Federal 2025 Budget Bill Estimated To Cut Medicaid Spending In Rural Areas By $137 Billion Over 10 Years

The federal 2025 budget bill, signed on July 4, 2025, included Medicaid provisions that are projected to decrease Medicaid spending in rural areas by $137 billion over 10 years. The estimated impact was developed by KFF, a non-profit organization focused on health policy. The analysis noted that the budget bill’s reductions in Medicaid spending could be partially offset by a $50 billion appropriation for rural health.

Slightly more than half of the projected federal funding reductions to Medicaid result from measures that exclusively affect states implementing the ACA Medicaid expansion. These measures encompass employment mandates for beneficiaries in . . .