States Face Tough Budget Decisions as Medicaid Cuts Mount (1)

US states are bracing for the fallout from President Donald Trump’s sweeping Medicaid cuts by weighing tax increases, spending cuts and rollbacks of Medicaid expansion to offset a $900 billion reduction in federal funding over the next decade.

Governors and lawmakers are growing concerned that the funding reductions will saddle their states with higher healthcare costs, which S&P Global Ratings says could place “significant pressure” on budgets.

Medicaid is the largest overall source of federal funding for nearly all states, meaning the cuts included in H.R. 1 — coined the One Big Beautiful Bill Act — would be a ...