Washington faces billions in Medicaid cuts under spending bill

Axios

09-07-2025

Hundreds of thousands of Washingtonians will lose health care coverage because of Medicaid cuts included in the spending bill President Trump signed last week, Gov. Bob Ferguson warned Wednesday.
The big picture: Nationwide, the legislation will cut Medicaid funding by an estimated $930 billion over 10 years, according to a Congressional Budget Office analysis.
Catch up quick: The new law — which Trump has called the "big, beautiful bill" — also increases immigration enforcement funding and extends tax cuts.
Among other changes, the legislation will impose new work requirements for Medicaid recipients.
By the numbers: Ferguson's office estimates at least 250,000 Washingtonians will lose Medicaid coverage under the law's provisions.
Another 150,000 will no longer be able to afford plans on the state insurance exchange, due to the ending of certain federal subsidies, he said.
Hospitals — both urban and rural — will close due to the loss of Medicaid reimbursements, the Democratic governor said.
What they're saying: "It's difficult to overstate how devastating these cuts will be to Washingtonians," Ferguson told reporters Wednesday.
"They will bring our health care system to the brink and harm people in every corner of our state."
State of play: An analysis by KFF, a health policy research group, estimated the legislation will cause Washington to receive about $41 billion less in federal Medicaid funding over 10 years.
That's roughly 19% less than the state would have received without the law, the outlet found.
The fine print: Trump's tax and spending package also included a one-year moratorium on Medicaid funding for Planned Parenthood.
That provision is on hold for now, due to a federal court ruling.
But, if it were to go into effect, Ferguson said Wednesday that he would direct $11 million in state money toward backfilling Planned Parenthood's lost Medicaid dollars in Washington.
The other side: U.S. Rep. Michael Baumgartner (R-Spokane), who voted for the law, issued a written statement praising its efforts to "rein in the wasteful spending Washington has ignored for too long."
The White House did not immediately respond to Axios' request for comment Wednesday.