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CBO Warns Millions Could Lose Medicaid Coverage Under GOP Budget Proposals

Republican leaders rule out major funding cuts but face internal divisions over alternative Medicaid reforms as Memorial Day reconciliation deadline looms.

A Medicaid sign is seen as House Minority Leader Hakeem Jeffries, D-N.Y., and Sen. Cory Booker, D-N.J., conduct a live-streamed conversation with Americans on the House steps of the U.S. Capitol on Sunday, April 27, 2025. (Tom Williams/CQ Roll Call via AP Images)
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Health and Human Services Secretary Robert F. Kennedy Jr., left, and Dr. Mehmet Oz attend a swearing in ceremony for Oz to be Administrator of the Centers for Medicare and Medicaid Services, in the Oval Office of the White House, Friday, April 18, 2025, in Washington. (AP Photo/Alex Brandon)
Speaker of the House Mike Johnson, R-La., speaks during a news conference at the Capitol, Tuesday, May 6, 2025, in Washington. (AP Photo/Rod Lamkey, Jr.)

Overview

  • The Congressional Budget Office (CBO) and Urban Institute released analyses showing millions could lose Medicaid coverage under GOP proposals to achieve $880 billion in savings over a decade.
  • Speaker Mike Johnson confirmed that Republicans will not pursue cuts to the federal Medicaid matching rate (FMAP) or per-capita funding caps, but alternative reforms like work requirements and stricter eligibility checks remain under consideration.
  • Moderate Republicans and swing-district lawmakers oppose significant Medicaid cuts, while fiscal conservatives push for deeper savings to fund extensions of Trump’s 2017 tax cuts.
  • Public polling and MAGA influencers, including Laura Loomer, highlight broad opposition to Medicaid reductions, particularly in rural and red-state constituencies reliant on the program.
  • The GOP faces a Memorial Day deadline for budget reconciliation, with leadership navigating tensions between fiscal hawks and centrists to finalize a plan that balances Medicaid reforms with political and electoral pressures.