AP FACT FOCUS: Rural hospitals are expected to lose money from Trump’s bill, despite RFK Jr.'s promise
The 2025 legislation creates a $10 billion annual fund for rural hospitals but Medicaid cuts could cause $58-$137 billion losses, risking closure of up to 300 facilities, experts say.
- On Tuesday, Health and Human Services Secretary Robert F. Kennedy Jr. said the law signed this summer by President Donald Trump establishes a fund giving rural hospitals an extra $10 billion each year.
- As Medicaid funding is reduced, rural areas face acute exposure since about one in four people there rely on Medicaid for coverage, Health and Human Services Secretary Robert F. Kennedy Jr. said.
- A UNC analysis warned up to 300 rural hospitals face closure under the GOP bill, according to The Cecil G. Sheps Center for Health Services Research at the University of North Carolina at Chapel Hill.
- Roughly 10 million people face insurance loss, and hospitals warn many will have patients unable to pay for emergency services, risking strained finances and reduced care.
- Half of the $50 billion pool will be divided equally among states, while hospitals face uncertainty accessing the remainder distributed by the Centers for Medicare and Medicaid Services formula based on rural population and low-income residents.
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Rural Hospitals to Lose Funds Despite Promises
“Rural hospitals are preparing to lose billions of dollars from President Donald Trump’s signature tax and spending cut bill signed into law this summer,” the AP reports. “Dozens, already on the brink, have warned they face the prospect of closure or reduced services because of the bill’s cuts to Medicaid, which is funded by federal and state governments and provides health care coverage for the poorest Americans.”

FACT FOCUS: Rural hospitals are expected to lose money from Trump’s bill, despite RFK Jr.’s promise
Rural hospitals are preparing to lose billions of dollars from President Donald Trump’s signature tax and spending cut bill signed into law this summer. Dozens, already on the brink, have warned they face the prospect of closure or reduced services because of the bill’s cuts to Medicaid, which is funded by federal and state governments and provides health care coverage for the poorest Americans. At a cabinet meeting on Tuesday celebrating workin…
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