May 9th, 2025
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House Republicans seem to be making fewer cuts to the Medicaid program than they first planned in their tax bill. This is because some moderate Republican politicians are against stopping the low-cost healthcare for the people they represent.
A new report says that millions of Americans might lose their health insurance, called Medicaid. This could happen if Republicans reduce government spending on health, food, and other programs by $1.5 trillion. They want to do this to help pay for $4.5 trillion in tax cuts.
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 created new questions about if House Speaker Mike Johnson can get his important bill passed. President Trump called this bill his "big, beautiful bill." Johnson had set a deadline for Memorial Day to pass it.
Politicians are getting more concerned, especially because of economic worries caused by Trump's policies, like the trade war. This could mean prices go up, shops have fewer things to sell, and people lose their jobs across the country.
This week, Johnson has been meeting privately in the speaker's office with different groups of Republicans. This includes those who represent areas where elections are very close. These Republicans are against big spending cuts that would harm their areas.
Democrats, who had asked for the CBO report, quickly used the information in it.
A neutral study by the Congressional Budget Office shows that the Republican plans for Medicaid would cause millions of people to lose their health care.
After a meeting on Tuesday evening, Republican politicians in the House of Representatives suggested that Speaker Johnson and other Republican leaders would not make some of the most discussed changes to how the government gives money to states for healthcare.
Representative Jeff Van Drew, a Republican from New Jersey, said the changes to Medicaid will not happen.
Republican politician Nick LaLota from New York said that Trump had mentioned he was against reducing Medicaid. But, LaLota explained that many Republicans now agree they should reduce other parts of Medicaid instead.
LaLota also suggested other ideas, like requiring people to work to get Medicaid. They would also need to show they qualify twice a year instead of once. Finally, he wants to make sure immigrants who are in the U.S. illegally do not receive this help.
However, some Republicans, especially those in the House Freedom Caucus, want to cut spending more because they are trying to stop tax breaks from making the national debt much bigger.
Medicaid is a program that states and the federal government manage together. It helps pay for healthcare for 71 million adults.
Republicans are thinking about different ways to spend less government money on the program. One idea is to pay a smaller part of people's healthcare costs. Right now, the government sometimes pays as much as 90%.
They are also thinking about setting a limit on how much the government spends on each person in the Medicaid program, but this idea seems to be less popular with politicians now.
The CBO said these changes would save billions of dollars, but about 10 million people would also lose their Medicaid insurance.
It appears they are no longer viable options.
However, Republicans are still thinking about other changes for Medicaid. One idea is to put new limits on how states tax healthcare providers. This tax can help states get more money from the government. This change could save a lot of money, billions of dollars. But the report also said it could mean about 8 million people might lose their health insurance.
May 9th, 2025
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