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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:

Tax and Revenue

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

  • Home- and community-based care for seniors and people with disabilities—the services that allow people to live independently—may be slashed, pushing more individuals into costly institutional care.
  • New, complex paperwork requirements could cause eligible residents to lose coverage, while rural hospitals that rely on Medicaid reimbursements face a real risk of closure, leaving communities without essential care.
  • Maternal health care and reproductive services, including prenatal and postpartum care, contraception, and abortion access, are directly threatened, putting birthing parents at greater risk.
  • 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 drastically.

New federal limits on Medicaid will leave millions uninsured while forcing states to either raise revenue or cut services, often starting with home- and community-based care. These cuts won’t spare any group, leading to hospital closures, layoffs, and reduced access to essential care. Medicaid, which covers nearly half of all births and supports millions with chronic and mental health needs, now faces a manufactured crisis that puts over 16 million people at risk.

State lawmakers have the power to act. By defending Medicaid and advancing policies that keep people covered, strengthen provider networks, and ensure families can access care when and where they need it, states can protect the most vulnerable and safeguard the future of our health care system. Protecting Medicaid is not just about budgets but about building a future where everyone can thrive.

You can start by finding the state-by-state “alternative names” for Medicaid. As Medicaid is administered at the state level, many states designate their programs using alternative titles.

Curated Resources for Legislators

toolkit specialsession

Check out our Special Session Toolkit, which includes critical strategies for the defense of Medicaid. It's 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 Program, our national initiative supporting legislators across the country committed to ensuring health care 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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