House Republicans Cut Trump Plan From Budget

House Republicans moved a step closer to finalizing President Trump’s domestic policy package Tuesday after Speaker Mike Johnson confirmed that two of the most controversial Medicaid cut proposals are likely to be excluded from the final bill. The announcement comes amid weeks of friction between conservative and moderate factions within the GOP over how deeply to cut one of the country’s most relied-upon social safety net programs.

Speaking to reporters after a nearly two-hour meeting with moderate Republicans, Johnson said a plan to cut the enhanced federal match rate for states that expanded Medicaid known as the Federal Medical Assistance Percentage, or FMAP is officially off the table. He also indicated that the proposal to impose per capita caps on federal Medicaid funding, which would have placed a limit on how much states can receive without directly changing benefits, is likely to be excluded as well.

“I think we’re ruling that out as well, but stay tuned,” Johnson said when pressed on the caps proposal.

Moderates and swing-district Republicans have been vocal in their opposition to both ideas, citing concerns about harming constituents and shifting major costs to state governments. Their pushback seems to have tempered efforts from hardline conservatives, who have been lobbying for deeper cuts as part of their goal to reduce federal spending by at least $1.5 trillion.

Instead, the framework beginning to take shape centers on more widely supported changes within the GOP. These include ramping up eligibility checks to occur more frequently, likely every six months; instituting work requirements for certain adult recipients; excluding undocumented immigrants from Medicaid access; and eliminating “waste, fraud, and abuse.”

Rep. Jeff Van Drew said the emerging plan shows promise, emphasizing that it avoids reducing benefits for those who are eligible. “We’re going on a good pathway to make sure we don’t cut Medicaid to any eligible individual human being or to any facility,” he said.

Rep. Dan Newhouse agreed that Speaker Johnson has presented a blueprint “that’s workable,” although he cautioned that a few “wrinkles” still need to be ironed out.

Not everyone was satisfied with the direction. Conservative Rep. Chip Roy signaled his frustration, particularly over the exclusion of FMAP and per capita caps. “I haven’t ruled it out,” he said on X, formerly Twitter, adding, “It’s necessary to stop robbing from the vulnerable to fund the able-bodied.”

The internal debate comes as Republicans aim to push the sweeping legislative package through the House by Memorial Day a goal that now appears increasingly fragile. Disagreements over Medicaid remain one of the final sticking points.

Due to the unresolved issues, the House Energy and Commerce Committee postponed its vote to advance the Medicaid portion of the bill. The panel now plans to hold that vote next week. The committee is tasked with identifying $880 billion in savings over the next decade, with a significant portion expected to come from health-related programs.

Despite the optimism among some members, others urged caution. “This was a listening session for different menu items,” said Rep. Ryan Mackenzie, expressing skepticism about the lack of finalized proposals. “If they had an actual set of proposals, I think you would see them at this point.”