Jan 23rd, 2025 - CreditSights
By Veronica Graff
A menu of $5.7tn in potential federal spending cuts that is under consideration by House Republicans includes more than $3 trillion in healthcare cuts. The 50-page, untitled document obtained by LFI, is one of several outlines circulating among GOP lawmakers across congressional committees as they gear up to execute an agenda for President Trump.
As for what that agenda aims to accomplish, the trillions in targeted spending cuts being passed around by House Budget Chair Jodey Arrington take particular aim at Medicaid. The outline puts into writing more than $1.7tn in Medicaid cuts over the next decade by eliminating enhanced subsidies under the ACA, reviving Medicaid work requirements and restricting state usage of provider taxes.
“Medicaid has a gigantic bulls-eye on it,” Spencer Perlman, director of healthcare research at Veda Partners, tells LFI. “[The administration] wants to examine ways to reduce federal exposure or cut items all together, but I don’t think the votes exist to dramatically change Medicaid.”