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Governor Announces Effects of Trump Budget Cuts to Oregon

Posted on August 12, 2025 by Editor
$15 billion to be lost from Medicaid, food benefits, other programs
Salem, OR –Governor Tina Kotek announced that the budget reconciliation bill backed by the Trump Administration and passed by Republicans in Congress is projected to cut $15 billion in federal funding from Oregon for health insurance coverage, food benefits, and other programs. The announcement is the result of a preliminary analysis by the State of Oregon’s Chief Financial Officer in coordination with state agencies upon the passage of President Trump’s budget early in July. The analysis may change pending detailed federal guidelines to implement the bill.
In response, Governor Kotek stated:
“The Trump Administration and Republicans in Congress have betrayed American children and families, who will become sicker, hungrier, and less prosperous because of President Trump’s budget bill. Oregonians will see less of their federal tax dollars coming back to our state for things they count on. Furthermore, President Trump and Congress knew that state governments cannot pay for this substantial gap in services but went ahead and did it anyway.
“I am going to work with Oregon lawmakers and community partners to do all that we can to stand up for Oregonians and get through this needless, callous hardship. I will continue to hold the line and push back as Oregon values are under threat. I hope Oregonians will stand with me as we fight this together.”

Below is a high level table of the most impacted agencies, in millions over the next three state budget cycles (biennia):

Additional preliminary analyses of impacts to Oregon state agencies can be found here.

The Governor will convene state lawmakers and key stakeholders who work with or represent populations most at risk from the Trump Administration’s budget cuts to consider possible strategies to reduce impact to people, and her office will continue to communicate impacts as they come into focus through implementation.

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