The President has signed a $10 billion spending package that replaces the $5.6 trillion Obamacare program’s $1.1 trillion annual spending.
The bill will also provide $100 billion in funding for states to cover people with pre-existing conditions and provide $1,200 for people with HIV/AIDS.
The new bill also provides a $400 tax credit for Americans who buy coverage through Medicaid.
A provision in the bill, which the White House has been trying to get through Congress, would give states the option of using that $400 credit to purchase health insurance from the government-run exchange, the Affordable Care Act website.
The White House said the credit would be used to pay for health insurance for the average American household.
Trump signed the bill after a closed-door meeting with top White House and Cabinet officials on Thursday afternoon.
House Speaker Paul Ryan (R-WI) said in a statement that the bill will “provide billions of dollars to help the uninsured and help stabilize the healthcare system” by expanding the availability of Medicaid coverage to “the most vulnerable Americans.”
“This bipartisan effort will help create jobs and build a stronger economy, but it will also improve the quality of care and the security of the American people,” Ryan said.
Trump has been touting his plan to overhaul the Affordable Health Care Act, or Obamacare, which was passed by Congress in 2010.
The GOP-led Congress passed a budget bill in March that would cut $1 trillion from the federal government’s annual deficit and replace it with spending cuts.
The spending bill includes $9.5 billion for the Supplemental Nutrition Assistance Program (SNAP), which is intended to provide food aid to millions of Americans struggling with health problems.
It also funds a $1 billion grant to a local school district to create and operate a new high school in an inner-city neighborhood.
The Trump administration has proposed to cut $6 billion from the Food Stamp program by 2018, and $1 and $2 billion from Medicaid by 2022.
“I’m pleased that we are moving in a new direction with our new spending bill and the $10-billion stimulus package,” Trump said in the signing ceremony.
“The American people deserve the health care they have earned and the stability that they have been promised.”