Rep. Don Bacon (R-Neb.) has expressed his support for $500 billion in Medicaid cuts. This comes as congressional Republicans are striving to preserve the 2017 Tax Cuts and Jobs Act.
What Happened: Bacon, joined by 12 other Republicans, has closely reviewed the proposal and identified three key areas for potential spending cuts, based on estimates from the nonpartisan Congressional Budget Office.
These include imposing work requirements for able-bodied adults without children, removing undocumented migrants from Medicaid coverage, and requiring annual audits to ensure only eligible individuals receive Medicaid. The estimated savings from these measures are around $200 billion, $200 billion, and $100 billion, respectively, stated the Nebraska Rep. in an interview with KETV.
The House of Representatives’ initial budget proposal includes around $880 billion in reductions to Medicaid funding. However, Bacon clarified that he does not support cuts that would affect the quality of care provided by Medicaid or hospitals. He believes these reforms preserve the “integrity” of Medicaid for those who truly need it and protect hospitals.
Speaking about the White House, Bacon stated, “…they’re actually in rough agreement because the President’s also said he doesn’t want to cut Medicaid. So we’re sort of saying the same thing.”
Despite this, the group, Nebraska For Us, accused Bacon of changing his stance on the issue. Angie Lauritsen, the group’s director, stated, “First, he said he opposed Medicaid cuts. Now he's open to slashing hundreds of billions of dollars from it. Which is it?"
Why It Matters: The proposed Medicaid cuts come amid a broader debate on federal spending. Nebraska's congressional Republicans claim the 2017 tax cuts lowered individual taxes by roughly 20%, saving the average Nebraskan around $1,600 annually. To keep these tax cuts in place, Bacon noted that it would likely require cutting between $1 trillion and $1.5 trillion from the federal budget.
Notably, President Donald Trump threatened to veto any bill that trims Social Security or federal health programs. “If it cuts it, I would not approve,” stated Trump clarifying he’s all for cutting the waste and fraud on Medicaid. Meanwhile, House Speaker Mike Johnson has been advocating for stricter Medicaid eligibility.
The proposed cuts also come at a time when Nebraska is facing a financial crunch, with Mark Cuban warning that the state could face a $200 million budget shortfall due to tariffs and Medicaid cuts.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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