Illinois Economic Policy Institute: Federal Policies to Result in $10 BN Hit to State GDP

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There have been a lot of think tank studies over the last few months that have attempted to calculate the economic impact of the Trump administration’s policies on the states. A new report by the Illinois Economic Policy Institute (IEPI) is the most recent one of this genre. The study estimates that by 2029, the administration’s policies will result in a $10 billion reduction in state GDP, an 86,000 decrease in total employment, and a drop in state tax revenues of over $540 million annually. According to the IEPI, the changes to Medicaid will be the largest driver of these declines, accounting for reductions of $4 billion in GDP, 35,000 in employment, and $244,000 in state tax revenues in 2029.

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