Politics
Johnson Rules Out an Aggressive Plan to Cut Medicaid as G.O.P. Moderates Waver
Speaker Mike Johnson has dropped one of the most aggressive options the G.O.P. was considering to cut Medicaid costs to help pay for President Trump’s domestic agenda, bowing to pressure from politically vulnerable Republicans and underscoring the deep party divisions imperiling the plan.
Leaving his office on Tuesday night after meeting with a group of more moderate members, Mr. Johnson told reporters that House Republicans had ruled out lowering the amount the federal government pays states to care for working-age adults who became eligible for the program through the Affordable Care Act’s Medicaid expansion.
Mr. Johnson also suggested he was leaning against another way of reducing spending on Medicaid, by changing the way the federal government pays states — currently by providing a percentage of beneficiaries’ medical bills — to a flat fee per person.
“I think we’re ruling that out as well, but stay tuned,” the speaker said.
The retreat was an acknowledgment that many House Republicans viewed the ideas — both of which would create large state budget shortfalls — as politically toxic. It also underscored how difficult it will be for Mr. Johnson’s conference to find Medicaid cuts that hit the spending targets Republicans set for themselves and also win enough votes to pass.
Ultraconservative Republicans quickly vented their opposition, in a public reminder that Mr. Johnson’s efforts to stave off a revolt of mainstream lawmakers could cost him crucial support from his right flank. That could doom Mr. Trump’s vast tax and spending cut plan in the House, where the speaker can afford to lose fewer than a handful of votes.
“Well – I haven’t ruled it out,” Representative Chip Roy, Republican of Texas, declared on social media after Mr. Johnson’s comments on Tuesday night about abandoning the idea of cutting back on federal payments for some Medicaid beneficiaries. “It’s necessary to stop robbing from the vulnerable to fund the able-bodied.”
House Republicans are laboring to identify roughly $2 trillion in spending cuts to help offset both the 2017 tax cuts they want to extend and the new tax cuts they want to pass in their reconciliation bill. The biggest challenge so far has centered on the Medicaid program, which provides health insurance to 72 million poor and disabled Americans.
The House budget plan calls for $880 billion in cuts from the committee that oversees the program, a target that would be difficult to achieve without substantial changes. If House Republicans cannot agree on policies that comply with the instructions, the entire package could be doomed.
Abruptly reducing federal funding for the program by paying less in the 40 states and the District of Columbia that have expanded Medicaid under Obamacare would have saved an estimated $710 billion over a decade, according to new estimates released by the Congressional Budget Office on Wednesday.
That would have cut funding to state governments, which would have been left with difficult choices. Nine states have passed laws that would cause them to automatically drop coverage for the expansion population if federal funding declines, and three others have provisions that would force an immediate legislative review.
Other states would need to make up the money in some other way — by cutting benefits or payments to medical providers, raising taxes or cutting other state functions. As a result of those changes, the budget office estimated that the policy would cause 5.5 million Americans to lose their Medicaid coverage and 2.4 million Americans to become uninsured.
The Obamacare expansion extended health benefits to poor, childless adults without disabilities, a population that many Republican lawmakers consider less worthy of resources than other populations Medicaid serves, such as poor children, pregnant women and Americans who live in nursing homes. But other Republicans see this population as a core constituency, as working-class voters have become a growing component of the party’s electoral coalition.
Some conservatives like Mr. Roy have argued that uniting around cutting the Affordable Care Act, a program their party detests, should be the bare minimum for Republicans looking to raise revenue for Mr. Trump’s agenda.
“I’ve got a bunch of my colleagues running around saying, ‘Well, we can’t touch Medicaid,’” Mr. Roy said in a speech on the House floor. “Why can’t we? Medicaid was expanded under Obamacare, which we all opposed, and the Medicaid expansion was a big reason why we opposed it.”
But many of Mr. Roy’s colleagues, especially those in politically competitive seats, do not agree. The cuts would be particularly damaging in wealthier Democratic-led states, such as California and New York, where Republicans have been elected in districts where many constituents use Medicaid.
Medicaid pays those states 90 percent of the medical bills for people covered under the expansion, but only half the bill for other beneficiaries, a significant difference.
“I will never support cuts to Medicaid, Medicare or Social Security that are not specifically aimed at reducing waste, fraud or abuse,” said Representative Jeff Van Drew, Republican of New Jersey.
But without any such cuts, Republicans are left with a dwindling set of options that would allow them to meet their $880 billion target. Medicaid reforms with broad support across the caucus, such as requiring beneficiaries to prove they are employed in order to keep their benefits, would not reduce spending by nearly as much.
