Across the U.S., state and local tax revenues would plummet by an estimated $8.8 billion if these cuts are enacted.

Medicaid, SNAP Cuts Would Hit State Economies Hard

March 25, 2025

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Potential federal budget cuts to Medicaid health coverage and to food benefits through the Supplemental Nutrition Assistance Program (SNAP) could trigger severe economic effects across the United States, including 1 million jobs lost and a $113 billion decline in states’ gross domestic products (GDPs), according to a new report from the Commonwealth Fund and the George Washington University Milken Institute School of Public Health.

The report, How Potential Federal Cuts to Medicaid and SNAP Could Trigger the Loss of a Million-Plus Jobs, Reduced Economic Activity, and Less State Revenue ([link removed] ) , provides a state-by-state analysis of the economic toll of funding cuts discussed by some policymakers. Among the key findings:

- Potential Medicaid cuts would shrink state GDPs by an estimated $95 billion in 2026, eliminate 477,000 jobs, and reduce state and local tax revenues by $7 billion.
- Potential SNAP cuts would reduce state GDPs by an estimated $18 billion in 2026, wipe out 143,000 jobs, and decrease state and local tax revenues by $1.8 billion.

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Affordable, quality health care. For everyone.

The Commonwealth Fund, 1 East 75th Street, New York, NY 10021

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