Executive Budget Signals Major Cuts to Health Care

Earlier this month the Trump Administration released a budget proposal that calls for significant cuts to health care. Though Congress is unlikely to act on the proposal, it offers a glimpse into the President’s health priorities in 2021 and beyond.

The $4.8 trillion executive budget proposal would make the tax cuts prescribed by the 2017 Tax Cuts and Jobs Act permanent, at a cost of $1.5 trillion. In an effort to balance the budget, these tax cuts would be paid for by slashing budgets for Medicaid and other safety net programs.

The proposed budget calls for roughly $1.6 trillion in cuts to federal healthcare programs over the span of a decade, including:

  • $844 billion in cuts related to the repeal and replacement of the Affordable Care Act, though the budget does not define a replacement strategy
  • $920 billion in cuts to Medicaid, including $150 billion in cuts related to the implementation of work reporting requirements
  • $79 billion in cuts tied to restricting eligibility for federal disability benefits

Although we are unlikely to see this budget enacted through Congress, we will likely see federal agencies pursue these priorities and programmatic cuts through administrative means.

CAA will continue to monitor the federal budget and will keep you abreast of any efforts to cut services.

More News


Arizona Releases First-Ever Report on Adolescent Health

Children’s Action Alliance (CAA), in collaboration with Affirm and the Arizona Alliance for Adolescent Health, is excited to release the inaugural State of Adolescent Health in Arizona report. Recognizing that adolescence is a critical phase of growth and development for establishing a foundation for…


Nearly 103,000 Arizona kids lost AHCCCS, but KidsCare expansion brings hope.

Since the end of the public health emergency a year ago, 103,000 fewer Arizona children are enrolled in AHCCCS coverage with the return to regular renewal requirements, according to a new report from Georgetown University Center for Children and Families. AHCCCS and its companion KidsCare provide child-specific…

Arizona Preschoolers Are at Risk of Being Left Behind

Last Thursday, the National Institute for Early Education Research (NIEER) released its annual State of Preschool Report. The report is a state-by-state comparison of preschool program funding, access, and best practice policies. This year’s report notes that preschool programs are at a critical juncture….