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Why Washington faces huge fallout from the Medicaid cuts in Trump’s megabill

WASHINGTON STATE, JUL 11 – New federal law cuts up to $5 billion annually from Washington's Medicaid program, risking coverage for 250,000 residents and threatening rural hospital closures, according to state officials and KFF.

  • On July 4, President Donald Trump signed the One Big Beautiful Bill, enacting over $1 trillion in Medicaid reductions over ten years.
  • KFF analysis estimates $1 trillion in federal Medicaid spending cuts over ten years, achieved through reimbursement caps, provider tax reductions, and stricter eligibility reviews.
  • Analysts forecast Medicaid cuts starting in 2027 will significantly impact drugmakers like Vertex and Gilead, which rely on 25% and 22% of their U.S. revenue from the program, respectively.
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Daily News Update broke the news in on Tuesday, July 8, 2025.
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