Medicaid Faces $880 Billion Cuts — But Trump Says Social Security Is Safe

Big changes could be coming for government benefits. House Republicans just unveiled a budget plan that includes massive spending cuts—$880 billion from Medicaid over the next decade.

Social Security? Safe. Medicare? Also safe. But Medicaid? Not so much.

Trump Draws The Line

President Donald Trump has been clear: No cuts to Social Security or Medicare. They're not touching it. But Medicaid? That's another story.

The House Budget Committee is looking to slash spending by $2 trillion. That includes deep Medicaid cuts, with some proposals pushing for over $2 trillion in reductions. The idea is to balance those cuts with $4.5 trillion in tax cuts.

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For millions of Americans, this could mean losing healthcare coverage. Over 72 million people rely on Medicaid, including 7.25 million children enrolled in the Children's Health Insurance Program. In some states, over 30% of the population depends on Medicaid for healthcare.

What Would These Cuts Look Like?

The budget draft calls for changes in how Medicaid is funded. Some Republicans want to lower Federal Medical Assistance Percentages—the amount the federal government pays to states for Medicaid. Others want per-capita spending caps, which could cut up to $900 billion in funding.

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What does that mean? States would either have to cut Medicaid services or find another way to make up the shortfall. For many, that could mean fewer benefits, tougher eligibility requirements, or higher costs.

Critics argue that Medicaid isn't efficient. Some believe many recipients could get healthcare through work or other means. But research has shown that Medicaid expansions reduce rates of mortality, improve access to care, and even boost local economies.

What's Next?

The budget fight is just getting started. Senate Republicans, led by Lindsey Graham (R-SC), are working on their own budget plan. That one focuses more on border security and defense spending.

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Republicans hold a 53-47 majority in the Senate, meaning they could push through a budget with a simple majority vote. The House has a much tighter margin—218-215—so every vote will count.

House Speaker Mike Johnson (R-LA), is already throwing cold water on Graham's plan, telling reporters it was a "nonstarter," Business Insider reported. But the House and Senate need to agree on something if they want Trump to sign off.

For now, Social Security stays untouched. But Medicaid? It's on the chopping block, and millions of Americans could feel the impact soon.

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