Federal Budget Bill: Impacts to Medicaid Funding in Washington

On July 4, 2025, President Trump signed the federal tax and spending bill into law. Washington spends $21 billion on Medicaid annually, $13 billion of which is paid by the federal government. The Kaiser Family Foundation estimates Washington will lose between $31 billion and $51 billion in federal Medicaid dollars over the next 10 years, or at least $3 billion per year. While this bill includes significant impacts to Medicaid benefit programs in our state, Medicaid funding for skilled nursing facilities and assisted living will continue to be funded at the same federally matched percentage they are today. Other state Medicaid programs will be subject to funding reductions, increasing state operating budget pressures.  

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