It also takes aim at Medicaid, the federal and state health program that covered 78.6 million low-income children and adults as of March 2025, according to the Centers for Medicare & Medicaid Services.

Of the $16.4 billion annual Medicaid costs for Louisiana, state taxpayers kick in about $3 billion, according to the Legislature. The new law would halt some of the tools Louisiana uses to pay that $3 billion, requiring the state to pour in extra money or let some people go without health insurance.

President Donald Trump signed the massive tax bill on Friday, which marks the biggest cuts to Medicaid ever. President Donald Trump on Friday signed Republicans’ major tax and domestic policy bill into law, setting into motion massive cuts to Medicaid that could remove millions of people from the safety-net insurance coverage.