Speaker Mike Johnson (R-La.) announced on Tuesday that a contentious proposal to reduce federal Medicaid funding has been taken off the table, and another measure in the bill tied to President Trump’s domestic policies is also expected to be removed.
These issues have been major concerns for moderate and vulnerable Republicans, and while cuts to Medicaid were initially considered, no final decision had been reached on one of the most heated topics in discussions about the comprehensive package.
This development follows extensive debates among conservative lawmakers pushing for immediate cuts to social safety net programs in an effort to achieve a $1.5 trillion reduction in spending.
After a nearly two-hour meeting on Tuesday afternoon with moderate Republicans, Johnson confirmed that the proposal for direct cuts to state federal games related to the expansion of Medicaid, known as the Federal Medical Assistance Rate (FMAP), is no longer part of the conversation.
Johnson also indicated that “per capita” funding will likely be excluded as well. While some moderates have expressed support for this policy, others are concerned about significant cost shifts to states.
“We’re ruling that out too, but stay tuned,” Johnson remarked to reporters following the discussions.
Despite these two contentious issues, lawmakers reported that the framework of the plan is starting to take shape. It may include measures to cut “waste, fraud, and abuse,” establish federal work requirements, exclude non-citizens from eligibility, and possibly increase the frequency of state qualification checks.
Moderates and centrists remain hopeful about progress, despite recognizing that major challenges still exist.
“I think we are on a promising path to ensure that Medicaid remains available for eligible individuals and facilities,” said Rep. Jeff Van Drew (R-N.J.).
Rep. Dan Newhouse (R-Wash.) characterized Johnson’s outline as “feasible,” though he acknowledged that some details still need to be ironed out.
However, tensions in negotiations have led some hardline Republicans to begin discussing new proposals.
Congressman Chip Roy (R-Texas), a member of the conservative Freedom Caucus, stated regarding the FMAP and per capita caps: “We need to ensure funds go to those who truly need them and protect vulnerable populations.”
As House Republicans aim to advance legislation packed with Trump’s priorities before Memorial Day, differing opinions on Medicaid have created an urgent yet complex atmosphere for negotiations.
The House Energy and Commerce Committee, responsible for Medicaid matters, has been pressed to postpone discussions aimed at moving parts of the legislation forward this week, as they plan a key vote next week.
This legislation requires the committee to find $880 billion in savings over the next decade, primarily from health programs.
While some legislators expressed optimism about progress, others remained cautious.
“I think today served as a listening session for various proposals. If concrete suggestions emerge, we’ll see something solid for once,” remarked Rep. Ryan Mackenzie (R-Pa.).
