Republicans plan to cut healthcare spending to pay for Iran war, Axios says

Healthcare under pressure

Republicans are preparing a budget bill worth up to $200 billion. The funds are needed to finance the war in Iran and strengthen immigration control.

To secure this funding, lawmakers are considering cuts to federal healthcare spending.

What exactly could be cut

Arrington has revived the idea of eliminating so-called "cost-sharing reductions" — subsidies under the ACA (Obamacare) health insurance program.

The Congressional Budget Office previously estimated the consequences of such a move:

• Insurance premiums would fall by an average of 11%;
• 300,000 people would lose coverage altogether;
• Some participants would receive smaller subsidies and pay more out of pocket;
• The government would save more than $30 billion.

There are also discussions about limiting states’ ability to cover undocumented immigrants under Medicaid.

Fighting fraud as a justification

House Majority Leader Steve Scalise framed it differently.

"There's other items we're looking at right now, especially in the areas of fraud and waste and abuse that we're working through with our members," he told Axios.

Will it pass Congress

Moderate Republicans are against this plan, especially in an election year. Even a few "no" votes could block any bill in the House of Representatives

"We need to put the vote coalition together," Scalise acknowledged.

Asked whether he was concerned about potential cuts, Congressman Don Bacon replied briefly: "I'll see."

"I think Mike Johnson (Speaker of the US House of Representatives — ed.) will be smart," he added.

Democrats oppose

The opposition has been quick to criticize. Senator Elizabeth Warren wrote on X: "Republicans in Congress want to cut Americans' health care to pay for more war in Iran."

Democrats oppose both the war with Iran and funding for Immigration and Customs Enforcement (ICE). Spending on ICE has already caused a partial government shutdown.

Drug prices — a separate issue

At the same time, Trump is pressing Congress to adopt his proposal for a "most favored nation" pricing model. The idea is to link drug prices in the US to lower prices in other countries.

A new budget reconciliation bill could serve as a vehicle for this. However, Republican leadership has so far been cool to the idea — it was not included in last year’s major budget legislation.

Trump’s approval rating among registered voters has dropped to 37% — a record low for his second term.

55% of Americans have expressed dissatisfaction with his performance. Among independent voters, 58% disapprove of the President.

Earlier, in spring 2025, Los Angeles and other cities in California saw mass anti-government protests over the White House’s tough immigration policy.

In response, Trump deployed the National Guard and sent 700 Marines to the city, which only intensified criticism of his actions.