And they would likely do the same to North Carolina:
According to the senior officials, who spoke on the condition of anonymity to discuss internal deliberations, White House advisers argued that it did not make sense to approve generous federal funding under the ACA while the administration is arguing that the entire law should be overturned.
White House advisers on the Domestic Policy Council, Office of Management and Budget, and National Economic Council, which are controlled by conservative Republicans, were the staunchest opponents of allowing Utah to receive enhanced federal funding for its expanded Medicaid program.
For every action there's a reaction. It may not be equal and opposite, but it trends that way. Utah voters passed a ballot initiative to expand Medicaid, and Trump blocking that might just lose him that state in 2020:
Utah voters approved a ballot measure in November that would have fully expanded Medicaid as allowed under Obamacare to individuals earning up to 138 percent of the federal poverty level. The state’s Republican leaders overruled voters and submitted their own proposal to CMS to expand the program to residents who earn up to 100 percent of the federal poverty level, which is $12,490 a year for an individual and $25,750 for a family of four. The state also included a requirement that most Medicaid beneficiaries work or else lose their benefits, requirements that Kentucky and Arkansas tried to implement but that were blocked by a federal judge.
Under Obamacare, the federal government funded the entirety of the Medicaid expansion for two years before gradually shifting more of the costs back to the states. More than 30 states expanded Medicaid under the 2010 law, and a handful of states have voted to implement an expansion since Trump took office in 2017.
No doubt North Carolina's Republicans will grab onto this as an excuse to not expand Medicaid here. But again, this may backfire on them. Polls taken since 2016 have shown a majority of NC voters favor Medicaid expansion, and people are increasingly frustrated to be in the minority of states who haven't done this.