Gov. Evers: Evers administration estimates Republicans’ ‘Big Beautiful Bill’ to increase costs for Wisconsin taxpayers by over $284 million in future budgets

Trump-backed, Republican-passed budget bill will force over 270,000 Wisconsinites to lose their health insurance and tens of thousands to lose access to basic food assistance on top of new costs shifted to Wisconsin taxpayers totaling over a quarter of a billion dollars

Burdensome new changes and red-tape requirements under ‘Big Beautiful Bill’ will require Legislature to approve nearly $70 million for immediate implementation costs alone 

MADISON — Gov. Tony Evers today released new estimates showing President Donald Trump’s signature legislation, the ‘Big Beautiful Bill’, which was supported and passed by Republicans in Congress, including every Republican member of Wisconsin’s congressional delegation, will increase costs to Wisconsin taxpayers by over $284 million in future budgets—$142 million annually— while forcing over 270,000 Wisconsinites to lose their health insurance and tens of thousands of Wisconsinites to lose access to basic food necessities.

The Wisconsin Department of Health Services (DHS) last month released an initial analysis of Republicans’ ‘Big Beautiful Bill,’ indicating the bill will have devastating impacts on access to basic healthcare and food services that Wisconsin seniors, families, and kids depend on every day. Today, the Evers Administration released a final analysis of the ‘Big Beautiful Bill,’ including a new analysis of the bill’s economic and fiscal impacts to Wisconsin taxpayers caused by the Trump Administration shifting significant new costs from the federal government to states, including forcing states to implement new burdensome requirements for Medicaid and a program that provides basic food assistance to seniors, kids, and families.

The Evers Administration estimates that the new changes and red-tape requirements Republicans passed under the ‘Big Beautiful Bill’ will require the Republican-led Wisconsin State Legislature to approve nearly $70 million in new funding for immediate implementation costs for the remainder of this biennium alone.

“I’ve been clear from the get-go that Republicans’ so-called ‘big beautiful bill’ is bad for Wisconsin—for the 270,000 people kicked off their healthcare coverage, and the tens of thousands of kids, seniors, and families who won’t be able to afford basic food necessities. And now, it’s also clear this bill is just as bad for Wisconsin taxpayers, who will be forced to help foot the bill for Republicans’ red-tape requirements just to make it harder for folks to get the care they need and food to eat. Folks, there’s nothing ‘beautiful’ about it,” said Gov. Evers. “Wisconsinites shouldn’t have to pay the price for a reckless Republican bill that’s going to add trillions of dollars to our federal deficit and shift hundreds of millions of dollars in costs to hard-working taxpayers, all so Republicans could pay for tax breaks for billionaires and big corporations. Wisconsinites aren’t getting a fair shake from Republicans in Washington—that’s plain as day.”

“In terms of costs to Wisconsinites – this is just the tip of the iceberg,” said Department of Health Services Secretary Kirsten Johnson. “From increases in uncompensated care for hospitals to lost revenue for Wisconsin’s farmers, grocers, and local economies and thousands of Wisconsinites losing Medicaid and FoodShare, these cuts will cause a ripple effect throughout the state and put a financial strain on all of us.”

Republicans’ ‘Big Beautiful Bill’ was signed into law by President Trump on July 4, 2025, just a day after Gov. Evers signed Wisconsin’s bipartisan two-year state budget overnight at 1:32 a.m. on July 3, 2025, which secured an additional $1.1 billion to support healthcare access across Wisconsin, especially in rural communities, that would have been jeopardized had the ‘Big Beautiful Bill’ been enacted first. The ‘Big Beautiful Bill’ will continue to have deadlines for implementation over the coming months and years, reaching full implementation in 2028.

In short, according to DHS, the ‘Big Beautiful Bill’:

