Threatened Medicaid cuts would hobble Iowa’s child-care workforce
May 7th, 2025 by Ric Hanson
(Iowa News Service) – A new report by the Georgetown University Center for Children and Families says the Trump administration’s proposed cuts to Medicaid would hobble Iowa’s child-care workforce, where nearly 38-percent of employees who work in the sector rely on federal benefits. Common Good Iowa Executive Director Anne Discher says cuts to Medicaid would further cripple already low child-care worker wages in the state.
Most states, including Iowa, would face a choice between raising taxes to make up for the Medicaid shortfall and reducing education spending, which is the largest share of Iowa’s budget.

Beautiful teacher and group of toddlers sitting on the floor drawing using paper and pencil around lots of toys at kindergarten
The National Association for the Education of Young Children’s Daniel Hains says nationwide, child cares costs are rising for families and the programs that provide services, especially over the past year.
K-F-F Health data show Iowa stands to lose about 731-million dollars in Medicaid funding if the Trump administration cuts are enacted. The administration says it is working to follow through on a campaign promise to lower government spending.