Louisiana
President Donald Trump’s budget bill cuts Medicaid. Here’s what it means for Louisiana.
WASHINGTON – During his nearly nine-hour floor speech opposing passage of the Republicans’ One Big Beautiful Bill Act, House Minority Leader Hakeem Jefferies used Louisiana to underscore his argument that the measure harms Medicaid.
The legislation, signed into law Friday, includes tax breaks and increased funding for Republican priorities. It pays for them, partially, by cutting spending by $1.1 trillion over the next 10 years for Medicaid and the Affordable Care Act.
That will lead to 17 million Americans losing healthcare coverage, according to the Congressional Budget Office.
“Louisiana is a state that stands to suffer mightily as a result of this all-out assault on Medicaid,” said Jefferies, D-Brooklyn. He pointed out that the Republican supermajority in the Louisiana Legislature passed a resolution asking Congress not to slash Medicaid because the state, one of the poorest in the nation, simply couldn’t afford the extra costs.
Except for New Mexico, Louisiana has the nation’s highest percentage of residents — one third — on Medicaid, which covers the cost of healthcare for low-income adults, children and seniors. The law eventually could cost Louisiana $4 billion and lead to 267,550 losing their coverage over the next 10 years, according to the Kaiser Family Foundation and other nonpartisan experts.
However, in the frenzy of negotiations other the past few weeks, some of the biggest cuts were delayed for several years.
That includes some of the changes that most alarmed Louisiana health care leaders, such as new restrictions on provider taxes and state-directed payments.
Louisiana’s hospital community, while not exuberant, says the bill could have been much worse had the Louisiana congressional delegation not inserted wording that delayed the changes, said Paul A. Salles, president and CEO of the Baton Rouge-based Louisiana Hospital Association.
State Senate President Cameron Henry, R-Metairie, put it more succinctly in a post on X: “The Senate-passed reconciliation bill is much improved, and Louisiana is in good shape.”
Henry had said a previous version of the bill could have caused a big enough budget problem for Louisiana that the Legislature would need to convene for a special session.
With some of the biggest changes still years out, some in Louisiana health care circles hope changes can be made to blunt the impact of the cuts. Many of those changes won’t take effect until after mid-term elections next year, when the makeup of Congress could change significantly.
How Medicaid could change in Louisiana
Of the $16.4 billion annual Medicaid costs for Louisiana, state taxpayers kick in about $3 billion, according to the Legislature. The new law would halt some of the tools Louisiana uses to pay that $3 billion, requiring the state to pour in extra money or let some people go without health insurance.
Republicans cast the changes as needed to shore up the healthcare programs by ensuring services remain available only for those truly in need.
“A lot of the estimations are far overblown … especially in my district,” said House Speaker Mike Johnson, R-Benton. About 40% of his constituents are Medicaid eligible.
But U.S. Rep. Troy Carter, D-New Orleans, said the bill “represents the largest cuts to health care and nutrition assistance in American history. …It strips support from our hospitals and nursing homes,” threatening to close long-term facilities and rural hospitals. About 38% of Carter’s constituents are Medicaid eligible.
Much of the savings in the new law come from fees the state levies on hospitals, clinics and other healthcare providers. These provider taxes help the state put more money into Medicaid.
Provider taxes also have the effect of increasing the portion the federal government must pay. The new law ratchets down the provider tax rate from 6% to 4.5% over several years. But Louisiana’s rate is 4.6%, so the state has a buffer.
Some of the money raised through provider taxes goes directly to hospitals in what are called state directed payments. One state directed payment sends funds to rural hospitals whose patients – almost half in some parishes – have Medicaid, which doesn’t always cover the cost of services provided.
The new law immediately freezes the size of state directed payments and, starting in 2028, lowers that amount by 10% each year.
The provider tax also is used to boost Medicaid payments to nursing home facilities used by seniors who need long-term nursing care but have run out of insurance and savings, which is about 60% of them in Louisiana. The bill will effectively lower payments to nursing facilities and could cause many to limit patients or close their doors.
State directed programs using provider taxes, such as those for rural hospitals and nursing homes, must be approved by U.S. Centers for Medicare & Medicaid Services, called CMS.
Wording inserted by U.S. Sen. Bill Cassidy, R-Baton Rouge, allows CMS to consider Louisiana’s state directed payment applications already in the pipeline.
“It’s a small change with huge consequences,” Cassidy wrote in a memo to state officials.
As part of the deal to persuade senators to accept restrictions on provider taxes and state directed payments, the Senate created a $50 billion fund to help rural hospitals.
Louisiana hospital officials say the fund will help but the amount is insufficient. But delaying until 2028 allows time for the provisions to be amended.
Work requirements
One of the biggest changes is a requirement that most adults under the age of 65 years work, volunteer or go to school at least 80 hours a month. The states will have to verify eligibility twice a year rather than every 12 months beginning in 2027.
