Cardinal News: Virginia could see a $29 billion decrease in federal Medicaid [...] Republican candidate for governor, has suggested tapping into the state’s $4.7 billion “rainy day fund” to cover the cost.

VIRGINIA – New reporting from Cardinal News details how Winsome Earle-Sears keeps claiming she can use Virginia’s “rainy day” reserve to cover the Medicaid cuts in the Trump tax bill she backed. However, Sears math doesn't add up and Republicans, Democrats, and the Virginia Hospital and Healthcare Association pointed out the flaws in the suggestion and the devastating impacts of the cuts Sears has backed. Now her campaign is refusing to explain. 
 
Sears has repeatedly praised the law saying it “does so many great things” while it will take healthcare away from 322,000 Virginians and force at least 6 rural hospitals to close.  
 
“Instead of standing up to Trump’s devastating health care cuts, Winsome Earle-Sears’ has been lying to Virginians by pushing a fake solution that doesn’t add up at all - and now she’s refusing to comment on it. Sears owes Virginians real answers about why she backed Trump’s tax bill that will take healthcare away from Virginians and why she doesn't have an actual plan to address it,” said DPVA Spokesperson Maggie Amjad.
 
Cardinal News: Earle-Sears suggests using Virginia’s ‘rainy day funds’ to cover possible Medicaid funding shortfall

• Lt. Gov. Winsome Earle-Sears has suggested the state use its “rainy day” fund to cover the cost of Medicaid in Virginia should the federal, so-called “One Big Beautiful Bill” increase the cost share paid by Virginia for the program. 
• “We want to make sure that whatever happens with Medicaid, we have the money here to help. We have the money and the budget to help. You know, we have put money aside for rainy day,” Sears said at an event in Marion, according to audio obtained by Cardinal News. “The bank account has never been that full. And so we are ready for any changes that happen.”
• Earle-Sears, the Republican nominee for governor, made the comment during a meet-and-greet in June in response to a question from an event attendee about access to hospitals in the area. 
• Earle-Sears’ campaign did not respond Monday when asked if the lieutenant governor maintained the position that using the state’s rainy day fund to cover Medicaid funding shortfalls was the campaign’s current policy platform, or if her stance had changed since the passage of the bill by Congress on July 3.
• Virginia’s rainy day fund had about $4.7 billion in it, as of Monday. The fund, meant to safeguard against an economic downturn, was created in 1992 through a constitutional amendment, following a recession.
• Virginia could see a $29 billion decrease in federal Medicaid spending over the next 10 years, according to analysis by KFF, an independent health policy research organization based in San Francisco.
• The rainy day fund, or the revenue stabilization fund, is meant to work as Virginia’s savings account — to be used to offset anticipated shortfalls in revenue.
• Lawmakers have argued that tapping into the state’s reserve is not a good long-term solution to cover possible Medicaid funding shortfalls created by the federal reconciliation bill. 
• “But I don’t think it’s a good idea to consider its use long term to make up for the loss of federal Medicaid dollars,” he [Sen. Creigh Deeds, D-Charlottesville] said. Deeds sits on the state Senate Finance Committee. “Use of the rainy day fund for a long term problem is contrary to the purpose of the rainy day fund.”
• Del. William Morefield, R-Tazewell County, who also sits on the House Appropriations Committee, pointed out that certain criteria would need to be met in order for the General Assembly to be able to appropriate funds already in the rainy day reserve. 
• “I do believe we need to explore all options if the federal cuts do result in a significant impact,” Morefield said. “Medicaid is vitally important in rural areas. Rural hospitals rely heavily on Medicaid to operate. The closing of a rural hospital would be devastating to a local community as we have already experienced in Southwest Virginia. It severely impairs a locality’s ability to attract, recruit, and retain businesses and new residents.”
• The Virginia Hospital and Healthcare Association estimated that policy changes passed in the reconciliation package would cost Virginia hospitals more than $2 billion annually.
• Virginia hospitals are deeply concerned about the damage the reconciliation package could inflict on hospital stability, public health, the health care safety net, the economy and employment, said Julian Walker, spokesperson for the hospital association. 
• He pointed to a separate analysis by the Commonwealth Fund that projected nearly 500,000 health care jobs could be lost, including 13,200 in Virginia, in the next several years under the reconciliation plan.
• Earle-Sears’ campaign did not respond when asked if the lieutenant governor would  share her policy platform regarding access to Medicaid in Virginia. 
• The campaign of Earle-Sears’ Democratic opponent, former Congresswoman Abigail Spanberger, provided her health care policy platform following a request from Cardinal News, which included prioritizing Medicaid access in Virginia.

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