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
Video: Protests Against ICE in Minneapolis Continue Into Friday Night
new video loaded: Protests Against ICE in Minneapolis Continue Into Friday Night
transcript
transcript
Protests Against ICE in Minneapolis Continue Into Friday Night
Hundreds of protesters marched through downtown Minneapolis on Friday night. They stopped at several hotels along the way to blast music, bang drums and play instruments to try to disrupt the sleep of immigration agents who might be staying there. Mayor Jacob Frey of Minneapolis said there were 29 arrests but that it was mostly a “peaceful protest.”
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The vast majority of people have done this right. We are so deeply appreciative of them. But we have seen a few incidents last night. Those incidents are being reviewed, but we wanted to again give the overarching theme of what we’re seeing, which is peaceful protest. And we wanted to say when that doesn’t happen, of course, there are consequences. We are a safe city. We will not counter Donald Trump’s chaos with our own brand of chaos here. We in Minneapolis are going to do this right.
By McKinnon de Kuyper
January 10, 2026
Politics
Trump says Venezuela has begun releasing political prisoners ‘in a BIG WAY’
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President Donald Trump said Saturday that Venezuela has begun releasing political prisoners “in a BIG WAY,” crediting U.S. intervention for the move following last week’s American military operation in the country.
“Venezuela has started the process, in a BIG WAY, of releasing their political prisoners,” Trump wrote on Truth Social. “Thank you! I hope those prisoners will remember how lucky they got that the USA came along and did what had to be done.”
He added a warning directed at those being released: “I HOPE THEY NEVER FORGET! If they do, it will not be good for them.”
The president’s comments come one week after the United States launched Operation Absolute Resolve, a strike on Venezuela and capture of dictator Nicolás Maduro as well as his wife Cilia Flores, transporting them to the United States to face federal drug trafficking charges.
US WARNS AMERICANS TO LEAVE VENEZUELA IMMEDIATELY AS ARMED MILITIAS SET UP ROADBLOCKS
Government supporters in Venezuela rally in Caracas. (AP Photo)
Following the military operation, Trump said the U.S. intends to temporarily oversee Venezuela’s transition of power, asserting American involvement “until such time as a safe, proper and judicious transition” can take place and warning that U.S. forces stand ready to escalate if necessary.
At least 18 political prisoners were reported freed as of Saturday and there is no comprehensive public list of all expected releases, Reuters reported.
Maduro and Flores were transported to New York after their capture to face charges in U.S. federal court. The Pentagon has said that Operation Absolute Resolve involved more than 150 aircraft and months of planning.
TRUMP ADMIN SAYS MADURO CAPTURE REINFORCES ALIEN ENEMIES ACT REMOVALS
A demonstrator holding a Venezuelan flag sprays graffiti during a march in Mexico City on Santurday. (Alfredo Estrella / AFP via Getty Images)
Trump has said the U.S. intends to remain actively involved in Venezuela’s security, political transition and reconstruction of its oil infrastructure.
The White House did not immediately respond to Fox News Digital’s request for comment.
President Donald Trump said Saturday that Venezuela has begun releasing political prisoners. (Mark Schiefelbein/AP Photo)
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Fox News Digital’s Morgan Phillips and Greg Norman-Diamond contributed to this reporting.
Politics
Secretary of Defense Pete Hegseth tours Long Beach rocket factory
Secretary of Defense Pete Hegseth, who is taking a tour of U.S. defense contractors, on Friday visited a Long Beach rocket maker, where he told workers they are key to President Trump’s vision of military supremacy.
Hegseth stopped by a manufacturing plant operated by Rocket Lab, an emerging company that builds satellites and provides small-satellite launch services for commercial and government customers.
Last month, the company was awarded an $805-million military contract, its largest to date, to build satellites for a network being developed for communications and detection of new threats, such as hypersonic missles.
“This company, you right here, are front and center, as part of ensuring that we build an arsenal of freedom that America needs,” Hegseth told several hundred cheering workers. “The future of the battlefield starts right here with dominance of space.”
Founded in 2006 in New Zealand, the company makes a small rocket called Electron — which lay on its side near Hegseth — and is developing a larger one called Neutron. It moved to the U.S. a decade ago and opened its Long Beach headquaters in 2020.
