BGOV OnPoint: GOP Wrestles With Medicaid Cuts to Fund Tax Plan

May 9, 2025, 4:59 PM UTC

House Republicans will face a key test next week to see if they can find hundreds of billions of dollars in cuts to Medicaid to help fund President Donald Trump’s sweeping tax cuts and border spending agenda.

The House Energy and Commerce Committee is slated to start marking up its portion of Republicans’ budget reconciliation bill on May 13. Its instructions call for $880 billion in deficit reductions, a daunting task for a panel where Medicaid accounts for 93% of its non-Medicare spending.

Republicans have several options to find savings, including establishing a cap on federal contributions, setting new work ...

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