Medicaid Cuts: What We Know and What You Can Do

 Proposed federal and state Medicaid cuts could strip away vital housing and mental health services for low-income families and individuals in Washington; nearly all of TR’s clients rely on Medicaid to access services that help them lead safe and meaningful lives in the community. Here’s what you need to know, and how you can help:

What’s Happening?

The U.S. House of Representatives has proposed $880 billion in cuts targeting Medicaid and other health programs. These cuts would affect nearly 2 million Washingtonians who rely on Medicaid, including those in supportive housing and behavioral health programs like the ones we have at TR. These cuts would profoundly affect these services not only across King County, but the entire state of Washington.

A few examples of proposals that could affect the work we do:

  • Per Capita Caps: Limiting federal Medicaid funding per client, which would potentially shift more costs to states and providers.
  • Work Requirements: Imposing work mandates for Medicaid eligibility, which could disenfranchise vulnerable populations like TR serves.
  • Reduced Federal Matching Rates: Lowering the overall federal contribution to state Medicaid programs and putting pressure on states to close the gap.

Washington State also continues to face budget challenges, prompting proposed reductions of healthcare funding on the state level. These gaps in funding could be devastating for millions of people who rely on these programs to access healthcare and housing, including many in our own communities. The combination of these cuts at the federal and state level mean that funding for TR’s programs is under serious threat.

 

Who’s at Risk?

In Washington State, over 1.8 million people rely on Medicaid, including many of the people TR serves. Across the board, supportive housing programs like TR that integrate housing with behavioral healthcare services may lose critical funding that helps keep clients safe, stable and housed year-round. These funding reductions also threaten crisis response, outpatient treatment, and other programs across the state and King County.

The proposed cuts could lead to:

  • Reduced Access to Care: Providers will need to cut or dramatically reduce important programs that provide essential behavioral health services for those living with serious mental illness.
  • Increased Homelessness: Cuts in supportive housing services could leave many without stable shelter, meaning they will likely return to the streets and must endure the stresses of living homeless.
  • Losing Gained Progress: Once people are in treatment and housed, they face fewer obstacles in their path to recovery. However, when people lose services and go back on the streets, it is extremely difficult to find them and get them into treatment again.

 

What Does This Mean for Our Community?

Without adequate funding, our clients may lose access to the stable housing and behavioral health care that they rely on. It is uncertain still what these programs and cuts could look like, but any cuts will undoubtedly be a concern for TR and will affect our ability to support our clients in the ways they need. Outside of TR, more people could end up on the streets without support, falling into a cycle of homelessness where breaking out is incredibly difficult. Additionally, hospitals and clinics could face major financial strain, leading to reduced services or closures. With reliable access to mental health care gone, the burden on emergency services will rise as the response to immediate needs and crisis increases.

 

What is Happening Now?

As of early-May 2025, no federal Medicaid cuts have been enacted, however the serious consideration of these cuts in Congress is truly alarming.  Providers like TR and others are monitoring the situation closely and are pushing back on these cuts in every way we can.

 

How Can I Help?

Take Action:

Together, we can protect vital services for those who need them most.