STAT+: Republicans’ plan to cut government spending is hitting a major snag: Medicaid

GOP, looking for spending reductions to offset the cost of Trump’s tax cut plans, weighs the political risks of Medicaid cuts.

Mar 26, 2025 - 20:41
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STAT+: Republicans’ plan to cut government spending is hitting a major snag: Medicaid

The House’s plan to cut government spending, including on Medicaid, to help pay for the extension of tax cuts is already hitting snags. 

The House budget resolution, which sets broad plans for GOP efforts to cut taxes, directs the House Energy & Commerce Committee to cut government spending by $880 billion over a decade. The nonpartisan Congressional Budget Office said hitting that target would require significant cuts to Medicaid. 

The consensus among Republicans is that they will only go after fraud, waste, and abuse as paths to reduce Medicaid spending, which Senate Majority Leader John Thune (R-S.D.) reiterated on Tuesday. President Trump, he said, has “made certain statements about Medicare and Medicaid,” referring to Trump’s promise not to cut either program. Thune added that, “we’re going to be looking at where can we find savings that are associated from waste, fraud, and abuse in government programs.”

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