• Investing
  • Stock
  • World News
  • Politics
  • Editor’s Pick
Wall Street Gambit
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

Bold Ventures

June 15, 2025

Top 5 Canadian Mining Stocks This Week: St....

June 15, 2025

Crypto Market Recap: Stablecoin Market Makes Headway, SharpLink...

June 14, 2025

Editor’s Picks: Trump to Lift Minnesota Mining Ban,...

June 14, 2025

Howard Schultz says he ‘did a cartwheel’ when...

June 13, 2025

Could the Silver Price Really Hit $100 per...

June 13, 2025

Harvest Gold Identifies 15 Primary And 10 Secondary...

June 13, 2025

U.S. online stores put up ‘out of stock’...

June 12, 2025

U.S. online stores put ‘out of stock’ signs...

June 12, 2025

FireFly Metals to Add AU$95 Million to Coffers...

June 12, 2025
Join The Exclusive Subscription Today And Get Premium Articles For Free


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Recent Posts

  • 1

    Religious Charter Schools? Let States Decide

    June 2, 2025
  • 2

    Grace-Marie Turner, RIP

    June 3, 2025
  • 3

    The FTC Event that Wasn’t: The Attention Economy Workshop Misses an Opportunity for Meaningful Discussion

    June 3, 2025
  • 4

    Local Government Corruption: 15 Case Studies

    June 3, 2025
  • 5

    From Nutrition to Nannying: Texas SB 25 and the New Public Health Overreach

    June 4, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms and Conditions
  • Email Whitelisting

Copyright © 2025 wallstreetgambit.com | All Rights Reserved

Wall Street Gambit
  • Investing
  • Stock
  • World News
  • Politics
  • Editor’s Pick