Statement from Lutheran Services in America on federal budget

Our colleagues at Lutheran Services in America offer the following public statement on H.R. 1, the recently passed Budget Reconciliation package, aka One Big, Beautiful Bill Act.

As many of you know, the budget reconciliation bill—including nearly $1 trillion in Medicaid cuts—was passed by Congress and signed into law last week. While this is not the outcome we had hoped for, we know our shared leadership will be essential in the days, weeks, and months ahead as implementation begins.

At the same time, there is some good news:

Our Here We Stand campaign showed what’s possible when we come together as a network. In just a few short months, we mobilized across states and sectors—lifting up the voices of older adults, people with disabilities, children, families, and caregivers. Together, we amplified the mission and values that unite us and demonstrated the power of our collective voice.

Thanks to your leadership and engagement, Lutheran Services in America was able to:

• Push back on harmful provisions—and see some of them removed from the final legislation.

• Meet directly with lawmakers from both parties—shaping conversations around the real-life impact of proposed cuts.

• Build strategic alliances with national coalitions to defend Medicaid and protect nonprofit interests.

Our Public Statement

“Lawmakers have chosen flawed policy and politics over people. This bill will deepen the strain on caregivers, overwhelm service providers, and force states into impossible choices. We urge leaders to work with nonprofit partners to find practical, people-centered solutions. Lutheran Services in America and its members will keep showing up—grounded in faith, committed to service, and walking alongside our communities in this time of uncertainty.”

Read and share the full statement here.

What’s In the Bill

• $1 trillion in Medicaid cuts projected to leave 17 million fewer people insured over the next decade.

• Inclusion of a non-itemizer charitable deduction—a long-standing priority for our sector ($1,000 for individuals / $2,000 for joint filers).

• Exclusion of two harmful nonprofit provisions we strongly opposed:

• A clause threatening nonprofit status based on vague “affiliations,” and

• Expanded UBIT requirements for transportation and fringe benefits.

The Road Ahead

This is a hard moment—but we are not powerless. As we said in our statement:

“We are grounded in faith and committed to service. That won’t change. But the work will get harder, and the consequences will be real.”

The path forward will test our systems, stretch our workforce, and place even greater demands on caregivers and communities. But it will also call us to what we do best: showing up for those who need us most.

We will continue to urge public officials at all levels to work with nonprofit partners—not around us, but alongside us—to find practical, people-centered solutions. And at Lutheran Services in America we’ll keep doing our part, including by:

• Strengthening public-private partnerships

• Elevating the voice of our network

• Empowering leaders with the tools and community to lead in times of uncertainty

• Among other opportunities to strengthen durable collaborations at the local, state and federal levels.

Our mission has never been more urgent. Our work has never been more needed. And through it all, we’ll walk together—with courage, and steadfast commitment. 

This work doesn’t happen without us—all of us. We have work to do. And the good news? We’ll do it together.