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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.

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.