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County officials warn Senate reconciliation changes could sharply cut Medicaid funding and hit Santa Clara health services

5066461 · June 24, 2025
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Summary

Federal budget reconciliation negotiations in the House and Senate include proposed Medicaid financing changes — notably cuts to provider taxes and state-directed payments — that county health leaders say could mean hundreds of millions to more than $1 billion in lost revenue for Santa Clara Valley Health.

County officials and outside budget advisers told the Santa Clara County Health and Hospital Committee that recent Senate Finance Committee changes to the congressional budget reconciliation package could substantially reduce federal Medicaid funding available to the county and its public hospital system.

"On May 22, the House passed its version of budget reconciliation by a vote of 215 to 214," said Bert Magone of the Magone Group, summarizing the federal picture for the committee. "That bill included roughly $800,000,000,000 in Medicaid cuts over a 10‑year period. The Senate Finance Committee's version appears to add roughly another $200,000,000,000, bringing the total toward a trillion dollars in cuts over 10 years."

Magone and Santa Clara Valley Health leaders…

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