Republicans eye Medicare, NASA cuts to fund tax package
Senate Republicans are exploring cuts to Medicare and NASA as they scramble to find spending reductions to offset their multitrillion-dollar tax package, marking a shift toward targeting programs traditionally considered politically untouchable. The push comes as Republicans race to pass their party-line legislation before a self-imposed July 4 deadline, with lawmakers focusing on eliminating “waste, fraud and abuse” in Medicare Advantage while proposing to slash NASA’s budget by a quarter. Medicare in the Crosshairs The Medicare discussions emerged during closed-door Senate Republican meetings this week, with lawmakers believing President Donald Trump supports targeting inefficiencies in the program serving seniors. “I think anything that is waste, fraud and abuse are obviously open to discussions,” Senate Majority Leader John Thune said Thursday. The focus centers on Medicare Advantage, where private insurers have been accused of “upcoding” – using incorrect diagnosis codes to extract additional payments. Senator Roger Marshall confirmed that “there is” consideration of including Medicare provisions in the legislation, while Senator John Cornyn noted after meeting with Trump that “waste, fraud, and abuse are acceptable targets”. However, other Republicans emphasized caution, with Senator John Kennedy stating the general agreement seems to be that major Medicare changes are “off the table”. NASA Faces Deep Cuts Separately, NASA is positioned to lose nearly a third of its workforce under government proposals seeking to slash federal spending. The space agency’s Langley Research Center faces cutting nearly 700 employees, with aeroscience funding slashed by more than $40 million and earth science research cut by $240 million. “With a leaner budget across all of government, we are all taking a closer look at how we work, where we invest, and how we adjust our methods to accomplish our mission,” NASA Administrator Janet E. Petro stated. The proposal would emphasize human spaceflight with $8 billion for moon and Mars exploration while cutting other research areas. Virginia Senator Mark Warner warned the cuts “could be a disaster for Hampton Roads,” noting the region has among the highest concentrations of federal employees and contractors nationally. Political Dynamics The Medicare proposals face resistance within Republican ranks and would trigger “serious blowback in the House,” according to Politico. The broader tax package already includes nearly $900 billion in Medicaid cuts and is projected to increase the uninsured by 10.9 million Americans by 2034. Republicans are also considering reducing the state-and-local-tax-deduction cap, another politically explosive provision. The discussions reflect the mathematical challenge facing lawmakers as they attempt to balance tax cuts with spending reductions while maintaining party unity.
