President Donald Trump said the federal government cannot afford to fund child care, Medicare, and Medicaid [1].
These remarks signal a potential shift in federal fiscal priorities, suggesting that the administration may seek to move the financial burden of social services from the federal government to the states.
Trump made the comments during a private Easter luncheon at the White House on April 1, 2026 [2]. He said that the U.S. cannot afford to maintain these programs while the nation is engaged in military conflicts [3]. Specifically, he said it is not possible to afford child care and Medicare amid a war with Iran [4].
"It's not possible for the United States to pay for Medicaid, Medicare, and daycare," Trump said [5].
Trump said that federal funds are required for military spending and ongoing wars [3]. Because of these priorities, he said the federal government has no money remaining for social programs like child care [3]. He said that states should be responsible for the funding of daycare services [1].
"We can't afford to fund child care, Medicare, and Medicaid while we're fighting wars," Trump said [6].
These statements contrast with other reports suggesting the administration is advancing policies to reduce child care costs for low-income families [7]. However, the remarks made during the luncheon emphasize a belief that federal resources are overextended by military obligations.
"It's not possible for the US to afford child care, Medicare amid Iran war," Trump said [4].
“"It's not possible for the United States to pay for Medicaid, Medicare, and daycare."”
The President's comments suggest a strategic pivot toward 'guns over butter' fiscal policy, prioritizing national defense and foreign interventions over the domestic social safety net. By suggesting that states take over child care funding, the administration may be preparing the public for significant cuts to federal entitlements and a redistribution of social service responsibilities to state governments.
