Oregon faces $15 billion loss in federal funding for health and food programs

PORTLAND, Ore. (KOIN) — Oregon is slated to lose $15 billion in federal funding for health insurance, food benefits and other programs according to a new analysis.

The Department of Administrative Services released a preliminary report Aug. 11 detailing the impact of H.R. 1 on state agency programs.

Oregon’s Supplemental Nutrition Assistance Program and Medicaid will be the hardest hit.

In a statement, Governor Tina Kotek said, “The Trump Administration and Republicans in Congress have betrayed American children and families, who will become sicker, hungrier, and less prosperous because of President Trump’s budget bill.

“Oregonians will see less of their federal tax dollars coming back to our state for things they count on.

In the statement, Kotek said the president and Congress know that states like Oregon cannot cover the gap alone.

“I am going to work with Oregon lawmakers and community partners to do all that we can to stand up for Oregonians and get through this needless, callous hardship,” she said.

According to the analysis, Oregon will see a reduction in Medicaid funding of $127 million between 2025 and 2027. From there, the cuts deepen.

For the 2027 to 2029 biennium, the state Medicaid program will lose $534 million. From 2029 to 2031, it will lose $531 million.

The cost to implement these changes and ensure enrollees are complying with the new rules will bring the cost even higher. According to the report, the state is expected to lose $344 million for the 2025 to 2027 period, and $2.2 billion in the 2027 to 2029 period. From 2029 to 2031, it is expected to lose $2.3 billion.

Impacts to SNAP were less clear since some of the changes went into effect on July 1 but federal guidance is still lacking, the report said. What is clear is that the exemption of some from receiving SNAP benefits is expected to put a strain on food banks and other support systems.

The governor’s office said she will meet with lawmakers and stakeholders to identify those who will feel the cuts most, and looking for opportunities to reduce the impact.