GOP retreats on Medicaid cuts

US House Speaker Mike Johnson is walking a tightrope on Medicaid — and wobbling.

After intense pushback from moderate Republicans, Johnson abandoned some of the GOP’s most aggressive proposals to cut federal funding for Medicaid, including a plan that would cap the federal government’s per capita grants to states for the program.

The background: A budget framework passed earlier this year commits Congress to slashing some $1.5 trillion in spending in order to fund the extension of President Donald Trump’s first term tax cuts without further ballooning the deficit.

Why the climbdown?The Congressional Budget Office estimates that 5.5 million Americans would lose coverage under the mooted cost cuts. More than 70 million Americans are currently enrolled in Medicaid, a program that is viewed positively by nearly 80% of the country, according to recent polls.

What’s the president’s position? Trump has said he will not touch entitlements, including social security and Medicaid, which further narrows the GOP’s realistic options.

The president has imposed a deadline of Memorial Day for a “big beautiful” budget bill. We’re watching to see how the Republicans close the gap, without turning off the tap.