Senate Resolution No. by Senator Cathey urges the federal government, including Congress and the Centers for Medicare & Medicaid Services (CMS), to reconsider any policies that may lead to reductions in Medicaid funding for Louisiana's forty-nine rural hospitals. The resolution highlights the critical role these hospitals play in providing essential healthcare services to rural communities, particularly in light of a Presidential Memorandum issued on June 6, 2025, which is projected to result in a significant reduction of approximately $120 million, or 21%, in annual funding for these facilities. Such cuts could exacerbate existing challenges faced by rural hospitals, including workforce shortages and financial instability, potentially leading to service cutbacks or closures that would disproportionately impact vulnerable populations.

The resolution emphasizes the importance of maintaining current levels of Medicaid funding to ensure continued access to comprehensive healthcare services in rural areas of Louisiana. It calls for collaboration between state and federal governments to address healthcare disparities and the unique challenges faced by rural communities while safeguarding the financial stability of rural hospitals. The resolution also requests that copies be sent to key federal officials to encourage active engagement in developing solutions that meet the healthcare needs of rural populations.