GOP's $7 Million Ad Campaign Counters Medicaid Cut Claims Amid $880 Billion Federal Funding Reduction Plan

Republican lawmakers are advancing plans to cut $880 billion in federal healthcare spending, mainly targeting Medicaid, while launching a $7 million ad campaign through the American Action Network to counter claims of Medicaid cuts. The ads, running in 30 congressional districts, assert Republicans aim to preserve Medicaid by addressing waste and fraud. Despite GOP assurances, internal documents suggest Medicaid will face significant reductions. The campaign seeks to mitigate public backlash and internal GOP divisions over the proposed cuts, which could affect over 80 million low-income Americans reliant on Medicaid.

A Campaign to Reassure—and Redirect

The American Action Network’s $7 million campaign, launched earlier this week, is airing television and digital ads in competitive and leadership-held districts, including those represented by Reps. Mike Lawler (R-N.Y.), Jared Golden (D-Maine), and James Comer (R-Ky.). The ads assert that Republicans are working to “preserve Medicaid” and root out “waste, fraud, and abuse,” while accusing Democrats and the media of spreading fear and misinformation.

“There’s a lot of misinformation out there trying to scare seniors,” one ad in Virginia’s 2nd Congressional District claims. “Trust me, Congresswoman Jen Kiggans is fighting to protect us. She’s supporting President Trump’s common-sense reforms to root out waste, fraud and abuse, fixing the Biden pill penalty while preserving our benefits.”

Another ad by the group attempts to shift the focus from Medicaid to Medicare, attacking Rep. Marcy Kaptur (D-Ohio) for voting against a GOP-backed continuing resolution. The ad frames her vote as opposition to Medicare, despite the resolution’s primary controversy being its failure to address the Trump administration’s impoundment of congressionally-authorized spending.

Messaging vs. Math

The ad campaign comes as Republicans in Congress face mounting scrutiny over their budget reconciliation bill, which instructs the House Energy and Commerce Committee to find $880 billion in savings over the next decade. Medicaid, the largest program under the committee’s jurisdiction, is widely expected to bear the brunt of the cuts.

Dean Baker, an economist and co-founder of the Center for Economic Policy Research, told Salon that the numbers don’t add up without Medicaid reductions. “If they exclude Medicaid, the other programs' baseline spending would not be $880 billion over the decade,” Baker said. “That means that if they would hit this target, they would need to cut Medicaid even if they zeroed out everything else in the programs they oversee.”

Despite this, GOP lawmakers have taken to town halls and the House floor to insist that Medicaid is safe. Rep. Andy Harris (R-Md.) claimed that the GOP budget would “increase Medicaid expenditures by at least 25% over the next 10 years,” a statement that appears to contradict the budget’s stated savings goals.

Additional Ad Buys and Strategic Messaging

The American Action Network is not alone in its media push. Plymouth Union Public Advocacy, a Trump-aligned nonprofit, launched a $650,000 ad campaign across eight states with Republican senators. These ads also claim that “President Trump is stepping into the ring, fighting to preserve Medicaid for those who need it most,” while promoting premium tax credits—a provision of the Affordable Care Act that subsidizes private insurance.

The messaging strategy appears designed to reassure voters that Republicans are not targeting Medicaid, even as internal GOP documents and committee directives suggest otherwise. The ads emphasize reforms like work requirements and eligibility checks, which are more politically palatable than outright funding cuts.

Policy Proposals Under Consideration

Behind the scenes, Republicans are circulating a menu of policy options to achieve the mandated savings. These include:

Implementing work requirements for nondisabled Medicaid enrollees.
Increasing the frequency of eligibility checks.
Requiring re-enrollment every six months instead of annually.
Raising out-of-pocket costs for recipients earning at or above the federal poverty line.
Capping federal payments to states for certain Medicaid populations.

While some of these measures are gaining traction among moderate Republicans, they fall short of the $880 billion target. According to a Congressional Budget Office (CBO) analysis, more aggressive proposals—such as capping per-enrollee spending or repealing Medicaid expansion—could result in millions losing coverage. One scenario estimated that 3.3 million people could lose Medicaid, with 1.5 million becoming uninsured, generating $225 billion in savings.

Internal GOP Divisions

The GOP’s Medicaid strategy is complicated by internal divisions. Hardline conservatives are pushing for structural changes to the program, viewing deep cuts as essential to offsetting the cost of extending Trump-era tax cuts. Moderates, however, are wary of the political fallout.

Sen. Josh Hawley (R-Mo.) has publicly opposed large-scale Medicaid cuts, stating, “They view that as a feature, not a bug, but I view it as a bug. I mean, I'm not going to vote for Medicaid cuts.”

House Speaker Mike Johnson has also signaled discomfort with the most controversial proposals, such as slashing the federal cost share for Medicaid or eliminating provider taxes that states use to draw down federal funds.

Democrats Push Back

Democratic lawmakers have seized on the GOP’s mixed messaging, urging Republicans to focus instead on curbing waste and abuse in Medicare Advantage, a private insurance alternative to traditional Medicare. In a letter led by Sen. Elizabeth Warren, 36 Democrats called on GOP leaders to reject Medicaid cuts and instead target upcoding and overbilling by for-profit insurers.

“Where there is widespread agreement is the need to address waste, fraud, and abuse by private, for-profit insurance companies,” the letter stated.

Public Perception and Political Stakes

The GOP’s ad blitz underscores the political sensitivity of Medicaid cuts, particularly in swing districts and states with high enrollment. Medicaid provides health coverage to over 80 million Americans, including children, seniors in nursing homes, and people with disabilities. It also reimburses schools for services like occupational therapy for students with disabilities.

Despite the campaign’s messaging, the underlying budget math and policy proposals suggest that Medicaid reductions remain central to the GOP’s fiscal strategy. Whether the public buys into the narrative that Republicans are “preserving” Medicaid while pursuing $880 billion in cuts remains to be seen.

GOP's $7 Million Ad Campaign Counters Medicaid Cut Claims Amid $880 Billion Federal Funding Reduction Plan

Key Updates