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Health
24 September 2025

Clinic Closures And Funding Cuts Put Rural Virginia At Risk

Sweeping Medicaid changes and shrinking global health aid threaten rural hospitals and children’s lives, sparking political battles from Charlottesville to New York.

On a crisp September morning in Charlottesville, Virginia, local leaders gathered for the final stop of the “Real Issues” tour—a series of events designed to spotlight the fallout from sweeping healthcare changes that have upended the lives of thousands across the state. The debate isn’t just local. It’s a flashpoint in a growing national crisis over health funding, one that’s putting rural clinics, children’s lives, and decades of progress at risk.

At the center of the storm is the “One Big Beautiful Bill,” a sprawling piece of legislation signed by former President Donald Trump on July 4, 2025. Just two months later, its effects are already visible: three rural health clinics serving the Blue Ridge Mountains have closed, leaving communities scrambling for alternatives. According to CNN, these closures are a harbinger of what’s to come, as rural providers—already struggling—face the loss of crucial Medicaid funding.

“Rural hospitals are closing, at the end of the day. We’re seeing the tip of the iceberg here in Virginia, and it’s a sign of what’s to come,” warned Marshall Cohen, a veteran Democratic strategist, in a recent interview with CNN. His concerns are echoed by Delegate Amy Laufer, who told reporters at the Charlottesville event, “350,000 Virginians are at risk of losing their healthcare, at least six rural hospitals are at risk of closing, and there are three rural clinics closing right now in the Shenandoah Valley.”

The numbers paint a stark picture. The Congressional Budget Office projects that Medicaid spending will fall by more than $900 billion over the next decade due to the bill. By 2034, an estimated 7.5 million more Americans could be uninsured, with 5.3 million of those losses tied to new work requirements for Medicaid eligibility. These requirements hit rural communities hardest, where jobs are scarce and residents disproportionately depend on Medicaid for their care.

“For many Virginians, medical costs from doctors appointments to prescription drugs will increase. For others, they’ll lose access to the home healthcare they need. And some Virginians will even lose their insurance outright,” Delegate Katrina Callsen explained at the Charlottesville event. She added, “We deserve a leader who understands that and who is committed to protecting access to healthcare and keeping Virginia affordable.”

But not everyone sees the situation the same way. Virginia GOP executive director Ken Nunnenkamp defended the closures, suggesting that clinic consolidation could actually benefit patients. In a statement to CNN, he said, “If two health clinics consolidate in order to provide better, more consistent, and more accessible service to the patients from both locations, that is a win for rural communities.” He also pointed to a $50 billion rural health fund created by the bill, calling it “effectively the largest investment in rural hospitals in decades.”

That fund, however, is already drawing skepticism. Tim Layton, a University of Virginia professor, described it as a “short-term patch,” noting that “$50 billion will go pretty quick.” The Kaiser Family Foundation calculated that federal Medicaid spending in rural areas is projected to decline by $137 billion—far more than the new fund can cover.

Meanwhile, some Republican leaders have floated alternative solutions. Virginia Lt. Gov. Winsome Earle-Sears, the GOP nominee for governor, has proposed tapping the state’s rainy day fund to offset Medicaid shortfalls. “We want to make sure that whatever happens with Medicaid, we have the money here to help. We have the money and the budget to help. You know, we have put money aside for rainy day,” Sears said at an event in Marion, according to Cardinal News. Yet former GOP Lt. Gov. Bill Bolling called this idea a “bad idea,” arguing that the math simply doesn’t add up.

For families in affected communities, the closures are more than a political debate—they’re a matter of daily survival. Candice Crow, a mother of four children with autism, relies on the Bon Secours - Southampton Medical Center in Franklin, Virginia, one of the clinics at risk. “The staff there are so kind and caring. They do go above and beyond. They’re very accommodating for the special needs children and all their little medical complexities that they have,” she told CNN. “Every minute counts when it comes to emergencies. This could cost someone their life, so you’re taking away their lifeline.”

Democratic gubernatorial nominee Abigail Spanberger has made rural healthcare a central issue in her campaign, traveling to Buena Vista—one of the towns losing its clinic—to rally support. “This is not a rainy day. This is a bad bill that came out of Washington,” Spanberger said at an event in Fairfax as early voting began on September 19. “They are throwing those costs on the state, and in the interim, people will fall off of their health care, so the problem is immense.”

The debate in Virginia is mirrored on the global stage. On September 23, 2025, Microsoft co-founder Bill Gates took the podium at a Reuters Newsmaker event in New York to warn that shrinking global health funding threatens millions of children’s lives. Gates announced a $912 million pledge over three years to the Global Fund to Fight AIDS, Tuberculosis, and Malaria, but he was quick to caution that private donations can’t fill the gap left by government cuts. “I am not capable of making up what the government cuts, and I don’t want to create an illusion of that,” Gates said, according to Reuters.

Gates’s warning comes amid sobering statistics: global development assistance for health fell by 21% between 2024 and 2025, reaching a 15-year low. Decades of progress are at risk. Child mortality, once at 10 million annually in 2000, has dropped to fewer than 5 million, but recent aid cuts threaten to reverse those gains. Gates pointed to a Lancet study projecting an additional 8 million child deaths by 2040 if U.S. aid cuts continue.

Earlier this year, Gates criticized the Trump administration’s withdrawal of funding from Gavi, the vaccine alliance that has immunized over a billion children. He urged Congress to restore funding to programs like PEPFAR and the Global Fund, stating, “I don’t expect most governments to suddenly restore foreign aid to historic levels, but I am an optimist, and I believe governments can and will do what’s needed to save as many children as possible.”

Back in Virginia, the debate over healthcare cuts is shaping the political landscape as candidates from both parties vie for the trust of rural voters. Pete Barlow, a Democrat running to unseat Republican Ben Cline in Augusta County, described the situation bluntly: “This administration has really taken a bloody ax to rural health care. It’s incredible, and it’s going to have downstream effects for years to come.”

As the “Real Issues” tour wraps up, the stakes couldn’t be higher. From the rolling hills of the Shenandoah Valley to the global fight against childhood diseases, the battle over health funding is far from settled. For the families and communities caught in the crossfire, the outcome may well determine not just the quality of care, but the quality of life itself.