Article Summary –
Federal budget cuts supported by President Trump and congressional Republicans are threatening caregiving programs, with significant impacts on vulnerable populations who rely on services funded by Medicaid, SNAP, and other assistance programs, as highlighted by a Century Foundation report. The report emphasizes that the cuts to Medicaid, in particular, jeopardize home- and community-based services (HCBS), affecting about 8.4 million people annually, while also undermining childcare workers who depend on government aid due to low wages. Additionally, the deregulatory actions by the administration have further weakened policies that protected wages and reduced costs for essential care services, leading many states to propose or enact cuts to crucial caregiving programs.
Federal cuts endorsed by President Donald Trump and congressional Republicans threaten caregiving programs nationwide, forcing states to find ways to support caregivers and vulnerable groups like older adults, disabled individuals, and children, according to a new report by the Century Foundation.
The progressive think tank released its findings in a report titled, “Care Matters: A 2026 Report Card on Care Affordability and Access,” highlighting how these cuts impact care services.
“Investments in care are crucial for people to live, learn, age, and work with dignity,” the report explains. However, Congress and the current administration have reduced funding and deregulated policies that support care, arguing against program integrity to justify further disinvestment.
Funding cuts to Medicaid, Medicare, the Affordable Care Act, and SNAP are included in the 2025 budget bill signed by Trump, causing lasting harm to the caregiving infrastructure. Vulnerable populations face reduced support as a consequence.
Medicaid primarily funds home- and community-based services (HCBS), providing at-home care for disabled individuals and seniors. With Republicans’ $1 trillion cut, states are considering cuts or already reducing HCBS services.
Additionally, the administration has weakened policies that lowered childcare costs, protected homecare wages, and improved nursing home staffing requirements, according to the Century Foundation.
Aging and Disability Care
About 8.4 million people annually receive Medicaid-funded home or community services, according to the Bipartisan Policy Center. These services assist with daily activities like dressing and cooking. Challenges in accessing care have been worsened by recent healthcare funding cuts, the Century Foundation noted.
Since the One Big Beautiful Bill Act became law in 2025, nearly 30 states have proposed or enacted cuts to home and community care, as reported by an HCBS impact tracker from George Washington University.
Childcare and Early Learning
Childcare workers, already struggling with low wages and minimal benefits, often depend on SNAP and Medicaid for sustenance, according to the Center for the Study of Child Care Employment, University of California, Berkeley. Federal cuts to these programs could financially devastate them, the Century Foundation report indicates.
Fair Working Conditions
Care workers earn significantly less than the national median income. In 2025, childcare workers averaged $16.82 per hour, compared to the national median of $24.51. Home health aides earned $17.21 an hour. Many of these jobs are Medicaid-funded, potentially leading to employment losses.
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