this post was submitted on 18 Nov 2024
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President-elect Donald Trump’s economic advisers and congressional Republicans have begun preliminary discussions about making significant changes to Medicaid, food stamps and other federal safety net programs to offset the enormous cost of extending Trump’s 2017 tax cuts next year.

Among the options under discussion by GOP lawmakers and aides are new work requirements and spending caps for the programs, according to seven people familiar with the talks, many of whom spoke on the condition of anonymity because they were not authorized to speak publicly. Those conversations have included some economic officials on Trump’s transition team, the people said.

However, concern is high among some Republicans about the political downsides of such cuts, which would affect programs that provide support for at least 70 million low-income Americans, and some people familiar with the talks stressed that discussions are preliminary.

“I don’t think that passing just an extension of tax cuts that shows on paper an increase in the deficit [is] going to be challenging,” said one GOP tax adviser. “But the other side of the coin is, you start to add things to reduce the deficit, and that gets politically more challenging.”

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