_WHAT’S HAPPENING_
House Republicans narrowly passed a budget resolution that tackles key parts of President Trump's agenda. The bill, which passed with a slim 217-215 vote, lays the groundwork for trillions in tax cuts, spending cuts, and increases in defense and border security funding.
The cuts — required over a 10-year period, as per reconciliation rules — present a major point of conflict. Democrats argue the cuts require slashing Medicaid, used by over 70 million low-income and disabled Americans. Republicans, however, claim Democrats are lying and misrepresenting their goals.
_THE FACTS_
→ The budget resolution calls for at least $1.5 trillion in spending cuts over ten years and includes a $4 trillion debt ceiling increase — a major Trump priority.
→ It directs around $100 billion in increased spending for the Judiciary, Armed Services Committee, and Homeland Security Committees.
→ It allocates $4.5 trillion to extend President Trump's 2017 Tax Cuts and Jobs Act provisions, set to expire this year.
→ Committees are tasked with finding cuts, including $880 billion from the Energy and Commerce Committee, which has jurisdiction over Medicare and Medicaid.
→ Because of this directive, House Minority Leader Hakeem Jeffries (D-NY) accused Republicans of trying to “slash and burn Medicaid benefits.”
→ Sen. Josh Hawley (R-MO) said that he won’t vote for Medicaid cuts.
→ House Majority Leader Steve Scalise (R-LA) emphasized that the word “Medicaid” is not mentioned in the bill, and cuts would focus on eliminating fraud and waste within the program.
→ Rep. Andrew Clyde (R-GA) stated, “There were at least $50.3 BILLION in improper Medicaid payments in 2023 alone,” adding that Republicans “simply want to eliminate the waste, fraud, and abuse riddling the program.”
→ However, as conservative commentator Steve Bannon acknowledged, “You have to be careful because a lot of MAGA is on Medicaid.”
_INSIGHTS_
Congress is now following the government-slashing path Elon Musk and DOGE have forged, but they may be risking cutting too quickly and too broadly. If the Energy and Commerce Committee has no choice but to cut critical healthcare services like Medicaid or Medicare, Democrats will seize the opportunity to claim Republicans are against lower-income, disabled, and older Americans.
Donald Trump has worked hard to refashion the GOP as the party of the working class. Cutting those health programs, used by many of his own supporters, while keeping taxes low for corporations and wealthier individuals, could damage that image and give Democrats the opportunity to portray themselves as the true working-class class party.
If Republicans do not make cuts with greater precision, it could ultimately cost them in the 2026 elections.
