Center for American Progress

RELEASE: Medicaid Block Grants and Per Capita Caps Jeopardize State Budgets, Health Care Access, and Public Health
Press Release

RELEASE: Medicaid Block Grants and Per Capita Caps Jeopardize State Budgets, Health Care Access, and Public Health

Washington, D.C. — Medicaid is the single-largest health insurance program in the United States, covering nearly 1 in 5 Americans. Despite the program’s benefits—such as providing access to essential services for low-income individuals, pregnant women, seniors, and people with disabilities—recent proposals from Republican leadership on the House Budget Committee would convert federal Medicaid funding to block grants or impose per capita caps.

A new Center for American Progress fact sheet examines how this restructuring of the program would strain state budgets, reduce health coverage for millions, and limit states’ abilities to protect public health. Some key takeaways include: 

  • Block grants and per capita caps would strain state budgets. Medicaid is the largest source of federal funding for state budgets, accounting for 56 percent of total federal funding allocated to states in 2024.
  • Funding caps would drive more people into medical debt, especially in Southern states. These funding caps would likely lead to reduced eligibility and benefits, resulting in more uninsured individuals facing unaffordable medical bills.
  • Medicaid block grants and per capita caps would jeopardize provider sustainability, particularly in rural areas. In the past 20 years, more than 100 rural hospitals have closed or eliminated their obstetric units nationwide. Block grants or per capita caps could exacerbate this trend by increasing the number of uninsured and/or reducing Medicaid reimbursement rates.
  • Medicaid funding caps would weaken state public health infrastructure and emergency response capabilities. Capping funds would cause states to have fewer resources to maintain preventive health initiatives, leaving communities vulnerable to preventable and chronic illnesses.  

“Medicaid’s current funding structure is critical in providing coverage and supporting public health,” said Natasha Murphy, director of Health Policy at CAP and author of the fact sheet. “These proposals to implement block grants and per capita caps would jeopardize access to care for millions and undermine public health efforts.”

Read the fact sheet: Medicaid Block Grants and Per Capita Caps Jeopardize State Budgets, Health Care Access, and Public Health” by Natasha Murphy

For more information or to speak with an expert, please contact Sarah Nadeau at [email protected].

This field is hidden when viewing the form

Default Opt Ins

This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form

Variable Opt Ins

This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form
This field is hidden when viewing the form

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.