Recent federal funding cuts to several programs could slash the budget for Dallas’ safety net hospital system in half next year, according to its CEO.

During Tuesday’s Dallas County Commissioner Court meeting, Parkland Health CEO Fred Cerise said the proposed budget for fiscal year 2025 is estimated at $123 million, a stark decrease from last year’s $245 million.

Most of the cuts come from reductions in Medicaid Disproportionate Share Hospital payments, which in the past gave money to qualifying hospitals serving large numbers of Medicaid and uninsured individuals.

Cerise said Congress delayed reducing those funds for years but finally made the cut in the "One Big Beautiful Bill Act" that passed this year. Now, roughly $130 million each year will be lost between 2026 and 2028 in Med

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