Billions in savings from Medicaid have been identified by Republican senators to offset tax cuts. A new work requirement is projected to save about $325 billion over 10 years, with most savings occurring after 2030. The impacts of cuts vary by state and timing. The bill also includes expansions in the Low-Income Housing Tax Credit, potentially generating over half a million affordable units. Furthermore, states can secure $10 billion annually for rural hospitals, although this won't completely offset Medicaid reductions. Overall, cuts disproportionately affect states that expanded Medicaid, alongside reductions in other assistance.
The work requirement in Medicaid produces about $325 billion over 10 years, but three-quarters of that comes after 2030, with timing varying across states.
In 2026, the bill expands the Low-Income Housing Tax Credit, potentially creating over half a million new affordable rental units in 10 years.
States can access $10 billion a year for rural hospitals, partially offsetting Medicaid reductions, although not fully compensating rural hospitals.
The legislation targets states that expanded Medicaid, making them particularly exposed to cutbacks, especially combined with reductions in other assistance programs.
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