The potential cuts involve proposals to reduce federal spending on Medicaid, possibly through per capita caps, which could result in millions losing coverage. Cuts in the range of hundreds of billions over a decade are being discussed to offset tax cuts.

President Trump has suggested considering tax hikes for the wealthy to help offset budget cuts, which complicates the negotiations on Medicaid funding, as lawmakers need to balance these proposals to achieve a reconciliation bill.

House Republicans are divided, with moderates resisting extensive cuts while conservatives push for deeper reductions to meet budget targets. Speaker Mike Johnson has confirmed that some proposals have been rejected.

Public opposition to cuts in vital programs like Medicaid could pressure lawmakers to reconsider their proposals, aiming to avoid significant backlash as they work toward a reconciliation bill.