States pay contractors millions to comply with Trump law to cut Medicaid rolls

States are spending millions of dollars on contractors to implement eligibility restrictions under the One Big Beautiful Bill Act, a Trump administration law designed to reduce Medicaid and SNAP enrollment. The legislation adds administrative requirements and red tape that necessitate significant updates to state computer systems that determine who qualifies for benefits. These system overhauls represent a substantial upfront cost for states as they work to comply with the new federal rules. The financial burden falls on states even as the policy aims to shrink the rolls of two major federal assistance programs. Implementation costs suggest states face a trade-off between meeting federal compliance mandates and managing their own budgets during a period of tighter spending.