Federal Medicaid Funding To Be Cut By $911 Billion Over 10 Years, Estimates Say

The provisions of the federal 2025 budget reconciliation bill, the One Big Beautiful Bill Act (OBBBA), signed on July 4, 2025, are projected to cut federal Medicaid spending by $911 billion between 2025 and 2034. About 76% of the Medicaid funding cuts in the OBBBA are scheduled to go live between 2030 and 2034. 

The bulk of the Medicaid cuts, $851 billion, are linked to the following five OBBBA provisions:

$326 billion in projected federal spending cuts due to new federal work requirements for the Medicaid expansion population. Beneficiaries who fail to meet the hours requirement or who fail to . . .