2025 State Wins and the One Big Beautiful Bill: Jonathan Williams on The Hugh Hewitt Show

Appearing on The Hugh Hewitt Show, ALEC President and Chief Economist Jonathan Williams unpacked recent developments in Medicaid reform, federal tax policy, and state-level victories—highlighting what he called “common sense” policy gains.

“The bill that was just shepherded through the house made some important changes here,” Williams said, referring to H.R. 1— dubbed the “one big, beautiful bill.” He praised House Speaker Mike Johnson and Rules Committee Chair Virginia Foxx for shepherding through a package that includes work requirements for Medicaid recipients.

“These are not actual cuts,” Williams emphasized. “These are just common-sense reforms that make sure people at least work or volunteer—something basic, like 20 hours a week.”

Williams explained the original intent of the Medicaid program — not as an unlimited entitlement, but as a social safety net.

“Medicaid ought to be a social safety net as it was designed—to protect those really in need: the disabled, the elderly, and those with children that otherwise cannot work in the workforce.”

The bill also tightens eligibility, with new provisions addressing fraudulent dual-state enrollment.

“Reports from the GAO show Medicaid fraud over a ten-year window could be in the trillion-dollar range,” Williams said. “We’re talking about ways to clean up Medicaid and actually preserve it.”

The conversation shifted to how Medicaid expansion incentives, rooted in the Affordable Care Act, have distorted state priorities.

“States now receive a federal match of 90 cents on the dollar for the expansion population,” Williams noted, calling it “a trap.”

Juxtaposing the 90% match for able-bodied adults with no children against the 50–60% match for traditional Medicaid recipients, Williams warned: “We’re giving more incentive for states to enroll individuals who should not be enrolled than to take care of people who should be.”

When Hewitt pointed out that some states resisted the expansion altogether, Williams was quick to praise them. “Thankfully, cooler heads did prevail in 10 states that have not taken the bait and expanded under the so-called Affordable Care Act.”

The discussion then turned to state-level achievements —most notably, in Texas and Oklahoma.

In Texas, lawmakers passed Senate Bill 2, establishing universal school choice.

“Texas now has become part of the national movement and a major victory for universal education freedom and parental empowerment,” Williams said. “This is going to be the largest by dollar amount and number of children affected across the country.”

In addition to the economic policies measured in the influential Rich States, Poor States report, Williams said state education policies are also key to attracting new residents.

“The combination between economic freedom and education freedom is the secret sauce,” he said, crediting states like Florida, Arizona, and West Virginia for embracing both.

The conversation then turned to Oklahoma, where numerous ALEC policy recommendations became reality last month.

“Oklahoma deserves the Gold Star Award for the month of May,” Williams beamed. “Governor Kevin Stitt just signed into law a phase-out of the personal income tax.”

The tax reform plan uses revenue triggers to gradually eliminate the tax, putting Oklahoma on track to join neighboring Texas in the zero-income-tax club.

Williams traced the effort’s roots to the 1990s. “Then-Governor Frank Keating talked about the need to eliminate the income tax, and here we are, 30-plus years later. They got it across the finish line.”

He also praised other key legislators, including ALEC Board Member and Oklahoma Senate Majority Floor Leader Julie Daniels.

“Senator Julie Daniels has been incredible—an all-star legislator on our Board,” he said, citing her leadership on regulatory reform, hospital price transparency, and more.

In closing, Williams reinforced ALEC’s mission: “You need leaders willing to take the ball and run with it. It’s not just the executive branch—it takes people in the state legislatures to get this done.”