May 17, 2025

Millions of family caregivers across the United States would face devastating consequences if proposed federal cuts to Medicaid are implemented. More than 40 million caregivers depend on Medicaid for health coverage and vital support services—resources that help sustain families caring for loved ones with serious health needs. Slashing the program risks dismantling a critical lifeline.

Family caregivers provide an estimated $600 billion in unpaid care annually, often at the expense of their own financial security and personal well-being. Among Medicaid recipients, 12% are caregivers who are unable to work due to their caregiving responsibilities. Without access to Medicaid’s comprehensive benefits, including health insurance, home- and community-based services, respite care, and caregiver training, these individuals may face significant personal and financial burdens.

Newly proposed Medicaid work requirements pose additional threats, especially for low-income caregivers. These individuals may be unable to meet work-hour thresholds due to the demands of caregiving yet may not qualify for exemptions. Navigating these requirements often necessitates access to the internet, transportation, and the ability to manage complex documentation—resources that many caregivers do not have. As a result, countless caregivers risk losing essential health coverage, jeopardizing not only their own well-being but also that of the people who rely on them.

“Medicaid is the backbone of our long-term care system,” said Marvell Adams Jr, CEO of Caregiver Action Network. “It supports not only care recipients but also the caregivers who make independent living possible.”

Medicaid is the nation’s largest payer of long-term care, supporting over 9 million Americans, 8 million of whom rely on home-based care. Proposed federal budget cuts, primarily from Republican lawmakers, would slash Medicaid funding by one-third. This $2 trillion reduction would likely target caregiver support services first.

These proposals also include burdensome work-reporting mandates that could jeopardize coverage for as many as 36 million people. For those who already spend countless unpaid hours providing essential care, this additional red tape could lead to the loss of life-sustaining benefits.

“If family caregivers lose their Medicaid coverage, they lose their health, their financial stability, and their ability to care for others,” added Adams. “It’s not just caregivers who suffer—entire families and communities will feel the impact.”

Caregiver Action Network