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Republicans eye 'per capita caps' in Medicaid savings search

10 0
05.05.2025

House Republicans seeking to thread the needle in Medicaid spending cuts are eyeing "per capita caps," which would throttle federal funding without technically changing benefits.

The key Republicans who support the proposal argue it is not technically a "cut," seeking to avoid the politically charged label.

But the controversial plan would change the nature of the Medicaid program by putting a cap on federal Medicaid payments to states that expanded the program under the Affordable Care Act.

However, GOP leaders say nothing is certain as they debate the best way to offset President Trump’s massive tax cuts.

Moderate and battleground-district Republicans are pushing back on threats to Medicaid, while conservatives and budget hawks are agitating for deeper cuts.

A planned Energy and Commerce Committee markup was pushed back by at least a week to give members more time to resolve their differences.

Here's what to know about the fight:

Federal spending caps would mark a major change

Medicaid is a joint venture between the federal government and states. The federal government pays a fixed share of states’ Medicaid costs without any limit, so the amount reimbursed goes up or down depending on how much a state spends on the program.

For Medicaid expansion states, the government........

© The Hill