Republicans weigh gutting Medicaid to fund $200B Iran war: 'Less money for health care'

'More money for war. More money for ICE. Less money for health care', Senate Minority Leader Chuck Schumer said
Republicans are weighing deep cuts to Medicare and the ACA to pay for the escalating conflict in Iran and border enforcement (Anna Moneymaker/Getty Images)
Republicans are weighing deep cuts to Medicare and the ACA to pay for the escalating conflict in Iran and border enforcement (Anna Moneymaker/Getty Images)

WASHINGTON, DC: Congressional Republicans have ignited a political firestorm by considering deep reductions in federal health spending to offset a $200 billion budget bill aimed at funding the ongoing Iran war and intensified immigration enforcement.

The proposal, which emerged on Monday, March 30, as the Department of Homeland Security (DHS) shutdown continues to paralyze travel, seeks to use the party-line reconciliation process to bypass a Senate filibuster.

House Majority Leader Steve Scalise (R-La) confirmed that leadership is eyeing ‘offsets’ addressing fraud and waste, reviving tactics from last year’s budget battle that imposed Medicaid work requirements.

President Donald Trump holds up the
President Donald Trump holds up the 'One Big Beautiful Bill Act that was signed into law during an Independence Day military family picnic on the South Lawn of the White House on July 04, 2025, in Washington, DC (Alex Brandon - Pool/Getty Images)

However, the inclusion of health cuts to pay for an increasingly expensive conflict has drawn immediate, vitriolic pushback from across the political spectrum.

Affordable Care Act and Medicare under the knife

At the center of the debate is a plan from House Budget Committee Chairman Jodey Arrington (R-Texas) to alter Affordable Care Act (ACA) cost-sharing reductions.

While the Congressional Budget Office suggests this could lower benchmark premiums by 11%, it would also leave an estimated 300,000 more Americans uninsured and significantly increase out-of-pocket costs for many enrollees.

TORRANCE, CALIFORNIA - JANUARY 21: (EDITORIAL USE ONLY) U.S. Air Force 1st Lt. Allyson Black, a regi
Republicans are eyeing $30 billion in ACA savings and Medicare Advantage reforms to help close the gap for the massive 2026 military surge (Getty Images)

The move is projected to save the government over $30 billion, a fraction of the $200 billion war chest requested by the administration.

Arrington is also weighing "site-neutral" Medicare payments and a crackdown on ‘upcoding’ within the Medicare Advantage system.

While these measures are framed as efficiency moves, Arrington admitted they risk opening a "false narrative" that Republicans are cutting Medicare.

On Medicaid, the GOP is considering reviving policies that limit the ability of states to provide coverage to undocumented immigrants.

Democrats launch ‘war on health care’ counter-offensive



The reaction from Democratic leadership was swift and coordinated.

Senate Minority Leader Chuck Schumer (D-NY) took to X to define the 2026 GOP platform as "More money for war. More money for ICE. Less money for health care."

This sentiment was echoed by Senator Elizabeth Warren (D-Mass), who urged voters to "let it sink in" that Republicans are prioritizing military aggression in Iran over the health of American citizens.



California Governor Gavin Newsom also joined the fray, accusing President Trump of delivering a war instead of the "affordability" he campaigned on.

"Now he’s trying to make your health care MORE EXPENSIVE to pay for it," Newsom posted, highlighting the $200 billion price tag for the Iran conflict and immigration enforcement as the primary driver for the proposed cuts.

Internal GOP rift threatens reconciliation gambit

The strategy faces significant hurdles within the Republican conference itself.

Moderate Rep Don Bacon (R-Neb) expressed caution, stating "I'll see" when asked about the offsets, while Scalise acknowledged the difficulty of "putting the vote coalition together" during an election year. 

With only a slim majority, even a handful of defections from moderates wary of "cutting health care to pay for an unpopular war" could sink the bill.



Adding to the complexity, President Trump is pushing for his "most favored nation" drug pricing proposal to be included in the bill, a move that would link US drug prices to lower prices paid abroad.

While Trump views this as an affordability win, GOP congressional leadership remains "cool" to the idea, preferring to focus on price transparency through the Energy and Commerce Committee.

War for the 'Epstein class' rhetoric explodes

The backlash has extended beyond traditional partisan lines. Legal analyst Robert Barnes characterized the move as GOP's self-demise, labeling the conflict a "war for the Epstein Class" paid for by cutting health care at a time when it remains a top-three national issue. 

This populist critique suggests that the administration may face a multi-front political battle as it tries to fund the March 27 arrival of 3,500 Marines in the Gulf.



Chairman Arrington has set an ambitious timeline of 60 to 90 days to pass the legislation.

 As the 'No Kings' movement continues to mobilize millions in cities like New York and Los Angeles against the war, the Republican attempt to bridge the $200 billion gap through health care reductions ensures that the 2026 midterms will be a tense fight.

RELATED TOPICS US STRIKES IRAN

GET BREAKING U.S. NEWS & POLITICAL UPDATES
STRAIGHT TO YOUR INBOX.

MORE STORIES

Days after the incident, British Prime Minister Andy Burnham said there were 'strong indications' Iran played a part, though he offered no details
5 hours ago
The posts praised high-profile Democrats, including President Joe Biden and Pennsylvania Gov Josh Shapiro, and advocated for specific political policies, such as raising the minimum wage
6 hours ago
The NAACP filed the case after seeking records on the personnel's legal authority, locations, qualifications and training
6 hours ago
Vice President Vance cites past government ads as White House defends Trump public service announcements
6 hours ago
Trump said his Ohio rally was deliberately undercounted as he challenged coverage while campaigning for Republicans ahead of the November midterms
7 hours ago
Politico had been slated to be the print pool representative for Monday. Since only a small group of reporters travel with the president, Politico was responsible for emailing a dispatch to other news outlets from the plane
7 hours ago
GOP House Majority Whip Tom Emmer made the comments while traveling between campaign stops for the 2026 midterms
8 hours ago
Pausing the lower court’s directive requiring the Trump administration to immediately reinstate Roger Rogoff as the top federal prosecutor in Seattle, an appeals court on Sunday, Oct. 4, granted the administration’s request to stay the decision
8 hours ago
The president says refinery shutdowns in Democratic-led states are driving up fuel costs as crude shipments through the Strait recover
9 hours ago
Vice President JD Vance made the remarks on Monday before flying to Alaska to campaign for Republican Sen Dan Sullivan against Democrat Mary Peltola
9 hours ago