Washington state is bracing for major fiscal and social impacts following passage of a federal megabill that cuts Medicaid and SNAP funding while eliminating clean energy tax credits. Analysts estimate the law could cost Washington billions annually, reduce coverage for hundreds of thousands of residents, and lead to thousands of job losses.

Medicaid

Washington could lose up to $5 billion per year in federal Medicaid funding, affecting nearly 2 million residents enrolled in Apple Health. Governor Bob Ferguson warns rural hospitals face the greatest risk, with facilities like Astria Toppenish Hospital already considering closure. An estimated 250,000 Washingtonians could lose Medicaid coverage due to new work requirements, with another 150,000 losing insurance through Affordable Care Act exchanges. Health care officials predict higher uninsured rates and staffing shortages statewide.

SNAP

More than 908,000 Washington residents currently receive SNAP benefits. Under the new law, the maximum monthly allotment for a family of four will drop from $975 to $848. New work requirements could push over 130,000 residents off SNAP entirely. Food banks expect increased demand as households lose benefits.

Clean energy

The phase-out of federal clean energy tax credits threatens $8.75 billion in planned investments across 27 facilities in Washington. The U.S. Climate Alliance estimates 21,800 clean energy and manufacturing jobs could disappear by 2030. Households may see electricity bills rise by $115 annually by 2029. State officials say Washington’s clean energy goals remain intact but face major challenges without federal incentives.

Student loans

Starting in 2026, Washington borrowers will see major changes to federal student loan programs. The number of repayment options will shrink from seven to two, including a new 30-year income-driven plan that could extend repayment periods for many. New borrowing caps will limit federal loans for graduate and professional degrees, while Grad PLUS loans will be eliminated. The law also tightens Pell Grant eligibility, making it harder for higher-income families to qualify and disqualifying students with full scholarships.