Another option under consideration, limiting taxes on hospitals and other complex financing maneuvers that states use to increase federal spending on the program, would tend to disadvantage states led by Republicans. The budget office estimated it would reduce the deficit by around $668 billion and cause 3.9 million more people to become uninsured.
Mr. Trump has also recently expressed a reluctance to make any major cuts to Medicaid, and has repeated several times that the program should not be “touched.” A White House official said Mr. Trump was pushing for stronger discounts on prescription drugs used in Medicaid, an alternative that would avoid some of the political pitfalls but may not save enough to comply with the budget language.
Politics
Trump calls on House Republicans to vote to release Epstein files: ‘We have nothing to hide’
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President Trump is calling on House Republicans to vote to release files related to disgraced financier Jeffrey Epstein, insisting he has “nothing to hide” and accusing Democrats of using the case as a distraction from GOP accomplishments.
In a Truth Social post on Sunday, Trump urged House Republicans to vote in favor of releasing the documents, describing the controversy as a “Democrat hoax perpetrated by radical left lunatics.”
“As I said on Friday night aboard Air Force One to the Fake News Media, House Republicans should vote to release the Epstein files, because we have nothing to hide, and it’s time to move on from this Democrat Hoax perpetrated by Radical Left Lunatics in order to deflect from the Great Success of the Republican Party, including our recent Victory on the Democrat ‘Shutdown,’” Trump wrote.
WHITE HOUSE SLAMS DEMS’ ‘BAD-FAITH’ EPSTEIN DOC RELEASE AS DEMAND FOR FILES INTENSIFIES
US President Donald Trump speaks with reporters before boarding Air Force One as he departs Palm Beach International Airport in West Palm Beach, Florida, on November 16, 2025. (JIM WATSON/AFP via Getty Images)
Trump pointed to the Department of Justice’s (DOJ) previous release of thousands of pages of Epstein-related documents.
He also noted that the agency is investigating possible ties between Epstein and “Democrat operatives” including former President Bill Clinton, LinkedIn co-founder Reid Hoffman and former Treasury Secretary Larry Summers.
“The House Oversight Committee can have whatever they are legally entitled to, I DON’T CARE!” Trump said.
He added, “All I do care about is that Republicans get BACK ON POINT, which is the Economy, ‘Affordability’ (where we are winning BIG!), our Victory on reducing Inflation from the highest level in History to practically nothing, bringing down prices for the American People, delivering Historic Tax Cuts, gaining Trillions of Dollars of Investment into America (A RECORD!), the rebuilding of our Military, securing our Border, deporting Criminal Illegal Aliens, ending Men in Women’s Sports, stopping Transgender for Everyone, and so much more!”
EPSTEIN DOCUMENTS RAISE NEW QUESTIONS ABOUT TRUMP CONDUCT AS HE DENOUNCES DEMOCRATS
Jeffrey Epstein and Ghislaine Maxwell are pictured here. (Joe Schildhorn/Patrick McMullan via Getty Images)
Trump also argued that if the Democrats “had anything,” it would have surfaced prior to last year’s presidential election.
“Nobody cared about Jeffrey Epstein when he was alive and, if the Democrats had anything, they would have released it before our Landslide Election Victory,” Trump said. “Some ‘members’ of the Republican Party are being ‘used,’ and we can’t let that happen. Let’s start talking about the Republican Party’s Record Setting Achievements, and not fall into the Epstein ‘TRAP,’ which is actually a curse on the Democrats, not us. MAKE AMERICA GREAT AGAIN!”
AG BONDI ANNOUNCES DOJ INVESTIGATION INTO BILL CLINTON, OTHER DEMOCRATS OVER ALLEGED EPSTEIN TIES
Former President Bill Clinton speaks onstage during the Clinton Global Initiative September 2023 Meeting at New York Hilton Midtown on September 18, 2023, in New York City. (Noam Galai/Getty Images for Clinton Global Initiative)
Attorney General Pam Bondi announced Friday the DOJ would probe prominent Democrats after new emails revealed ties to Epstein.
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In an X post Friday afternoon, Bondi said Jay Clayton, U.S. attorney for the Southern District of New York, would take the lead on the investigation.
“Clayton is one of the most capable and trusted prosecutors in the country,” Bondi wrote in the post. “As with all matters, the Department will pursue this with urgency and integrity to deliver answers to the American people.”
Fox News Digital has reached out to the White House, Bill Clinton, Reid Hoffman and Larry Summers for comment.
Fox News Digital’s Alexandra Koch contributed to this report.
