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The State Legislator’s Guide to the 2025 Federal Budget

The State Legislator's Guide to the 2025 Federal Budget

Even with overwhelming opposition, Congress recently passed a disastrous budget that will decimate vital programs and raise costs for workers to benefit billionaires and corporations. States now carry the burden of a fragile democracy as our communities prepare for the devastation this reckless budget will cause.

State legislators have been, and will continue to be, the leaders that our communities deserve as the fascist takeover of our federal government continues. Many of you have fought back in the states for years, where the destructive policies of Project 2025 were first tested. We’ve done this together before and we will continue this difficult defensive work.

But defensive work alone won't win us the future.

We know that true transformation demands more than resistance: it requires us to imagine and build towards a new future where everyone can thrive. When communities and legislators work as true partners, we build solutions that address problems and transform lives.

That’s why we’re kicking off a new series: The State Legislator’s Guide to the 2025 Federal Budget unpacks the full impact of the federal budget bill and equips state legislators with the resources and strategies they need to lead at this critical moment.

Get started by reviewing the State Power to Protect Immigrant Communities toolkit, a resource designed to help legislators develop proactive policies, strengthen worker protections, and expand access to critical services.

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Throughout the year, we’ll be sharing bi-weekly updates to the guide, diving deeper into topics like revenue and taxes, public assistance programs, and more. Until then, we want to hear from you!

What questions do you have about the budget reconciliation bill? What ideas are you working on with colleagues and partners in your state that we should share with the SiX network?

State legislators, let us know what you think here!

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Revenue and Budget Resources

Raising Revenue as Resistance

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If you missed our latest briefing, Funding our Futures: Tax Justice in the States, catch up on the recording and materials here. In the webinar, we look back at tax bills and lessons learned from 2025 legislative sessions, overview the possibility of special sessions in response to federal actions, and build for continued momentum into 2026 and beyond.

📚 Reading List: Budget Cheat Sheet

We’ll dig into key takeaways for state legislators over the coming weeks. In the meantime, check out some of the sources that our staff has been reading:

Medicaid

In July, Congress passed H.R. 1 (the Big Ugly Bill), a sweeping law that threatens to devastate health care for millions of Americans. The bill will hit the most vulnerable communities hardest. By cutting and capping federal Medicaid funding, the Big Ugly Bill puts enormous pressure on state budgets, forcing difficult choices about which programs and services to maintain.

This means:
🚨 $1.02 trillion cut from Medicaid and Children’s Health Insurance Program (CHIP) by 2034.
🚨 At least 10.5 million people projected to lose coverage.
🚨 States forced into impossible budget choices about which services to keep.

What's at Stake

  • Cuts to home- and community-based care for seniors and people with disabilities—the services supporting independent living—could lead to more individuals being pushed into expensive institutional care.
  • New complex paperwork may cause eligible residents to lose coverage, and rural hospitals relying on Medicaid face real closure risk, leaving communities without care.
  • Maternal health care and reproductive services, including prenatal and postpartum care, contraception, and abortion access, are threatened, increasing risks for birthing parents.
  • LGBTQ individuals could lose coverage for affirming care, leaving already marginalized communities with fewer safe, accessible options.

Those who need care the most will be impacted the hardest.

New federal Medicaid limits will leave millions uninsured and force states to raise revenue or cut services, often starting with home- and community-based care. These cuts will spare no one and will lead to hospital closures, layoffs, and less access to care. Medicaid, covering nearly half of all births and supporting many with chronic and mental health needs, faces a manufactured crisis risking over 16 million people.

State lawmakers have the power to act. By defending Medicaid and advancing policies that keep people covered, that strengthen provider networks, and ensure access to care, states can protect vulnerable populations and safeguard the future of healthcare. Protecting Medicaid is about more than budgets and numbers—it's about building a future where everyone can thrive.

Medicaid resources

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As Medicaid is administered at the state level, many states designate their programs using alternative titles. Find the state-by-state “alternative names” for Medicaid here, or a ready-to-share reel here.

toolkit specialsession

Check out our Medicaid Defense Toolkit, designed to provide legislators, advocates, and organizations with the resources needed to act swiftly and protect health coverage in 2025 special sessions and into the 2026 legislative sessions.

Economic Power Project

Join SiX’s Reproductive Freedom Leadership Council, our national initiative that supports legislators across the country in their commitment to ensuring healthcare remains accessible and equitable.

additional resources on medicaid

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We want to hear from you! What questions do you have about the budget reconciliation bill? What strategies or ideas are you working on with colleagues and partners in your state that we should share with the SiX network?

State legislators, let us know what you think here!

Title and Name
Email
State
What would you like to share with us about the federal budget?


Message
The form has been submitted successfully!
There has been some error while submitting the form. Please verify all form fields again.

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