Donald Trump Adviser Hints at Medicaid Cuts

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An adviser of President Donald Trump has said there will be cuts in the administration of Medicaid to reduce fraud.

Why It Matters

The House this week voted 217-215 to adopt its budget proposal that calls for $2 trillion in spending cuts, some of which could potentially impact Medicaid and other key health-care programs. The bill instructs the House Energy and Commerce Committee, which oversees Medicaid, to slash $880 billion in mandatory spending—although the bill did not specifically mention Medicaid.

Medicaid gives health coverage to some individuals and families, including children, parents, people who are pregnant, elderly people with certain incomes, and people with disabilities. As of October last year, more than 72 million people across the country had Medicaid coverage.

What To Know

National Economic Council Director Kevin Hassett said in an interview with CNBC that the president "has made it clear that he wants Medicare, Medicaid, and Social Security to be safe for all people who deserve it."

"Now, if there's fraud anywhere in government, of course we're going to look at it, but he is 100 percent behind keeping all those programs safe for the people who need those programs," Hassett said.

President Trump has also promised not to cut the health-care program. When asked by a reporter regarding potential cuts to Medicaid and other programs during a cabinet meeting at the White House this week, he said: "We're not going to touch it."

"Now we are going to look for fraud," Trump added, "like people that shouldn't be on [Medicaid], people that are illegal aliens, and others."

However, Democrats and budget experts have raised concerns. The Center for Budget and Policy Priorities, a nonpartisan, progressive think tank based in Washington, D.C., said that "the magnitude" of the resolution "would force congressional committees to make enormous cuts in Medicaid, SNAP, student loan assistance and other vital sources of support."

Donald Trump
File photo: U.S. President Donald Trump speaks during a Cabinet meeting at the White House on February 26, 2025 in Washington, D.C. Andrew Harnik/GETTY

What People Are Saying

Speaker Mike Johnson, referring to cutting Medicaid benefits following the passage of the bill, said: "We're not gonna do that. The Democrats have been lying about it, and so it's important for us to clarify that.

"We're gonna take care of those who are rightful beneficiaries of the program. We're gonna cut the fraud, waste and abuse out of Medicaid and that's where we're gonna get part of the savings to accomplish this mission."

Democratic Representative Alexandria Ocasio-Cortez said on X, formerly Twitter: "Republicans' budget has a fundamental math problem. An $880 billion cut is an attack on Medicaid, not 'waste,' 'fraud,' and 'abuse.'"

Democratic Oregon Senator Ron Wyden said in a statement seen by Newsweek: "House Republicans have just taken one of the most morally reprehensible actions Congress has seen in a generation. Republicans clearly understand cuts to Medicaid will have deadly consequences for the families they represent, and yet they have chosen to move ahead anyway. Republicans will rue the day they decided to go after Medicaid."

What Happens Next

The resolution now advances to the Senate, where it is likely to encounter strong opposition from Democrats but may still pass due to Republican control of the chamber.

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About the writer

Aliss Higham is a Newsweek reporter based in Glasgow, Scotland. Her focus is reporting on Social Security, other government benefits and personal finance. She has previously extensively covered U.S. and European politics, Russia's invasion of Ukraine and the British Royal Family. Aliss joined Newsweek full time in January 2024 after a year of freelance reporting and has previously worked at digital Reach titles The Express and The Mirror. She is a graduate in English and Creative Writing from Goldsmiths, University of London. You can get in touch with Aliss by emailing a.higham@newsweek.com. Languages: English.


Aliss Higham is a Newsweek reporter based in Glasgow, Scotland. Her focus is reporting on Social Security, other government benefits ... Read more