Republicans cannot achieve their goal of cutting $2 trillion in federal spending over the next decade without slashing Medicaid, according to a new report from the nonpartisan Congressional Budget Office (CBO).
The report, released Wednesday, found that the government spends $381 billion on programs under the jurisdiction of the Energy and Commerce Committee, excluding Medicaid and the Children’s Health Insurance Program (CHIP). This poses a challenge for House Republicans, who are aiming to slash $880 billion from programs within the committee’s control to offset the costs of extending President Trump’s tax cuts and increasing border enforcement funding.
A key target for these cuts is Medicaid, the joint federal and state-funded program that provides health coverage to more than 72 million low-income Americans. Republicans have long argued that Medicaid is riddled with fraud and inefficiencies, making it a prime area for spending reductions.
The CBO report highlights a major obstacle to the GOP’s budget strategy. Of the $381 billion in non-Medicaid spending under Energy and Commerce, more than half is already accounted for, meaning that even if Republicans were to eliminate every program outside of Medicaid and CHIP, they would only be able to save a maximum of $135 billion—far short of their $880 billion goal.
House Republicans narrowly advanced a budget resolution last week, largely along party lines, that calls for at least $2 trillion in federal spending cuts. This move sets the stage for the reconciliation process, allowing the Senate to pass a bill with only 51 votes, bypassing the filibuster. Under this plan, the Energy and Commerce Committee, which oversees Medicaid, is tasked with finding at least $880 billion in spending reductions.
The proposed cuts have sparked nationwide outrage, with millions of Americans furious over the idea of slashing healthcare for the most vulnerable while preserving tax breaks for the wealthy. Many see the Republican plan as prioritizing corporate interests and the ultra-rich at the expense of ordinary Americans. Public anger has been mounting, with growing calls to shift the tax burden onto the wealthiest individuals and large corporations rather than cutting essential programs like Medicaid and Medicare.
Critics argue that instead of making deep cuts to healthcare programs that benefit millions, the government should be taxing billionaires and corporations that often exploit loopholes to avoid paying their fair share. Protesters have taken to social media and the streets, demanding that lawmakers protect critical services for seniors, children, and low-income families rather than using them as a bargaining chip for tax cuts and border security funding.
The battle over spending cuts is expected to intensify in the coming weeks, as Democrats and advocacy groups push back against what they see as a reckless attempt to gut social programs. With public frustration mounting, Republicans may face increasing resistance to their efforts to push these cuts through Congress.