House GOP Faces Tax Dilemma Amid Medicaid Funding Talks
Divided House Republicans negotiate Medicaid funding and consider Trump’s proposed tax hikes for the wealthy to offset budget cuts.
Finding a path forward to extend the tax cuts has proven to be a difficult task in recent weeks.
Trump asks Johnson to look at increasing tax rates for millionaires - Washington Examiner
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However, the path forward is complicated.
Trump Asks Congress to Raise Taxes on Millionaires to Fund Tax Cuts, Source Says
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The 11th-hour requests from Trump add a new wrinkle to an already complicated process for Republican lawmakers as they desperately try to find enough savings for the bill, which seeks to extend the president's 2017 tax cuts, boost funding for immigration enforcement and defense, and raise the debt limit.
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Republicans representing districts with high Medicaid enrollment rates could face more pressure to break from party lines on a vote to cut funding for the program — particularly those who won in close races last year and those who outperformed Trump, including those who ran as moderates.
Here are the states and districts that depend on Medicaid the most, in 3 charts | Politics
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House Republicans appear to be backing off some, but not all, of the steep reductions to the Medicaid program as part of their big tax breaks bill, as they run into resistance from more centrist GOP lawmakers opposed to ending nearly-free health care coverage for their constituents back home.
House GOP backing off some Medicaid cuts as report shows millions of people would lose health care
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The estimates of people who could lose Medicaid coverage range from 2.3 million to 8.6 million under different proposals floated by Congressional Republicans, according to an analysis by the nonpartisan Congressional Budget Office.
Millions of people could lose coverage under Trump-backed GOP plans to cut Medicaid: CBO
USA TODAY·8d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.Johnson's decision to side with centrist Republicans on their Medicaid red lines could hamper his efforts to reach the deadline for passing the reconciliation bill, which is May 26, Memorial Day.
Medicaid Concessions to House Centrists Rile Fiscal Hawks
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House Republican leadership’s decision to step back from two pathways to major Medicaid cost savings has fueled contempt among hard line conservatives, raising questions about the future of a reconciliation package that faces a key markup next week.
Conservatives chafe at taking Medicaid savings options off table
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Summary
House Republicans remain divided over Medicaid funding cuts as moderates resist reductions while conservatives push for extensive budget cuts. Speaker Mike Johnson confirmed some proposals, including cutting federal reimbursements, have been rejected. The recent intervention from President Trump, who urged Johnson to consider increases in the top tax rate for earners above $2.5 million and closing tax loopholes, complicates negotiations. As lawmakers face the urgent need to fund both Medicaid and tax cuts amid public opposition to cuts, negotiations intensify, aiming for a reconciliation bill ready for a House vote before Memorial Day.
Perspectives
Republican leadership is facing internal conflict between moderates who oppose steep Medicaid cuts and conservatives demanding significant reductions to meet fiscal goals, complicating progress on the reconciliation bill.
The Congressional Budget Office's analysis highlights potential losses in Medicaid coverage for millions, raising alarms among moderates about the impact on their constituents, which could derail support for proposed cuts.
Disagreements persist regarding what constitutes a benefits cut, with some Republicans arguing that reducing federal payments is necessary for fiscal responsibility, while others fear it would harm vulnerable populations.
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