Proposed federal cuts to Medicaid could cost North Carolina thousands of jobs and billions of dollars in business activity, warns a report by Families USA.

The nonpartisan health and consumer advocacy group is pushing Washington lawmakers to avoid slashing Medicaid as they consider ways to reduce the federal budget deficit.

“This is exactly the wrong time for Congress to cut a program that boosts the economy while also providing a boost to individuals and families facing hard economic times," said Ron Pollack, executive director of Families USA, in a prepared statement.

A 5 percent in federal funding for Medicaid spending this year would cost North Carolina $431.7 million in federal Medicaid money, and put at risk about $942 million in business activity and 8,890 jobs, the group reports.