State governments are spending millions on contractors such as Deloitte, Accenture, and Optum to comply with the One Big Beautiful Bill Act, which tightens eligibility for Medicaid and SNAP. The law introduces Medicaid work requirements, marking the first time Congress has required enrollees to work, volunteer, or study for 80 hours monthly unless exempt. The Congressional Budget Office predicts that 7.5 million people could lose Medicaid coverage by 2034. Most costs are federally funded. The bill aligns with a broader federal push for digital modernization, with CMS Administrator Dr. Mehmet Oz advocating AI-driven tools and electronic claims processing to reduce administrative burdens and improve efficiency.