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Medicaid and State Financing: What to Watch in Upcoming State Budget Debates

U.S. state legislatures are preparing budgets for fiscal year 2025, amidst declining state revenues, expired federal pandemic-era support, and families still burdened by pandemic-induced inflation. State revenues are showing a downward trend, with tax revenues dropping for most states. Additionally, federal support for state financing, including aid for state Medicaid programs, is ending. Meanwhile, though economic indicators are positive, households are facing financial difficulties, with Medicaid disenrollment causing concern. The evolving fiscal conditions will influence how state budgets and macroeconomic factors impact individuals and state Medicaid programs.

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