Letter to Members of Congress

February 27, 2025

Dear Members of the 119th Congress,

We write to express our deep concern about the economic consequences of the budget proposals under debate. A strong economy is built on stability, opportunity, and investment in the people and businesses that drive growth. The federal budget should create the conditions for upward economic growth - one where businesses, entrepreneurs, investors, and, most importantly, workers can prosper. Instead, the proposed budget creates uncertainty and instability, undermining the very foundation of economic progress.

Investing in a Strong Workforce

Medicaid and other essential programs are not just safety nets; they are economic engines. They ensure that millions of American workers stay healthy and productive, allowing them to contribute to their families, their workplaces, and their communities. When healthcare access declines, productivity suffers, absenteeism rises, and businesses bear the cost of lost workdays. That burden does not disappear—it shifts to emergency rooms, state budgets, and small businesses that rely on a stable workforce.

Supporting Local Businesses and Economic Growth

Small businesses—the backbone of our economy—depend on consumer demand to grow and hire. Many moderate and middle-income workers rely on Medicaid for healthcare security, allowing them to stay in the workforce and participate fully in the economy. Cutting these supports doesn’t just impact individuals; it reduces consumer spending, shrinks local economies, and forces small businesses to make difficult choices that can lead to layoffs or closures.

Creating Stability, Not Uncertainty

States rely on federal funding to repair roads and bridges, educate their kids, and provide public services that create jobs and sustain economic momentum. When these investments are cut, states are forced to fill the gap—often through higher taxes, reductions in essential services, or missed opportunities for economic development. Rural and struggling communities in all 50 states, which already face economic barriers, will be hit hardest by these cuts, widening the gap between thriving regions and those falling further behind.

A Better Path Forward

A budget should not simply be about cuts; it should be about creating conditions for long-term prosperity. A strong economy requires strategic investments in people, businesses, and communities. By prioritizing stability, workforce strength, and business growth, we can ensure that the American economy continues to expand—assuring jobs are available, strengthening small businesses, and reinforcing the global competitiveness of American industry.

We urge Congress to adopt a balanced approach—one that protects fiscal responsibility while fostering economic opportunity. We stand ready to work with you to develop a budget that strengthens local businesses, supports working families, and ensures that every American has the opportunity to contribute to and participate in a thriving economy.

Signed,

Michael W. Frerichs, Illinois State Treasurer

Deborah B. Goldberg, Massachusetts State Treasurer and Receiver-General

Julie Blaha, Minnesota State Auditor

Fiona Ma, California State Treasurer

Zach Conine , Nevada State Treasurer

James Diossa, Rhode Island General Treasurer

Laura Montoya, New Mexico State Treasurer

David L. Young, Colorado State Treasurer

Mike Pieciak, Vermont State Treasurer

Erick Russell, Connecticut Treasurer

Brooke Lierman, Maryland State Comptroller

Mike Pelliciotti, Washington State Treasurer

Elizabeth Steiner, Oregon State Treasurer

Joseph C. Perry, Maine State Treasurer