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Former Governors Warn of Devastating Impacts of Senate Reconciliation Bill on States

Strategic Insights

— 2 min read

A group of 12 U.S. Senators who previously served as state governors, including Senators Angus King (I-ME), Mark Warner (D-VA), Tim Kaine (D-VA), and Maggie Hassan (D-NH), have written a letter to Republican leadership to express their concerns about the devastating impacts of the Senate reconciliation bill on states. The bill, they argue, would place "incredible burdens" on state budgets, ultimately reducing critical services like Medicaid and SNAP.

Key Takeaways:

  • The Senate reconciliation bill would cut Medicaid by $1 trillion, leading to at least 16 million people losing access to healthcare coverage, and would result in nearly $800 billion in cuts to state Medicaid programs.
  • States would be forced to raise taxes or make cuts to critical healthcare services, like education, childcare, housing, or disaster relief and recovery efforts.
  • The impact of these cuts would be especially felt by hospitals, nursing homes, and other health facilities in rural communities, with estimates suggesting that 338 rural hospitals nationwide are at risk of closing.
  • The bill would also cut $200 billion from the Supplemental Nutrition Assistance Program (SNAP) through 2034, the largest reduction in the program's history, and would shift billions in benefit costs from the federal government to states for the first time.
  • States would be responsible for substantial new costs under the bill, with estimates ranging from $16 million in Nebraska to $984 million in Florida.
  • The bill would shift the majority of administrative cost burden onto states, requiring them to cover 75% of the cost-share instead of 50%, further straining state budgets.
  • Many states would be forced to reduce access to food assistance, cut other essential services, raise taxes, or potentially opt out of SNAP altogether.
  • The bill would have a disproportionate impact on low-income individuals and families, with millions facing reduced or eliminated food assistance.

Statistics:

  • $1 trillion: The estimated cuts to Medicaid and Affordable Care Act coverage under the Senate reconciliation bill.
  • 16 million: The number of people who would lose access to healthcare coverage under the bill.
  • $800 billion: The estimated cuts to state Medicaid programs under the bill.
  • 338: The number of rural hospitals at risk of closing due to the bill.
  • $200 billion: The estimated cuts to the Supplemental Nutrition Assistance Program (SNAP) through 2034.
  • $16 million: The estimated new costs for Nebraska under the bill.
  • $984 million: The estimated new costs for Florida under the bill.
  • 42 million: The number of Americans who rely on SNAP.

Sources:

  • Angus King, U.S. Senator for Maine (I-ME)
  • Mark Warner, U.S. Senator for Virginia (D-VA)
  • Tim Kaine, U.S. Senator for Virginia (D-VA)
  • Maggie Hassan, U.S. Senator for New Hampshire (D-NH)
  • Letter to Majority Leader Thune, Chairman Crapo, and Chairman Boozman (October 26, 2023)
  • Congressional Budget Office (CBO)
  • Centers for Medicare and Medicaid Services (CMS)

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