Louisiana will receive $208 million in 2026 from a $50 billion fund to address rural health issues, which was included in the federal budget and tax megabill. Half of the dollars from the Rural Health Transformation Program are divided evenly among states, with the second half determined by a state’s rurality and adherence to President Donald Trump’s policy goals. The Louisiana Illuminator’s Julie O’Donoghue reports: 

The amount of money each state receives will be recalculated annually until the $50 billion is exhausted in 2030. Louisiana officials said this initial allocation indicates the support the state can expect to garner in future years. Assuming its $208 million allocation continues, Louisiana should receive more than $1 billion for rural health care support over the five-year life of the fund, Louisiana Health Secretary Bruce Greenstein said Friday in an interview.

O’Donoghue explains ways that Louisiana will use the federal funds: 

The state plans to use some of its money to add slots to health care training and degree programs that already exist at Louisiana public universities and colleges. The additional spots would be prioritized for students who show an interest in working in rural areas. … Louisiana is also looking to set up a rural clinician credit bank, where rural hospitals and other health care providers can draw down public funds in order to provide signing and retention bonuses for medical professionals. … The money may also go toward reestablishing a state income tax credit for rural health care professionals, according to Louisiana’s application for the rural health care funding submitted last year. 

Reality check: The money from the rural health fund won’t be enough to offset the megabill’s nearly $1 trillion in cuts over 10 years to Medicaid, a program that plays a larger role in providing health coverage to people living in small towns and rural communities than in metropolitan areas. 


Mix of tax and benefit cuts hurt low-income households

The federal tax and budget megabill that President Donald Trump signed in July includes massive tax breaks that will primarily benefit the wealthy, which will be partially offset by cuts to safety-net programs used by people with low-incomes. The White House’s enhanced tariff policies are also driving up prices on food and other household staples, which disproportionately affects lower-income families. The Wall Street Journal’s Jinjoo Lee explains the winners and losers from these economic policies: 

The Budget Lab at Yale estimates that tariffs and provisions in the OBBBA together will have a net negative wallet impact for all income groups except the highest 30% of earners. The lower the income bracket, the worse the impact. Households in the bottom 10% income bracket are expected to see $2,160 less annually as a result of those policies, or about 5.6% of their average income, starting in 2026. The top 10% is set to see a net benefit of $9,670.

Supreme Court increasingly favors the rich

The U.S. Supreme Court is far more likely to issue rulings that favor the wealthy, according to a new study from researchers at Yale University. The New York Times’ Adam Liptak reports: 

 In 1953, the study’s authors wrote, “Democratic and Republican appointees are statistically indistinguishable, deciding on average about 45 percent of the cases in favor of the rich.” By 2022, they wrote, “that share is about 70 percent for the average Republican justice and 35 percent for the average Democratic justice.” “Put another way,” they added, “the Republican appointees have become more pro-rich at roughly twice the rate that Democrat appointees have become more pro-poor.” Legal scholars had mixed reactions to the economists’ study.

Ensuring eligible people can vote from jail

Voice of the Experienced, a grassroots organization for current and formerly incarcerated people, filed a lawsuit in December to ensure eligible inmates in parish jails can vote. The Times-Picayune | Baton Rouge Advocate’s Matt Bruce explains how Louisiana laws work to prevent absentee ballots from jail: 

But people convicted of misdemeanors and inmates in jail who’ve yet to be convicted at all remain eligible to participate in elections, according to state law. People in jail can vote absentee. But Louisiana statutes require voters who register online or by mail to cast their ballots in person if they’ve never voted before as a security measure. …  But Louisiana does not allow first-time voters to cast absentee ballots if they are in jail on election day or during the early voting period leading up to an election. 

Number of the Day

25.2 million – Number of people who were lifted above the poverty line or whose poverty was less severe in 2024 due to the federal Earned Income Tax Credit. (Source: Center on Budget and Policy Priorities)