In 2025, Congress passed H.R. 1, formally known as the One Big, Beautiful Bill, which ushered in unprecedented cuts to important programs and services for children and families. The legislation includes drastic cuts and changes to the nation’s Medicaid program, which is known as AHCCCS or the Arizona Health Care Cost Containment System in Arizona. The passage of H.R. 1 will lead to loss of health coverage for eligible Arizonans, instability for our health care system, massive cost shifts from the federal budget to our state budget, and a significant loss of jobs and higher health care premiums for people with private insurance.
Having health care coverage is key to every child’s ability to learn and their life-long well-being. Children with Medicaid and Children’s Health Insurance Program (CHIP) coverage grow up to be healthier adults, and on the way to adulthood are healthier adolescents. They are less likely to drop out of high school and more likely to graduate from college. All of these outcomes are a smart return on investment.
Children’s Action Alliance is actively engaged in mitigating the loss of coverage for eligible children and families in Arizona, and we’re working to document the impact of H.R. 1. We are also working to support state agencies in their efforts to adapt quickly to the expensive administrative changes required by this law with a goal of preventing loss of coverage for qualified Arizonans.
Stay informed about enrollment in AHCCCS and Kids Care (CHIP in Arizona) by visiting the State by State Medicaid and CHIP Enrollment Tracker provided by our partner, the Georgetown University Center for Children and Families.
Cuts That Hurt Every Corner of Arizona
These cuts will terminate health care for hundreds of thousands of Arizonans. Families and individuals dependent on AHCCCS for their health insurance could lose their coverage overnight. A dad unable to get cancer care, a grandmother on dialysis forced to skip treatments, or a mom cancelling much-needed therapies for her child who has disabilities.
The economic impacts will be equally severe. The loss of $1.5 to 2 billion a year in federal funding is likely to lead to hospital closures, along with layoffs. Health care is one of the state’s largest economic sectors and directly employs more than 400,000 people.
These cuts will impact every Arizonan and every part of the state, from students in rural areas to seniors to military families.
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