Report: GOP looking to cut healthcare to offset $200B Iran war spending

Republicans in Congress are considering further cuts to federal healthcare spending to offset the costs of the war in Iran. A current budget bill is allocating more than $200 billion to fund the conflict, as well as domestic immigration enforcement measures. 

Axios was the first to report the news. With the U.S. Department of War seeking new funds, the Budget Committee chairman in the U.S. House of Representatives, Jodey Arrington (R-TX), is said to be looking to siphon money from cost-sharing programs that subsidize the price tag of group health insurance plans. 

This would effectively mean further cuts to the Affordable Care Act, which has already seen an end to direct subsidies that made purchasing plans through government exchanges more affordable for Americans.

Further, this would be in addition to looming Medicaid cuts, with spending reductions put in place through a reduction to provider taxes. That passed last summer as part of the One Big, Beautiful Bill Act, a massive spending package passed through Congress and signed by President Donald Trump.

Arrington said he’s hesitant to further slice away at Medicaid while adding there may be ways to squeeze savings from the program by further enforcing eligibility restrictions.

His plan to push for cost-sharing reductions would potentially save the government $30 billion, but it would also increase out-of-pocket premiums for members. Axios said it’s estimated that 300,000 people would lose their health insurance. 

The outlet also confirmed that other Republicans in Congress, including House Majority Leader Steve Scalise (R-LA), are looking at reducing fraud and waste as a tactic to cover the Iran War—but it’s unclear what that means, as Scalise didn’t provide any details.

For more, read the full story from Axios at the link below.