News Briefs: Prospect of Medicaid Cuts Faces Scrutiny in the Senate

  • Feb 28, 2025

    The U.S. House on Feb. 25 narrowly passed a budget resolution that will now face an uphill battle in the Senate over potential cuts to Medicaid. The resolution calls for the House Energy and Commerce Committee to cut $880 billion in federal spending over the next 10 years to help pay for President Donald Trump’s proposed tax cuts — and much of the money would likely come from Medicaid, according to news reports. Trump and other congressional Republicans have emphasized merely cutting fraud and abuse from the Medicaid system, “but we think it will be hard to avoid meaningful Medicaid cuts,” Wolfe Research analysts advised investors. However, in a CNN interview on Feb. 26, House Speaker Mike Johnson took the possibility off the table of Republicans pursuing either per capita funding caps or changes to the Federal Medical Assistance Percentage, Politico reported. In a Feb. 25 statement, Association for Community Affiliated Plans CEO Margaret Murray cautioned against steep Medicaid funding reductions, saying they “will cut deeply into vital services for children, seniors, veterans, and workers with low incomes.”

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