Lawmakers weigh fraud reduction and policy changes as potential funding sources for major spending package.
By yourNEWS Media Newsroom
House Republicans are examining potential reductions in federal healthcare spending as part of a broader effort to finance military operations tied to the Iran conflict and expanded immigration enforcement, according to reporting from Axios.
The discussions center on identifying savings from fraud, waste, and abuse within federal health programs, alongside targeted policy adjustments, as lawmakers seek to fund a package that could include up to $200 billion in new spending.
House Majority Leader Steve Scalise said multiple options are under review as part of an effort to avoid increasing the federal deficit. “There’s other items we’re looking at right now, especially in the areas of fraud and waste and abuse,” Scalise told Axios.
Among the proposals being considered are changes to Affordable Care Act subsidies known as cost-sharing reductions. Estimates from the Congressional Budget Office indicate such reforms could generate more than $30 billion in savings, though they may also result in higher out-of-pocket costs for some participants.
Lawmakers are also reviewing potential adjustments within Medicare, including expanding site-neutral payment policies and addressing “upcoding,” a billing practice in which providers classify patient conditions at higher severity levels to receive increased reimbursement.
The focus on healthcare spending follows heightened attention on fraud in federal programs. A report by The New York Post outlined the scale of losses in Medicare and Medicaid, citing billions of dollars annually tied to fraudulent activity.
Treasury Secretary Scott Bessent recently announced a whistleblower initiative aimed at identifying large-scale financial crimes, offering rewards tied to recovered funds in enforcement actions. Officials said the program is intended to strengthen oversight and reduce misuse of taxpayer-funded programs.
Republican leaders have emphasized that any new spending tied to national security or immigration enforcement should be offset through savings rather than added borrowing. The approach reflects ongoing pressure within the party to maintain fiscal discipline while addressing defense and border priorities.
The proposals are expected to face opposition from Democrats, who have criticized the effort as linking healthcare funding changes to war-related spending. Some moderate Republicans have also expressed concerns about potential political implications as lawmakers approach an election cycle.
Despite those challenges, GOP leadership is considering advancing the package through the budget reconciliation process, which would allow passage in the Senate with a simple majority.
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