House Republicans Push $880 Billion Medicaid Cuts To Renew Trump Tax Breaks—Democrat Warns: 'Millions Will Lose Their Health Care'

House Republicans unveiled plans for at least $880 billion in Medicaid cuts late Sunday as the cost-saving centerpiece to fund President Donald Trump‘s $4.5 trillion tax break extension, igniting the largest healthcare battle since the 2017 Obamacare repeal attempt.

What Happened: The legislation, spanning hundreds of pages, would implement new work requirements and eligibility restrictions that Republicans frame as eliminating “waste, fraud and abuse” in safety net programs, reported to the Associated Press.

A Congressional Budget Office (CBO) preliminary analysis estimates 8.6 million Americans could lose healthcare coverage over the next decade.

“Savings like these allow us to use this bill to renew the Trump tax cuts and keep Republicans’ promise to hardworking middle-class families,” said Rep. Brett Guthrie (R-KY), chairman of the Energy and Commerce Committee which oversees healthcare spending.

Democrats immediately denounced the proposal. “In no uncertain terms, millions of Americans will lose their health care coverage,” said Rep. Frank Pallone (D-NJ), the committee’s ranking Democrat. “Hospitals will close, seniors will not be able to access the care they need, and premiums will rise for millions of people if this bill passes.”

See Also: US Stock Futures Rise As US, China Agree To 90-Day Tariff Pause: ‘Wider Earnings Growth Should Drive More Balanced Market Performance,’ Says Expert

Why It Matters: Meanwhile, Democrats have proposed an alternative approach, targeting Medicare Advantage “upcoding” practices. Over 40 Democratic lawmakers recently wrote to Republican leadership citing reports that Medicare overpaid private insurers by $50 billion in 2024 for unverified diagnoses, representing $83 billion in excess payments compared to traditional Medicare.

State budgets are also at risk, with Nebraska already facing a $200 million shortfall even before potential Medicaid funding reductions, according to reports cited by entrepreneur Mark Cuban. Combined with recent tariff increases affecting agricultural exports, states heavily dependent on both federal healthcare funding and international trade could face compounded fiscal challenges.

Read Next:

• First American Pope Leo XIV Calls Artificial Intelligence Another Industrial Revolution

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image Via Shutterstock