Politics
Indictment of ex-Newsom aide hints at feds’ probe into state’s earlier investigation of video game giant
An indictment unveiled this week charging Gov. Gavin Newsom’s former chief of staff with political corruption threw California’s top political circles into chaos — and stirred speculation in the state capital about what triggered the federal investigation.
Authorities have not revealed any targets beyond Dana Williamson and two other influential political operatives associated with the state’s most powerful Democrats, all of whom are accused of fraud and siphoning campaign funds for personal use.
But details contained in the indictment and other public records indicate that the FBI and U.S. Department of Justice had a keen interest in Williamson and other operatives’ involvement in the handling of a legal case involving “Corporation 1.” The facts revealed about “Corporation 1” match details of a controversial sex discrimination investigation that the state of California led into one of the world’s largest video game companies, Santa-Monica based Activision Blizzard Inc.
Williamson — an influential deal-maker and one of the state’s premier Democratic political consultants before and after she ran Newsom’s office — was arrested on corruption charges Wednesday. Two longtime associates, lobbyist Greg Campbell, a former high-level staffer in the California Assembly, and Sean McCluskie, a longtime aide to former state Atty. Gen. and U.S. Health and Human Services Secretary Xavier Becerra, have agreed to plead guilty to related charges.
After Williamson pleaded not guilty in a tearful court appearance Wednesday, her attorney, McGregor Scott, said that federal authorities had charged his client only after first approaching her to seek help with a probe they were conducting into Newsom, the nature of which remains unclear. Williamson declined to cooperate.
The governor has not been accused of any wrongdoing. Still, Republicans already are using the indictments to attack Newsom, who has openly said he is considering a run for president in 2028.
Williamson’s attorney did not offer any specifics on what federal officials may have been investigating.
But numerous threads in the indictment echo details in the Activision saga.
Williamson and Campbell both worked as advisors to Activision Blizzard, according to financial disclosures on file with the state. Williamson reported receiving income from the company prior to her appointment in Newsom’s office, state records show. According to records first filed earlier this year, Campbell disclosed that his lobbying firm started being paid by Activision around the time Williamson joined the governor’s office. Activision reported paying $240,000 to his firm in 2023 and 2024. The amount Williamson was paid from Activision was not disclosed.
Activision officials did not respond to emails requesting comment. Lawyers for Williamson, Campbell and McCluskie also did not respond or declined to comment.
The state’s Department of Fair Employment and Housing in 2021 sued Activision Blizzard, which distributes video games such as “Call of Duty” and “Candy Crush,” alleging that company officials discriminated against women, paid them less than men and ignored reports of egregious sexual harassment.
The complaint alleges: The company “fostered a pervasive ‘frat boy’ workplace culture that continues to thrive. In the office, women are subjected to ‘cube crawls’ in which male employees drink copious amounts of alcohol as they ‘crawl’ their way through various cubicles in the office and often engage in inappropriate behavior toward female employees. Male employees proudly come into work hungover, play video games for long periods of time during work while delegating their responsibilities to female employees, engage in banter about their sexual encounters, talk openly about female bodies, and joke about rape.”
Activision officials denied the allegations.
The allegations also were investigated by the federal Equal Employment Opportunity Commission. Activision Blizzard agreed to a consent decree, approved in March 2022, with the agency that required the company to set up an $18-million fund for employees who experienced sexual harassment or discrimination, pregnancy discrimination or retaliation.
Just weeks later, the case drew national attention again when the lawyer overseeing the case for the state’s Department of Fair Employment and Housing, Janette Wipper, was fired by the Newsom administration, and her chief deputy resigned and alleged that she was doing so to protest alleged interference of Newsom’s office in the investigation.
“The Office of the Governor repeatedly demanded advance notice of litigation strategy and of next steps in the litigation,” the deputy, Melanie Proctor, wrote to her colleagues. “As we continued to win in state court, this interference increased, mimicking the interests of Activision’s counsel.”
A member of Activision’s board of directors contributed $40,200 to Newsom’s 2018 gubernatorial campaign, and an additional $100,000 to a committee opposing the 2021 recall campaign against Newsom — an effort that failed.
Newsom’s office denied it was meddling. “Claims of interference by our office are categorically false,” Erin Mellon, Newsom’s then-communications director, said at the time.
As case continued to grind through Los Angeles Superior Court, the company stepped up its lobbying presence in Sacramento, according to disclosures filed with the state. Documents show Activision began paying Campbell starting in late 2022 to lobby on its behalf.
Around this time, Newsom announced that he was hiring Williamson to be his chief of staff.
