Many community hospitals and nursing homes are bracing for major financial hits now that President Donald Trump has signed the Republican budget bill into law.
The bill includes over $1 trillion in cuts to Medicaid over the next decade. Researchers estimate that over 300 hospitals will either have to reduce vital services or shut down completely. One in
four nursing homes will also be forced to close, and thousands of good health care jobs will be eliminated.
Rural hospitals will be especially vulnerable. Over 20 percent of the country’s population lives in rural areas — roughly 66 million people — and one in four adults in these areas are covered by Medicaid. Many patients will lose access to local health care, forcing them to take long journeys to reach the closest facility and increasing burdens on the remaining hospitals.
The Senate voted to allocate $50 billion for a Rural Health Transformation Program in the wake of Medicaid cuts, but it won’t be enough to help rural hospitals stay afloat. The Republican budget
bill is estimated to reduce federal spending in rural areas by around $155 billion.
“Every legislator who voted yes for this budget bill was warned of the danger to constituents and the health care system, but approved it anyway,” said Richard Fiesta, Executive Director of the Alliance. “This is too high a price to pay so the wealthiest Americans can get even richer. Our members will remember their votes.”
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This was originally published in the July 11, 2025 edition of the Friday Alert. Read the full length version and see other Friday Alert editions here.
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