Does the Trump Freeze Affect TEFRA Medicaid? here is the Full details
Introduction to blog: What is happening with the Trump freeze?
On January 27 ,2025 issued a memorandum from the Office of Management and Budget (OMB) which was about ordering a temporary pause on all federal grants, loans and financial assistance programs by the Trump administration. This move sent shockwaves through the whole country (US).This was a big announcement which came out recently but it got stopped by a judge pretty much instantly before being canceled. Rumors are that some orders about freezing funds are still around. This idea was to check if the federal money is spending on things that Trump cares about for example cutting programs which are tied to diversity, equality between men and women and inclusion(DEI), LGBTQ+ which is gender stuff or any foreign aid and climate projects like Green New deal. Many were confused and scared or maybe mad. However those were affected heavily who rely on federal programs like Medicaid.
What about TEFRA Medicaid? This Tax Equity and Fiscal Responsibility is very important for families with kids who have disabilities or kids who were born with difficulties. This medicaid helps kids and families get medical care based on what they need and not how much money their parents make. Around 74 million Americans are using this medicaid by the end of 2024. Because of this news about freeze millions were affected in a negative way. In this blog we will know about this little known but critical program is in trouble or not. WE will see into the Trump freeze and explain what this TEFRA is and see if it is at RISK and try to make sense of all these mixed up probably fake reports on social media chatter to find the actual truth or at least get close to this issue.
Understanding what TEFRA medicaid is?
TEFRA medicaid is kind of a lifeline for vulnerable kids. We first need to know what TEFRA medicaid is , before we can figure out if the trump freeze really affects the TEFRA medicaid.
This Tax Equity and Fiscal Responsibility Act created a special medicaid option that lets states fix medicaid to kids with disabilities and people who have a much lower income coming to their houses. However there is a catch to it the TEFRA says if a kid has serious health issues for example cerebral palsy, severe autism , or diseases which needs constant care only they can get help because medical bills can ruin families no matter how much income they bring to their house annually.
Here’s how TEFRA works before treatment doctors check if the kid who needs medical attention has a severe medical condition or any type of condition which allows them to get Medicaid in this TEFRA hospitals mainly focus on kid’s medical condition and what care they can give for kid’s better health and not the parents or guardian income. States of America can choose whether to offer this programme or not but mostly states do choose, but the rules like income limits or extra permission can vary depending on the state condition. The federal government pays for about 70% of medicaid costs across the country, and the states pay the rest. For poor families or families who have limited budgets TEFRA is like a blessing for them. In this medicaid families can get things like home nurses, medical gear, therapies and hospital stays that regular insurance often won’t cover. In short this medicaid keeps some kids breathing and helps many families across the country.
So why are the American public worried?
They are afraid because TEFRA is something which is paid by the federal government. More than half payment of this medicaid is paid by the government. Any change in government rules like a funding freeze could make things worse. Let’s look at the freeze and if TEFRA is in danger.
The Trump Freeze: What We Know So Far
On January 27 ,2025 issued a memorandum from the Office of Management and Budget (OMB) which was about ordering a temporary pause on all federal grants, loans and financial assistance programs by the Trump administration starting January 28 at p.m eastern time. The reason behind this order is very simple. The Federal government wanted to make sure that money of the taxpayers of America was not being wasted or spent uselessly on stuff that TRUMP does not like. Government said that things like direct payments to people for social security, medicare and food stamps were safe but it was not super clear that these orders will affect the medicaid or not.
This is not normal news because Medicaid is not just simple, it provides care for kids and families and is a huge programme where the federal government sends money to states to match the states spends and they settle up this amount every few months. It pays for almost everything whether it is doctor visits or long term care. Everything is being taken care of in this medicaid which made this a huge deal among the people of america. This unclear wording left almost half the population of America guessing if medicaid was included or not. Karolien Leavitt who is White House spokesperson said it was being careful with money and not cutting programs on which people rely on but she did not give a straight answer specifically about medicaid when asked on January 28. Meanwhile some reports and social media chatters said that medicaid payment systems went down in all 50 states, which made people think the freeze was already causing trouble.
These orders do not last long in its original form because a federal judge stopped it from happening right before it started, after some nonprofit communities sued this saying it broke a old 1974 law called Impoundment Control Act. This law says that the president can not just hold back money which is already approved by congress. By January 29, the Office of Management and Budget (OMB) canceled this memo, but white House speaker said that Trump’s other orders about freezing the funds were still active. In the simpler words they are scheming to do something like this even if the first attempt was a failure.
The people of America went wild on social media especially on X. One person wrote on January 28 “I bet a ton of people on Medicaid voted for Trump because they did not think he would turn around and hurt them.” Some of you must think that this is dramatic but it is clearly showing how scared people are afterall millions of people depend on Medicaid.
What Experts and Stakeholders Say:
Folks who study money and health care have different sayings on this matter. Alex Beene, who teaches financing, told newsweek that it is hard to say if the freeze will really hit Medicaid without more details. It is very likely that states could step in and cover the financial gaps but that would be tough because the federal government spent 591.4 billion Medicaid in 2023, this data is according to the Centres for Medicare and MEdicaid Services (CMS). Michael Ryan from MicbaelRyanMoney.com warned us by saying that things like signing up for Medicaid or paying providers could get delayed.
Conclusion: A Tense Wait for TEFRA Families
So, does the Trump freeze affect TEFRA Medicaid?
As of March 8, 2025 it looks like nothing has been changed. This freeze did not directly target TEFRA, and since it got stopped by a judge and then canceled it proves that there is no big crisis because of the freeze. TEFRA has legal protections. It is not easy to cut the funding overnight but the confusion was created among the citizens because the payment crashed at an unusual time.
TEFRA might face difficulties in future but it is not sure and there are high chances that this Medicaid will not be affected. For now, keep watching the news, and stay tuned in social media to see what other people have a say in this matter and hope things do not get worse.