Exclusive: Schumer probes $50 billion rural hospital "slush fund"

Top Senate Democrats have accused Republicans of using a $50 billion fund for rural hospitals to buy their support for a domestic policy package that includes historic cuts to Medicaid. The fund was created to ease the impact of these cuts on rural hospitals. Democrats are demanding clarity on how the fund will be distributed to states, as the details of the distribution process are unclear. A letter signed by over a dozen Senate Democrats was sent to the Centers for Medicare and Medicaid Services Administrator, seeking information on the state-level decision-making process. Republicans included the fund in the policy package to win over key GOP votes, particularly from Senators Josh Hawley and Lisa Murkowski. Democrats are concerned that the fund is being used to pay off Republican lawmakers for their support, citing reports that some lawmakers have already promised funds to their states. The law states that $25 billion will be distributed equally among states that submit a rural health transformation plan, but Democrats argue that the application process is vague. The Centers for Medicare and Medicaid Services must make a ruling on each state's application by the end of the year. Democrats are asking for answers by mid-August, urging the administrator to provide clarity to rural communities and healthcare providers.