Illinois Hospitals Fear Massive Cuts Under Trump Domestic Policy Law
ILLINOIS, JUL 10 – Illinois hospitals face a $48 billion Medicaid funding cut over 10 years, risking staff layoffs, service reductions, and facility closures, especially in rural areas, health officials say.
- On July 4, 2025, President Donald Trump signed a domestic policy bill cutting federal Medicaid spending by over $1 trillion in the next decade.
- The legislation lowers the Medicaid expansion cap, impacting states like Illinois that expanded coverage under the Affordable Care Act.
- Illinois hospitals, especially in rural areas, face financial strain due to Medicaid cuts amid rising COVID-related costs and flat reimbursement rates.
- Democratic Gov. JB Pritzker warned that the cuts threaten care for 3.4 million Illinoisans and could force hospital layoffs, reduced services, or closures.
- These federal cuts could reduce Illinois Medicaid funding by $48 billion and jeopardize access to care statewide, urging stakeholders to seek creative solutions.
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Capitol Fa - Your Illinois News Radar » The coming hit to hospitalsCapitolFax.com
* Background is here if you need it. An excerpt from today’s Capitol News Illinois story about pending Medicaid cuts… Like many states, Illinois levies special taxes on certain health care providers, including hospitals. The money those taxes generate is used to draw down additional federal matching funds, then is paid back to the providers [...]

Illinois hospitals fear massive cuts under Trump domestic policy law
Hospitals say they will have to make some difficult decisions in the next few years that could involve laying off staff, cutting back services and even closing some facilities entirely.


With the U.S. House of Representatives securing approval for President Donald Trump's historic tax bill (H.R. 1), also known as the "big, beautiful law," health advocates and Illinois residents are analyzing the broad impacts of a bill that could shut down nine hospitals in the state, get more than 427,000 people out of food aid plans, and more than 500,000 low-income residents of health coverage.Last Thursday, the House handed Trump one of its …
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