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

President Donald Trump is expected to announce new, lower prescription drug prices for Medicaid programs across the country.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 “most favored nation” 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.ELIZABETH WARREN GRILLS RFK JR. AIDE ON DRUG PRICING DEALS: ‘SHOW ME THE RECEIPTS!”Several governors are expected to join Trump in the Oval Office on Friday afternoon to announce the new MFN pricing that the administration says will reduce costs for the strained healthcare program, a White House spokesperson confirmed for the Washington Examiner. “Today’s announcement confirms that every state Medicaid program will save billions on prescription drug costs thanks to President Trump,” the White House official said. This is a developing story and will be updated.