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 his domestic policy bill into law on July 4, 2025, which sees funding cuts to medicaid and other programs.

The Senate has passed a $4.5 trillion tax cut bill after last-minute changes to its health care provisions, as Republicans scrambled to get their party on board.