By Jon King, Michigan Advance
As the U.S. House of Representatives debates whether to give final passage to Congressional Republicans’ signature tax break and spending cuts package, Michigan Gov. Gretchen Whitmer released an analysis Wednesday that indicates implementation of the proposed Medicaid and food assistance cuts could cost Michigan billions in lost revenue.
“Republican cuts to Medicaid and SNAP will rip healthcare away from our most vulnerable friends and family and create a ripple effect that cuts jobs and drives up costs for middle class Americans,” Whitmer said in a press release.
The analysis highlighted three reports, the first from the Washington Center for Economic Growth. Compiled by Professor Robert Manduca of the University of Michigan, the report indicates Medicaid amounts to an average of 11.2% of the economic base of regions nationwide. According to Manduca that means Medicaid contributes roughly as much to metropolitan Detroit as the auto industry.
Additionally, the report says many recipients of the Supplemental Nutrition Assistance Program, or SNAP, would no longer be able to afford their groceries, resulting in grocery stores losing revenue and impacting their ability to pay their employees, as well as buy food from suppliers, ultimately impacting farmers and other food manufacturers.
Another report cited by Whitmer, this one from the Commonwealth Fund, estimates that if the cuts to Medicaid and SNAP proposed in the GOP budget bill are allowed to take effect, Michigan’s gross domestic product would drop by $3.57 billion by 2029, while up to 17,300 jobs in health care would be cut, with more than 16,000 others indirectly tied to the industry also slashed.
A third report from the Michigan Health and Hospital Association noted that hospitals in the state provide more than 222,000 direct jobs and that health care overall remains the state’s largest employer of direct, private-sector jobs.
“The cuts to Medicaid included in this bill will result in the loss of healthcare access throughout all of Michigan,” Brian Peters, CEO of Michigan Health & Hospital Association, said in the news release. “Healthcare providers will be forced to reduce services, impacting all Michiganders and harming the health and wellness of our communities.”
The legislation, dubbed the “big, beautiful bill” by President Donald Trump, would extend the 2017 tax cuts for wealthier Americans passed during his first term, which would be offset by vastly scaling back spending from the federal government.
Whitmer, in the press release, said that Republican cuts to Medicaid, combined with the loss of $2.95 billion in direct federal funding, Michigan faces a total loss of more than $4.5 billion in gross domestic product as well as 41,500 total jobs. The job losses alone, she said, means Michigan would lose out on $319 million in state and local tax revenue.
“With fewer people able to afford groceries or pay their hospital bill, local communities will lose spending, business, and jobs. Raising costs for working families to pay for a tax cut for the rich is unacceptable,” Whitmer said. “I’ll keep working with anyone to lower costs, create jobs, and protect access to affordable, quality health care.”
This story was updated to clarify details in the Michigan Health and Hospital Association report.
Michigan Advance is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Michigan Advance maintains editorial independence. Contact Editor Jon King for questions: info@michiganadvance.com.
