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Michigan Republicans back budget plan that puts Medicaid on the chopping block

By Kyle Kaminski

March 7, 2025

House Republicans passed a budget plan that could slash nearly $880 billion from health care programs—including one that provides health care for nearly 3 million Michiganders.

MICHIGAN—Republicans in the US House last week narrowly passed a new budget framework that demands nearly $880 billion in spending cuts from the committee that’s responsible for overseeing federal health care spending, including through the Medicaid program.

And while President Donald Trump and Republican leaders insist Medicaid isn’t being explicitly targeted for cuts, the proposed funding changes, given their scale, would almost certainly impact millions of Americans who rely on the program—including nearly 3 million Michiganders.

Here’s the deal:

The House plan, which passed 217-215 with only one Republican in opposition, is part of a broader effort to reduce federal spending while also making way for $4.5 trillion in tax breaks that largely benefit the wealthy. 

Democrats have warned that cuts to the Medicaid program are unavoidable under the plan.

And as negotiations continue, lawmakers in both chambers will need to determine exactly where those savings will come from, setting up a lengthy battle over the future of key social programs.

But for more than 2.6 million Michiganders who rely on Medicaid, these decisions could directly affect their ability to afford doctor’s visits, prescriptions, or even long-term care. Rural hospitals, nursing homes, and families already struggling with medical costs could also see consequences—all while billions of dollars in tax cuts are doled out to the wealthiest Americans.

What’s at stake for Michigan?

Medicaid provides health care coverage for more than 2.6 million Michiganders, including nearly 1 million children. The program also funds nearly 40% of births across the state, serves as a key financial lifeline for rural hospitals, and helps seniors afford long-term care.

If the proposed federal budget cuts are applied to Medicaid, Michigan could see significant disruptions, according to a recent analysis from the Joint Economic Committee

The report found:

  • 120,000 rural Michiganders could lose health coverage.
  • 280,000 Michigan children could lose their insurance.
  • More than 1 in 5 Michigan seniors could be forced out of nursing home care.
  • About 830,000 Michiganders could be at risk of losing coverage.

Who voted for this?

All seven of the Republican US representatives from Michigan voted in favor of the recent House budget resolution—including US Reps. John James, Tom Barrett, Jack Bergman, Bill Huizenga, Lisa McClain, John Moolenaar, and Tim Walberg.

These lawmakers are now facing sharp backlash from health care advocates across Michigan, who have warned that reducing Medicaid funding could put a strain on hospitals, increase costs for working families, and leave thousands of Michiganders without critical coverage.

House Republicans voted to give the wealthiest Americans a massive $4.5 trillion tax cut by slashing Medicaid and making it harder for millions of seniors to get the health care they need,” Richard Fiesta, executive director of the Alliance for Retired Americans, said in a press release this week. “This vote is cruel and makes it clear that President Trump and House Republicans are on the side of billionaires and corporate America, not seniors or working people.”

Added Steve Lawson, director of Michigan Families for Fair Care: “Michiganders will not forget who James and Barrett are in Congress to serve, because it obviously isn’t Michigan’s families.”

Amid the pushback, several Republican lawmakers—including Barrett, Bergman, and James— have been canceling in-person town halls and avoiding face-to-face meetings with voters

What’s next? 

The House budget is far from final. 

Senate Republicans have put forward their own version, which differs from the House plan— meaning additional negotiations will be required before a final package can take shape. 

More committee hearings will take place in the coming weeks and the possibility of a government shutdown looms as Congress approaches a March 14 deadline to pass a budget.

The Bottom Line

While Republican leaders maintain that Medicaid isn’t explicitly mentioned in the budget resolution, the reality is that the health care program accounts for a significant portion of the spending under review—making it virtually impossible to advance without Medicaid cuts. 

And if reductions move forward, millions of Michiganders—particularly children, seniors, and low-income families—could feel the impact. The big question now is whether lawmakers will prioritize access to health care or push through deep spending cuts to make way for tax breaks.

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Author

  • Kyle Kaminski

    Kyle Kaminski is an award-winning investigative journalist with more than a decade of experience covering news across Michigan. Prior to joining The ‘Gander, Kyle worked as the managing editor at City Pulse in Lansing and as a reporter for the Traverse City Record-Eagle.

CATEGORIES: GOP ACCOUNTABILITY

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