White House announces all Medicaid programs get Trump-negotiated drug prices

President Donald Trump said Friday that Medicaid programs in all 50 states, Washington, D.C., and Puerto Rico will now benefit from lower prices negotiated by the administration with pharmaceutical companies as part of the president’s most-favored-nation prescription deals.

“This will save states billions and billions of dollars per year on drugs and allow them to invest those savings in providing better healthcare and higher quality services for the American people,” Trump said in the Oval Office.

Trump will announce on Friday that Medicaid programs in all 50 states, Washington, D.C., and Puerto Rico will now benefit from lower prices negotiated by the administration with pharmaceutical companies as part of the president’s MFN prescription deals, administration officials said. 

Since last summer, the Trump administration has made MFN drug pricing agreements with 26 pharmaceutical companies, all of which were made under threat of tariffs to lower their prices in the United States to match those in other developed countries. 

Administration officials have said that a key part of the MFN program has been passing cost savings to each state’s Medicaid program, the joint federal-state funded health insurance program for roughly 74 million low-income or disabled adults and children.

Although each state and territory individually operates its own Medicaid program, the federal government spent roughly $668 billion on Medicaid in fiscal 2025, approximately 9.5% of the total federal budget. 

The announcement of new Medicaid drug prices comes as healthcare costs, and prescription drug prices in particular, have become a central issue in the 2026 midterm election cycle. Medicaid access has also been on voters’ minds as Republicans reduced federal spending on the program by $1 trillion over the next decade as part of their One Big Beautiful Bill Act last summer.

Trump said the estimated $64 billion in savings from the Medicaid drug price reductions “alone should win us the midterms.”

“It won’t because the press doesn’t report it,” Trump said.

Health and Human Services Secretary Robert F. Kennedy Jr. said the savings for states will prevent a “negative feedback loop where the states had to choose between medicine and nutrition, lifestyle prevention.” 

“People were getting sicker and sicker and requiring more medication,” Kennedy said. “It was a negative feedback loop, and we’ve ended that today.”

Govs. Sarah Huckabee Sanders (R-AR), Tate Reeves (R-MS), and Larry Rhoden (R-SD) joined Trump in the Oval Office.

Reeves said Mississippi spends $700 million in state and federal dollars on prescription drugs “for our Medicaid program alone.”

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“This is a big deal,” Reeves said. “When we combine the ability of Mr. President to negotiate and give states the flexibility to operate, big things happen.”

Sanders told the president, “Arkansas celebrates and will be healthier because of your great work.”