Rocket Lab is among a new wave of companies that have revitalized Southern California’s aerospace and defense industry, which shed hundreds of thousands of jobs in the 1990s after the end of the Cold War. Large defense contractors such as Northrop Grumman and Lockheed Martin moved their headquarters to the East Coast.
Many of the new companies were founded by former employees of SpaceX, which was started by Elon Musk in 2002 and was based in the South Bay before moving to Texas in 2024. However, it retains major operations in Hawthorne.
Hegseth kicked off his tour Monday with a visit to a Newport News, Va., shipyard. The tour is described as “a call to action to revitalize America’s manufacturing might and re-energize the nation’s workforce.”
Long Beach Mayor Rex Richardson, a Democrat who said he was not told of the event, said Hegseth’s visit shows how the city has flourished despite such setbacks as the closure of Boeing’s C-17 Globemaster III transport plant.
“Rocket Lab has really been a superstar in terms of our fast, growing and emerging space economy in Long Beach,” Richardson said. “This emergence of space is really the next stage of almost a century of innovation that’s really taking place here.”
Prior stops in the region included visits to Divergent, an advanced manufacturing company in aerospace and other industries, and Castelion, a hypersonic missile startup founded by former SpaceX employees. Both are based in Torrance.
The tour follows an overhaul of the Department of Defense’s procurement policy Hegseth announced in November. The policy seeks to speed up weapons development and acquisition by first finding capabilities in the commercial market before the government attempts to develop new systems.
Trump also issued an executive order Wednesday that aims to limit shareholder profits of defense contractors that do not meet production and budget goals by restricting stock buybacks and dividends.
Hegseth told the workers that the administration is trying to prod old-line defense contractors to be more innovative and spend more on development — touting Rocket Lab as the kind of company that will succeed, adding it had one of the “coolest factory floors” he had ever seen.
“I just want the best, and I want to ensure that the competition that exists is fair,” he said.
Hegseth’s visit comes as Trump has flexed the nation’s military muscles with the Jan. 3 abduction of Venezuelan President Nicolás Maduro, who is now facing drug trafficking charges to which he has pleaded not guilty.
Hegseth in his speech cited Maduro’s capture as an example of the country’s newfound “deterrence in action.” Though Trump’s allies supported the action, legal experts and other critics have argued that the operation violated international and U.S. law.
Trump this week said he wants to radically boost U.S. military spending to $1.5 trillion in 2027 from $900 billion this year so he can build the “Dream Military.”
Hegseth told the workers it would be a “historic investment” that would ensure the U.S. is never challenged militarily.
Trump also posted on social media this week that executive salaries of defense companies should be capped at $5 million unless they speed up development and production of advanced weapons — in a dig at existing prime contractors.
However, the text of his Wednesday order caps salaries at current levels and ties future executive incentive compensation to delivery and production metrics.
Anduril Industries in Costa Mesa is one of the leading new defense companies in Southern California. The privately held maker of autonomous weapons systems closed a $2.5-billion funding round last year.
Founder Palmer Luckey told Bloomberg News he supported Trump’s moves to limit executive compensation in the defense sector, saying, “I pay myself $100,000 a year.” However, Luckey has a stake in Anduril, last valued by investors at $30.5 billion.
Peter Beck, the founder and chief executive of Rocket Lab, took a base salary of $575,000 in 2024 but with bonus and stock awards his total compensation reached $20.1 million, according to a securities filing. He also has a stake in the company, which has a market capitalization of about $45 billion.
Beck introduced Hegseth saying he was seeking to “reinvigorate the national industrial base and create a leaner, more effective Department of War, one that goes faster and leans on commercial companies just like ours.”
Rocket Lab boasts that its Electron rocket, which first launched in 2017, is the world’s leading small rocket and the second most frequently launched U.S. rocket behind SpaceX.
It has carried payloads for NASA, the U.S. Space Force and the National Reconnaissance Office, aside from commercial customers.
The company employs 2,500 people across facilities in New Zealand, Canada and the U.S., including in Virginia, Colorado and Mississippi.
Rocket Lab shares closed at $84.84 on Friday, up 2%.
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