Medicaid Rollbacks Scaled Back in GOP Tax Plan \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ House Republicans are softening some proposed Medicaid cuts in their tax bill after backlash from moderate GOP lawmakers. A new CBO report warns millions could lose coverage under current GOP cost-saving plans. Internal party tensions grow as leadership races to finalize the bill by Memorial Day.
Quick Looks
- Republicans pull back from major Medicaid cuts amid internal GOP resistance.
- CBO report estimates millions could lose coverage under proposed GOP plans.
- Speaker Mike Johnson faces pressure to pass bill by Memorial Day deadline.
- Tax cuts from 2017 set to expire unless offset by spending reductions.
- Proposals include work requirements, more frequent eligibility checks, and immigrant aid restrictions.
- Moderate Republicans oppose slashing Medicaid in swing districts.
- Freedom Caucus demands deeper cuts to curb deficit from $4.5T tax breaks.
- Matching rate reductions and spending caps appear no longer under consideration.
- New proposals may still cut up to 8 million from Medicaid.
- Democrats highlight CBO findings as proof of GOP endangerment to health care.
Deep Look
Facing mounting pressure from within their own ranks, House Republicans are scaling back key Medicaid cuts tied to their sweeping tax package, hoping to salvage party unity and meet a self-imposed Memorial Day deadline for passage. While some of the most drastic proposals are reportedly off the table, the potential for millions of Americans to lose coverage remains, as confirmed in a new report released Wednesday by the nonpartisan Congressional Budget Office (CBO).
According to the CBO, various GOP proposals to offset the $4.5 trillion in tax cuts—mostly extensions of the 2017 Trump-era tax law—could result in 10 million or more Americans losing Medicaid coverage. The proposed Medicaid reductions were part of a broader plan to cut $1.5 trillion from federal health care, food assistance, and social welfare programs to help fund the tax breaks. These proposed changes include reducing the federal matching rate, capping per-person spending, and altering how much states can tax health providers.
The CBO warned that “under each of those options, Medicaid enrollment would decrease and the number of people without health insurance would increase.” The findings sparked intense reactions from Democrats and concern among moderate Republicans who fear voter backlash in tight districts.
“We’ve been saying all along: Republicans’ Medicaid proposals result in millions of people losing their health care,” said Rep. Frank Pallone (D-NJ), who, along with Sen. Ron Wyden (D-OR), requested the CBO review. The report confirmed what Democrats have long argued—that the proposed cuts would deeply impact low-income Americans, while the tax breaks would overwhelmingly benefit the wealthy.
Behind closed doors, House Speaker Mike Johnson has been meeting with factions of his party all week to navigate growing divisions. While fiscal conservatives, particularly from the House Freedom Caucus, continue to push for deep entitlement reforms, moderate Republicans in swing districts are rejecting cuts that would strip nearly-free health coverage from their constituents.
Rep. Jeff Van Drew (R-NJ) said after a Tuesday meeting that the most extreme Medicaid proposals—including changes to the federal match rate—are “dead.” Meanwhile, Rep. Nick LaLota (R-NY) pointed to Trump’s own opposition to cutting Medicaid, and said current discussions are shifting toward more targeted changes. These include:
- Imposing work requirements for Medicaid recipients
- Verifying eligibility twice annually instead of once
- Preventing undocumented immigrants from accessing benefits
While those ideas remain controversial, they’re seen by moderates as more politically viable than sweeping cuts. Still, even these more limited measures could strip health coverage from millions more, according to the CBO.
One proposal still under review is limiting states’ ability to tax health care providers in ways that increase federal matching funds. This move alone could save billions—but would likely result in 8 million people losing Medicaid access, the report found.
The broader GOP effort is tied to preserving and expanding Trump’s signature 2017 tax law, which included large breaks for corporations and wealthy individuals and is set to expire later this year. With a $1.5 trillion budget hole looming, Republicans argue that cutting social spending is the only way to offset the cost and prevent further increases in the national debt and federal deficit.
Yet the strategy comes at a politically sensitive time. Economic anxiety is mounting across the country amid rising prices and continued fallout from Trump’s trade war policies, which some economists blame for higher costs and supply chain disruptions. Lawmakers are wary of doubling down on proposals that could provoke public backlash, particularly with a presidential election on the horizon.
For Johnson, the challenge is clear: satisfy his party’s conservative base, who demand fiscal restraint, while not alienating moderates whose re-election hopes could hinge on protecting health coverage in suburban and rural districts.
While some of the harsher proposals have been shelved, the threat to Medicaid is far from over. The program, a federal-state partnership that provides health care to over 71 million low-income adults and children, remains squarely in Republican crosshairs as a major cost driver. Proposals to restructure it through spending caps and eligibility restrictions remain part of internal GOP discussions, even as some ideas lose steam.
If Republicans can’t agree internally on how to structure the cuts, the tax bill may stall altogether. And with Democrats unified in opposition, the slim GOP House majority gives Speaker Johnson little room for error.
As lawmakers continue negotiating in back rooms, millions of Americans on Medicaid await the outcome—with their health care hanging in the balance.
Medicaid Rollbacks Scaled Medicaid Rollbacks Scaled
You must Register or Login to post a comment.