Potential Medicaid Cuts Spark Fight Between City Council, Mayor

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Potential federal cuts to Medicaid have sparked heated debate between a city council and mayor in Wisconsin, a key battleground state narrowly won by President Donald Trump in November.

The Wausau City Council officially voted Tuesday to overturn Mayor Doug Diny’s veto that would halt the city from issuing a formal resolution against potential cuts to Medicaid.

Why It Matters

More than 70 million Americans rely on Medicaid for health care coverage, including many children, pregnant mothers, those with disabilities and seniors with limited income.

The current approved Republican budget from the House of Representatives would slash $880 billion from federal health and energy programs from 2025 to 2034. This has sparked concerns that Medicaid would experience the brunt of the budget cuts.

What To Know

Wausau’s City Council overturned Mayor Doug Diny’s veto of the city’s resolution, expressing their opposition to possible federal cuts to Medicaid.

The overturn passed in a 9-0 vote despite Diny’s claims that the council should “stick to city business.”

The city council’s position is that Medicaid cuts would be city business, as roughly 25 percent of the population relies on Wisconsin’s Medicaid program, BadgerCare.

Diny, however, has said the City Council is acting “at the behest of the Democratic Party,” in recent statements.

Wisconsin flipped Republican in the 2024 presidential election as Trump defeated former Democratic Vice President Kamala Harris by just over 29,000 votes.

Newsweek reached out to the city council and Diny for comment via email.

What People Are Saying

Wausau Alder Victoria Tierney said, as reported by the Wausau Pilot and Review: “We’re not just talking about people who have access to Medicare. We’re talking about people who cannot get health care coverage any other way because their disabilities do not allow them to work. That is people within our city too, which, again, would put a strain on all of our medical services.”

Alder Lou Larson said: “There is a threat [to Medicaid]. If there wasn’t a threat, this wouldn’t be here. People thought that Roe v. Wade wouldn’t be overturned either. And look where that is today.”

Kevin Thompson, finance expert and founder of 9i Capital Group, told Newsweek: “What we’re seeing in Wausau is becoming more common across multiple states and at the federal level. As people begin to realize that campaign promises around “not touching entitlements” may have been more about winning votes than actual policy, concerns are growing.

That said, I haven’t seen any specific data showing cuts to any entitlement programs yet, so the jury is still out.”

Alex Beene, financial literacy instructor at the University of Tennessee at Martin, told Newsweek: “The situation in Wausau is similar to other city and state governments that are growing concerned over proposed cuts to Medicaid and the effect it will have on their populations. Significant cuts could prove disastrous, particularly for governments that have trigger laws that could cause state Medicaid funding to drop off partially or entirely if Federal support drops below a certain level.

As a result, some city and state government entities are taking strong stances as an early preventative step to ensure their residents know they’re working to maintain these benefits. Whether or not these stances will have any influence on the final budget remains to be seen.”

What Happens Next

If Republicans do reach the nearly $900 billion in cuts from federal health and energy programs, it’s likely that some of the programs like Medicaid would come under scrutiny, Thompson said.

“We’re already seeing discussions around block grants and work requirements for able-bodied recipients, which could indicate the direction things are headed,” Thompson said.

“It’s tough to say for sure. But if Medicaid does get cut, it could present serious challenges for Republicans in future elections. The question is whether they’re willing to take that political risk. Any significant change could shape the future of politics, particularly in battleground states where healthcare is a critical issue.”