Medicaid Expansion Funding Cuts Take Effect, Threatening 1.3 Million

Changes from Trump’s “One Big Beautiful Bill” took effect, ending special federal financial incentives for the 40 states that expanded Medicaid under the ACA. The Congressional Budget Office projected these cuts would leave 1.3 million more Americans uninsured in 2026, primarily affecting people earning less than $21,000/year.

The cuts reduce the federal matching rate for Medicaid expansion populations, forcing states to either absorb additional costs or reduce enrollment. Several states have already announced they may be forced to roll back Medicaid expansion, potentially removing healthcare access from millions of low-income Americans who gained coverage under the Affordable Care Act.