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Tracking the Impact of HR 1 on State Budgets and Health Care Access

The One Big Beautiful Bill Act, also known as HR 1, will result in significant cuts to Medicaid and shift more costs to the states, at a time when state budgets are already under strain. The hits to state budgets from HR 1 have already begun and will continue through the next few years as states hit new milestones and deadlines imposed by the law. In their spring 2026 legislative sessions, state governments began to grapple with how to respond.

A recent issue of Health Care in Motion highlighted some of the interplay between federal appropriations and state budgets. In this issue of Health Care in Motion, we provide an overview of how states have responded to HR 1 so far, what we might see in the future, and how other actions by the Administration are making the problems facing state Medicaid programs worse.

Read our latest Health Care in Motion.

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