Republicans in Congress back off proposal to cut Medicaid
Republicans in the U.S. House of Representatives are backing off a proposal to cut federal funding for Medicaid, excluding it from an upcoming budget bill that had previously included slashing some of the money that would be sent to states that manage plans.
Speaker Mike Johnson confirmed on Tuesday the cuts would be removed, after pressure from both President Donald Trump and other Republicans in Congress who opposed any reduction in Medicaid spending.
President Trump has repeatedly stated in public that he opposes defunding Medicare, Medicaid and Social Security, despite his agenda to curb federal spending.
In total, House Republicans were seeking approximately $1.5 trillion in cuts to social safety net programs—much of which remains in the upcoming budget plan. However, Johnson said initial plans to reduce the federal match for states that expanded Medicaid coverage under the Affordable Care Act are now off the table.
He said any bill that moves forward would likely exclude “per capita caps,” which do not alter benefits but require states to cover more of the cost for residents enrolled in government health plans.
Johnson added that the decision is not final, as some hardliners in the legislature are still pushing for cuts to the Federal Medical Assistance Percentage (FMAP), which would effectively reduce Medicaid spending.
For now, the House Energy and Commerce Committee, which oversees Medicaid funding, is expected to hold a vote on the budget without reductions to the FMAP.
Republicans in Congress are attempting to align their budget with a newly released White House plan for fiscal year 2026 that does not propose cuts to Medicaid, but does withdraw more than $33 billion in funding from the Department of Health and Human Services (HHS), including the Centers for Medicare & Medicaid Services (CMS).
Notably, while the Trump administration recommended broad slashing funds for federal healthcare agencies, the Food and Drug Administration was excluded from the White House "skinny budget" proposal.
The relevant federal spending bills are still being debated in Congress and must be passed by both legislative chambers before reaching Trump’s desk for a final signature or potential veto.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.