- President Donald Trump endorsed a House GOP budget plan Wednesday.
- Republicans’ outline would likely lead to billions in cuts to Medicaid, which insures 70 million.
- In an interview alongside Elon Musk that aired Tuesday night, Trump said he wouldn’t touch Medicaid.
President Donald Trump on Wednesday endorsed a House Republican budget plan that could cut billions from Medicaid, just hours after pledging that the healthcare program for millions of disabled and low-income Americans would not be touched.
Republican leaders have called for massive spending cuts to finance trillions in tax cuts and other provisions. House conservatives won a major concession last week, passing a budget blueprint that ties the size of the proposed tax cuts to the size of spending cuts. If Republicans don’t cut enough spending, their outline would likely not allow for all of Trump’s promises, including ending taxes on tips and overtime pay.
During an interview alongside his senior advisor Elon Musk, Trump said he would not touch Medicaid. He has pledged not to cut Social Security or Medicare, the largest federal government programs, though his administration has recently targeted Social Security over fraud suspicions.
“Medicare, Medicaid, none of that stuff is going to be touched,” Trump told the Fox News host Sean Hannity in an interview that aired on Tuesday night.
Senate Democrats criticized Trump’s embrace of the House GOP blueprint.
“Last night, the president said, ‘I’m not touching Medicare, Medicaid, the VA,” Sen. Tammy Baldwin of Wisconsin told reporters at the Capitol. “By this morning, he endorsed the House budget resolution, which paves the way for massive cuts to Medicaid.”
Trump previously said he would “love and cherish” Medicaid, which insures over 70 million Americans, according to October data. The federal government covers most of the cost of the program, which was created in the same 1965 law that birthed Medicare, a separate program for Americans 65 and older.
The White House said the Trump administration remains committed to Medicaid while pursuing changes that could alter the program.
“The Trump administration is committed to protecting Medicare and Medicaid while slashing the waste, fraud, and abuse within those programs — reforms that will increase efficiency and improve care for beneficiaries,” White House spokesperson Kush Desai said in a statement on Wednesday.
Last week, the House Budget Committee released its budget draft, which outlined about $2 trillion in spending cuts. These included a proposed $880 billion in spending cuts from the House Energy and Commerce Committee, which would extend for a decade.
It’s likely these cuts would target Medicaid. The program covers healthcare services for lower-income Americans of all ages, accounting for about $872 billion in spending in 2023.
Some GOP leaders have suggested implementing per-capita caps on Medicaid, which could save up to $900 billion, a House Budget Committee proposal said. Cuts to Medicaid would likely reduce services or prompt a search for other funding methods, which could affect millions of recipients.
Trump’s statement comes as congressional Republicans tussle over how to best proceed with the special budget process that allows them to extend Trump’s 2017 tax plan, fund stiffer immigration enforcement, and potentially pass a plan for no taxes on tips, all without requiring the support of a single Democratic lawmaker. Known as reconciliation, the process is likely Trump’s best avenue to pass the bulk of his domestic agenda, given Republicans’ thin majorities in Congress.
Senate Republicans have a competing plan, which does not include tax cuts. Under their proposal, the GOP would return to extending tax cuts and passing additional ones later this year. Senate Republicans were expected to move forward with their proposal before Trump posted Wednesday on Truth Social his praise of the House version of the bill in comparison with the Senate’s.
