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House Republicans Push $715 Billion Medicaid Cuts in Tax Plan

Draft legislation ties deep Medicaid reductions to funding President Trump’s $4.9 trillion tax agenda, facing intraparty divisions and CBO projections of 8.6 million losing coverage.

A view of the U.S. Capitol dome in Washington, D.C., U.S., November 24, 2024. REUTERS/Benoit Tessier/File Photo
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Overview

  • The House Energy and Commerce Committee has released draft legislation proposing $715 billion in Medicaid spending cuts over the next decade to fund sweeping tax cuts.
  • Key provisions include work requirements for able-bodied adults, stricter eligibility checks, and penalties for states covering undocumented immigrants under Medicaid.
  • The Congressional Budget Office estimates the cuts would leave at least 8.6 million Americans uninsured by 2034 while achieving significant federal savings.
  • The proposal has sparked sharp divisions within the Republican Party, with moderates voicing concerns over harm to constituents and hardliners demanding deeper cuts.
  • Committee markups are set to begin Tuesday as GOP leaders face tight Memorial Day and July 4 deadlines to secure near-unanimous support in the narrowly divided House.