May 9th, 2025
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It looks like some Republican politicians in the House are changing their minds about some of the big cuts they planned for the Medicaid program. These cuts were part of their tax reduction plan. They are meeting resistance from other Republicans who are more moderate and don't want to stop the almost free healthcare for the people they represent.
A new report says that millions of Americans could lose their health insurance because of plans by Republicans to cut costs and save money.
The CBO report said that with each of these choices, fewer people would be in Medicaid and more people would not have health insurance.
The results caused new questions about whether House Speaker Mike Johnson can pass the bill President Donald Trump calls his important bill by the end of May, which was the deadline Johnson set for himself.
Politicians are getting more worried, especially with the economy causing concern because of Trump's policies. For example, the trade disagreements could lead to higher prices, shops not having things to sell, and people losing their jobs in many areas. The main part of the plan is the Republican goal to keep the tax cuts that started in 2017 and finish this year. But, they want to cut spending in other areas to help pay for them and stop the country's debt from getting bigger.
This week, Johnson has been meeting privately with groups of Republicans in his office at the Capitol. He has focused on the more moderate Republican politicians who represent areas where elections are very close. These politicians are warning against big budget cuts that would hurt their local areas.
Democrats, who had asked for the CBO report, quickly used the information.
A report from the Congressional Budget Office shows that the Republican plans for Medicaid would mean millions of people lose their health care, according to Representative Frank Pallone.
Republican politicians who left a meeting late on Tuesday said that Johnson and the Republican leaders would not support some of the most talked-about changes to how the government provides money to states for healthcare.
Congressman Jeff Van Drew from New Jersey said the planned changes to Medicaid will not happen.
Republican Representative Nick LaLota from New York pointed out that Trump had said he was against cutting Medicaid. But, he added that many Republicans now agree they should cut Medicaid in different ways.
LaLota had other ideas, too. He suggested that people who get Medicaid should have to work. He also wants them to prove they are eligible twice a year, not just once. And he thinks immigrants who are in the U.S. illegally should not receive help.
But the more traditional Republicans, including those in the House Freedom Caucus, want bigger cuts because they are trying to stop the national debt from growing too much because of the tax cuts.
Medicaid is a program that states and the national government manage together. It provides health coverage for 71 million adults.
Republicans are thinking about different ways to lower government spending on the program. One idea is to pay a smaller part of the cost for people's healthcare.
They are also thinking about limiting how much the government spends on each person in the Medicaid program, but this idea seems to be losing support among politicians.
The CBO said that while these changes could save billions of dollars, around 10 million people would lose their Medicaid.
They seem to be no longer considered.
However, Republicans are still thinking about other changes to Medicaid. One idea is to put new limits on how much a state can tax healthcare companies. This tax helps states get more money from the federal government. Making this change could save billions of dollars, but it might also mean that about 8 million people lose their health coverage, according to the report.
May 9th, 2025
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