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4mo ago

House GOP Abandons Key Medicaid Cuts as Budget Deadline Looms

Speaker Mike Johnson rules out aggressive Medicaid reductions, facing pushback from moderates while hardliners demand deeper spending cuts.

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)

Overview

  • Speaker Mike Johnson has ruled out Medicaid cuts to federal match rates and per-capita caps, responding to moderate Republicans' concerns over coverage losses.
  • The Congressional Budget Office's analysis estimates proposed Medicaid changes could leave millions uninsured, complicating GOP efforts to meet $2 trillion in savings targets.
  • Hardline conservatives, including the House Freedom Caucus, insist on at least $2 trillion in spending cuts, threatening to withhold support for the reconciliation package.
  • Moderates have signaled support for narrower Medicaid reforms, such as work requirements and stricter eligibility checks, which yield limited savings compared to original proposals.
  • With a Memorial Day deadline approaching, divisions within the GOP threaten the passage of President Trump’s fiscal 2026 budget agenda, which includes defense boosts and tax cuts.