Republicans are looking at health care funding as a way to pay for a budget bill that could reach up to $200 billion, meant to fund the Iran war and immigration enforcement. Top House Republicans are exploring ways to cut federal health programs to cover these costs.
House Budget Committee chair Jodey Arrington, a Republican from Texas, is deeply involved in these discussions. These potential cuts could become a major political issue for Republicans, especially heading into an election year.
According to Rolling Stone, House Majority Leader Steve Scalise, a Republican from Louisiana, confirmed that the focus is on reducing fraud, waste, and abuse. He stated, “There’s other items we’re looking at right now, especially in the areas of fraud and waste and abuse that we’re working through with our members.”
Cuts to ACA payments and Medicaid changes could leave hundreds of thousands without health coverage
Arrington is also reviving an idea from last year: cutting Affordable Care Act (ACA) payments known as cost-sharing reductions. The Congressional Budget Office found that this move could lower benchmark ACA premiums by about 11%, but would also leave an estimated 300,000 more people uninsured. It would save the government over $30 billion, but increase out-of-pocket costs for some enrollees.
According to Axios, The main reason behind these proposed health care changes is to fund the Iran war and Immigration and Customs Enforcement (ICE). Democrats are strongly opposed to both, so Republicans are likely planning to use the reconciliation process to bypass a Senate filibuster. This comes at a time when some longtime Republican donors are feeling betrayed by Trump’s recent decisions.
President Trump is also pushing Congress to pass his “most favored nation” proposal, which would link U.S. drug prices to lower prices paid in other countries. However, GOP congressional leadership has been cool to the idea. According to Axios, Scalise deflected when asked about it, saying, “Right now, the committee hasn’t moved anything.”
Arrington has expressed interest in two Medicare-related measures: “site-neutral” payments that would equalize payments across hospital outpatient facilities and doctors’ offices, and cracking down on insurance companies gaming the Medicare Advantage system through “upcoding.” However, Arrington sounded doubtful either would make it into the bill, worried they would create “a false narrative that we’re cutting Medicare.”
On Medicaid, Arrington noted hesitancy “to open that back up” for changes, though some policies from last year may be revisited, such as limiting states’ ability to cover undocumented immigrants. Moderate Republicans are also pushing back against any policies that could be seen as cuts. Rep. Don Bacon, a Republican from Nebraska, when asked about his concerns, simply said, “I’ll see,” adding, “I think [Speaker] Mike Johnson will be smart.”
Arrington has set a timeline of “60 to 90 days” to get something passed. Democrats are already responding strongly, with Sen. Elizabeth Warren writing on social media, “Republicans in Congress want to cut Americans’ health care to pay for more war in Iran. Let that sink in.” Meanwhile, the party has faced ridicule for presenting Trump with another questionable honorary award, adding to a pattern of optics problems for the GOP.
The White House has indicated that President Donald Trump may ask Arab nations to shoulder the costs of the United States’ war against Iran, which are estimated to reach tens of billions of dollars.
Trump’s spokeswoman, Karoline Leavitt, was questioned about whether Arab countries should contribute, similar to how U.S. allies helped fund Washington’s involvement in the 1990 Gulf War.
“I think it’s something the president would be quite interested in calling them to do,” Leavitt told reporters.
“I won’t get ahead of him on that, but certainly it’s an idea that I know that he has, and something that I think you’ll hear more from him on.”
Published: Mar 31, 2026 12:59 pm