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GOP Budget Proposal Faces Scrutiny Over Medicaid Cuts and Tax Breaks

The Congressional Budget Office confirms Republican plans to cut federal spending heavily rely on Medicaid reductions to fund extended tax cuts and increased defense spending.

Representative Hakeem Jeffries (D-N.Y.), the House Minority Leader, speaks during a Medicaid and budget event with House Democrats and activists, at the U.S. Capitol, in Washington, D.C., on Tuesday, February 25, 2025.
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Overview

  • The Congressional Budget Office (CBO) has stated that the GOP's proposed budget cannot achieve its $880 billion spending cut target without significant reductions to Medicaid and other key health programs.
  • Medicaid, which provides health coverage to over 70 million low-income Americans, faces potential cuts despite assurances from Speaker Mike Johnson and Donald Trump that the program would remain untouched.
  • Republican leaders have suggested adding work requirements for Medicaid recipients, a move critics say could disproportionately harm vulnerable populations and add bureaucratic inefficiencies.
  • The proposed budget includes extending the 2017 tax cuts, which would primarily benefit the wealthiest Americans, while increasing national defense and immigration enforcement spending.
  • Democrats and policy analysts warn that the proposed Medicaid cuts could result in millions losing access to healthcare, exacerbating economic inequality and straining state-level healthcare systems.