2. April 2026

Trump: It's 'No Longer Possible' For the U.S. to Pay For Medicare, Medicaid: 'We’re Fighting Wars'

WASHINGTON-- President Donald Trump said Wednesday that it is “not possible” for the federal government to fund programs such as Medicare, Medicaid and child care, arguing that responsibility for those services should shift to the states while Washington prioritizes military spending.

Trump made the remarks during a private Easter luncheon at the White House, where he also accused some Democratic-led states of fraud tied to federal benefits programs.

According to video later posted — and subsequently removed — by the White House, Trump said he had directed Office of Management and Budget Director Russell Vought to withhold federal funding for child care.

“Don’t send any money for day care, because the United States can’t take care of day care,” Trump said. “That has to be up to a state. We’re a big country. We have 50 states. We’re fighting wars. You have to let the states take care of it, and they should pay for it too.”

Trump added that states could raise taxes to cover the cost of such programs, suggesting the federal government might offset the shift with tax adjustments.

“It’s not possible for us to take care of day care, Medicaid, Medicare — all these individual things,” he said. “They can do it on a state basis. We have to take care of one thing: military protection.”

The luncheon was closed to the press, though the White House initially published video of the remarks on its YouTube channel before removing it.

In a statement, White House spokesperson Olivia Wales said Trump was referring to efforts to eliminate fraud within federal programs, not to dismantle them.

“The president was referring to rooting out the billions of dollars of fraud in these vital programs — and his record proves he will always protect and strengthen Social Security, Medicare and Medicaid,” Wales said. She added that Trump has backed policies aimed at lowering costs for Americans and limiting benefits to eligible recipients.

The federal government currently provides significant funding to states to support child care for low-income families through programs such as the Child Care and Development Block Grant and Temporary Assistance for Needy Families. For years, Democrats have pushed for expanded federal support, including proposals to cap child care costs and broaden access to early education.

Legislation introduced last year by Sen. Patty Murray of Washington and Rep. Katherine Clark of Massachusetts would cap child care expenses at 7% of household income for many families while expanding access to early learning programs.

Trump’s comments drew swift criticism from Democrats, some of whom contrasted his position on domestic spending with the cost of U.S. military operations abroad. The ongoing U.S. campaign in Iran, for example, exceeded $11 billion in its first six days last month, according to estimates cited by lawmakers.

“Trump says we can pay for war in Iran but can’t afford child care,” Rep. Ro Khanna, D-Calif., wrote on X. “The billions spent in Iran could fund affordable child care for families across the country while ensuring fair wages for workers.”