03.26.2026 / Press Release
New Fact Sheet Series Breaks Down Health Care Cuts and Impacts in H.R. 1
The first fact sheet explains new provider tax restrictions and their impact on state budgets
WASHINGTON, D.C. – With every state in the country now grappling with how it will implement the significant new bureaucratic barriers and severe budget shortfalls resulting from federal health care cuts, the national consumer group Families USA announced a new series of fact sheets to explain further the health care cuts in H.R. 1 passed by Congress, break down how the Trump administration intends to enforce the law, and explain the harmful impacts and implications for health care consumers.
The first fact sheet in the series is available today, “Dissecting the Deepest Cuts: Medicaid Provider Taxes and New H.R. 1 Restrictions.”
Released monthly, the fact sheets will dissect the deepest cuts to health care, explain what state advocates and policymakers need to know about the new bureaucratic barriers and outline concrete next steps they can take to mitigate harm and protect millions from losing coverage.
“Even in the context of the biggest cut to Medicaid and the biggest rollback of health coverage ever passed in Congress, the details and the decisions of state policymakers matter in determining how many millions will keep or lose coverage. Our analysis and advocacy seek to help mitigate the damage from massive coverage losses and closed hospitals and clinics,” said Anthony Wright, executive director of Families USA. “President Trump and his allies in Congress took a wrecking ball to our health care system and now states are grappling with the fallout. We must work urgently to blunt the worst of this damage and protect people from being pushed or priced off their health coverage.”
H.R. 1 imposed significant new restrictions on states’ ability to generate the revenue they need to cover state Medicaid expenses, including by narrowing their ability to obtain flexibility in how they tax health care providers. In February, the Centers for Medicare & Medicaid Services (CMS) issued a final rule on how it will implement new restrictions on these so-called “uniformity waivers.” Certain states are at greater risk of impact than others. CMS has identified nine provider taxes that are currently considered noncompliant under the new law, representing $24 billion in revenue for Medicaid programs in impacted states. This lost revenue threatens to force state cuts to benefits, eligibility, services, and providers.
The fact sheet is available here. A video explainer of the fact sheet is available here.