The Jed Foundation Warns of Devastating Youth Mental Health Impact as Senate Advances “One Big Beautiful Bill”

Urges Lawmakers to Reject nearly $1 Trillion in Medicaid Cuts 

New York, NY — The Jed Foundation (JED) today issued a stark warning following the Senate passage of H.R. 1, the “One Big Beautiful Bill Act,” a reconciliation package that includes nearly $1 trillion in cuts to Medicaid and other vital youth mental health supports. As the bill heads toward a final vote in the House, JED is urging Congress to protect Medicaid and Children’s Health Insurance Program (CHIP) access for children, teens, and young adults, warning that the proposed changes pose a direct threat to the safety and well-being of our nation’s youth. 

“Medicaid is the single largest payer of mental health care in this country,” said Dr. Zainab Okolo, Senior Vice President of Policy, Advocacy, and Government Relations at The Jed Foundation. “We cannot meaningfully address youth mental health while cutting off access to the very system that delivers care. These changes would roll back hard-won bipartisan progress, jeopardizing school-based services, shrinking provider networks, and disenrolling millions of families not because they’re ineligible, but because of funding cuts and new bureaucratic barriers. It’s a step backward that will place millions of youth and their families at risk nationwide.”

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

The consequences for youth mental health will be severe: 

• Millions will lose their Medicaid coverage: States would be required to implement new eligibility verification systems and community engagement requirements. The burden will fall on parents to complete Medicaid eligibility and verification paperwork every six months for themselves and their children. The Congressional Budget Office estimates that these provisions would result in 12 million people losing coverage, many due to paperwork barriers rather than changes in eligibility. JED is particularly concerned that low-income youth, including the 40% of rural children and 38% of urban children covered by Medicaid, will lose vital access to mental health services.
  • Hospitals will suffer: H.R. 1 significantly decreases the revenue states can collect for Medicaid through taxation of healthcare providers. While H.R. 1 includes a $50 billion fund for rural hospitals, this only addresses part of the shortfall, as the majority of hospitals will struggle to absorb the costs. 
  • School-based services will be 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+ young adults often rely heavily on Medicaid for mental health support. For rural communities, in particular, school-based services may be 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 will impact youth mental health: Mental health and physical health are intrinsically linked. At a time when roughly 40% of children have a chronic health condition, access to Medicaid for annual physicals, preventive care, screenings, diagnosis, and treatment is essential to protecting children’s health and preventing more serious illness. Supporting youth in managing their conditions also supports their emotional well-being.      

JED calls on lawmakers to uphold the bipartisan commitment to youth mental health made in recent years and remove harmful Medicaid restrictions from the final version of the bill. JED will continue to provide programming and advocate for policies that ensure access to care, reduce suicide risk, and equip youth and families with the tools they need to thrive.

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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
Justin@jedfoundation.org