Brief examines impact of potential Medicaid cuts on state budgets and coverage

Mar 25, 2025 - 03:10 PM
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A KFF brief released yesterday compares the potential $880 billion in federal Medicaid cuts from the House-passed budget resolution to states' tax revenues, education spending and the number of Medicaid enrollees covered under the federal funding. The analysis found that the proposed reductions would be equal to 29% of state-financed Medicaid spending per resident. 
 
The potential cuts also represent 6% of state taxes per resident, and states could raise tax revenues to try to offset the reductions. States could also make cuts to education or other programs, KFF said, as the proposed cuts represent 19% of state education spending per student. The analysis also found that 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).

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