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The Spectrum Dispatch

Policy & Systems

The Disability Squeeze: What Happens When Rights Shrink and Medicaid Funding Tightens?

Part 3 of The States Behind Texas v. Kennedy

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The Spectrum Dispatch
Jun 08, 2026
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woman sitting on gray wheelchair
As states weigh disability obligations and federal policymakers consider Medicaid changes, families are watching closely to see how future decisions could affect critical support services.

For months, disability advocates have focused on Texas v. Kennedy as a legal battle over federal disability protections. The lawsuit, brought by Texas and a coalition of states, challenges portions of updated Section 504 regulations and has raised concerns about the future of disability rights in the United States.

But for many families, the larger question extends beyond the courtroom.

What happens if states succeed in reducing their obligations under federal disability law while simultaneously facing pressure from changes to Medicaid funding and administration?

Advocates warn that the answer could reshape how disability services are delivered across the country, creating new challenges for families already struggling to access supports.

Beyond the Lawsuit

Much of the public discussion surrounding Texas …

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