• Investing
  • Tech News
  • Stock
  • World News
Grand Expo Event
Editor's PickInvesting

GOP Cuts and State Budgets

by June 6, 2025
June 6, 2025

Chris Edwards

The Republican reconciliation bill would trim Medicaid and the Supplemental Nutrition Assistance Program (SNAP). These are shared federal-state programs, with the federal government currently paying 69 percent of Medicaid costs and 93 percent of SNAP costs.

The proposed GOP reforms would have the states pay a modestly higher share of the costs, which has prompted worries that state budgets will be hammered and crushed.

  • Politico: “financially hammer deep-red states.”
  • Tax Policy Center: “major impacts on state finances.”
  • Center on Budget and Policy Priorities: “crush state budgets.”
  • Washington Post: “cuts could jeopardize … state budgets.”
  • Senate Democrats: “vast hole in state budgets.”
  • Some Senate Republicans: “significant burden … for a lot of our poorer states.”
  • Senator Tommy Tuberville (R‑AL): states “can’t afford it … We don’t have printing machines back in our state, we can’t print the money.”
  • Oregon Governor: states “do not have the kind of money that it would take to maintain (SNAP) at the current level.”

Are these valid concerns?

First, note that the comments belie a common belief that—somehow—funding from Washington is free, while state funding imposes a burden. 

d

Now let’s look at the numbers. Compared to the baseline, the reconciliation bill would cut Medicaid about $80 billion annually and SNAP $30 billion annually over the next decade, on average. Total state spending in 2024 was $3.064 trillion. Assuming that state spending remains a constant share of the economy, it will average $3.811 trillion over the next decade, as shown in the chart.

Thus, the combined Medicaid and SNAP cuts of $110 billion a year will represent just 2.9 percent of total state spending. However, many of the proposed GOP reforms—such as beefed-up work requirements and eligibility restrictions—would save money, not shift burdens to the states, so the state budget impact would be less than 2.9 percent.

The proposed GOP reforms would not be hammering or crushing but rather would represent a small revival of fiscal federalism and fiscal responsibility.

previous post
How to Eliminate Waste, Fraud, and Abuse in Medicare
next post
Getting It Half-Baked: The Real Cause of Cannabis Market Failures

You may also like

CAFE Standards

June 30, 2025

Ellingburg v. United States Brief: Criminal Restitution Counts...

June 30, 2025

This Harm Reduction Innovation Is Already Saving Lives

June 30, 2025

Fifteen Minutes on ICE’s Mass Deportation Agenda

June 30, 2025

Is This Rally Sustainable? You Better Bet Your...

June 30, 2025

Pullbacks & Reversals: Stocks Setting Up for Big...

June 30, 2025

Senate Big Beautiful Bill: More Growth, More Subsidies,...

June 30, 2025

One Big Bloated Blunder: What’s Wrong with the...

June 30, 2025

Bank Secrecy Act and Capital Gains Targeted for...

June 30, 2025

The Supreme Court Cuts Injunctions Down To Size

June 30, 2025

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • CAFE Standards

      June 30, 2025
    • Ellingburg v. United States Brief: Criminal Restitution Counts as Criminal Punishment

      June 30, 2025
    • This Harm Reduction Innovation Is Already Saving Lives

      June 30, 2025
    • Fifteen Minutes on ICE’s Mass Deportation Agenda

      June 30, 2025
    • Is This Rally Sustainable? You Better Bet Your Bullish Sweet Dollar It Is!

      June 30, 2025
    • Pullbacks & Reversals: Stocks Setting Up for Big Moves!

      June 30, 2025
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 grandexpoevent.com | All Rights Reserved

    Grand Expo Event
    • Investing
    • Tech News
    • Stock
    • World News