House GOP Proposes Medicaid Cuts to Fund Tax Breaks/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ House Republicans have unveiled legislation proposing $880 billion in Medicaid cuts to help finance $4.5 trillion in tax breaks. Democrats warn the plan could leave over 8 million Americans without healthcare coverage. The proposal marks the most significant health care battle since the failed repeal of Obamacare in 2017.
GOP Medicaid Cuts Reignite Health Care Battle – Quick Looks
- GOP bill includes $880 billion in Medicaid and health program cuts.
- Proposals aim to help fund Trump’s $4.5 trillion tax cut renewal.
- Congressional Budget Office projects 8.6 million could lose coverage.
- New work requirements: 80 hours/month for able-bodied Medicaid recipients.
- Democrats call the plan a hidden repeal of Obamacare.
- Health care cuts dominate Energy & Commerce Committee’s cost savings.
- Trump previously vowed not to cut Medicaid; some Republicans dissent.
- Bill also rolls back green energy provisions from Biden era.
House GOP Proposes Medicaid Cuts to Fund Tax Breaks
Deep Look
WASHINGTON (AP) — House Republicans have launched a sweeping legislative push to slash at least $880 billion from Medicaid and other health programs, a move they argue is essential to help fund President Donald Trump’s $4.5 trillion tax cut package. Democrats, however, warn the cuts will result in millions of Americans losing health coverage.
Dubbed the financial centerpiece of what Trump calls his “big, beautiful bill,” the legislation is shaping up to be the most contentious health care debate since the GOP’s failed attempt to repeal the Affordable Care Act in 2017.
The proposed cuts are being packaged as cost-saving reforms that include strict new eligibility requirements. Chief among them is a new “community engagement” rule that would require able-bodied adults without dependents to work, volunteer, or study for at least 80 hours per month to qualify for Medicaid. Additionally, recipients would need to verify eligibility twice a year instead of once, a move experts say could cause significant administrative burdens and lead to mass disenrollment.
“We’re rooting out waste, fraud, and abuse to ensure the system works for those who truly need it,” said Rep. Brett Guthrie (R-KY), chair of the House Energy and Commerce Committee, which spearheaded the health care changes.
The nonpartisan Congressional Budget Office (CBO) estimated the GOP plan would reduce federal health coverage enrollment by approximately 8.6 million people over the next decade. Most of that would come from Medicaid cuts and changes to the Affordable Care Act (ACA) marketplace subsidies.
Rep. Frank Pallone (D-NJ), ranking Democrat on the Energy and Commerce Committee, called the legislation “shameful” and “an attack on America’s most vulnerable.”
“Hospitals will close, seniors will lose access to care, and premiums will rise,” Pallone said. “Make no mistake—this is another attempt to dismantle Obamacare by stealth.”
The Medicaid overhaul also eliminates a temporary 5% increase in federal funding provided to states during the COVID-19 pandemic and bans Medicaid funding for undocumented immigrants. Additionally, it imposes a freeze on so-called “provider taxes,” a funding tactic some states use to increase federal reimbursements.
The Energy and Commerce Committee was tasked with identifying $880 billion in savings, and according to a preliminary CBO review, it exceeded the target—producing $912 billion in deficit reduction over 10 years, $715 billion of which stems from health-related provisions.
The cuts come as Republicans rush to meet House Speaker Mike Johnson’s Memorial Day deadline to finalize Trump’s tax and spending package. Multiple House committees are contributing portions of the massive bill, with 11 in total preparing segments on everything from taxes to energy and environmental policy.
Even as Republicans tout fiscal responsibility, internal GOP divisions may complicate the bill’s path forward. More than a dozen Republican lawmakers have expressed reservations about cutting Medicaid—a program that provides health coverage to over 70 million Americans, particularly in states that expanded the program under the ACA.
Trump himself has previously said he would not touch Medicaid, further complicating matters as the legislation moves forward. While his administration supports the broader fiscal vision of the bill, it remains unclear whether he will publicly endorse the healthcare cuts now under fire.
Beyond healthcare, the bill also targets Biden-era climate provisions. It would repeal funding for clean energy loan programs and green investment initiatives enacted through the Inflation Reduction Act. It also includes provisions for fast-tracking natural gas projects and oil pipeline permits.
Advocates for low-income Americans say the proposal could create serious real-world consequences. “These changes will lead to higher uninsured rates, especially among working-class and rural populations,” said Tara Rollins of the Utah Housing Coalition.
NYU professor Vicki Been also raised concerns about the plan’s reliance on administrative hurdles, noting that increasing eligibility verification often leads to loss of coverage even among eligible recipients due to paperwork delays or misinformation.
In the coming days, House Republicans plan to hold a marathon series of hearings to debate and refine the bill’s contents before combining them into a comprehensive legislative package. The final bill will likely become a centerpiece of Republican messaging heading into the 2026 midterm elections.
While Democrats prepare to fight the bill tooth and nail, many see the renewed GOP focus on Medicaid as a replay of 2017—with the stakes just as high.
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