As Trump, GOP grow leery of Medicaid cuts, here's who may foot tax-cut bill
From Morning Star — Feb 20th, 2025
Congressional Republicans and President Trump are clashing over how to pay for an extension of the 2017 tax cuts, exposing deep divisions on healthcare spending. At the center of the debate is Medicaid, the largest government health-insurance program with 72 million enrollees. While some Republicans have floated reforms like work requirements, analysts say those savings would fall far short of the $5–11 trillion cost of Trump’s tax and spending proposals.
Veda Partners’ Henrietta Treyz warned the GOP will likely need to authorize more than $5 trillion in new debt to avoid steep Medicaid cuts, a move that could trigger pushback from bond markets. Ed Yardeni, who coined the term “bond vigilantes,” cautioned that investors may punish Washington if deficit spending accelerates.
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