The Trump administration plans to cut Medicaid spending by $880 billion in 2019, leaving about $3 trillion unfunded
Posted On August 6, 2021
President Donald Trump has proposed a $3.5 trillion cut to the federal government’s health program for the poor and disabled.
The plan would also slash federal spending on the programs that serve most people in rural areas, including the Supplemental Nutrition Assistance Program (SNAP), the Children’s Health Insurance Program (CHIP) and the Supplemental Food Program for Women, Infants and Children (WIC).
Trump’s plan would cut $1.2 trillion from SNAP by 2019, $621 billion from CHIP by 2019 and $1 billion from WIC by 2019.
The White House’s budget proposal also proposes to eliminate the federal subsidies for the purchase of private insurance, which the White House estimates would reduce Medicaid spending in 2019 by $1 trillion.
It would also reduce the number of people eligible for Medicare by $500 billion over 10 years, and it would cut payments to the Department of Health and Human Services (HHS) by $4.2 billion in 2018 and 2019.
In a statement to Fox News, a White House official said the proposal to slash the program by $3 billion in 2021 “reflects the President’s belief that America’s Medicaid system must evolve to meet the needs of the 21st century, not the past.”
The plan was first reported by The Hill.
Trump’s budget also would eliminate the ACA’s expansion of Medicaid in 2020 and 2019, as well as Medicaid expansions in 2016, 2018, 2019 and 2020.
According to a report by the Kaiser Family Foundation, nearly $3,400 per person will be cut from the Supplemental Nutritional Assistance Program ($3,150 per person in 2020) and more than $2,000 per person from CHICP in 2019.
“While these reductions will have a small impact on the federal budget, they are critical to helping states meet their Medicaid obligations in 2019 and beyond,” the Kaiser report said.