KFF Health, a respected San Francisco-based nonpartisan health care thinktank, says relatively few people who receive Medicaid are able to work but choose not to.
KFF found that 69% of Louisiana Medicaid population is working and most of the 31% who are not working are disabled, elderly, or provide care for a sickened family member or are covered under the exemptions included in the law.
The issue with the work requirement, said U.S. Rep. Cleo Fields, is the amount of paperwork and effort required to remain qualified. States that have tried work requirements ended up forcing qualified recipients off Medicaid rolls.
“It sounds good,” said Fields, D-Baton Rouge. But the data shows more people lose their qualifications from being unable to quickly track down the appropriate supporting documents, such as proof of previous jobs.
The Louisiana Department of Health, which will handle the increased vetting, did not respond to inquiries. But LDH officials told hospital and congressional representatives that a more technologically advanced system is being put in place to handle the qualification process more efficiently and will be ready by 2027, when those requirements go into effect
The new law also will charge a small co-pay to some enrollees, particularly those in families of four with incomes between $32,000 to $44,000 annually, for most provider visits except for primary care and some other services.
People who buy private insurance using federal subsidies under the Affordable Care Act will have to sign up during a narrower window from November 1 to December 15.
“For the first two years, we’ll be fine, but at some point that third year is going to come,” Fields said. About 37% of his constituents are Medicaid eligible.
“It doesn’t negate the fact that soon people who use Medicaid are going to lose their healthcare benefits and many of the hospitals, particularly rural hospitals, will close,” he added.
NEW ORLEANS (WGNO) — For the fifth consecutive year, the Louisiana Children’s Museum hosted its annual environmental festival, Mud Fest, on Saturday, March 28.
From 10 a.m.-4 p.m., parents and their little ones had the opportunity to have fun in the sun and enjoy the “highlight” of the museum’s spring season.
This event was inspired by the iconic New Orleans festival culture which includes good food, live music and a nice, high-energy atmosphere. Mud Fest is tailored for the “youngest environmental stewards” to have fun and make all the mess they want with mud.
Due to the Crescent City being surrounded by wetland habitats, we interact with water daily in both our rural and urban communities.
The festival generates positive associations with our region and also builds critical thinking skills for future educators, engineers, fishermen and farmers. According to LCM, engaging with nature, water and plants “builds a child’s confidence and fosters a lifelong connection to the Earth.”
“As the Louisiana Children’s Museum celebrates its 40th anniversary, events like Mud Fest reflect our long-standing commitment to hands-on learning that sparks curiosity and connects children to the world around them,” LCM CEO Tifferney White said.
This year, Mud Fest had performances from young musicians of the School of Rock, the Louisiana Sunspots and more. There were also a storytelling stage and various family-friendly activities for visitors to engage in.
Mud Fest partnered with Pontchartrain Conservancy, STEM NOL, Whimscapes and Sugar Roots to put on the event.
Stay up to date with the latest news, weather and sports by downloading the WGNO app on the Apple or Google Play stores and by subscribing to the WGNO newsletter.
Latest Posts
Lana Del Rey has enjoyed a low-key life with her gator tour guide husband Jeremy Dufrene in Louisiana and the talented singer recently gave an intimate peek into their relationship.
The 40-year-old Young And Beautiful hitmaker (born Elizabeth Grant) took to her Instagram to post a gallery celebrating the swamp guide’s 51st birthday.
The couple looked just as in love as ever following their wedding in September 2024.
Del Rey shared several recent videos from their modest life together including a cute selfie of the couple by the ocean while she let her natural beauty show by going make-up free.
She also posted a cute video of Dufrene loading up the truck with plants they had just purchased from Home Depot and when he realizes he is being filmed, the Louisiana native flashed a big smile and proudly posed with a Jack-o’-lantern pot.
Del Rey also shared a snap of her hand gripping his wrist as her massive engagement ring could be seen in full view.
Lana Del Rey has enjoyed a low-key life with her gator tour guide husband Jeremy Dufrene in Louisiana and the talented singer recently gave an intimate peek into their relationship as she shared a tribute to him on his 51st birthday
Another snap showed Del Rey wearing one of Dufrene’s tour guide shirts featuring his name embroidered above the pocket.
Weeks ago the musical artist gave what appeared to be a glimpse into her married life in her new video.
Del Rey’s Insta Stories video opened with footage from the 1933 Betty Boop cartoon Snow-White, though it focused on a section starring the character Koko the Clown as he’s turned into a ghost.
Then the video abruptly cut to shaky handheld footage of Del Rey dancing with an ecstatic smile plastered on her face.
The two have kept a relatively low profile since their wedding day but did make a notable appearance last month at the pre-New York Fashion Week Ralph Lauren show on February 10.
The happy couple even stopped for a romantic kiss as they walked the red carpet for the iconic designer.
The couple first met in 2019 during one of Dufrene’s swamp excursions and reconnected years later, before tying the knot in September 2024.
