Proposed Medicaid and SNAP Cuts Could Cost 1.2 Million Jobs by 2029

A new report from the Commonwealth Fund and the George Washington University Milken Institute School of Public Health warns that proposed cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) could eliminate 1.2 million jobs nationwide by 2029, including nearly 500,000 in healthcare. These reductions, part of the One Big Beautiful Bill Act narrowly passed by the House last month, would ripple through state economies, slashing $154 billion from state GDPs—18% more than the federal savings projected.

The legislation introduces stringent Medicaid work requirements, mandating beneficiaries to log work, volunteer, or education hours to maintain coverage. Senate Republicans recently proposed even deeper cuts, including expanded work requirements and restrictions on state provider taxes. These changes would reduce federal Medicaid funding by over 13% nationwide, with states like Arizona facing losses above 21% and Wyoming around 6%.

The economic fallout would hit hardest in states with higher poverty rates, such as Louisiana and Mississippi, where job losses could reach 1.3 percentage points, compared to 0.6 in wealthier states like New Hampshire and Utah. Healthcare providers, including hospitals, physician offices, and pharmacies, would bear significant losses, impacting supply chains and local businesses. Additionally, states could lose $12.2 billion in revenue, forcing tax hikes or further spending cuts to balance budgets.

“Medicaid and SNAP are economic engines, not just safety nets,” said Leighton Ku, lead author and director of the Center for Health Policy Research at George Washington University. “These cuts would devastate families, destabilize economies, and trigger widespread job losses.”

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