Trump Endorses Budget That Would Slash Medicaid Funding

The inconsistency of the Trump administration’s stance on Medicaid and Medicare persisted on Wednesday when President Donald Trump announced his support of the House Republican budget, leaving many politicians scrambling to better understand the president’s stance on preserving the federal program. The budget includes an $880 billion cut to programs that fall under the jurisdiction of the House Energy and Commerce Committee, including Medicaid.1

With the new administration, several contradictory statements have been released regarding the future of Medicaid in the country. During his confirmation hearings, Robert F. Kennedy, Jr made several incorrect statements regarding how Medicaid receives funding and how high premiums and deductibles were for those using Medicaid.2 President Trump previously said that Medicaid funding would not be cut before endorsing the budget that would bring about hundreds of billions of dollars in cuts.3

Should the budget pass in the House, the implications could be widespread. With federal spending halted, states would have to pick up the budget to compensate, meaning their citizens could be left without Medicaid. This would primarily affect those in rural areas and those living below the poverty line.4 Medicaid also covers approximately 40% of children in the US, which could lead to worse outcomes in the pediatric population across the country.5

The House budget could cut $880 billion from the department that oversees Medicaid. | Image credit: Tada Images - stock.adobe.com

States are already responding to the potential budget cuts by seeking approval from CMS to add work requirements to coverage; previous attempts to add these requirements were blocked by a federal judge.4 These requirements would likely eliminate coverage for the nearly 80 million Americans across the country currently using Medicaid.

Not only will Medicaid cuts affect patients, but Medicaid also acts as a primary source of funding for hospitals, community health centers, nursing homes, and physicians. According to the Kaiser Family Foundation, 37% of Medicare spending and 32% of Medicaid spending in 2023 was for hospital care.6 Reducing that number for Medicaid spending could affect staffing and the services being offered at hospitals, decreasing both quality of care and health care coverage for those working in hospitals and nursing homes. With hospital closings already outpacing hospital openings, the reduction in funding could have far-reaching consequences on hospitals with low funding or in areas that serve fewer patients.

Although President Trump has endorsed the House budget, Senate Republicans will vote on their own budget.3 The Senate budget does not include tax cuts and instead focuses on immigration, military spending, and energy. Trump has stated that he wishes for 1 bill to pass that includes all of his policy agenda, which favors the House budget. The House plans to vote on the budget next week when lawmakers return, believing the endorsement of President Trump could give them more momentum in approving the budget quickly. Democrats plan to combat the House budget by proposing amendments that no one with an income of more than $1 million can get a tax reduction if any money is cut from Medicaid.

References

1. Leonard B, Cancryn A, King R. Trump blindsides staff, Congress with conflicting Medicaid messages. Politico. Updated February 19, 2025. Accessed February 20, 2025. https://www.politico.com/news/2025/02/19/senate-medicaid-cuts-trump-00205042

2. Mattina C. Robert F. Kennedy Jr confirmed as HHS secretary, nearly along party lines. AJMC®. February 13, 2025. Accessed February 20, 2025. https://www.ajmc.com/view/robert-f-kennedy-jr-confirmed-as-hhs-secretary-nearly-along-party-lines

3. Wong S, Kapur S, Zanona M, Nobles R, Santaliz K. Senate Republicans plan budget vote, despite Trump’s endorsement of competing House version. NBC News. Updated February 19, 2025. Accessed February 20, 2025. https://www.nbcnews.com/politics/congress/trump-endorses-house-gop-budget-bill-swipe-senate-plan-rcna192791

4. Seitz A, Demillo A, Freking K. Republicans consider cuts and work requirements for Medicaid, jeopardizing care for millions. Updated February 18, 2025. Accessed February 20, 2025. https://apnews.com/article/medicaid-cuts-work-requirements-congress-republicans-90ec1119f1d95de067c76f79eec7fa87

5. McCormick B. Medicaid unwinding left thousands of pediatric patients uninsured. AJMC®. February 7, 2025. Accessed February 20, 2025. https://www.ajmc.com/view/medicaid-unwinding-left-thousands-of-pediatric-patients-uninsured

6. Levinson Z, Hulver S, Godwin J, Neuman T. Key facts about hospitals. KFF. February 19, 2025. Accessed February 20, 2025. https://www.kff.org/key-facts-about-hospitals/