Evers administration estimates 'Big Beautiful Bill' will cost state $142 million per year

MILWAUKEE (CBS 58) -- A report compiled by Gov. Tony Evers' administration estimates the One Big Beautiful Bill Act will cost Wisconsin $142 million per year once it is fully implemented.
The report, based on analysis from the Wisconsin Department of Health Services (DHS), cites costs tied to the state having to grow efforts to help people meet expanded work requirements to qualify for Medicaid health coverage and also cover a bigger share of costs related to distribution of food stamps.
Last month, a DHS report estimated additional red tape tied to expanded eligibility checks would lead to more than 270,000 Wisconsinites losing their health care coverage currently obtained through either Medicaid and the Affordable Care Act.
According to DHS, about 20% of all Wisconsin residents are covered by the state's Medicaid programs, which include BadgerCare Plus, the Children's Long-Term Support Program, Family Care and IRIS.
The Evers administration estimates 63,000 Wisconsinites will be at "immediate, high risk" of losing coverage tied to a new requirement that recipients between the ages 19 of 64 who don't have a child 18 or younger must report 80 hours per month of either working, training or volunteering.
DHS claims it will cost $72.4 million per year to expand training and employment search services to Medicaid recipients needed to meet the new requirements. The training would be similar to services already provided to help people receiving FoodShare benefits, which come with state-imposed work search requirements.
While the new requirements will create more costs for the state, the idea of job search requirements is widely supported by Wisconsin voters. In a 2023 advisory statewide referendum, nearly 80% voted yes on a question asking whether able-bodied, childless adults should have to look for work in order to receive taxpayer-funded benefits.
Another change in the federal bill, which Republicans passed earlier this summer without a single Democratic vote, extends work search requirements for food assistance to adults through the age of 64 without children 13 or younger. Previously, the requirements applied to adults through the age of 54 without children 17 or younger.
The federal bill also forces states to cover more of the costs related to the Supplemental Nutritional Assistance Program, known as SNAP.
Previously, the federal food assistance program called for states to cover 50% of the costs related to administering SNAP. Now, states will be required to cover 75% of those administrative costs, beginning in October of 2026.
Historically, the federal government has paid the entire cost of SNAP benefits. Under the 'Big Beautiful BIll,' states become responsible for 5-15% of SNAP costs if their payment error rate is higher than 6%. According to DHS, in Wisconsin, the FoodShare error rate in 2024 was 4.47%.
DHS estimates the shift will cost the state and its counties about $43.5 million per year. In the current 2025-27 state budget, DHS claims the state will need to come up with a total of $69.2 million to pay for increased administrative costs and hire 56 new workers to keep the state's error rate under 6%.