With Congress considering cuts to federal programs under the budget package, Medicaid could be in jeopardy.
The budget could cut Medicaid funding by up to $880 billion over 10 years. The healthcare program covers approximately 72 million people, making it the largest government insurance health insurance program in the country. It puts those people’s coverage at risk, but the damage could be even more far reaching.
With SNAP cuts also proposed in the package, the Commonwealth Fund estimates that combined losses from both Medicaid and SNAP cuts would reach $1.1 trillion over a decade. In 2026 alone, state and local governments would lose $8.8 billion in tax revenue. In addition, about 1.03 million jobs across the country would be lost. This number could increase to 1.3 million if the enhanced health insurance premium tax credit program is not extended after its expiration date in December.
In a recent poll conducted by KFF, more than 9 in 10 adults say Medicaid is “very” or “somewhat” important to their local community.a
“Cuts of this magnitude will not be harmless. In fact, such drastic reductions would harm millions of families and also trigger widespread economic instability and major job losses,” says Leighton Ku, director of the Center for Health Policy Research.