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House Republicans Introduce Medicaid Cuts to Fund Trump Tax Extension

Proposed legislation includes work mandates, eligibility checks, and cost-sharing, with Democrats warning of widespread coverage losses.

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A US flag flies near the dome of the US Capitol in Washington, DC, on February 25, 2025.
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.)
Alexandria Ocasio-Cortez speaks during a stop on the ‘Fighting Oligarchy’ tour with U.S. Senator Bernie Sanders at Grand Park on April 12, 2025 in Los Angeles, California.

Overview

  • The House Energy and Commerce Committee unveiled a bill cutting $880 billion from Medicaid over a decade to help finance an extension of Trump’s 2017 tax cuts.
  • The proposal includes work requirements for able-bodied adults, biannual eligibility verifications, and $35 per-service cost-sharing capped at 5% of income.
  • Speaker Mike Johnson ensured the bill excludes deeper structural cuts, such as per-beneficiary caps and reductions to federal matching rates, to secure moderate Republican support.
  • The Congressional Budget Office estimates the changes could leave 8.6 million people without health insurance by 2034.
  • Democrats and healthcare advocates argue the cuts will harm vulnerable populations, destabilize hospitals, and increase administrative burdens, with some warning of life-threatening consequences.