In August, Del Rey revealed how she fell for her husband, a Louisiana bayou tour guide who spends his days surrounded by alligators.
Join the debate
What do you think Lana Del Rey’s choice to marry a swamp guide says about fame and real love?
She posted a cute video of Dufrene loading up the truck with plants they had just purchased from Home Depot and when he realizes he is being filmed, the Louisiana native flashed a big smile and proudly posed with a Jack-o’-lantern pot
Del Rey also shared a snap of her hand gripping his wrist as her massive engagement ring could be seen in full view
Another snap showed Del Rey wearing one of Dufrene’s tour guide shirts featuring his name embroidered above the pocket
Del Rey also posted a video of the cover of their wedding album
‘Like many people who work with large, dangerous beasts, Jeremy has a calm, strong presence,’ Del Rey told W magazine.
‘When we met, I realized pretty immediately that I loved him, but that it might get difficult because of what I was bringing to the table,’ she continued.
Del Rey added that Dufrene reassured her from the start: ‘I work with alligators — I have tough skin.’
And true to his word, he listened through all the drama: ‘All the things that made me upset — and there were so many! — he would just listen and say, “You be you — and I’ll just love you more.”’
Weeks ago the musical artist gave what appeared to be a glimpse into her married life and her new video
The two have kept a relatively low profile since their wedding day but did make a notable appearance last month at the pre-New York Fashion Week Ralph Lauren show on February 10
The happy couple stopped for a romantic kiss as they walked the red carpet for the iconic designer
The couple first met in 2019 during one of Dufrene’s swamp excursions and reconnected years later, before tying the knot in September 2024
Tying the knot in 2024 didn’t make the spotlight any gentler.
Del Rey recalled the intense scrutiny they faced, with drones reportedly hovering over their home to snap photos of their wedding and early days as newlyweds.
‘If I was him, I would have been nervous — my emotions were more overwhelming than usual, and my usual emotions can be quite overwhelming!’ she said with a laugh. ‘But Jeremy was fine. He told me, “Don’t worry about me.”’
And when it comes to music inspired by love, fans have already heard a peek. ‘Stars Fell on Alabama. I open my show with that song — that’s it, so far,’ she revealed.
‘Jeremy is the most impactful person in my life. He’s quiet in public, but around me he talks all the time.’
Louisiana
Meta orders 10 gas-fired power plants for its Hyperion AI campus in rural Louisiana—more than triple the initial plans | Fortune
Meta will pay for a total of 10 gas-fired power plants—enough to power more than 5 million homes—to electrify its rapidly expanding plans for its massive AI data center complex in northeastern Louisiana, dubbed Hyperion.
Meta’s agreement with New Orleans–based Entergy, announced March 27, is to build and finance seven new power plants in Louisiana. That comes on top of plans approved last year to build three gas power plants for the sprawling AI hub. The 10 power plants with 7.5 gigawatts of capacity would represent a more than 30% increase to Louisiana’s entire grid capacity, not even counting up to 2.5 gigawatts of renewable energy capacity, including battery storage, that Meta also agreed to help fund.
Meta initially announced plans for a $10 billion investment in December 2024 for a 2,250-acre data center campus in northeastern Louisiana in rural Richland Parish. But Meta recently, and quietly, acquired an additional 1,400 acres, as Fortune reported in February. In October 2025, Meta entered a joint venture with funds managed by Blue Owl Capital to finance, build, and operate the Hyperion campus with up to $27 billion in total development costs, seemingly ensuring the mega-campus will serve as a long-term, multiphase AI hub.
Meta CEO Mark Zuckerberg has said Hyperion would cover a “significant part of the footprint of Manhattan.”
“Our Richland Parish data center serves as a symbol of the ambition and scale of next-generation AI infrastructure,” said Rachel Peterson, Meta vice president for data centers, in a statement. “We are building foundations for the future of AI innovation right here in the United States. We’ve been working closely with Entergy since early on-site planning to ensure our power needs are met and, importantly, so that Entergy’s other consumers aren’t paying our costs.”
The Louisiana Public Service Commission will still need to approve the projects. The previous three power plants received regulatory authorization last year.
Entergy’s stock jumped 7% on March 27, lifting its market cap to a new record high of about $50 billion. The stock has risen almost 125% in two years.
Entergy is emphasizing that Meta is paying for the projects, rather than shifting the costs to other ratepayers. Entergy argues that the deals will save Louisiana taxpayers billions of dollars over several years.
The 10 power plants are estimated to cost nearly $11 billion. Critics contend ratepayers could be stuck with the bill after 15 years, which is the length of the contractual terms, if Meta no longer requires so much power after that span.
“This agreement reflects what’s possible when strong partners align around long-term growth and value,” said Phillip May, president and CEO of Entergy Louisiana, in a statement. “Working with our customers, regulators, and state leaders, we are making targeted investments that strengthen reliability, support economic development, and deliver meaningful benefits to customers—all while keeping energy rates affordable.”
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