MADISON, WI — May 14, 2025 — Employment Resources, Inc. (ERI), a leading Wisconsin organization supporting employment for people with disabilities, is raising concerns about a proposal under consideration by the U.S. House Energy and Commerce committee to cut at least $715 billion in federal spending from Medicaid. ERI warns these potential cuts could significantly impact workforce participation among people with disabilities and harm Wisconsin’s economy.
“People with disabilities do not pursue employment goals if they don’t have health insurance as a safety net,” said Kweku-TeAngelo Cargile Jr., Executive Director of Employment Resources, Inc. “For the vast majority of the individuals we serve, Medicaid is not just healthcare—it is the foundation that makes employment possible.”
The Wisconsin Department of Health Services (DHS) has started analyzing how these proposed cuts might impact Medicaid members and providers in our state. Initial Congressional Budget Office estimates indicate this proposal could result in at least 13.7 million people losing health coverage nationwide, making it potentially the largest cut to Medicaid ever.
ERI reports that at least 90% of the people they serve lack access to private insurance through employers. The organization emphasizes that the federal government currently contributes $1.54 to Medicaid for every $1 Wisconsin invests, with federal funding accounting for 65% of total Medicaid spending in the state—approximately $8 billion annually.
If enacted, the proposed policy changes could create substantial budget gaps that Wisconsin cannot fill with state resources alone, potentially leading to:
- Reduced workforce participation as individuals with disabilities choose between their health and employment
- Negative economic impact as Wisconsin loses workers, taxpayers, and consumers
- Elimination of integrated services that enable employment and community participation
Cargile shared the example of Abby, who works at a children’s clothing store and relies on multiple Medicaid-funded services, including job coaching, on-site nursing for ventilator management, and transportation to maintain her employment and participate in the workforce. Without these comprehensive Medicaid supports, Abby would be unable to work.
“These proposals would increase the cost to Wisconsin taxpayers and our health care system without solving anything that members of Congress claim are problems,” Cargile added. “They do not improve Medicaid—they only make it harder for people with disabilities to work.”
ERI is urging legislators to oppose any legislation that would cut federal Medicaid funding or cap per-person spending, and instead support maintaining the federal-state partnership that has made Medicaid successful in enabling employment for people with disabilities.
About Employment Resources, Inc.
Employment Resources, Inc. (ERI) works directly with individuals with disabilities to help them find and maintain meaningful employment throughout Wisconsin.
Media Contact: Kweku-TeAngelo Cargile Jr. Executive Director, Employment
Resources, Inc. Phone: (608) 906-2730 Email: cargile@eri-wi.org
