medicaid reforms as a political cudgel. (Kevin Dietsch/Getty Images)
In a section titled "Protect Life and American Values," EPIC urges lawmakers to "extend the prohibition of taxpayer funding for big abortion providers" as well as block Medicaid funds for gender transition care.
It also calls on lawmakers to "invest in election security" and "impose an excise tax on higher education institutions that allow males to participate in women’s sports."
EPIC was founded by Paul Winfree, who served as director of budget policy during the first Trump administration.
The group also has close ties to Capitol Hill, which it flexed during talks for Trump’s first agenda bill by both recommending policy initiatives and tailoring its advice through the various steps of the budget reconciliation process.
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Budget reconciliation, which can be used three times during a given congressional term, allows the party in power to enact broad fiscal policy changes while sidelining the opposition – in this case, Democrats – by lowering the Senate’s threshold for passage from 60 votes to 51.
Brittany Madni, EPIC executive vice president and a former congressional aide, confirmed the memo’s veracity to Fox News Digital. She said the group would use the same "playbook" it did during the first reconciliation process.
She said EPIC is looking to offer "an initial suggestion to lawmakers on what to target, and is readying to work with Republicans through the various steps of the process as details change and evolve."
"Mandatory spending reform is an essential target for actual fiscal change in order to stave off a debt spiral. This is why a second reconciliation bill building on the wins in the OBBB is important," Madni said.
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Two sources told Fox News Digital that the group’s efforts so far have included a staff-level briefing with the Republican Study 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 that meeting, Fox News Digital was told, with EPIC being invited to speak as part of the RSC’s new initiative to workshop a second reconciliation bill.
House Speaker Mike Johnson, R-La., has already publicly stated his goal of passing further reconciliation bills. But what a second bill would look like is still unclear.
Elizabeth Elkind is a politics reporter for Fox News Digital leading coverage of the House of Representatives. Previous digital bylines seen at Daily Mail and CBS News.
Follow on Twitter at @liz_elkind and send tips to elizabeth.elkind@fox.com
https://www.foxnews.com/politics/conservative-roadmap-targets-medicaid-student-loans-trumps-big-beautiful-sequel