Trump says it’s ‘not possible’ for Washington to fund Medicaid, Medicare: ‘We’re fighting wars.’ How to prepare as costs rise

He extended that logic to major health care programs as well.

“Medicaid, Medicare, all these individual things … You can’t do it,” Trump said during a White House Easter lunch (2). “We have to take care of one thing: military protection — we have to guard the country.”

The remarks come as Republicans weigh potential cuts to federal health spending, while the Pentagon reportedly seeks an additional $200 billion to bankroll the conflict (3).

The tradeoff between war spending and everyday expenses

Trump framed programs like child care and health care as responsibilities that should shift away from the federal government.

“You’ve got to let a state take care of day care, and they should pay for it too,” he said, calling some federal programs “little scams” that should be handled locally (2).

Critics like Elizabeth Warren pushed back on that framing.

“Imagine if instead of funding forever wars in the Middle East, the United States delivered universal child care and health care for all Americans,” Warren wrote on X (4).

Elsewhere, lawmaker Brendan Boyle warned that proposed spending changes could leave millions more Americans without coverage if cuts to programs like Medicaid move forward.

“Now, Republicans in Washington want to rip health care away from even more people to fund Trump’s reckless war in the Middle East,” Boyle wrote on X (5).

“It’s shameful,” he added.

These concerns don’t float in a vacuum. According to the American Psychological Association, cuts will result in 11.8 million individuals losing their health insurance coverage under Medicaid, with another 3.1 million losing out on Medicaid under their marketplace plans (6).

Given that we know American families will be put under pressure by the cuts, the bigger question is how households will absorb those costs if public support shrinks.

What it could mean for your finances

The federal government currently spends about $9,000 per child each year across programs like Medicaid, nutrition assistance and tax credits (7).

Even without any immediate policy changes, the direction of the conversation suggests that families are going to have to take on more costs in the near future, including the following:

• higher child care costs, especially if federal support stalls or shifts to states
• more out-of-pocket health care spending, particularly for those relying on programs like Medicaid
• rising cost of living, driven in part by global instability and energy prices tied to conflict

These are likely to hit many middle-income families hard, especially the households balancing child care, health care and long-term savings simultaneously.

In fact, child care already cost the average U.S. family about $13,000 in 2024 — or a touch over $1,000 a month — for one child (8). If support is reduced, even a $300 increase would add up to $3,600 in additional expenses per year.

Add in higher insurance premiums or medical bills, and that financial strain can quickly multiply.

How to protect your finances as costs rise

When expenses become less predictable, building a financial cushion is often the first step.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That’s ten times the national deposit savings rate, according to the FDIC’s March report.

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.

But while building a cash cushion can help you handle short-term surprises, it doesn’t address every financial risk.

Consider term life insurance to protect your loved ones

As more responsibility for things like child care, health care and household stability shifts onto individuals, protecting your family’s long-term financial security is just as important as building savings — especially in a worst-case scenario.

If you want to ensure your family isn’t hit with unexpected costs after your death, consider signing up for term life insurance from Ethos.

Ethos is rated “Excellent” on Trustpilot and has an A+ rating from the Better Business Bureau (BBB). The platform offers simple, affordable coverage for a set period — typically between 10 and 30 years.

As a licensed third-party insurance administrator, Ethos has joined forces with some of the industry’s top carriers, including Banner Life, TruStage Financial and Ameritas Life Insurance.

Ethos gives you the flexibility to select coverage amounts ranging from $2,000 to $100,000. Premiums start at just $9.80 a month and are guaranteed throughout the term.

You can get coverage in just 10 minutes online or by phone, with no medical exams or blood tests required.

Don’t overlook the cost of long-term care

But protecting your family financially isn’t just about preparing for the unexpected; it’s also about planning for the costs that can come later in life.

Long-term care isn’t cheap. On average, home health aides cost just above $51,000 a year, while nursing home care averages well over $100,000 annually, depending on the level of care (9). And unlike many medical expenses, long-term care is typically not covered by Medicare beyond limited short-term stays.

Long-term care insurance offers coverage for the costs of in-home assistance, nursing homes or assisted living facilities.