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Strategist | strategy-catalyst

House advances GOP spending bill, setting stage for Medicaid cuts

Bar chart illustrating the estimated annual Medicaid spending cuts under the GOP budget reconciliation bill, totaling over $62.5 billion. Largest cut is from work requirements ($30.1B), followed by eligibility rule changes ($16.3B), provider taxes ($8.7B), eligibility redeterminations ($4.9B), other policies ($2.2B), and prescription drug spending ($0.3B).
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After an overnight amendment process and pressure from President Trump, House Republicans managed to pass their budget reconciliation bill on a 215-214 vote, giving lawmakers a chance to enact sweeping spending changes (including cuts to Medicaid) without any Democratic support. The bill now heads to the Senate.

The bill initially failed to pass the Budget Committee after several members of the conservative Freedom Caucus objected, arguing that the legislation did not do enough to reduce Medicaid spending. Over the weekend, Speaker Mike Johnson made a closed-door deal with the Republican holdouts that would accelerate the timeline for Medicaid cuts in exchange for their support.

A note for our readers: The spending bill was amended and passed just hours before we published this newsletter. We have made our best effort to revise this article to reflect the latest changes, and we will update the online editions if we learn about other substantial amendments not reflected in this version.

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