The budget resolution passed by the U.S. House of Representatives is creating significant concerns in Alaska, with state legislators warning of potential severe consequences, including a massive state budget deficit and tens of thousands of residents losing access to health care.
This resolution, which calls for large tax cuts and reductions in federal spending, includes cuts that would heavily impact Medicaid, a key health care provider in Alaska.
Alaska relies on Medicaid for health coverage for a large portion of its population, especially for seniors, low-income individuals, and those with disabilities. As one-third of Alaskans rely on Medicaid, the cuts could lead to a loss of $1.15 billion in federal funding for the state, leaving around 60,000 people—potentially more—without health coverage.
Additionally, if the cuts are implemented, the state’s Medicaid budget could face a $115 million gap, severely affecting its health care system, especially in rural and tribal areas.
The situation is worsened by the proposed work requirements for federal aid, which could increase the state’s financial burden as it tries to implement these new conditions.
Lawmakers have expressed grave concerns that these cuts would lead to medical bankruptcies, a collapse in the health care system, and significant strain on the state’s economy.
As the resolution moves through the legislative process, Alaskan leaders are urging the state’s senators to stand firm in opposing these cuts and to advocate for Alaska’s vulnerable populations.
The resolution is only the first step, but the impact it could have on the state’s health care system is already sparking alarm among many lawmakers.