Looming federal cuts and their impact on Indiana

Did you know that in one small county in southern Indiana, 56% of the workforce is on the federal payroll? That matters as the Trump administration and Congress slash jobs and ponder deep budget cuts. Hoosier lawmakers are wondering how this will impact their own budgeting, especially when it comes to healthcare.*

As the Capital Chronicle reports, Indiana relies on direct federal aid of $20 billion a year, almost as much as the legislature budgets from state funds.

* IndyStar (paywall) reports that 500,000 Hoosiers could lose their health insurance: "Those losing coverage would include single moms, barbers, waiters. They could be young adults living on their own and cobbling together three jobs, none of which offers health insurance, who make too much to qualify for traditional Medicaid and too little to afford private insurance on the healthcare exchange."


Where do federal funding cuts leave Indiana?

Federal funding cuts coming from Washington could threaten Indiana’s finances, especially for Medicaid and education. (Getty Images)

By: Whitney Downard
Feb. 28, 2025

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