Republican lawmakers are reportedly considering health care changes to help fund the war in Iran and Immigration and Customs Enforcement.
Top House Republicans are exploring reductions in federal health spending — particularly targeting fraud, waste, and abuse — as part of a broader effort to pay for a budget package that could include up to $200 billion for military operations in Iran and increased immigration enforcement, Axios reported Monday.
House Majority Leader Steve Scalise, R-La., said lawmakers are reviewing multiple options to offset costs without increasing the deficit, signaling a renewed GOP focus on fiscal discipline.
"There's other items we're looking at right now, especially in the areas of fraud and waste and abuse," Scalise told Axios.
The effort reflects growing pressure among conservatives to ensure that any new spending, particularly on national security and border enforcement, is fully paid for, rather than adding to the national debt.
One proposal under consideration involves changes to Obamacare subsidies known as cost-sharing reductions.
The Congressional Budget Office has previously estimated that such reforms could save more than $30 billion, though they could also lead to higher out-of-pocket costs for some enrollees.
Lawmakers are also examining potential savings within Medicare, including so-called "site-neutral" payments and efforts to crack down on "upcoding," a practice in which providers inflate the severity of patients' conditions to receive higher reimbursements.
The push comes as new data and enforcement efforts highlight the scale of fraud in federal health programs.
A New York Post report Sunday detailed how Medicaid and Medicare fraud cost taxpayers tens of billions annually, with some schemes involving international criminal networks and even alleged ties to terror financing.
Treasury Secretary Scott Bessent has launched a new whistleblower initiative aimed at cracking down on such fraud, offering tipsters up to 30% of recovered funds in major cases.
The program is part of a broader Trump administration effort to impose a "zero-tolerance" policy on abuse of taxpayer-funded programs.
Supporters argue that rooting out fraud is a common-sense way to fund critical priorities such as national defense and immigration enforcement without cutting essential services.
Still, the proposals are expected to face resistance, including from moderate Republicans wary of political fallout in an election year.
Democrats have already begun attacking the plan, framing it as an attempt to cut health care to pay for war spending.
Despite the political challenges, GOP leaders appear determined to move forward, potentially using the budget reconciliation process to bypass Senate opposition.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
© 2026 Newsmax. All rights reserved.