US lawmakers are at odds over how much to cut from the federal budget, with some pushing for Medicaid reform to help pay for President Donald Trump’s tax cuts. Republicans face a tight deadline to pass Trump’s agenda by early May, giving them little time to agree on spending cuts.
The House plan calls for $880 billion in cuts over 10 years from healthcare and energy sectors, while the Senate wants to overhaul Medicaid to meet their spending targets. Some lawmakers see Medicaid reform as a way to improve the program, while others fear reducing benefits for vulnerable Americans.
Debate also centers around the debt ceiling, with hardline Republicans wanting to use it as leverage to secure deeper spending cuts. The debt limit is set to expire soon, and failure to raise it could lead to a default on US obligations.
Senate Republicans need 51 votes to pass a budget blueprint that can unlock Trump’s legislative agenda. With a narrow majority in the House, they are under pressure to find common ground with Democrats.
Trump has promised not to reduce benefits for those relying on Medicaid, Medicare, and Social Security. However, some lawmakers see these promises as empty, saying that trickle-down economics will ultimately harm the middle class.
Source: https://www.reuters.com/world/us/republicans-split-spending-cuts-medicaid-they-seek-path-forward-trump-tax-cuts-2025-03-16