Medicaid Must Be Cut To Achieve $2 Trillion

The March 5th CBO report shows how much money is expected to go into Medicaid over the next 10 years—$8.2 trillion. It does not say that Medicaid will be cut.

However, the Trump administration wants to cut at least $2 trillion from government spending. The House Republicans are aiming for at least $1.5 trillion in cuts from the programs they oversee, which includes Medicaid.

The problem is that almost all of the money in this budget (93%) goes to Medicaid. The other programs in this budget only add up to about $381 billion, which isn’t nearly enough to reach the $1.5 trillion in cuts.

That means that if Congress wants to meet its budget-cutting goal, Medicaid will almost certainly have to be cut, because there isn’t enough money elsewhere to make up the difference.

So, while the CBO report does not say Medicaid will be cut, the numbers suggest that it is very likely if these budget cuts move forward.

The U.S. Capitol Building, courtesy of the CBO

What is the CBO

The CBO (Congressional Budget Office) is a nonpartisan government agency that provides independent financial and economic analysis to Congress. It was created in 1974 to give lawmakers objective information about the costs and effects of proposed laws and budget decisions.

The CBO’s job is to:

• Estimate government spending and revenue for programs like Medicaid, Medicare, Social Security, and defense.

• Analyze the effects of proposed policies on the economy, federal budget, and national debt.

• Provide independent reports that help Congress make informed financial decisions.

The CBO does not make laws or decide where money goes—it simply reports the financial impact of government policies without political bias.

There is no evidence this department has been subjected to federal layoffs.