• Creates barriers to accessing Medicaid, which is an essential part of Wisconsin’s healthcare system and economy.
  • Wisconsin’s Medicaid programs cover 1 million Wisconsinites—approximately 20 percent statewide and every 1 in 5 Wisconsinites—including 40 percent of births, 40 percent of kids, and 60 percent of people in nursing homes.
  • DHS’ previously released analysis of the ‘Big Beautiful Bill’ indicates these changes will force over 270,000 Wisconsinites to lose their health insurance coverage.
• Installs several traps, making it both fiscally and operationally unfeasible for Wisconsin to now expand Medicaid, as Gov. Evers has fought to do for years, including:
  • Losing out on an additional $1.3 billion in federal funding that could’ve been invested back into Wisconsin communities;
  • Further reducing allowable provider taxes, which effectively cuts funding Wisconsin invests in hospitals across the state and the Medicaid program; and
  • Requiring six-month eligibility redeterminations for the adult population covered under expansion.
• Adds new red-tape requirements for Wisconsinites to receive basic food assistance.
  • The Supplemental Nutrition Assistance Program (SNAP, known as “FoodShare” in Wisconsin) helps provide nearly 700,000 Wisconsinites, including seniors, kids, and families, with basic food necessities.
  • For every $1 in SNAP benefits, working families across Wisconsin generate $1.50 for our state’s economy by shopping at local stores and farmers markets.
  • DHS’ analysis released today indicates as many as 43,700 Wisconsinites could lose access to basic food necessities.
• Increases costs to Wisconsin taxpayers by requiring states, including Wisconsin, to meet new SNAP implementation requirements or otherwise risk facing even larger and ongoing punitive fiscal consequences.
  • States will have to leverage quality control staff to eliminate errors and keep their payment error rates below 6 percent or be forced to pay as much as 15 percent of SNAP benefit costs, which have been funded 100 percent by the federal government for the entirety of SNAP’s 80-year history.
  • Investing in more quality control staff is the most cost-effective action Wisconsin can take to achieve and maintain an error rate below 6 percent and avoid more significant costs to Wisconsin taxpayers.
  • For example, based on the most recent year of benefit cost data (state fiscal year 2025), if Wisconsin’s error rate was over 6 percent, this would cost Wisconsin taxpayers as much as $205.5 million annually.
• Limits Wisconsin’s ability to finance the Medicaid program sustainably by putting a moratorium on new or increased provider taxes.
  • After months of bipartisan negotiations with Republican leaders, Gov. Evers signed Wisconsin’s 2025-2027 state budget into law on July 3, 2025, in time to secure a final increase to Wisconsin’s hospital tax rate before the ‘Big Beautiful Bill’ was signed and securing over $1.1 billion for Wisconsin hospitals per year.
• Attempts to reduce access to reproductive healthcare in Wisconsin and across the country.
  • The ‘Big Beautiful Bill’ attempts to prohibit Medicaid payments for one year to certain healthcare providers, including Planned Parenthood, if they provide abortions beyond those provided in the cases of rape or incest or to save the life of the mother.
• Shifts tens of millions of dollars to Wisconsin taxpayers to implement basic food necessity programs.
  • Previously, the federal government and states shared equally the costs to administer the SNAP program.
  • However, under the new law, the federal government has shifted an additional 25 percent of the administrative costs to states, so Wisconsin’s share of administrative costs will increase from 50 percent to 75 percent beginning October 1, 2026.
  • In Wisconsin, DHS and counties both cover the state share of these costs, making sure that SNAP eligibility decisions are accurate and occur in a timely manner. This change will cost Wisconsin taxpayers and counties approximately $43.5 million annually starting state fiscal year 2027, with costs expected to grow over time.
• Eliminating cost-saving education programs designed to help keep more people healthy and save on long-term healthcare costs for Wisconsinites and our healthcare systems.
  • In 2024, SNAP education programs provided 145,733 people with education about healthy eating, physical activity, and thrifty shopping.
  • For every $1 spent providing this program, $10 is saved in long-term health care costs.
  • Republicans’ ‘Big Beautiful Bill’ eliminates this SNAP education funding entirely, with Wisconsin losing $12 million annually starting October 1, 2025.

• $72.4 million per year to offer employment training services to Medicaid members to meet the red tape work requirement, effective December 31, 2026, similar to the services provided to FoodShare members through the FoodShare Employment and Training Program (FSET).
• $14.6 million per year in increased FSET costs because more adults will need to meet the work requirement, in addition to systems updates and costs associated with implementing the new red tape work requirements for FoodShare members, which were effective immediately when the bill was signed on July 4, 2025.
  • The federal government is in the process of developing implementation guidance for states.
  • When the Department of Health Services receives guidance from the federal government, it will provide more information to Wisconsinites about the requirements and when they are effective.
• $11.4 million per year to hire additional FoodShare quality control staff at the state and county level to review cases before they are confirmed to identify and address errors in order to achieve and maintain a payment error rate under 6 percent.
  • States with error rates over 6 percent are required to pay as much as 15 percent of benefit costs depending on the actual percentage, effective October 1, 2025.
  • States can eliminate errors and keep their error rates low if they identify and address errors before a case is confirmed. Investing in more quality control staff is the most cost-effective action Wisconsin can take to consistently achieve an error rate below 6 percent over the long-term and avoid paying for benefit costs.
  • For example, based on the most recent year of benefit cost data (state fiscal year 2025), if Wisconsin’s error rate was over 6 percent, this would cost Wisconsin taxpayers as much as $205.5 million annually.
• $43.5 million per year to make up for the reduction in the federal share of costs to administer the FoodShare program, which is effective October 1, 2026. These costs are expected to grow over time. 

DHS will not be able to absorb all of the increased costs associated with the ‘Big Beautiful Bill’ changes, including immediate implementation costs during the current biennium. DHS will: 

• Use existing budget resources to implement the system changes for the new federal red-tape requirements to the extent possible once when full details are available from the federal government. 
• Need $69.2 million in funding for the current 2025-27 biennium pay for an increased share of administrative costs from state GPR because the federal government shifted these costs to states, including Wisconsin taxpayers, and pay for higher costs for the FSET program due to the anticipated enrollment increase, to hire 56 state quality control staff, and provide funding to counties for quality control positions to consistently achieve and maintain a FoodShare payment error rate in Wisconsin below 6 percent over the long-term.  
• Need funding in the 2027-29 biennial budget to implement, operate, and sustain the Medicaid and FoodShare employment and training programs.

As the Evers Administration works through the implementation process, DHS will continue to keep partners and providers informed of changes that could impact the care they provide to communities. DHS has also created a new webpage for partners and providers to keep up with the most recent changes and updates. The webpage will be updated as new information is available.