Republican Tax Law Cuts Essential Programs for Arizona Veterans

Veterans often deal with unique challenges in the transition to civilian life. Some may experience service-related conditions such as traumatic brain injuries and post-traumatic stress disorder. Others struggle with housing instability, food insecurity, or finding employment. Programs like Medicaid, SNAP, and the Affordable Care Act health insurance tax credits can help veterans afford health care and put food on the table. However, recent changes stemming from the Republican Tax Law are weakening these programs, leaving veterans in the lurch. 

42,000 Arizona Veterans Risk Losing Medicaid

Medicaid and the Arizona Health Care Cost Containment System (AHCCCS) have a critical role to play in keeping veterans healthy. But recent federal Medicaid cuts are disrupting Arizona’s health care system, creating new challenges for patients and providers alike. 

In July 2025, Congress enacted the Republican Tax Law (H.R. 1), which included the largest Medicaid cuts in history – nearly $930 billion over the next decade. These cuts are being used to finance tax breaks disproportionately benefiting wealthy households and big corporations, while putting health care at risk for millions of Americans, including veterans.

Stakes are high for Arizona’s near-half million veterans. In Arizona, 42,100 veterans—about 10 percent of the state's veteran population—are enrolled in Medicaid, making Arizona tied for the sixth-highest state for veteran Medicaid enrollment in the country. Nationwide, one in ten veterans relies on Medicaid for health coverage, and often, it is their only source of insurance. While some veterans do qualify for VA health care or TRICARE, eligibility is limited. 1.6 million veterans nationally rely on Medicaid because they do not qualify for those programs or require additional coverage.

Veterans enrolled in Medicaid may have significant health issues. Many use Medicaid in tandem with Medicare to access services that are not otherwise covered, such as long-term care. Nearly half of this veteran population reports their health to be fair or poor, and nearly half live with a disability affecting their hearing, vision, mobility, or ability to live independently. Veterans also experience disproportionately high rates of chronic illness, including substance use disorders.

The Republican Tax Law’s new eligibility requirements for Medicaid make coverage precarious for many veterans. While 68 percent of working-age veterans enrolled in Medicaid are employed, others risk losing coverage due to disability, chronic illness, or difficulty navigating reporting requirements.

At the same time, veterans are becoming more reliant on Medicaid. The Affordable Care Act’s Medicaid expansion made coverage available for adults with incomes up to 138 percent of the federal poverty level, which significantly reduced the uninsured rate among veterans. The amount of uninsured veterans fell from 6 percent to 2 percent over a decade. For this expansion group, Medicaid coverage was a lifeline – one which is now hanging in the balance. 

31,000 Arizona Veterans May See SNAP Cuts

Not only are veterans at risk of losing health coverage – the Republican Tax Law also made major changes to SNAP by shifting a large scale of program costs onto states. States are responding by tightening eligibility requirements and making enrollment more difficult, effectively ending SNAP benefits for millions. 

These changes have serious implications for veterans. Veterans who struggle with finding a job, finding housing, or affording health care are more likely to rely on SNAP to afford food. In 2025, 1.2 million veterans across the country lived in households receiving SNAP benefits. Among them, 40 percent were 65 and older, and 41 percent had a disability.

Arizona’s veterans are particularly vulnerable to these changes. About 31,000 Arizona veterans, or 7 percent of the state’s total veteran population, received SNAP benefits in 2025.

The impact of the Republican Tax Law is already becoming apparent. SNAP enrollment in Arizona has fallen by at least 51 percent since the law passed, the most significant decline of any state. Nationwide, an estimated 300,000 veterans, people experiencing homelessness, and former foster youth are expected to lose benefits in a typical month because they are no longer exempt from harsh SNAP eligibility requirements.

Arizona Veterans Face Higher Health Care Costs And Lost Coverage In 2026 

The expiration of the enhanced Affordable Care Act (ACA) premium tax credits at the end of 2025 also affects veterans’ health coverage by raising premiums and even forcing veterans to make difficult decisions about whether they can afford insurance. These tax credits helped millions of Americans purchase health insurance through the ACA Marketplace, including veterans who are not covered through the VA, TRICARE, or their job. Most Congressional Republicans supported the expiration of these credits.

Marketplace coverage is especially important for people who are self-employed, work part-time, have multiple jobs, or otherwise do not have access to employer-sponsored health insurance. In Arizona alone, 378,185 people received premium tax credits to help lower the cost of their monthly health insurance premiums in 2025.

These tax credits had been temporarily expanded in 2021, making coverage more affordable for millions of families in response to rising health care costs from COVID-19 and other economic factors. But Republicans in Congress allowed those enhanced credits to expire at the end of 2025, resulting in premium increases for millions of Marketplace enrollees.

With coverage becoming more expensive, many veterans and their families will need to choose between paying higher premiums and going without insurance altogether. Recent reports find that 5 million people dropped ACA coverage because they could not keep up with the skyrocketing cost of health care. Nationwide, an estimated 267,000 veterans could lose health coverage as a result of the expiration of these enhanced tax credits.

Losing coverage may mean delaying preventative care, skipping medications, or forgoing treatment altogether. For veterans with chronic conditions or disabilities, these coverage losses may have serious consequences for their health.