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Illinois Medicaid program faces looming funding crisis due to federal changes

Illinois will face a $3.3–$5.3 billion annual Medicaid funding gap starting in FY2028 due to federal cuts on provider taxes used to draw matching funds, experts say.

New federal rules contained in President Trump’s “One Big Beautiful Bill Act” will impose tighter caps on how much money states can raise for their Medicaid programs through provider taxes.

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Evanston Now broke the news in on Monday, January 19, 2026.
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