During the week of February 10, 2020, the Trump Administration released its federal FY 2021 budget proposal, and the bottom-line impact to programs serving kids and families is stark. The silver lining, if any, is that the likelihood of the plan gaining any momentum in Congress is slim to none.
The proposed budget cuts Medicaid spending by at least $1 trillion over the next 10 years and makes further cuts to CHIP, undoubtedly impacting health care coverage for kids in Pennsylvania and across the country. While little detail is provided in the proposal, what is known is that states would be allowed to select between moving to either a Medicaid block grant program or a per capita cap option.
The budget advances a one-time increase of $1 billion for child care, but masks other elements including the flat-funding of Head Start and the Child Care Development Block Grant, as well as the elimination of Preschool Development Grants, which Pennsylvania received in 2019. While a $1 billion increase is eye-catching, it should also be noted that Congress passed a $2.4 billion increase for child care in 2018.
Read more about the Medicaid proposal from the Georgetown Center for Children and Families.