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CHEYENNE—In a budget markup session Tuesday, the Wyoming Legislature’s Joint Appropriations Committee moved to strip tens of millions of dollars in requested fund increases from the Wyoming Department of Health budget.

Led by Rep. John Bear, R-Gillette, and members aligned with the Wyoming Freedom Caucus, the JAC’s actions were rooted in a desire to stop the acceleration of government growth, even as some lawmakers warned the cuts could trigger costly lawsuits and harm the state’s most vulnerable citizens.

This division was showcased during the discussion of a $58 million reduction in federal spending authority for the Indian Health Service, a federal program responsible for providing health services and programs for Native Americans. The funds were intended to cover federally mandated All-Inclusive Rate increases for tribal medical facilities. 

Because the money is 100% federal funds, the cut does not save the state’s general fund any money, yet it prevents tribal facilities from receiving the higher reimbursement rates required by the federal government.

The move sparked strong pushback from some committee members. 

Sen. Ogden Driskill, R-Devils Tower, warned that the refusal to adopt mandated rates was a legal land mine.

“Some of these actions are going to lead to lawsuits that probably cost us more money than it does save money,” Driskill said, adding that the state has a constitutional obligation to care for those who cannot care for themselves. “What you’re doing is denying health care. If that’s what you want to do, you own it.”

Sen. Mike Gierau, D-Jackson, echoed these concerns, noting that medical costs are rising for everyone.

“I understand the theory about stopping [government] acceleration … but what you’re doing is, while trying to slow down the train, you’re throwing our tribal members under it,” he said, calling the proposed cuts “draconian.”

Rep. Ken Pendergraft, R-Sheridan, who proposed many of the day’s largest cuts, defended the stance by quoting a Ronald Reagan fiscal philosophy.

“We have become addicted to government intervention, and a lot of people have become dependent upon government,” he said.

Pendergraft argued that his motions were necessary to prevent a future fiscal “wreck” by slamming the brakes on spending increases now.

Chairman Bear supported this view, stating, “Any time you increase spending in government, any time you are putting a burden on the taxpayer … somebody needs to look out for the taxpayer.”

The JAC voted to remove the $58 million in exception funds requested by the health department. The Indian Health Service did not respond to a request for comment before publication time.

This anti-acceleration strategy extended to maternity and OB services. Lawmakers voted to deny an $8.5 million general fund increase and an $8.5 million federal match intended to raise reimbursement rates to 100% of cost for Critical Access Hospitals that maintain labor-and-delivery units.

Driskill criticized the cut as a “death by 1,000 cuts” that would force expecting mothers to deliver in neighboring states like Utah or South Dakota.

“If there’s not maternity care, you’re not going to live in Wyoming,” he said. “… It’s painful to go through withdrawal. It’s also painful to kill your state one piece at a time, and we’re working on that.”

However, Rep. Abby Angelos, R-Gillette, argued that reimbursement rates weren’t the root issue, pointing instead to malpractice insurance costs. She suggested that funding might be found elsewhere, specifically through the Rural Health Transformation Program. At the end of 2025, Wyoming was awarded $205 million in federal funds for the first year of the five-year program.

The committee also approved several other multi-million-dollar cuts, including removing $344 million in federal funds for the Rural Health Transformation Program from the biennium budget, with the intent to run it as an independent bill to ensure legislative oversight.

Noah Zahn is the Wyoming Tribune Eagle's city and county government reporter.

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