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By Robert Thorpe
Senior Editor
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House Republicans have unveiled a budget resolution that proposes substantial cuts to Medicaid, aiming to reduce federal spending by $880 billion over the next decade. This proposal has ignited a debate within the GOP, as some members express apprehension about the potential impact on their constituents.
Newsweek reached out to Representatives David Valadao and Nicole Malliotakis via email for comment.
Why It Matters
The budget proposal, endorsed by President Donald Trump, seeks to finance an extension of the 2017 tax cuts and bolster border security funding. To achieve this, the plan includes deep reductions in Medicaid, a program currently covering over 72 million low-income Americans, including children and individuals with disabilities.
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If implemented, these cuts could lead to millions losing access to essential healthcare services, disproportionately affecting vulnerable populations. Notably, some Republican lawmakers are voicing concerns, highlighting a rift within the Republican party.
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What To Know
The House budget resolution mandates the Energy and Commerce Committee to identify $880 billion in savings over the next ten years, which could include funding for Medicaid. This directive has raised alarms among moderate Republicans like Representatives Don Bacon, Valadao and Malliotakis who recently expressed concerns about the cuts.
According to data from The Center for Children & Families (CCF) at the McCourt School of Public Policy at Georgetown University, in 2023, 48.7 percent of Valadao's district is enrolled in Medicaid.
Bacon told Newsweek he wants to pass Budget Reconciliation to secure the border, expand energy production, improve the military and extend tax cuts. However, he opposes significant Medicaid cuts in the current proposal and has asked the House leadership to demonstrate that $880 billion in cuts to Energy and Commerce won't excessively impact Medicaid.
Trump's endorsement of the House budget resolution has added complexity to the situation. In an interview with Fox News' Sean Hannity, Trump stated, "Medicare, Medicaid—none of that stuff is going to be touched." Despite this assurance, his support for the current proposal suggests a shift in stance.
The Economic Policy Institute (EPI) has analyzed the potential impact of the proposed Medicaid cuts, indicating that such reductions could significantly decrease incomes for the bottom 40 percent of earners. The EPI's report suggests that the cuts would disproportionately affect low-income households, exacerbating existing economic disparities.
Other GOP members have also expressed concerns with the scale of the proposed spending cuts. In a letter to Speaker of the House Mike Johnson, Representative Tony Gonzales and seven other House members, including Malliotakis and Valadao, emphasized the adverse effects that reductions to programs like Medicaid could have on their constituents.
"Slashing Medicaid would have serious consequences, particularly in rural and predominantly Hispanic communities where hospitals and nursing homes are already struggling to keep their doors open," Gonzales wrote.
What People Are Saying
Representative Don Bacon told Newsweek: "I want to see Budget Reconciliation passed because I want to secure the border, expand our energy production, improve our military and extend the tax-cuts. But we don't want to make significant cuts to Medicaid, and the current proposal appears to do just that. President Trump even warned against significant cuts to Medicaid. I've asked the House leadership to prove to us that $880B in cuts to E&C won't overly cut Medicaid. That is my request."
Tony Gonzales, Chairman of the Congressional Hispanic Conference, wrote in a letter: "Nearly 30 percent of Medicaid enrollees are Hispanic Americans, and for many families across the country, Medicaid is their only access to healthcare. Slashing Medicaid would have serious consequences, particularly in rural and predominantly Hispanic communities where hospitals and nursing homes are already struggling to keep their doors open. Moreover, the possibility of cutting Medicaid Disproportionate Share Hospital (DSH) funding threatens hospitals that serve low-income and uninsured patients."
Josh Bivens, chief economist at the Economic Policy Institute wrote in a blog post: "Last week, House Republicans submitted a budget resolution that calls for $880 billion in cuts to Medicaid—the program that provides health insurance for low-income Americans—to help pay for extending the 2017 Tax Cuts and Jobs Act (TCJA), which primarily benefits the highest earners. President Trump endorsed the House plan earlier this morning, despite vowing yesterday to not cut Medicaid.
Besides being unfair, the cost of this overall tax cut would be large enough to put huge stress on other parts of the economy, no matter how it is paid for. But the costliest way to pay for this would be to enact large cuts in spending programs like Medicaid that provide benefits to economically vulnerable families. These cuts would equal almost 11 percent of all Medicaid spending over the proposed time period."
What Happens Next
The vote on the budget resolution is expected to take place next week, according to House Majority Leader Steve Scalise. Until then, GOP leaders face the challenge of unifying their caucus amid differing opinions on Medicaid cuts.
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