Note: This analysis was updated to include the Congressional Budget Office’s (CBO) latest cost estimates for the reconciliation package that was enacted on July 4, 2025, as well as new provisions in the law.
On July 4, President Trump signed into law a budget reconciliation package once called the “One Big, Beautiful Bill” that includes significant changes to the Medicaid program. The Congressional Budget Office (CBO) estimates the Medicaid work requirement provisions in the passed budget reconciliation law will be the largest source of Medicaid savings, reducing federal spending by $326 billion over ten years and cause millions to become uninsured.
Implementing work requirements on a national scale, requiring states to verify individuals’ monthly work status (at least every 6 months) and implement a long list of exemptions are policies that proved challenging for Arkansas and Georgia to operationalize and led to 18,000 people losing coverage in Arkansas. KFF analysis shows most Medicaid adults under age 65 are working already (without a requirement) or face barriers to work. Many Medicaid adults who are working low-wage jobs are employed by small firms and in industries that have low employer-sponsored insurance offer rates. In previous analysis, CBO found that a Medicaid work requirement would not have any meaningful impact on the number of Medicaid enrollees working, and cited research from Arkansas indicating that “many participants were unaware of the work requirement...
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