May 9th, 2025
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It seems that Republicans in the House are reducing some, but not all, of their large cuts to the Medicaid program. This is because some moderate Republican politicians are against stopping affordable healthcare for the people they represent.
A new report says that millions of Americans might lose their health coverage through Medicaid. This is because Republicans are proposing ways to save money, like cutting government spending on health and food programs, to pay for tax cuts.
The CBO report said that if any of those options were chosen, fewer people would be in Medicaid, and more people would not have health insurance.
The results caused new doubts about whether House Speaker Mike Johnson can get the bill passed, which President Donald Trump calls his "big, beautiful bill," by the Memorial Day deadline he set.
Politicians are getting more worried, especially as people are concerned about the economy because of Trump’s policies. For example, the trade conflict could cause prices to go up, shops to have fewer products, and people to lose their jobs across the country. A key part of the plan is the Republican Party wanting to continue tax cuts that started in 2017 and will finish soon. But they want to cut spending on other programs to help pay for the tax cuts and stop the country's debt and deficit from growing more.
All week, Johnson has been meeting privately with groups of Republicans in his Capitol office. He has been talking especially with moderate Republican politicians from areas with strong political competition. These politicians are saying that deep budget cuts would seriously harm their local areas.
Democrats, who had asked for the CBO report, quickly used the results.
A report from a neutral government office confirms what we have been saying: the Republican plans for healthcare would mean millions of people lose their health insurance, according to Representative Frank Pallone, who asked for the report.
After a meeting on Tuesday evening, Republican lawmakers in the House suggested that Johnson and the Republican leaders were deciding against some of the most discussed changes to how the government gives money to states for healthcare for low-income people (Medicaid).
Jeff Van Drew, a Republican politician from New Jersey, said the changes to Medicaid will not happen.
Republican Representative Nick LaLota from New York mentioned that Trump had said he was against cutting Medicaid. But, LaLota added that many Republicans now think the cuts should happen in different parts of Medicaid.
LaLota also had other ideas, like making people on Medicaid work, asking recipients to show they qualify two times a year instead of one, and making sure immigrants without legal papers in the U.S. don't get help.
But the more traditional Republicans, like those in the House Freedom Caucus, want bigger cuts because they are trying to stop the big increase in debt from the tax reductions.
Medicaid is a program that states and the federal government work together on. It gives healthcare to about 71 million adults in the country.
Republicans are looking at different ways to lower how much the government spends on the program. One idea is to pay less of the healthcare costs for people in the program, which can be up to 90%.
They are also considering limiting how much the government spends on each person in Medicaid, but this idea seems to be losing support among politicians.
These changes could save billions of dollars, but the CBO said about 10 million people would lose their health insurance.
They seem to be no longer an option.
However, Republicans are still thinking about other changes to Medicaid. One idea is to put new limits on how states tax health care providers. This tax helps states get more money from the government. This change could save a lot of money, billions of dollars. But, the report says it could also mean around 8 million people might lose their health insurance.
May 9th, 2025
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