In December 2023 the state announced it had reached a settlement agreement with Activision for $54 million, with the bulk of the funds going to compensate women who had been underpaid. The company did not admit any wrongdoing.
The FBI has made inquires about the Activision settlement, though the focus of the inquiry is unclear. When reached recently, Calabasas attorney Alan Goldstein, who handled a sexual harassment suit against Activision, said he received a call from an FBI agent looking to investigate California’s settlement — but that he couldn’t recall a “substantive conversation.”
Federal investigators were also looking at how Campbell, Williamson and another Sacramento political consultant, Alexis Podesta, conducted their affairs. In unveiling their charges this week, the U.S. Attorney’s office said the investigation began more than three years ago. All three consultants were members of the Sacramento-based Collaborative, a cooperative of top Democratic political operatives.
Podesta from 2017 to 2020 served as secretary of the California Business, Consumer Services and Housing Agency, which included the state’s Department of Fair Employment and Housing — the agency that launched the investigation of Activision in 2018.
Williamson received a federal subpoena for information about her handling of a government loan her business had received during the COVID-19 pandemic emergency, according to details in the indictment. The indictment accused Williamson of spending vast sums on luxury items — including a Gucci bag, Chanel earrings and a $150,000 Mexican birthday vacation and party, plus yacht rental and private jet travel — and then claimed them as business expenses on her taxes.
She and Campbell had also allegedly conspired with McCluskie to siphon money from Becerra’s dormant campaign account to pay McCuskie’s wife for a fake, “no-show” job working for Williamson. When Williamson went to work for Newsom, the indictment alleges, Podesta took over handling the pass through payments.
By June 2024, someone in the circle was cooperating with federal investigators and wearing a wire, recording Williamson’s private conversations, according to transcripts included in the indictment.
On Nov.14, 2024, according to the indictment, FBI agents interviewed Williamson, questioning her about the Becerra campaign funds and about the pandemic funds.
Investigators also asked her about her actions “while serving in public office to influence the litigation involving the State of California and a former client — Corporation 1,” according to the indictment. The indictment doesn’t identify Corporation 1, but details match the Activision litigation. The indictment notes that Corporation 1 was Williamson’s former client and that it was involved in settlement discussions over a lawsuit with the state in 2023. It also references a state lawyer who had been fired in connection with the litigation.
Williamson, according to the indictment, told the FBI she did not pass any inside information to Campbell or other associates outside the government. But based on their recorded conversations, the indictment said, investigators believed that was not true.
They alleged that in January 2023, shortly after Williamson started as Newsom’s chief of staff, she revealed to Podesta that she had “told a high level government attorney to … get [the case] settled.”
The indictment notes that Corporation 1 was not only Williamson’s former client, but also now Podesta’s current client.
In June 2024, Williamson complained to Podesta that someone had submitted a California Public Records Act request seeking information about meetings and communications between Newsom officials and the company, according to the indictment.
Proctor, the state attorney who resigned in 2022 and had alleged that the Newsom administration was meddling in the Activision case, posted on her Bluesky social media account in July that she had submitted a public records request on May 29, 2024. She also posted the response from Newsom’s office, showing a meeting in January 2024 in the governor’s office among Williamson, Podesta and Robert Kotick, the former chief executive of Activision.
In their June conversation, according to the indictment, Williamson told Podesta, “I just wanted to alert you to the PRAS that we’re starting to get,” the indictment stated. PRAs refer to public records requests.
“Yeah. Ugh. F— her. They really don’t know who they are messing with,” Podesta responded.
“They really don’t,” Williamson said.
Podesta, who is identified in the indictment as “Co-Conspirator 2,” was not charged. On Thursday she sent a message to numerous associates offering her take on the situation.
“While I cannot discuss the details of the ongoing investigation, I want to state plainly that I have always conducted myself — and my business — with integrity.” She also said that she continued to “cooperate fully with federal authorities.”
On Friday afternoon, McCluskie and Campbell appeared in federal court in Sacramento to be arraigned on conspiracy charges in back-to-back proceedings.
Both men had previously reached plea agreements with prosecutors and will be back in court to enter those pleas, McCluskie in late November and Campbell in early December.
Prosecutors did not seek detention for either man, but they were ordered to surrender their passports and avoid associating with other alleged co-conspirators.
In brief remarks to reporters, Campbell’s attorney, Todd Pickles, said that his client “takes full accountability for his actions” and would “in appropriate time further discuss the charges.” But, Pickles noted, those charges “do not include Mr. Campbell engaging in advocacy or lobbying on behalf of any client.”
Times staff writers Katie King and Melody Gutierrez contributed to this report.
Politics
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