GOP legislators revisit Medicaid reform in new discussion on budget invoices

First on Fox: The Chamber’s Budget Committee began to have early discussions on a second republican megabill, looking at more potential Medicaid reforms, sources told Fox News Digital.

The Panel Republicans are expected to keep in camera in the coming days, while legislators have returned from the recess in August, three people familiar with the case said.

Two familiar sources with the discussions said that the Committee had started to speak early on the mapping of new Medicaid reforms, in particular the revisioning and modification of the measures that have not made the final version of the Senate of the bill.

“I think you can somehow assemble this puzzle, but I think we are talking about things the last time did not go through,” said a person.

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President Donald Trump signs the Big Beautiful Bill Act during a picnic with the families of the military to mark independence day at the White House in Washington, DC, on July 4, 2025. (Reuters / Ken Cedeno)

Representative Ralph Norman, RS.C. said that the Republicans of the Committee would meet this week to discuss the “Medicaid reform”.

“The same thing we have debated before, the same thing we are fighting,” Norman told Fox News Digital. “I don’t know that the appetite is there right now, but we will see.”

Representative Jodey Arrington, R-Texas, chairman of the Chamber’s Budget Committee, confirmed to Fox News Digital that his panel had started to lay the foundations for a second pack of reconciliation.

“Inversion of the curse is a continuous effort when you have $ 36 of billions of billions in the hole,” said Arrington, referring national debt. “It will take more than one bill of reconciliation to get out. So this process is underway.”

He added that the details remain fluid, with current talks between its committee and the managers of other room panels on what should be included.

Asked about Medicaid in particular, Arrington said that he had supported the proposals that potentially prevent federal dollars from covering transgender medical procedures and going to illegal immigrants.

“I would be shocked if these are not going up, in a form,” he said. “It also happens that these are problems of 80-20, as 80% of the American people would expect that it already happens and is shocked that it does not happen.”

Arrington has suggested that more controversial ideas, such as the modification of the Federal State Cost Sharing ratio for Medicaid – known as FMAP – would probably not be at the heart of the new bill. Conservative republicans had put pressure for FMAP changes during the first reconciliation effort, but the proposal divided the party.

The president of the house budget, Jodey Arrington, speaks at a press conference at the American Capitol on May 22, 2025, after the initial adoption of the Big Beautiful Bill Act. (House Republican Conference)

“I guess the two large ones would be the transgender procedures, then prohibiting states from using federal funding, which is fungible, to support their extensive medical services to illegals. These are absolutely two that should be included,” said Arrington.

“The FMAP is, it is unfortunately an unfair situation put in place by the Democrats by the expansion of Obamacare, and I think that many members have the impression that this should be addressed. But again, it was debated, and it was not included in the first, so I do not know how long we will devote to it.”

The Republicans have long argued that Medicaid is plagued by waste, fraud and mistreatment, framing the reforms if necessary to protect the most vulnerable advantages.

All final decisions on Medicaid policy should go through the Chamber’s Energy and Trade Committee, which has competence on federal health care programs.

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A spokesperson for this committee said to Fox News Digital: “The energy and trade republicans did not propose policies to be examined for a second potential effort of reconciliation”.

The first bill on reconciliation – was promulgated on July 4 – has advanced several of President Donald Trump’s campaign priorities, including wage reductions to a tip and overtime, an increase in the application of immigration and setbacks of green energy initiatives.

Trump described the package as “One Big and Beautiful Bill”, although he then sought to move this to reflect his tax relief from the middle and working class. The legislation also imposed 20 hours per week requirements for certain valid adults on Medicaid and strengthened the work requirements for federal food services.

However, the White House did not make a public push for a second bill.

The chief of the Senate minorities, Chuck Schumer, and the minority head of the Hakeem Jeffries room take the press conference at the American Capitol on June 11, 2025, in Washington, DC (Images Kevin Dietsch / Getty)

The Democrats seized the MEDICAIDE proposals of the GOP as a political arme, accusing the Republicans of having rejected millions of the program to finance tax loss for the rich. GOP legislators postponed this accusation and even accused Democrats of lying on the bill.

The path to follow remains uncertain, however, with skepticism as to whether the two chambers have an appetite for another reconciliation bill.

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The first package, although a great GOP victory, took months of negotiation and internal arguments.

The chief of the Hakeem Jeffries House, DN.Y., refused to directly assess the chances of a second reconciliation bill when asked on Tuesday.

“If we are going to take the path of a second reconciliation bill, we suggest cancel the health care cuts and save our hospitals,” said Jeffries. “This should be at the center of a second bill of reconciliation. This is something that Democrats will largely support.”

Budget reconciliation allows the power party to spend vast laws on policies while putting the touch of the opposition, in this case, the Democrats, by reducing the adoption threshold of the Senate of 60 votes to 51. It can only be used three times in a single term of the congress.