By: Allyson Crays
Executive Summary
Federal Medicaid funds finance a little under 1/5 of states’ total spending. Because Medicaid is the largest source of federal revenue in states’ budgets, any cuts to federal funding will have immediate consequences on state economies. This influx of Medicaid funding from the federal government boosts state economies and provides states with flexibility over how to spend their own dollars. Medicaid coverage fuels employment growth, reduces the rate of poverty among enrollees, and decreases medical debt for enrollees. This fact sheet explains how proposed Medicaid cuts could destabilize state economies.
