News

Either Medicare or Medicaid is funded by the states, not the federal government, can never remember which.

kagis

Hmm. I guess it's Medicaid, but it's only part state-funded.

https://www.statista.com/statistics/245350/total-medicaid-federal-and-state-expenditure-in-the-us-since-1966/

In 2022, Medicaid expenditure totaled around 805 billion U.S. dollars, the highest in the provided time interval. The federal government paid approximately 70 percent of total Medicaid expenditures in 2022, with states picking up the other 30 percent.

I haven't been following it, but I understand from recent news articles that there's some dispute between the budget that the Senate Republicans want and the House Republicans want. IIRC, the Senate was trying to get their version moving, as they said that it wouldn't take as long. House Republicans bill involves more spending cuts, and Trump apparently indicated that he's onboard with waiting for the the House version.

https://www.newsweek.com/social-security-being-cut-republican-budget-2030704

Is Social Security Being Cut in Republican Budget? What to Know

It sparked fears that Social Security could be on the chopping block, but U.S. Code prevents Congress from considering budget reconciliations that make changes to social security.President Donald Trump also said Social Security would not be up for cuts during his campaign.

House Republicans are asking for a $2 trillion reduction in "mandatory spending," which includes programs like Social Security, SNAP and Medicaid.

I believe that normally those budget numbers are discussed on a 10-year basis, so that's $200 billion/year.

Welfare programs are actually where the real money is, not in federal wages. If you want to significantly cut taxation in the US, gotta bite into the welfare programs.

https://en.wikipedia.org/wiki/2024_United_States_federal_budget

These appropriations bills are classified as discretionary spending, and make up around 22% of federal expenditures. The remainder is classified as mandatory spending, which includes programs such as Social Security and Medicare, as well as interest on debt.[2]

https://en.wikipedia.org/wiki/Mandatory_spending

The bulk of mandatory spending is for entitlement programs, which are social welfare programs with specific requirements. Congress sets eligibility requirements and benefits for entitlement programs. If the eligibility requirements are met for a specific mandatory program, outlays are made automatically.[3] Entitlement programs such as Social Security and Medicare make up the bulk of mandatory spending. Together they account for nearly 50 percent of the federal budget.[3] Other mandatory spending programs include Income Security Programs such as the Earned Income Tax Credit, Supplemental Nutrition Assistance Program, Supplemental Security Income, Temporary Assistance for Needy Families, and Unemployment Insurance. Federal Retirement programs for Federal and Civilian Military Retirees, Veterans programs, and various other programs that provide agricultural subsidies are also included in mandatory spending. Also included is smaller budgetary items, such as the salaries of Members of Congress and the President.

At a high level:

2024 Budget of the United States federal government[1]

Total revenue $4.919 trillion (actual)[1] 17.1% of GDP[1]

Total expenditures $6.752 trillion (actual)[1] 23.4% of GDP[1]

Deficit $1.833 trillion (actual)[1] 6.4% of GDP[1]

And a breakdown of mandatory spending for 2024:

https://www.cbo.gov/publication/60843/html

EDIT: Yes, the mandatory-spending $2 trillion cut figure is over ten years, so they need to reduce the above numbers by $200 billion. Apparently there's also a push to do $4.5 trillion in tax cuts over the same ten-year period.