House Republicans seem to be slightly softening their stance on the substantial cuts to the Medicaid program within their major tax reform bill, facing opposition from more moderate GOP representatives reluctant to eliminate deeply discounted healthcare for their voters.

This is as a new report out Wednesday from the nonpartisan Congressional Budget Office estimated that millions of Americans would lose Medicaid coverage under the various proposals being circulated by Republicans as cost-saving measures. House Republicans are scrounging to come up with as much as $1.5 trillion in cuts across federal government health, food stamp and other programs, to offset the revenue lost for some $4.5 trillion in tax breaks.

The CBO report indicated that under each proposed option, Medicaid enrolment would fall and the number of uninsured individuals would rise.

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

Legislators are showing mounting apprehension, especially considering rising economic concerns fueled by Trump’s initiatives, such as the trade dispute that is raising the prospect of increased costs, shortages, and job reductions across the country. A key element of the proposal is the Republican party's principal objective of prolonging tax reductions, initially implemented in 2017, which are scheduled to cease later this year. However, they seek to implement budgetary reductions in other areas to contribute to funding these extensions and curb the persistent rise in the nation's financial liabilities and deficits.

Throughout the week, Johnson has been convening privately with various Republican factions in the speaker's office at the Capitol, especially moderate GOP legislators from highly contested constituencies, who are cautioning against drastic cuts that would severely impact their districts.

Democrats, who had commissioned the CBO report, swiftly capitalised on the findings.

A neutral report from the Congressional Budget Office shows we were right: Republican plans for Medicaid would cause millions to lose their health care, according to Rep. Frank Pallone, D-N.J., who asked for the report with Sen. Ron Wyden, D-Ore.

House Republican lawmakers leaving a meeting late Tuesday evening suggested that Johnson and the GOP leadership were abandoning some of the most contentious Medicaid alterations regarding the federal matching fund rates given to the states.

According to Representative Jeff Van Drew, a Republican from New Jersey, the proposed modifications to Medicaid will not be implemented.

New York Republican Representative Nick LaLota pointed out that Trump himself had stated he would not support cuts to Medicaid, suggesting instead that the emerging agreement among Republicans is to direct these reductions towards alternative areas within the program.

Additionally, LaLota mentioned proposals such as introducing work mandates for Medicaid beneficiaries, implementing semi-annual eligibility verification for recipients, and guaranteeing that undocumented immigrants do not receive aid.

However, more traditional Republicans, notably those in the House Freedom Caucus, are demanding deeper expenditure reductions in their efforts to curb the escalating deficits resulting from tax concessions.

Medicaid, a collaborative initiative managed by both individual states and the federal administration, provides healthcare coverage for 71 million adults.

Republicans are contemplating various strategies to curb federal expenditure on the program, such as decreasing the portion the federal government contributes to enrollees' healthcare costs, which can be as high as 90% in certain instances.

The federal government is also contemplating implementing a limit on per-person expenditure for those enrolled in Medicaid, although this proposal seems to be losing traction among legislators.

The CBO stated that although these amendments would generate billions in cost reductions, they would simultaneously lead to the discontinuation of Medicaid coverage for approximately 10 million individuals.

It seems they have been effectively ruled out.

However, Republicans are still considering other proposed adjustments to Medicaid, such as placing new constraints on state taxes levied on healthcare providers, which result in higher federal payouts. This could yield billions in savings but potentially lead to approximately 8 million individuals losing their coverage, according to the report.