Why Medicaid Is the Center of Debate Over Trump’s Spending Plan

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Republicans say they’re only after fraud and inefficiencies. Democrats say the GOP aims to cut benefits for the most vulnerable.

Medicaid, the medical coverage program for low-income Americans, finds itself at the center of a scrum between Republicans and Democrats, haggling over funding President Donald Trump’s second-term agenda.

Republicans, aiming to improve government efficiency, are pushing to rid Medicaid of the fraud and waste they say rob the program and the 72 million Americans who depend on it for medical care.

Democrats, accusing Republicans of trying to slash Medicaid funding to counterbalance tax cuts, are pushing to avoid any changes to the program.

Here’s how Medicaid, with its $616 billion in federal spending, became the political football in Congress’s budget reconciliation debate.

Republicans Want to Cut Spending

The U.S. House of Representatives passed a budget blueprint on Feb. 25 outlining their plan to fund the government.

The resolution directs various House committees to recommend at least $1.5 trillion in spending cuts and $4.5 billion in tax cuts over the next 1o years. It also calls for a $4 trillion increase in the nation’s debt ceiling.

Former House Speaker Nancy Pelosi (D-Calif.) drew a straight line between the GOP budget proposal and potential cuts to Medicaid.

“Tonight, House Republicans passed a budget which steals taxpayer dollars from Medicaid to give tax breaks to their billionaire donors and big corporations,” Pelosi said in a post on X moments after the resolution passed.

Democrats have been warning of cuts to Medicaid since before the budget blueprint was unveiled on Feb. 12.

All 47 Democratic and Independent senators signed a letter to House Speaker Mike Johnson (R-La.) on Feb. 7 urging him to avoid cutting the program.

Within days Democrats organized a messaging campaign, producing television ads accusing Republicans of trying to gut Medicaid.

House Democratic Leader Hakeem Jeffries (D-N.Y.) seized on the issue as a leverage point.

“We have [Republicans] on the run in terms of health care—particularly as it relates to Medicaid,” Jeffries said on a March 5 leadership call.

“House Democrats stand on the side of Medicaid and the American people. Republicans are trying to enact the largest cut to Medicaid in American history, and we need to keep the pressure on them legislatively and in communities all across the country,” Jeffries said.

Republicans have repeatedly said they have no such intention.

A day after the budget resolution passed, a reporter asked Trump if the proposed spending cuts would include Medicare or Medicaid.

“I have said it so many times, you shouldn’t be asking me that question,” Trump said. “We’re not going to touch it.”

By Lawrence Wilson

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