New Resource Explains How H.R. 1 Will Impact States that Don’t Have Medicaid Expansion

H.R. 1, the federal budget and tax law passed in July 2025, included major changes to Medicaid, SNAP, and the ACA. Many of the Medicaid cuts and changes, such as work requirements, targeted expansion states, so they do not currently affect Texas. The law’s SNAP and ACA provisions will have a significant impact on Texas.

But even states like Texas that have not expanded Medicaid will feel the effects of certain Medicaid cuts in H.R. 1. A recent national report from CLASP shows that eligibility and financing shifts tied to the new law are projected over time to reduce the amount of Medicaid funding flowing to states, forcing states to make difficult budget decisions. Those decisions could include lowering provider reimbursement rates, removing benefits such as dental and vision coverage, or cutting home and community based services provided to people with disabilities and the elderly to help them live at home. Read more here.