What’s Next on Medicaid Fight

March 12, 2025

With the budget reconciliation process currently moving forward in Congress, the risk of cuts to Medicaid looms large. Lawmakers are looking for significant funding reductions to offset the majority’s plans for permanently extending tax cuts for the wealthiest Americans, with proposals that could drastically impact healthcare access for millions of people. The result would be reduced eligibility and enrollment in Medicaid for families, rural communities, older adults, and people with disabilities.

A Recap of What’s Happening

Key House and Senate committees are tasked with identifying substantial funding cuts based on differing House and Senate budget resolutions. The House budget reconciliation effort calls for one large budget package aimed at $4.5 trillion in cuts at the request of President Trump, while the Senate has opted for a two-phase approach to budget reconciliation. To move forward, the House bill essentially has to be adopted by the Senate. House Republicans are pushing the Senate to adopt their plan and Senate Republicans are working to find a path to the needed 51 votes. As this moves forward, significant cuts to Medicaid stay on the table.

Specifically, the House Energy and Commerce Committee, which oversees Medicaid, is looking for $880 billion in cuts to health-related programs. (See the recent nonpartisan CBO analysis of the House bill that identifies Medicaid as the path to cuts.)

Cuts to Medicaid can take many forms, including work reporting requirements, per capita caps, and restrictions on provider taxes that states use to fund their share of Medicaid.

What’s Next?

With all this in mind, it is important to meet with your members of Congress to ensure “No Cuts or Caps to Medicaid.” Here is what you can do:

  • Reach out to your members of Congress to educate them on the real-life impacts of Medicaid cuts by requesting a meeting or inviting your member(s) for a site visit to see the work of your organizations.
  • Since states share Medicaid funding responsibilities with the federal government, communicating with your governor’s office is also important. Congress is considering eliminating the use of provider taxes, which in most cases covers the state portion of the program – resulting in devastating cuts to Medicaid.
  • Use our Medicaid fact sheet to help guide your discussions and highlight the importance of the program.

Also, don’t miss our next Capitol Conversations webinar, Medicaid: What’s at Stake, on March 20 at 1 p.m. ET. We’ll hear from House Energy and Commerce Committee staff, including Leo Cuello from the McCourt School of Public Policy’s Center for Children and Families at Georgetown University, along with other important voices with insights and updates.

Sue Polis is Vice President of Public Relations and Government Affairs at Lutheran Services in America.

Update: Federal Funding Freeze

February 11, 2025

The federal funding freeze announced by the Office of Management and Budget (OMB) on January 27 created widespread uncertainty in our sector. The directive temporarily blocked disbursement of federal grants and loans—excluding programs like Social Security, Medicare, Medicaid, and SNAP—to ensure compliance with recent executive orders.

Still, initial confusion about the directive’s scope led to intended and unintended disruptions, including delays in different types of program funding. Although OMB later clarified that many essential programs would continue without interruption, concerns remain regarding the impact on Section 8 housing vouchers, school food programs, and other key initiatives.

In response, lawsuits have been filed by nonprofits and state governments. On February 3, a federal judge granted a temporary restraining order, halting the freeze. This follows a similar ruling by another judge after a separate lawsuit. Despite these legal interventions, reports of payment delays continue.

Lutheran Services in America president and CEO Alesia Frerichs issued a statement highlighting the disruptive effects on Lutheran social ministries. We are actively engaging with coalition partners and monitoring developments.

TAKE ACTION:

  • We encourage you to join us in taking action by calling your members of Congress and governors to express concerns about the funding freeze’s impact.
  • Please share information on any interruptions or challenges your organization is still experiencing. Contact Sue Polis or Sarah Dobson.

Sue Polis is Vice President of Public Relations and Government Affairs at Lutheran Services in America. Sarah Dobson is Senior Director of Advocacy and Public Policy at Lutheran Services in America.

Funding Opportunities

July 17, 2025

View the latest grant opportunities.

Basic Center Program
The primary purpose of BCP is to provide temporary, emergency shelter and counseling services to youth less than 18 years of age. We award community-based organizations funding to operate short-term shelters (including group home care and host family homes) and provide counseling services to youth who have run away or are experiencing homelessness or housing instability and who are not already receiving services from the child welfare or juvenile justice systems. Closing date for applications: July 23, 2025.

Maternity Group Home
The Maternity Group Home (MGH) program provides street-based outreach, safe, stable, and appropriate shelter, and comprehensive services for pregnant and/or parenting youth ages 16 to under 22 and their dependent child(ren) for 18 months and, and up to 21 months under extenuating circumstances. Service providers must accommodate the needs and safety of the dependent children to include facility safety standards for infants and children on the premises. Closing date for applications: July 23, 2025.

FY2025 Transitional Living Program
The Transitional Living Program (TLP) provides street-based outreach, shelter and comprehensive supportive services to youth ages 16 through 21 for up to 18 months or, under extenuating circumstances, 21 months. In addition to shelter, TLPs provide comprehensive services that support participating youth”s transition to self-sufficiency and stable, independent living. Through the combination of shelter and services, TLP youth are expected to show improvements in four core outcome areas: safe and stable housing, education or employment, permanent connections, and social and emotional well-being. Closing date for applications: July 23, 2025.

Elder Justice Innovation Grants FY2025
The purpose of the EJIG program is to support the development and advancement of new and emerging issues related to elder justice. Funded projects will contribute to the improvement of the field of elder abuse prevention and intervention at large, such as by developing materials, programs, etc. that can be widely disseminated and/or replicated, or by establishing and/or contributing to the evidence-base of knowledge. Closing date for applications: August 11, 2025.

EDA FY25 Disaster Supplemental
Through this Disaster NOFO, EDA will award investments in regions experiencing severe economic distress or other economic harm resulting from hurricanes, wildfires, tornadoes, floods, and other natural disasters occurring in calendar years 2023 and 2024. EDA’s goal under this NOFO is to assist communities recovering from a disaster by realizing opportunities to recover and change the economic trajectory of the community for the better. Closing date for applications: None.

Find more national, regional and federal funding opportunities from our partners at GrantStation Insider and sign up for our weekly GrantStation newsletter.

Supporting
Our Neighbors,

TOGETHER.

Our shared Lutheran tradition of service to our neighbor is more vital than ever.

Join us as we work to ensure our network continues delivering essential services to all in need.