White House National Economic Council director Kevin Hassett said Sunday the Trump administration is not targeting Medicare in its sweeping budget proposal, but signaled the administration would be open to changes if senators uncover fraud or abuse as they look at the bill.
“If somebody finds waste, fraud and abuse in Medicare, then of course we would look at it,” Hassett said on “Face the Nation with Margaret Brennan.” “But there have been a lot of false stories about Medicare being on the table, and it’s totally not on the table.”
Senate Republicans this week are working on the House-passed budget bill, dubbed the “One Big Beautiful Bill” by President Trump, which includes deep tax cuts, border security measures, and changes to Medicaid and food assistance programs.
Hassett on Sunday pushed back against the idea that Republicans are targeting Medicare for cuts.
“That story that got out last week was covered as our intent to go after Medicare,” Hassett said bluntly. “And it was just a big fake news story.”
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Asked whether the administration would revisit the Medicare provision if the Senate identifies abuse, Hassett said they would. “I’ve seen a massive amount of waste, fraud and abuse in Medicaid, and I’ve not been briefed on Medicare waste, fraud and abuse. But if they find something then, of course, we would look at it,” he said.
The nonpartisan Congressional Budget Office estimated earlier this week that the bill will add $2.4 trillion to the national debt over the next decade. Sen. Thom Tillis told Charlotte’s WCNC on Thursday that he supports legislation that would address waste in the Medicare Advantage Program. This addition, he said, would not touch beneficiaries but would focus on “eliminating waste, fraud, and abuse of the Medicare Advantage program, including costly government overpayments to insurance companies.”
To pay for some of Mr. Trump’s tax reforms, such as extending his 2017 tax cuts and eliminating tax on tips, there are cuts to several programs. Republicans have insisted they are not cutting Medicaid, and reductions in the low-income entitlement program have become one of the most charged parts of the bill. In a closed-door session with members of the Republican conference days before the bill’s passage, sources in the room told CBS News Mr. Trump said, “Don’t f*** around with Medicaid.”
House Republicans passed the bill late last month on a 215–214 vote, sending it to the Senate where GOP leaders are weighing revisions to secure enough votes under budget reconciliation rules.
“What we want to see done now is we want the Senate to pass the bill, and then we want the House and Senate to work out their differences,” Hassett said. “So right now, the Senate has to get the votes they need to pass the bill, and we’re supporting them in that process.”
Some Republican senators, including Susan Collins of Maine, Lisa Murkowski of Alaska, and Josh Hawley of Missouri, have voiced concerns about Medicaid provisions in the bill, particularly new monthly premium requirements for low-income recipients. Their opposition highlights ongoing uncertainty as Senate GOP leaders work to secure enough votes. The bill can’t afford to lose more than four votes in the Senate, granted that all Democrats vote against it.
Hawley has called the Medicaid work requirements “both morally wrong and politically suicidal.”
When asked about Hawley’s concerns, Hassett said, “I’d have to go see what he has and talk to him about it. And I also would want to talk to the president about the specific matter. So I can’t speak to that one.”
The administration has repeatedly argued that failure to pass the legislation could hurt the broader economy.
“If we don’t pass this bill, then we lose 6 to 7 million jobs and 4% GDP,” Hassett said Sunday. “If we create the jobs that we have in the bill, then we’re going to create a heck of a lot more insurance than what we’re talking about in waste, fraud and abuse.”
Senate Republicans are expected to release their version of the bill in the coming days. If there are significant changes, it will then have to go back to the House for final passage before landing on Mr. Trump’s desk.
