Trump Administration Cuts Target Oregon’s Most Vulnerable With Massive Loss of Food and Medicaid Support

A grim picture of billions of dollars lost to Oregon by the Trump administration’s budget cuts has been painted by the state’s Chief Financial Officer, Kate Nass.

In total, Nass’ Department of Administrative Services (DAS) is predicting that Oregon could lose a staggering $15 billion in federal funding from now until 2031.

Food Benefit Cutbacks Will Impact Lower-Income Families

The biggest losers in the 2025-27 financial year are lower-income group families and immigrants who face a $540 million cut to the state’s Supplemental Nutrition Assistance Program (SNAP), and a further $490 million to Medicaid.

SNAP, which is administered by the Department of Human Services, provided food benefits to 757,700 Oregonians last year. Apart from incurring a $540 million loss for 2025-27, the DAS predicts further losses of $1.8 billion in 2027-29, escalating to $1.24 billion in the 2029-31 budget.

Government Imposes Draconian Measures to Qualify for Medicaid

Apart from lower-income groups, the aged, the blind, and the disabled rely on Medicaid benefits.

Apart from the severe financial losses on Medicaid benefits, draconian rules have been introduced by the Trump administration to qualify for medical assistance that particularly impact immigrants.

Refugees, asylum seekers, victims of human trafficking, and other people who are lawfully residing non-citizens will no longer be eligible for Medicaid benefits.

“This will result in disruption of care and potential coverage loss while increasing state costs to provide similar coverage to this vulnerable population,” states the DAS in its financial breakdown.

This measure puts further strain on the state, as people who lose Medicaid will automatically become eligible for health coverage in the Healthier Oregon program.

Referring to the cutbacks in a press statement, Oregon Governor Tina Kotek accuses the Trump administration of betraying American children and families who, she says, will become more ill and hungrier.

Another state department left to cope with staggering cutbacks is the Department of Transportation (DOT), which could lose hundreds of millions of dollars earmarked for the $450 million Interstate-5 Rose Quarter Improvement Project.

The project will improve congestion on Interstate-5, which links Oregon to Washington and is the major north-south highway on the West Coast. The project includes widening the interstate, adding auxiliary lanes and shoulders.

Other state departments facing cutbacks include the Oregon State Police’s marine fisheries team, facing a $3 million cut, $2 million less for the Forestry Department, and an $8 million cut for state libraries, which will largely impact literacy programs.

The irony of the federal funding cutbacks is that it places more demands on work forces such as the Oregon Department of Human Services.

The department will need to employ 600 additional staff to check if the credentials of current Medicaid recipients continue to qualify them for health benefits.