What New Government Funding Bill Means for Medicaid, Medicare

A new government funding bill put together by House Republicans could have major implications for Medicaid and Medicare.

Why It Matters

Republicans unveiled the new continuing resolution (CR) bill this past weekend in hopes of avoiding a government shutdown on Friday.

Previously, House Republicans proposed a budget with a $880 billion spending cut for the House Committee on Energy and Commerce, which oversees Medicaid, Medicare, and the Children’s Health Insurance Program (CHIP). That budget would mean hundreds of billions of dollars would need to come out of federal health programs, which millions of Americans rely on.

What To Know

House Speaker Mike Johnson, a Louisiana Republican, proposed a stopgap funding bill to maintain current federal spending levels through September 30.

In the new CR, those who receive Medicare or Medicaid should experience no disruptions to their benefits, and Social Security beneficiaries will also continue to receive monthly payments.

The bill would also postpone scheduled reductions to the Medicaid Disproportionate Share Hospital program. This date would move from 2027 to 2028, which would allow low-income hospital providers to continue receiving support.

Medicare would also extend many services, including telehealth, through the 2025 fiscal year.

The bill would also maintain full funding for veterans and their health care services and benefits. It also includes a slight increase in defense spending, which would increase pay for lower-level military personnel and add additional funding for building submarines.

What People Are Saying

Representative Tom Cole, an Oklahoma Republican and chair of the House Appropriations Committee, said in a statement on Saturday: “Funding the federal government is a constitutional obligation, and House Republicans are acting to uphold that duty. This straightforward continuing resolution ensures the government remains open and working for Americans. It maintains critical services for our constituents and provides the largest pay raise for our brave junior enlisted heroes since President Reagan. With no poison pills or unrelated riders—the bill is simple: extend funding and certainty for the nation.”

President Donald Trump wrote on Saturday Truth Social: “All Republicans should vote (Please!) YES next week. Great things are coming for America, and I am asking you all to give us a few months to get us through to September so we can continue to put the Country’s ‘financial house’ in order.”

House Minority Leader Hakeem Jefferies, a New York Democrat, told reporters last week: “Democrats are ready to negotiate a meaningful, bipartisan spending agreement that puts working people first. [The] partisan continuing resolution threatens to cut funding for key programs…That is not acceptable.”

Senate Minority Leader Chuck Schumer, a New York Democrat, in a statement: “We have always believed the only solution is a bipartisan solution, no matter what.”

Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: “Overall, the bill seems to meet many of the Democrats’ expectations, though they’re likely wanting more concessions regarding Medicare and guarantees to maintain certain longer-term spending levels.”

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “The effects of this proposal would be minimal and largely keep benefits at the level they’ve been the last year, mainly because Republicans are trying to get something solidified to pass and avoid another government shutdown.”

He added: “At the same point, the decision to propose a slight increase in defense spending could cost the bill Democrat support, as keeping funding at 2024 levels could hurt its appeal to Republicans eager for more cuts. It’s not going to be a guaranteed pass, and that could cause more issues for all government-funded programs down the road.”

What Happens Next?

Republicans are calling for Democrats to help approve the bill in order to avoid a government shutdown, but some Democrats remain skeptical due to the proposed upticks in defense spending.

“Democrats have a choice to join us or display their true intentions,” Cole said. “Should they choose to vote to shut the government for negotiation leverage and their contempt of President Trump, they are readying to hurt hundreds of millions more. It’s a battle they lost in November, and one the people will continue to see through. Our good-faith efforts provide an immediate solution to the deadline before us.”

Government funding is currently set to run out by Friday if no spending bill is approved before then. If the bill makes its way through the House, it still needs the support of at least seven Democratic senators to get to the president’s desk for approval.