Washington (Reuters) – Congressional Republicans are facing disagreements over how much to cut from the federal budget in order to advance President Donald Trump’s tax cut and border security agenda while ensuring social safety net programs are preserved. Senate Republicans are in closed-door discussions on potentially overhauling the Medicaid health insurance program to help fund Trump’s tax cuts, immigration policies, and military spending increases. The main issue for Republicans is whether they can achieve the targeted $1.5 trillion to $2 trillion in spending cuts over the next decade as outlined in the recent budget blueprint passed by the House. The future of Medicaid, which benefits over 35 million Americans, hangs in the balance as some Republicans push for cuts while others advocate for program improvements without reducing benefits. The debt ceiling is also a point of contention, with some Senate Republicans looking to use it as leverage to secure deeper spending cuts. Congress must navigate these challenges to advance Trump’s agenda before facing a mid-year deadline and a potential government shutdown.
The federal government’s loss of control over the debt has resulted in two of the three major global ratings agencies downgrading its credit rating. With a slim Senate majority, Republicans need just 51 votes to pass a budget reconciliation blueprint, bypassing Democrats’ filibuster. Senator Thom Tillis, among others, has been working with President Trump to align priorities with the House. House Speaker Mike Johnson aims to pass Trump’s agenda by early May, pressuring the Senate to agree on a budget plan. Senate Budget Committee Chairman Lindsey Graham stresses that Medicaid reform is crucial to match House spending levels. While some Republicans support Medicaid changes, others, like Senator Bill Cassidy, are more cautious. Concerns arise about possible cuts to healthcare, energy, agriculture, and education programs. Trump pledges not to reduce benefits for Medicaid, Medicare, and Social Security recipients. Discussions include altering federal matching rates for Medicaid and imposing work requirements. Lawmakers are seeking to ensure Medicaid’s financial sustainability without harming beneficiaries.
