Ohio House Republicans are about to deal Gov. John Kasich a big setback to his proposed state budget.
The governor's plans to expand Medicaid under the federal health law won't be included in the Ohio House version of the state's two-year budget.
A Republican-controlled House committee plans to unveil its changes to Kasich's budget on Tuesday.
Kasich's plan to expand Medicaid would affect more than 400,000 uninsured Ohioans.
The governor said if lawmakers remove it, the state will lose $13 billion in tax dollars from the federal government.
"There's $13 billion of Ohio taxpayer dollars that we can bring back to Ohio, to make sure we can cover the working poor," said Kasich.
The non-partisan Health Policy Institute said the decision will cost the state 28,000 jobs.
Tea party leaders, declaring victory, say Medicaid is a wasteful program and Kasich is wrong to try to expand it.
"It's also compassionate not to throw 600,000 more people into a broken program. What you need to do is reform Medicaid in Ohio," said Tom Zawistowski of the Ohio Tea Party.
House lawmakers were expected to remove the Republican governor's proposed tax hike on oil and gas drillers and sales taxes on professional services. And they want to significantly rewrite his proposed school-funding formula.
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