Republican lawmakers revisit Medicaid reforms in new budget bill talks

First on Fox: House Budget Committee has begun The second Republican’s big giantSources told Fox News Digital that there are more potential reforms to Medicaid.

Three familiar with the matter said Republicans on the panel are expected to hold closed talks in the coming days as lawmakers return from their August lounge.

Two sources familiar with the discussion said the committee has begun to discuss ahead of schedule issues regarding mapping further reforms to Medicaid, including re-examining and revisions that did not make the final version of the Senate.

One person said, “I think you can put this puzzle together, but I think we’re talking about something we didn’t experience last time.”

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Rep. Ralph Norman, Rs.C., said the Republican committee will meet this week to discuss “Medicaid Reform.”

“We debated the same thing before,” Norman said to Fox News numbers. “I don’t know that appetite is already there, but we’ll see it.”

Rep. Jodey Arrington, chairman of the House Budget Committee, confirmed to Fox News Digital that his group has begun laying the foundation for a second settlement.

“When you’re over $36 trillion in the hole, turning the curse is an ongoing effort,” Arlington said. Treasury bonds. “It will take multiple settlement bills to get rid of it. So, the process is underway.”

He added that details remained fluid and negotiations were underway between his committee and leaders of other housing groups.

When asked about Medicaid, Arlington said he supported a proposal that could block the federal government from covering trans-health procedures, and then went Illegal immigration.

“I would be shocked if those don’t go back in some form,” he said. “They also happen to be 80-20 issues, like 80% of the American people expect this to have happened and shocked it didn’t happen.”

Arrington proposed that more controversial ideas such as changing the federal state cost allocation ratio of Medicaid (called FMAP) may not be the core of the new bill. Conservative Republicans pushed for changes to FMAP during the first settlement effort, but the proposal split the party.

House Budget Chairman Jodey Arrington spoke at a press conference at the U.S. Capitol on May 22, 2025, the initial passage of the House of Representatives’ initial passage of a Large Bill Act. (House Republican Conference)

“I guess those two big ones will be transgender procedures, and then ban states from using federal funds (available federal funds) to support their extended Medicaid services to non-individuals. These should definitely include two.”

“FMAP is, unfortunately, Democrats have built an unfair situation through the Obamacare extension, and I think a lot of members feel it should be resolved. But again, it’s debated, it’s not in the first debate, so I don’t know how much time we’re going to spend in it.”

Republicans have long believed that Medicaid was plagued by waste, fraud and abuse, and the necessary reforms to protect the most vulnerable welfare.

Any final decision on Medicaid-related policies must be passed through the House Energy and Commerce Committee, which has jurisdiction over the federal health program.

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A spokesman for the committee told Fox News Numbers that “energy and business Republicans have not proposed policies to consider potential second settlement efforts.”

The first settlement bill (signed as law on July 4) advances the president Donald Trump’s Campaign priorities, including tax cuts and overtime wages, increased immigration enforcement and a rollback of green energy programs.

Trump branded the parcel as his “a big and beautiful bill”, although he later tried to transfer it to reflect tax breaks in the proletariat and working class. The legislation also imposes a 20-hour requirement for some sound adults on Medicaid and strengthening federal food benefits.

However, the White House has not publicly pushed for a second bill.

Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries speak at a press conference at the U.S. Capitol in Washington, DC on June 11, 2025 (Kevin Dietsch/Getty Images)

Democrats have used the Republican Medicaid proposal as a political weapon, accusing Republicans of pushing millions of programs to fund tax breaks for the wealthy. Republican lawmakers rejected the allegation and even accused Democrats of lying.

However, the path forward remains uncertain, doubting whether the two rooms have an appetite for another settlement bill.

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The first package, although a major victory for the Republican Party, took months of negotiations and internal disputes.

House Minority Leader Hakeem Jeffries, DN.Y., refused to directly assess the odds of a second settlement bill when asked Tuesday.

“If we are going to follow the path of a second settlement bill, we recommend eliminating health care cuts and saving hospitals,” Jeffries said. “This should be the focus of the second settlement bill. Democrats will support this widely.”

Budget settlement allows those in power to pass a large amount of policy legislation while simultaneously occupying the opposition by reducing the Senate pass threshold from 60 to 51 votes, in which case it can only be used three times in a single congressional term.