A proposed federal budget (and the Trump Administration’s policy template – Project 2025) is proposing to reduce the federal government’s contribution for covering childless adults and other notch populations covered by AHCCCS in Arizona, which would leave over 550,000 Arizonans without coverage—primarily childless adults.
Rural Arizonans to feel outsized burden of proposed Medicaid cuts
The proposed cuts would slash over $1 billion from Arizona’s Medicaid budget by changing the federal contribution for childless adults and the expansion population (people from 100 to 138% of federal poverty) from 90% to 64%.
Such a move would cancel the state statute that authorizes AHCCCS to collect a hospital assessment to pay for the state portion for these 550,000 people.
Rural Arizona, which overwhelmingly voted for Trump, stands to lose the most. For rural communities, this would mean shuttered clinics, overwhelmed emergency rooms, and longer drives to access care.
Medicaid is a critical source of funding for rural hospitals, accounting for up to 60% of their revenue in some cases. Without it, these facilities may close their doors, forcing residents to travel for hours for even basic medical needs.
The High Stakes of Medicaid Cuts: What Arizona Stands to Lose
Childless adults, who make up the majority of those at risk of losing coverage, are important to rural economies. They include farmers, ranchers, service workers, and small business employees. Without access to healthcare, their health—and their ability to work—will suffer, creating ripple effects across entire communities.
Medicaid’s Role in Small Towns and Rural Areas – Georgetown Center For Children and Families
Medicaid doesn’t just help people – it supports jobs and keeps healthcare facilities afloat. When Medicaid funding is cut, everyone feels the impact, from healthcare workers to local businesses that rely on healthy customers.
Rural Arizona deserves better. Cutting Medicaid would disproportionately harm the very communities that rely on it the most.
It’s time for rural policymakers (e.g. Rep Ciscomani) to recognize the real-life consequences of these decisions and prevent congress from reducing the federal contribution for covering childless adults.