Johnson seeks to make reassurances on Medicaid cuts

Speaker Mike Johnson said Tuesday that House Republicans are focused on fraud and work requirements in Medicaid, not benefit cuts, as they look for savings in a reconciliation package.

• But importantly, that doesn't mean that sweeping changes to the safety net program like per capita caps are off the table, as lawmakers need to hit major budget cut targets.

Why it matters: Johnson is offering reassurances amid fears Republicans may have to embrace Medicaid coverage losses to help pay for an extension of tax policies and other priorities.

Driving the news: "Medicaid has never been on the chopping block," Johnson said at a press conference. "It's non-benefit-related reforms to the program. Medicaid is infamous for fraud, waste and abuse."

• He also pointed to the prospect of adding work requirements for "able-bodied workers."

Yes, but: If House Republicans' budget resolution calls for massive spending cuts, the math could dictate cutting deeper into Medicaid.

• A Johnson spokesperson would not rule out block grants or per capita caps. "We will just stick with the speaker's comments at the press conference for now," the spokesperson told Axios.
• Earlier Tuesday, House Majority Leader Steve Scalise also did not rule out going further on Medicaid, though he likewise said the focus is on "fraud" and work requirements in the program.
• "We're looking at a lot of different things, but we're talking with the White House, we're talking with our members," he told Axios when asked about per capita caps. "The committees will decide those details once we get past the budget."

Between the lines: There is a question about how far the White House will want to go on Medicaid, given President Trump's comments on not wanting to "affect" benefits.

• "I think no one really had talked to the president about it. It's been reported he said Medicaid is off the table. I don't think that's true," said Rep. Ralph Norman.

• Norman also said that lawmakers can't do deficit reduction "any other way" and they've "got to have Medicaid."
• "I think we lay it out to the president again, work requirements, block grants," said Norman, though he added that lawmakers were still trying to get clarification on Trump's Medicaid comment.

What's next: The House Budget Committee has noticed a markup for Thursday on a budget resolution.

• The instructions to the Energy and Commerce Committee, which could be in the hundreds of billions, will say a lot about how far lawmakers need to go on Medicaid.
• The Budget Committee is supposed to release text 24 hours before the markup, so more should be known Wednesday.
• "The focus is on what are the most conservative policies that can get to 218," a senior GOP aide said.