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Trump admin shrinks federal Medicaid funding available to states

By Axios  
   April 14, 2025

The Trump administration is cutting off a key Medicaid financing tool used to help states pay for healthcare programs it says diverge from the program's core mission, including high-speed internet for rural health providers. The change essentially reverts back to a policy from the first Trump administration and begins to flesh out the current administration's messaging about wanting to cut Medicaid expenses without touching benefits. CMS told states last week that it doesn't plan to renew or approve new requests for federal matching funds for so-called designated state health programs.

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