House Republicans have called for about $880 billion in spending cuts over the next decade that may target Medicaid, a program that provides health care and other services to millions of Americans.

The budget resolution adopted by the chamber on Feb. 25 is aimed at implementing the cuts to help pay for renewing tax cuts expiring the end of this year. The House Energy and Commerce Committee is charged with finding the savings, and Medicaid is under its jurisdiction. Of note, the resolution doesn’t specifically single out Medicaid.

“It is very hard to imagine coming up with enough savings from what’s in their jurisdiction without a hefty cut to Medicaid, just given its size,” said Josh Bivens, chief economist at the Economic Policy Institute.

Republicans including House Speaker Mike Johnson have said they do not plan to cut Medicaid, in keeping with President Donald Trump’s promise not to touch the program.

Neither the White House nor the Energy and Commerce Committee were immediately available for comment.

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Cuts to Medicaid would impact more than 80 million people who rely on the program for health insurance every month, including many individuals who are middle class, as well as older adults who use it for long-term care benefits, Bivens said.

Because the program is the largest federal program for alleviating poverty, cutbacks would increase hardships for already struggling families, according to new research from the Economic Policy Institute.

Moreover, Medicaid cuts of that size would also make the U.S. more vulnerable to a recession, according to the research.

Republicans and Democrats have opposing views on what the impact of extending those cuts may be. While Democrats say renewing the policy would benefit the wealthiest Americans, Republicans argue it could create a windfall for low- and middle-income Americans. Research from the Penn Wharton Budget Model and the Urban Institute has found high-income taxpayers would benefit most.

High-income households would likely save the additional money they see from any tax cuts, and therefore not result in meaningful spending, EPI predicts.

In contrast, individuals who are affected by the Medicaid cuts would reduce their medical spending, such as by skipping doctors’ visits, the EPI report found. For people with less generous Medicaid coverage, higher out-of-pocket costs would limit their ability to spend in other areas.

A dollar cut to Medicaid generally has a much bigger macro effect than a dollar cut to taxes for high-income people, Bivens said. Because Medicaid beneficiaries are so income constrained, every extra dollar of funding that goes to Medicaid frees up money they can spend elsewhere, he said. Medicaid cuts curb their ability to spend.

An $880 billion cut to Medicaid would prompt a 0.5% drag on economic growth, according to the Economic Policy Institute. That could nudge the unemployment rate up by about 0.3 percentage points, and leave about 550,000 people involuntarily without jobs.

To counteract the slower economic growth, the Federal Reserve could lower interest rates from about 4.25% to around 2.5%, according to the Economic Policy Institute. But that would limit the central bank’s ability to react to any other recessionary shocks that could come up.

Research from the Commonwealth Fund has found when Medicaid is expanded, additional federal funding can help promote stronger state economies. For states that implement expansions, that may boost state output, state gross products and personal incomes in those states, which also benefits the country at large, according to the research.

President Donald Trump vowed to “make America affordable again” before a joint session of Congress Tuesday, but also noted that his steep new tariffs may cause some “disturbance.”

Tariffs on Canada and Mexico took effect the same day, and economists say the taxes are bound to raise prices for consumers — which is already fueling concern among households. 

Taken together, Trump’s tariffs on Canada, China and Mexico would cost the typical household more than $1,200 a year, according to a recent analysis by The Peterson Institute for International Economics. (That tally does not account for Trump’s order on Tuesday doubling the 10% tariff on Chinese imports.)

“As long as these tariffs are in place, Americans will be forced to pay higher prices on household goods,” David French, the National Retail Federation’s executive vice president of government relations, said in a statement.

To that end, the federal government plans to appoint an “affordability czar,” as well as create an affordability council, to address high prices in the U.S., Treasury Secretary Scott Bessent said Sunday on “Face the Nation with Margaret Brennan.”

“We are laser focused on this,” Bessent said.

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According to Bessent, the “affordability czar” will pick “five or eight areas where this administration can make a big difference for working class Americans.”

Among the likely contenders could be housing, car prices, groceries, electronics and appliances, all of which have notched significant price jumps in the last five years, data shows.

Even though inflation has eased in recent months, price increases have not moderated as much as the Federal Reserve has hoped. High costs for food and housing, especially, continue to stretch consumer budgets. 

