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*FOR IMMEDIATE RELEASE* 

July 2, 2025 

Contact: [email protected]   

   

*Gov. Whitmer Highlights New Reports Finding that Cuts to Medicaid and SNAP Will Cost American Cities up to $120 billion Per Year in Lost Local Income* 

"Cuts to Medicaid and SNAP will have devastating impact on hospitals which are the largest private-sector employer in Michigan, supporting over one million jobs directly and indirectly" 

 

*LANSING, Mich. *– Today, Governor Gretchen Whitmer highlighted three reports from the Washington Center for Economic Growth, the Commonwealth Fund, and Michigan Health and Hospital Association (MHA) finding that cuts to Medicaid and Supplemental Nutrition Assistance Program (SNAP) in the Congressional Republicans’ budget bill will hurt local economies across the country. Specifically, cutting Medicaid and SNAP by $1.2 trillion over ten years could cost American cities up to $120 billion per year in lost local income and 1.6 million local jobs.  

 

“Republican cuts to Medicaid and SNAP will rip healthcare away from our most vulnerable friends and family and create a ripple effect that cuts jobs and drives up costs for middle class Americans,” said *Governor Whitmer*. “With fewer people able to afford groceries or pay their hospital bill, local communities will lose spending, business, and jobs. Raising costs for working families to pay for a tax cut for the rich is unacceptable. I’ll keep working with anyone to lower costs, create jobs, and protect access to affordable, quality health care.” 

 

Republican tax and budget plans will cut Medicaid and SNAP, making it harder to get by,” said *Lt. Governor Garlin Gilchrist II*. “These cuts aren’t abstract. They will show up in skipped prescriptions, empty grocery carts, and kids going to school hungry. While the rich get more tax breaks, working Michiganders will be left behind. Let’s keep Standing Tall to protect access to the resources and programs Michigan families need to succeed.” 

 

“The cuts to Medicaid included in this bill will result in the loss of healthcare access throughout all of Michigan,” said *Brian Peters, CEO of Michigan Health & Hospital Association*. “Healthcare providers will be forced to reduce services, impacting all Michiganders and harming the health and wellness of our communities.” 

 

*Impact of Republican Cuts to Medicaid on Michigan’s Economy* 

The Washington Center for Economic Growth’s report [ [link removed] ] found Medicaid makes up an average of 11.2% of the economic base of regions nationwide. In Michigan, Medicaid contributes roughly as much to metropolitan Detroit as the auto industry. As such, Republican cuts to Medicaid would be devastating for local economies.  

 

According to a report [ [link removed] ] by Commonwealth Fund, by 2029, Michigan’s gross domestic product would drop by $3.57 billion. Coupled with the loss of $2.95 billion in federal funding, individuals employed by the hospital will be negatively impacted. Hospital workers, doctors, and mental health care providers who utilize Medicaid dollars will lose out on financial support and potentially lose their jobs altogether, hurting their ability to participate in their local economy. With fewer people purchasing groceries, local economies will begin to decline.  

 

In Michigan, the healthcare industry is the largest private-sector employer, making a more than $100 billion impact to our economy. A report [ [link removed] ] from the MHA found that the hospital industry creates more than one million jobs, directly and indirectly, contributing $79 billion a year in wages, salaries and benefits and an additional $23.6 billion a year in tax revenue. Hospitals alone create more than 222,000 jobs and $10.7 billion a year in tax revenue. Republican cuts could lead to the loss of 17,300 jobs in health care and another 16,100 in other jobs indirectly tied to those in the industry. In total, these cuts will result in more than 33,000 Michiganders’ ability to participate in their local economy and slashing open good-paying, local jobs across the state.  

 

*Impact of Republican Cuts to SNAP on Local Economies* 

The Washington Center for Economic Growth’s report also detailed impacts of the Republican budget bill's cuts to SNAP on local economies across the country. Many SNAP recipients will no longer be able to afford their groceries, meaning grocery stores will lose out on key revenue. This will impact their ability to pay their employees, buy food from suppliers, and afford other business expenditures, threatening their operations entirely. Shuttering grocery stories will also have a wider ripple effect, hurting farmers and manufacturers who rely on these stores for income.  

 

Combined with Republican cuts to Medicaid, Michigan faces a total GDP loss of $4.53 billion and a loss of 41,500 total jobs. All together, these job losses will force Michigan to lose out on $319 million in state and local tax revenue. 

 

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