Mark Cuban Backs Ro Khanna's $12 Trillion 'Progressive Deficit Reduction Plan,' Targeting Medicare Fraud And Military Spending

Mark Cuban reshared a post supporting Rep. Ro Khanna‘s (D-Calif.) “Progressive Deficit Reduction Plan,” which aims to slash the U.S. deficit by $12 trillion over the next decade.

What Happened: Khanna detailed the plan, emphasizing $2.4 trillion in spending cuts as a cornerstone of the initiative. The plan, unveiled on June 10, 2025, seeks to reduce the deficit-to-GDP ratio to 3% by 2034, well below the historical average of 3.8%.

The Republican budget adds $2.4 trillion. This would be 7-8.6 percent of GDP. Our bond markets are fearful that interest rates will go up, and the Fed will have to buy more Treasury bonds, making us all poorer. The historical average of deficit to GDP is under 4 percent. My plan… pic.twitter.com/CuXUpqSagN

— Rep. Ro Khanna (@RepRoKhanna) June 10, 2025

Key components of the spending cuts include modernizing the military and reforming contracting to save $850 billion.

The plans also aim to eliminate Medicare Advantage upcoding and fraud to save $830 billion.

“Republicans want to slash nearly $1T from Medicare and Medicaid—ripping away healthcare from 16 millions ordinary Americans to pay for tax breaks for billionaires. Instead, we could save $830 billion by ending corporate profiteering. That means cracking down on Medicare Advantage fraud and abuse like upcoding, where private insurers overbill taxpayers and pocket the difference,” his statement said.

Other key areas of spending cuts include negotiating Medicare drug prices for $200 billion in savings, ending fossil fuel subsidies to save $170 billion, and implementing smarter government procurement for an additional $333 billion.

These measures aim to address inefficiencies and corporate profiteering while investing in critical areas like technology, diplomacy, and healthcare.

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Why It Matters: After President Donald Trump was elected, he announced the formation of the Department of Government Efficiency, or DOGE, under the leadership of Elon Musk. It was aimed at reducing wasteful government spending.

According to the official website, its “estimated” savings stand at $180 billion.

However, evaluations and independent analyses by many firms and publications have revealed inaccuracies in Musk’s reported figures. Additionally, federal spending under Trump in 2025 has kept increasing.

While this ‘Progressive Deficit Reduction Plan’ challenges the Republican plan to reduce spending, its viability will only be put to the test upon execution.

Price Action: The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Thursday. The SPY was down 0.39% at $599.01, while the QQQ declined 0.41% to $530.23, according to Benzinga Pro data.

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