Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
House Republicans are beginning to scale back some of their proposed deep Medicaid cuts as part of their sweeping tax break legislation, facing mounting resistance from centrist GOP lawmakers wary of slashing health coverage for their constituents. However, not all proposed reductions are off the table. Why It Matters The political pressure is intensifying as economic uncertainty grows, in part due to Trump's trade policies that have led to rising prices, supply disruptions, and job losses.
House Speaker Mike Johnson has been holding closed-door meetings with moderate Republicans, many from swing districts, who are urging the leadership to abandon the most controversial Medicaid cuts. Speaker of the House Mike Johnson, R-La., speaks during a news conference at the Capitol, Tuesday, May 6, 2025, in Washington. Speaker of the House Mike Johnson, R-La., speaks during a news conference at the Capitol, Tuesday, May 6, 2025, in Washington.
Associated Press What to Know A new report released Wednesday by the nonpartisan Congressional Budget Office (CBO) estimated that millions of Americans would lose Medicaid coverage under various Republican proposals aimed at cutting federal spending. "Under each of those options, Medicaid enrollment would decrease and the number of people without health insurance would increase," the CBO report said. The findings added fresh complications for Johnson, who is struggling to rally support for what President Donald Trump has dubbed his "big, beautiful bill," which Republicans aim to pass by Memorial Day.
The package would extend the expiring 2017 Trump-era tax breaks but requires up to $1.5 trillion in cuts to programs like Medicaid and food stamps to offset the estimated $4.5 trillion in lost revenue. Some lawmakers say leadership is now retreating from changes to federal Medicaid matching rates. "Those Medicaid changes are dead," said Rep. Jeff Van Drew, a Republican from New Jersey.
Republican Rep. Nick LaLota of New York noted Trump's opposition to cutting Medicaid, saying the party is instead considering narrower changes like work requirements, more frequent eligibility checks, and restricting aid to undocumented immigrants. What People Are Saying Democratic Rep. Frank Pallone of New Jersey, who sought the review with Democratic Sen. Ron Wyden of Oregon, said, "This non-partisan Congressional Budget Office analysis confirms what we've been saying all along: Republicans' Medicaid proposals result in millions of people losing their health care." Representative Don Bacon told Omaha's KETV: "We're trying to do this very carefully.
But I wanted to tell our leadership that if you are going to cut above this, you're going to have to persuade about 20 of us, or maybe more, that it's not going to affect the quality of healthcare for individuals who need it, or hospitals." Louise Norris, health policy analyst for healthinsurance.org, told Newsweek: "Especially in lower-income districts that rely heavily on Medicaid, it's not surprising that lawmakers on both sides of the aisle are expressing concerns about federal proposals that would shift Medicaid costs onto states and potentially result in reduced benefits or stricter eligibility rules." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Proposals for changes to Medicaid vary, but one gaining traction has been for caps to put on the amount the federal government will supply the states for beneficiaries.
The current Medicaid program is a partnership between federal and state governments, and while this proposal would keep that partnership, it would install firm limits on how much the federal government would pay for that program. The result is states would have to pick up the tab for increased costs and assume more liability." What Happens Next Despite the pushback, hardline conservatives, including the House Freedom Caucus, continue to press for deeper cuts.
Republicans are still weighing options like limiting provider taxes used by states to draw extra federal funds—measures the CBO says could cost 8 million people their coverage. Reporting by the Associated Press contributed to this story. Update: 5/7/25, 6:11 p.m.
ET: This article has been updated with additional information and remarks.
