Introduction
On July 4th, 2025, the most significant healthcare spending cut in U.S. history was signed into law. It marked the blunt-force dismantling of a $909 billion system — one that quietly sustains hospitals, supports local economies, and helps keep healthcare costs from spiraling.
This cut — along with others in the One Big Beautiful Bill Act (OBBBA) — targeted Medicaid, slashing nearly a trillion dollars from the program, according to Congressional Budget Office estimates. Yet most Americans have no idea how deeply this will affect them — directly or indirectly.
Medicaid isn’t just another government line item. It’s the program that prevents ER visits from turning into bankruptcy. It funds care for low-income families, nursing homes for aging parents, and essential services for children with disabilities. By gutting this support system, the OBBBA sets off a chain reaction that will ripple across every zip code in America, some more than others.
It’s easy to assume Medicaid doesn’t affect you. After all, it’s often thought of as healthcare for low-income families. If you pay for your insurance, own a home, and earn a steady income, it might seem like someone else’s concern.