The Jed Foundation Condemns Final Passage of the “One Big Beautiful Bill Act” as a Grave Setback for Youth Mental Health

Lawmakers Chose $1 Trillion in Medicaid Cuts, 12 Million People Projected to Lose Health Coverage

New York, NY — The Jed Foundation (JED) today expresses deep alarm and concern at the final passage of H.R.1, the “One Big Beautiful Bill Act,” which now heads to the President’s desk for signature. The legislation includes nearly $1 trillion in cuts to Medicaid, the nation’s largest provider of mental health services, posing an unprecedented threat to the health and well-being of children, teens, and young adults across the country. 

“This legislation is a devastating blow for millions of Americans, revoking their access to mental health care across the country,” said Dr. Zainab Okolo, Senior Vice President of Policy, Advocacy, and Government Relations at JED. “With this vote, Congress has undermined a system that millions of children and their families rely on for mental health care. The cost will be measured in rising crises, deepening despair, and lives we could have saved.” 

Medicaid is a lifeline for American families, currently providing health care coverage for nearly half of all U.S. children. These cuts mean more children and young adults in crisis because there will be fewer places to turn for healthcare, and fewer youth and families able to afford the help they need. 

Key consequences of H.R.1 include: 

• Widespread loss of health coverage: The Congressional Budget Office estimates that up to 12 million people will lose Medicaid coverage. 
  • Decreased funding for hospitals and care providers: H.R.1 restricts how states can fund their Medicaid programs, weakening safety-net hospitals and reducing the availability of care for low-income and underserved communities. 
  • Reduction in the future medical and mental health workforce: This bill eliminates key student loan repayment plans (SAVE, PAYE, ICR), eliminates the Graduate PLUS program, and caps the Parent PLUS loan, leaving potential future doctors, nurses, and other healthcare providers with limited options for financing their higher education. The changes will increase monthly payments and make forgiveness harder to access, discouraging entry into essential and already shorthanded fields like mental health, primary care, and social work. 
  • School-based services at risk: The loss in state Medicaid revenue may force schools to cut counselors, cancel programs, and refer students to already overburdened emergency rooms. This will undo much of the progress made since the passage of the 2022 Bipartisan Safer Communities Act, which helped fund on-site mental health services for schools. 

• The already underserved will be particularly impacted: The negative effects of this bill won’t be felt equally. Children in rural or low-income areas, those in foster care, and LGBTQ+ youth often rely heavily on Medicaid for mental health support. In many rural communities, school-based services are the only mental health care available. Losing these services would make it much harder for young people to get the help they need when they need it most.
• Worsening health outcomes that impact youth mental health: Mental health and physical health are intrinsically linked. With approximately 40% of children having a chronic health condition, access to Medicaid for annual physicals, preventive care, screenings, diagnosis, and treatment is essential not only to prevent more serious illness but to support their emotional well-being.      

Medicaid has long represented a shared national value to provide healthcare coverage to vulnerable people and families who might otherwise be unable to afford it, including children, pregnant women, the elderly, and people with disabilities. 

The recent, rapid decisions by Congress and the Administration — whether advancing harmful legislation like H.R.1 or withholding $7 billion in congressionally appropriated funding for K–12 schools — send a troubling message. Together, these actions threaten to strip children of critical health coverage, school-based supports, after-school programs, and essential access points to mental health care.

“It is painful to see this existing, life-saving system weakened in a way that will result in millions of Americans, including children, losing their preventative and medical care,” said JED CEO John MacPhee. “We are deeply worried about the impact on the well-being and mental health of the youth we serve.” 

The Jed Foundation urges states to do everything in their power to blunt the impact of these federal actions. State leaders must safeguard the programs and supports that children, families, and young people depend on, especially those in rural communities and other underserved populations. Now more than ever, our children need leaders who will choose care over cuts and prioritize their well-being over politics.

At JED, we are deepening our commitment to partnering with states, school systems, and providers to help them mitigate the harms of the new law and protect access to mental health services across communities, schools, and youth-serving programs. With federal resources cut, all those who care about youth mental health must come together to do everything in our power to safeguard the safety net that protects our nation’s young people.

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About The Jed Foundation (JED)
JED is a nonprofit that protects emotional health and prevents suicide for our nation’s teens and young adults. We’re partnering with high schools, colleges, and school districts to strengthen their mental health, substance misuse, and suicide prevention programs and systems. We’re equipping teens and young adults with the skills and knowledge to help themselves and each other. We’re encouraging community awareness, understanding, and action for young adult mental health. 

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Media Contact

Justin Barbo
Director of Public Relations
The Jed Foundation
914-844-4611
justin@jedfoundation.org