Exclusive: GOP think tank pushes heavy health spending cuts

July 1, 2026 - 15:36

A conservative think tank with close ties to Republican leadership is quietly advancing a plan that would significantly reduce federal health spending, according to internal documents reviewed by this outlet. The proposal, drafted by the Paragon Health Institute, outlines a series of aggressive cuts to Medicaid, Medicare, and the Affordable Care Act subsidies, aiming to shrink the federal budget deficit by hundreds of billions of dollars over the next decade.

The plan targets what it calls "wasteful and inefficient" programs, including a restructuring of Medicaid funding into block grants for states and a cap on the growth of Medicare spending. It also calls for repealing enhanced subsidies for private insurance plans purchased through the ACA marketplaces, which were expanded under the Biden administration.

Paragon's worldview, which emphasizes fiscal conservatism and limited government intervention, is expected to remain highly influential for the remainder of the current administration. Sources close to the White House say the think tank's proposals are being reviewed by budget officials, though no formal endorsement has been made. Critics argue the cuts would shift costs to states and vulnerable populations, potentially leaving millions without affordable coverage. The plan has already drawn sharp opposition from Democratic lawmakers and patient advocacy groups, who warn it could undermine the health care safety net.