The Conference Board’s consumer confidence index sank in February — notching the largest monthly drop since August 2021 — as worries brewed about tariffs and rising inflation. The University of Michigan’s consumer sentiment index similarly found that Americans largely fear that inflation will flare up again.

“Weak consumer perceptions and uncertainty from the lack of clarity regarding future government policies and regulations can significantly hinder business operations,” said Jack Kleinhenz, chief economist at the National Retail Federation. “That, in turn, can cause a hesitation in consumer spending and make it difficult for companies to make investment and hiring decisions.”

To safeguard affordability, there are steps consumers can take even amid the escalating trade war and increased inflationary fears.

Consumer savings expert Andrea Woroch recommends “hacking waste from your monthly bills.”

Start with recurring expenses, she advised. Among her top strategies:

• Negotiating rates with current providers by leveraging competitor deals or asking for promos.
• Canceling unused subscriptions or slashing extra services in your current plans, such as “premium movie channels you don’t watch, or get rid of that extra cable box in the guest room,” she said.
• Also, “bundle insurance policies or increase your insurance deductible for up to 20% savings on monthly premiums and get in the habit of unplugging unused gadgets for up to 10% savings on energy,” she said.

Cutting back at the grocery store is another big opportunity to reduce your monthly expenses, Woroch said. “Start meal planning and don’t make it overly complicated.”

Woroch also advises looking for recipes that use similar ingredients to ensure all food purchases get consumed in a typical week.

“The less you waste, the less you will spend on groceries,” she said.

“I’d also suggest doing meal planning in reverse — this is when you create a meal plan based on what your grocery store has on sale,” she said. Then stick with your list when shopping. 

Further, cook in bulk and freeze single serving leftovers so you have something on hand to reheat to avoid pricey take-out orders.

Finally, put those purchases on a credit card that gives cash back across your major spending categories, such as groceries, gas or utilities.

“This covers most people’s top spending areas, and you can rake in a lot of free money,” Woroch said.

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Harvard University is no longer the ultimate “dream” school, at least among current college applicants.

This year, Massachusetts Institute of Technology secured the top spot of most desirable colleges, according to a new survey of college-bound students by The Princeton Review.

Harvard fell from No. 1 after a prolonged period of controversy, marked by antisemitism on campus and the resignation of Harvard President Claudine Gay amid allegations of plagiarism.

Despite the reshuffling, there remains a common element at the top of the rankings, according to Robert Franek, The Princeton Review’s editor-in-chief. “Each of the schools are exceptional,” he said.

However, regardless of which institution they attend, for most students, the biggest problem remains how they will pay for their degree.

A whopping 95% of families said financial aid would be necessary to pay for college and 77% said it was “extremely” or “very” necessary, The Princeton Review found. Its 2025 College Hopes and Worries Survey polled more than 9,300 college applicants between Jan. 17 and Feb. 24.

Often, which college those students will choose hinges on the amount of financial aid offered and the breakdown across grants, scholarships, work-study opportunities and student loans.

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MIT is one of the hardest schools to get into, with an acceptance rate of 4.5%. It’s also among the nation’s priciest institutions — tuition and fees, room and board and other student expenses came to more than $85,000 this year.

But MIT also offers generous aid packages for those who qualify. Among the Class of 2024, 87% graduated debt-free, according to the school.

Top colleges are seeking exceptional students from all different backgrounds, according to James Lewis, co-founder of the National Society of High School Scholars, an academic honor society.

To that end, many institutions will provide scholarships or discounted tuition, in addition to other sources of merit-based aid, he said.

For qualified applicants, “if they can go after those institutions, don’t self-select out,” Lewis said.

At MIT, for example, 2024 graduates earn a starting salary of $126,438, according to the latest student survey — nearly twice the national average. The percentage of MIT graduates employed in the months immediately after graduation has edged lower in recent years, while the share enrolling in graduate school has trended higher.

“Because it’s getting harder to find a job, students are more focused on what they are going to do after college,” he said. “That’s a big thing for them.”

When asked what they consider the greatest benefit of earning a college degree, most students said it was a “potentially better job and income,” The Princeton Review found.

Fewer said it was “exposure to new ideas, places and people.”

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