House Republicans seem to be reducing some, but not all, of their big cuts to the Medicaid program in their large tax bill. They are facing opposition from more moderate Republican politicians who do not want to stop the very low-cost healthcare for people in their areas.

According to a report released Wednesday by the nonpartisan Congressional Budget Office, it is estimated that millions of Americans could lose Medicaid coverage under the proposals currently being considered by Republicans as a means of reducing expenditure. House Republicans are attempting to identify cuts totaling up to $1.5 trillion across federal health, food stamp, and other programs, in order to compensate for the revenue deficit resulting from approximately $4.5 trillion in tax reductions.

The CBO report indicated that under each proposed option, Medicaid enrollment would decline, leading to a rise in the number of individuals without health insurance.

The results caused new doubts about whether House Speaker Mike Johnson can pass what President Donald Trump calls his "big, beautiful bill" by a deadline he set for Memorial Day.

Lawmakers are becoming more concerned, particularly due to mounting economic worries surrounding Trump's policies, such as the trade conflict potentially leading to increased costs, product shortages, and job losses across the country. A core element of the proposed measures is the Republican party's aim to prolong tax reductions introduced in 2017 that are set to conclude this year. However, they intend to implement spending reductions in other areas to finance these extensions and curb the ongoing rise in the national debt and budget deficits.

Throughout the week, Johnson has been convening privately in the speaker’s Capitol office with various Republican factions, notably moderate GOP representatives from highly contested constituencies, who are cautioning against drastic budget reductions that could severely impact their districts.

Democrats, who had commissioned the CBO report, eagerly seized upon the findings.

Congressman Frank Pallone and Senator Ron Wyden say that this report from the Congressional Budget Office proves their point. They have always said that the Republican plans for Medicaid would cause millions of people to lose their health insurance.

Late Tuesday evening, Republican lawmakers exiting a meeting suggested that Johnson and the GOP leadership were abandoning some of the most contentious proposed alterations to the federal Medicaid matching fund rates allocated to states.

According to Representative Jeff Van Drew, Republican of New Jersey, the proposed alterations to Medicaid are effectively abandoned.

Republican Representative Nick LaLota from New York pointed out that Trump himself had stated his opposition to cuts in Medicaid, suggesting that the emerging agreement among Republicans was to concentrate these reductions on alternative aspects of the program.

Among other proposals, LaLota mentioned implementing work requirements for Medicaid beneficiaries, obliging recipients to reconfirm their eligibility biannually rather than annually, and guaranteeing that individuals residing in the U.S. without legal authorization are not receiving assistance.

However, more conservative Republicans, notably those in the House Freedom Caucus, are demanding more substantial spending cuts as they strive to curb mounting deficits resulting from tax reductions.

Medicaid, a collaborative initiative overseen by both state and federal authorities, provides healthcare coverage for approximately 71 million adults.

Republicans are contemplating a range of strategies aimed at curbing federal expenditure on the program, among them a reduction in the federal government's contribution to enrollees' healthcare costs, which currently can be as high as 90%.

They are also contemplating and establishing a ceiling on the federal government's expenditure per Medicaid enrollee, although that proposition seems to be losing traction among legislators.

The CBO stated that although these modifications would generate billions in cost reductions, they would simultaneously lead to approximately 10 million individuals losing their Medicaid coverage.

It appears they have been precluded from further deliberation.

However, Republicans are still considering other changes to Medicaid, such as putting new limits on how states can tax health care providers. This tax currently helps states get more money from the federal government. This change could save billions of dollars, but the report also says it could lead to about 8 million people losing their health insurance.