Mark Cuban Warns Nebraska Will 'Get Crushed' By Tariffs And Medicaid Cuts—Faces A '$200M Shortfall This Year'

Nebraska is bracing for a financial storm as tariffs and Medicaid cuts threaten to make an already difficult budget situation even worse. Billionaire investor and entrepreneur Mark Cuban sounded the alarm on Bluesky, warning that Nebraska is “going to get crushed” by these economic pressures. 

According to Cuban, the state already faces a $200 million budget shortfall for the year—and that's before factoring in the impact of tariffs on key industries like agriculture and manufacturing.

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Tariffs Hit Nebraska Farmers and Businesses

The Trump administration recently increased tariffs on Chinese imports from 10% to 20% and imposed 25% tariffs on imports from Canada and Mexico. These moves have triggered retaliatory tariffs, directly affecting Nebraska’s biggest exports: corn, cattle, and soybeans. Farmers now face rising costs for essential supplies like fertilizer, energy, irrigation equipment, and machinery, according to the Flatwater Free Press.

Paul Krueger, a corn and soybean farmer from south-central Nebraska, told Flatwater Free Press that grain prices dropped as soon as the tariffs were announced. Cuban shared the article in his Bluesky post. “That is the No. 1 thing about being a farmer, you're 100% powerless on the price of things and you're 100% powerless on the weather, and those are the two things that affect us the most,” he said.

Nathan Bowen of the Irrigation Association added that tariffs on steel and aluminum could result in higher costs, job losses, and delayed expansion plans for businesses that support agriculture. “It can mean layoffs, reduced production, delayed expansion plans and fewer equipment purchases,” Bowen explained.

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A Budget Crisis Looming

Cuban pointed out that Nebraska’s $200 million budget shortfall will be a serious problem even before considering the effects of tariffs. The state must balance its budget, meaning cuts or adjustments are inevitable. Medicaid reductions could make things even tougher for residents who rely on those benefits.

Farm groups have pushed back against the new tariffs, warning that they will further reduce markets for American agricultural goods and create economic hardship. American Farm Bureau Federation President Zippy Duvall cautioned that some farmers may not survive the financial strain. “Adding even more costs and reducing markets for American agricultural goods could create an economic burden some farmers may not be able to bear,” he said in a statement.

Political Reactions

Nebraska Gov. Jim Pillen (R-NE) has backed the Trump administration’s trade policies, saying they are aimed at protecting American prosperity and security. However, Nebraska Farmers Union President John Hansen expressed concerns to Flatwater Free Press, saying that while trade deals need to be fair, tariffs should be used with caution. “I have a hammer as a tool, I just don't hit everything with the hammer. If I stick to hitting nails, it's a good thing. If I'm breaking windows, it's a bad thing,” Hansen told Flatwater Free Press.

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Nebraska's Future At Risk?

With Canada, Mexico, and China being Nebraska’s top trading partners, experts warn that tariff-related losses could linger for years. According to the Nebraska Farm Bureau, the 2018 trade war cost Nebraska farmers nearly $1 billion, and many fear a repeat of those financial setbacks.

For Cuban, Nebraska is at risk of economic damage from both tariffs and Medicaid cuts, which he believes will further strain the state’s already fragile financial situation. He specifically called on Nebraska Republicans to weigh in on the crisis. So far, the response has been mixed. Some leaders support the tariffs as a necessary step in negotiations, while others worry about the financial fallout.

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