Potential Medicaid cuts effects on state budgets explored
A KFF brief compares the potential $880 billion in federal Medicaid cuts from the House-passed budget resolution to states’ tax revenue, education spending and number of Medicaid enrollees covered under the federal funding. The cuts would represent 29% of state-financed Medicaid spending per resident. If states were to raise taxes to try to offset the reductions, the cuts would represent 6% of state taxes per resident. If states were to cut education funding to offset the Medicaid reductions, the proposed cuts would represent 19% of state education spending per pupil. The analysis also found the proposed cuts are equivalent to Medicaid spending on 18% of senior enrollees (3 million), 38% of other adult enrollees (14 million) or 76% of child enrollees (22 million). (KFF brief, 3/24/25)