The Louisiana Department of Health plans to spend more state dollars this fiscal year to cover fewer people in Medicaid. That’s according to a new issue brief from Invest in Louisiana’s Annika Vanderspek. This outcome is the result of the federal tax and budget megabill (H.R.1) and reflects a central feature of the new law: It shifts more health care costs to states while reducing Medicaid coverage for low-income people:

Medicaid is a vital program that nearly 1 in 3 Louisiana residents rely on for affordable health care. Louisiana’s budget for the 2027 fiscal year, which began on July 1, offers an early look at how H.R. 1 will affect health care in the state. Although many of the law’s most significant Medicaid funding cuts have yet to take effect, the budget already shows how Louisiana is bearing the consequences

Is Louisiana’s clout paying off? 

Louisiana is a major energy-producing state and is home to the Speaker and Majority Leader of the U.S. House of Representatives. A new report from Ohio River South argues that state residents aren’t getting much for Louisiana’s outsized influence in Washington. Chelsea Brasted of Axios:

The state’s influence isn’t necessarily translating into lower costs, population growth or other clear benefits for residents, according to Ohio River South CEO Howard Franklin. … And yet, “there are a couple … narratives that actually cut against the idea that having this highly placed congressional representation is working in the state’s favor,” Franklin says.

It’s unclear what the state has gained from the leadership positions of House Speaker Mike Johnson and Majority Leader Steve Scalise:

“The South is becoming a region where the cost of insuring real estate — residential, commercial, and infrastructure — is now a material input to every site-selection, capital-allocation, and migration decision,” the report reads. Yet Trump allies like Rep. Steve Scalise or Rep. Mike Johnson haven’t been known for aggressive insurance reforms, Franklin notes, as the Trump administration pushes “the cost of dealing with climate change down to the state.”

Assessing the consequences of the federal megabill

The federal tax and budget megabill included massive tax breaks that benefit wealthy people and large corporations, which are being partially offset by cuts to safety-net programs used by people with low incomes. A new report from Families Over Billionaires creates a public record of the megabill’s consequences one year after its passage: 

“Step one foot outside the Washington bubble and you learn fast what it actually is: a wealth transfer from American communities to billionaires’ pockets. [ said Kristen Crowell, Executive Director of Families Over Billionaires] We went to 18 communities in 13 states, and in every one of them we found the bill for that transfer: hospitals cutting services, food banks running bare, state budgets buckling, and families who did everything right falling behind.” 

Working people are falling behind:

“Even though I’ve done everything right, it’s a struggle to afford all the basic necessities: rent, health care, school supplies, clothes, groceries. [said Supplemental Nutrition Assistance Program participant Dee McDonald] But now that these cuts have been made, it’s almost impossible because my SNAP benefits have stopped coming in.”

People who depend on Medicaid for health insurance are suffering:

“We’re already seeing the effects of the cuts to Medicaid. It recently prevented me from being able to take my son to his specialty doctors in the cities.. and added around $10,000 in costs in just my personal budget.” [said home care worker Rachel Bendickson]

Who is ICE arresting in Louisiana, and where?

Arrests by U.S. Immigration and Customs Enforcement reached an all-time high in Louisiana – and the rest of the country – in July, according to the Deportation Data Project. Delaney Nolan of The Lens examines where these arrests are occurring: 

Some of the hotspots are around ICE facilities: Oakdale, which holds an immigration court, is listed as the apprehension city in hundreds of ICE arrests. So is St. Rose, where ICE moved their regional field office, previously in New Orleans, in November. … Other hotspots include the New Orleans, Baton Rouge, and Lafayette metro areas. Kenner, whose police department signed a 287(g) agreement with ICE last March, has the single highest figure for overall arrests.

Most of the people being arrested by ICE have no criminal history:

In July, ICE arrested just 10 people in Louisiana who had a conviction for a violent crime, and 629 with no criminal history at all. Nationally, July was the first month in Trump’s second term where a majority of people arrested by ICE — 51% — had no criminal charges. That trend appears to be deepening, with non-criminal detainees driving much of the increase in arrests

Number of the Day

23% – Reduction in staffing levels at the U.S. Food and Drug Administration since December 2024. (Source: Stateline)