US Hospitals Cut Staff & Services
Hospitals across the U.S. are making staff and service cuts following President Trump’s signature “big beautiful bill,” which overhauled healthcare funding. The cutbacks are most severe in rural areas and are fueling political attacks from Democrats, who claim the administration’s policies are hurting access to care ahead of the midterms.
The "One Big Beautiful Bill Act," signed into law on July 4, 2025, is projected to cut over $1 trillion from federal health programs, primarily targeting Medicaid. The Congressional Budget Office estimates the changes will lead to 10 million people losing their health insurance coverage over the next decade. Nationwide, the impact has been swift. In Washington state, Seattle Children's hospital announced plans to lay off more than 150 staffers, while Providence Swedish is cutting nearly 300 jobs. In California, Alameda Health System is laying off 296 employees, and UC San Diego Health has eliminated roughly 230 positions. The legislation disproportionately batters rural hospitals, which often rely heavily on Medicaid reimbursement. An analysis from the University of North Carolina at Chapel Hill found that more than 300 rural hospitals are at risk of closing or severely cutting services. In Oregon, for instance, Providence Seaside hospital has already closed its obstetric and newborn care services. The administration has pointed to the bill's creation of a Rural Health Transformation Program, which allocates $50 billion over five years to help states stabilize rural healthcare. However, critics argue this is insufficient to offset the broader funding cuts, with one estimate suggesting rural hospitals could lose as much as $137 billion over the next decade due to the changes. Democrats in Congress have vehemently opposed the cuts, leading to standoffs over government funding. They have attempted to block spending bills that do not reverse the healthcare measures and extend subsidies for Affordable Care Act (ACA) insurance plans, which are set to expire.
