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Wisconsin Watch partners with Gigafact to produce fact briefs — bite-sized fact checks of trending claims. Read our methodology to learn how we check claims.

No.

Wisconsin will receive an estimated $1 billion more annually in federal funds for Medicaid because the state budget includes a change that pre-empts a provision in President Donald Trump’s big bill.

Trump’s bill would have prevented Wisconsin from raising its hospital tax.

But days before Trump signed it, the Republican-led Legislature and Democratic Gov. Tony Evers approved a 2025-27 state budget that raises Wisconsin’s hospital tax from 1.8% to 6%.

The increase will raise some $1 billion more annually in federal matching funds that the state can use to pay hospitals for care they provide Medicaid patients.

Wisconsin’s largest Medicaid program is BadgerCare Plus, which provides health insurance to about 1 million low-income people age 64 and under.

Republican U.S. Rep. Derrick Van Orden, who represents western Wisconsin, claimed that Trump’s bill “secured” the $1 billion.

The bill cuts roughly $1 trillion over 10 years from Medicaid, which costs nearly $900 billion annually.

This fact brief is responsive to conversations such as this one.

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Tom Kertscher joined Wisconsin Watch as a full-time reporter in October 2024. He started as a fact checker in January 2023 and contributes to our collaboration with the The Gigafact Project to fight misinformation online. Kertscher is a former longtime newspaper reporter, including at the Milwaukee Journal Sentinel. He is a contributing writer for Milwaukee Magazine and sports freelancer for The Associated Press.