GOP drops some Medicaid cuts from budget plan: 5 things to know

By Alan Condon / May 7, 2025

House Republicans have dropped two proposals to cut Medicaid funding from the reconciliation plan as Speaker Mike Johnson aims to broker a deal that can pass a divided caucus, The Hill reported May 6.

Five things to know: 

1. After meeting with moderate Republicans on May 6, Mr. Johnson said plans to reduce the Federal Medical Assistance Percentage for Medicaid expansion states and implement per capita caps on Medicaid funding are no longer under consideration.

2. While FMAP reductions and per capita caps have been removed from the current proposal, Republican lawmakers are still seeking up to $880 billion in savings from federal healthcare spending, with Medicaid expected to remain a primary target.

3. One provision still under consideration is the implementation of new work requirements for healthy adults in states receiving the 90% federal Medicaid match, according to Roll Call.

4. The reconciliation plan is tied to the broader budget resolution that passed The House by a 216-214 vote in April. House Republicans aim to finalize the package by Memorial Day, though the House Energy and Commerce Committee has delayed its vote on the health spending cuts until next week, according to The Hill.

5. Hospital and health system leaders remain on high alert, warning that even without FMAP reductions or per capita caps, the proposed cuts could still deliver a devastating blow to essential hospitals and the communities they serve.