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House GOP Shifts Medicaid Strategy After CBO Warns of Coverage Losses

Republican leaders abandon deeper Medicaid cuts but face internal divisions as moderates push back on reforms that could leave millions uninsured.

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

  • House Speaker Mike Johnson has confirmed that federal Medicaid funding cuts, including FMAP reductions and per capita caps, are no longer being pursued.
  • The Congressional Budget Office's latest analysis projects millions could lose insurance under alternative GOP Medicaid reforms, such as work requirements and eligibility checks.
  • Moderate Republicans from swing districts have resisted steep cuts, pressuring leadership to scale back proposals targeting Medicaid beneficiaries.
  • Hardline conservatives continue to demand deeper Medicaid cuts to achieve $880 billion in savings, creating tension within the narrow GOP majority.
  • Democrats and health advocates warn the remaining Medicaid reforms would still harm vulnerable populations, framing the proposals as the largest Medicaid cuts in U.S. history.