House Republicans have unveiled a sweeping proposal to cut nearly $1 trillion from Medicaid and the Supplemental Nutrition Assistance Program (SNAP), better known as food stamps. The legislation, part of a broader package advancing former President Donald Trump’s policy agenda, could result in the largest rollback of federal safety net programs in U.S. history—impacting tens of millions of Americans, including seniors, children, people with disabilities, and working-class families.
Medicaid Cuts: Over 10 Million Could Lose Coverage
The proposal includes a $700 billion reduction in federal Medicaid funding over 10 years. According to the Congressional Budget Office (CBO), this would strip over 10 million people of coverage, with 7.6 million expected to remain uninsured by 2034. While supporters claim some may shift to job-based insurance or Affordable Care Act (ACA) exchanges, many may fall through the cracks due to lost eligibility or administrative barriers.
Key Provisions Include:
- Work Requirements: Adults ages 19–64 would need to work 80 hours a month or meet alternatives like community service, education, or job training. Exceptions would apply to parents, pregnant women, the medically frail, and those with substance-use disorders.
- Start Date: Requirements would take effect in 2029, though conservative lawmakers seek to accelerate implementation.
- Administrative Complexity: Millions could lose benefits not because they’re ineligible, but due to reporting burdens, missed paperwork, or confusion around exemptions.
- Delay in Enrollment Reforms: A Biden-era rule to streamline eligibility would be postponed to 2035, affecting another 2.3 million recipients—including seniors, children, and people with disabilities.
States would be left to absorb shortfalls, likely triggering benefit cuts, enrollment caps, or reduced provider payments. This could cascade into hospital closures or reduced services, particularly in rural or underserved communities.
“We’ve never in history experienced coverage cuts of this size… This isn’t something we’ve seen before.” — Alice Burns, KFF
Food Stamp Reforms: Tighter Rules, Higher Costs for States
The GOP legislation also aims to reshape SNAP through expanded work requirements and increased cost-sharing by states. If passed, as many as 11 million people—including 4 million children—could see benefits reduced or eliminated.
Proposed SNAP Changes:
- Expanded Work Mandates: Currently applied to childless adults 18–54, the new bill raises the age to 64 and includes parents of children aged 7–18.
- Waiver Limits: States could only suspend work rules in counties with unemployment above 10%, significantly restricting flexibility during economic downturns.
- State Cost-Sharing: For the first time, states would cover at least 5% of SNAP benefit costs beginning in 2028—with up to 25% for states with high error rates.
- Administrative Costs: State governments would also shoulder 75% of administrative expenses, up from the current 50%.
Some states may opt to tighten eligibility, reduce benefits, or even exit SNAP altogether—since participation is voluntary. Critics warn that the dual financial and regulatory pressures will lead states to limit access to food aid, especially for vulnerable populations.
“They have more incentive to want to make it harder for people to get food assistance because they’re on the hook to pay for the benefit.” — Ty Jones Cox, CBPP
Broader Economic and Social Consequences
The proposed cuts go beyond individual families and ripple through communities and industries. Hospitals may face increased uncompensated care, leading to closures or higher costs for insured patients. Grocery stores—especially independents in rural or low-income areas—stand to lose significant revenue if food assistance declines.
SNAP currently supports:
- 388,000 jobs nationwide.
- Over $20 billion in wages.
- More than $4.5 billion in tax revenue.
Local economies, particularly in regions already struggling with poverty or unemployment, would likely feel the pinch.
“SNAP dollars circulate directly through local businesses, helping to pay local wages, keep shelves stocked, and support essential services in communities nationwide.” — Stephanie Johnson, National Grocers Association
Uncertain Path Ahead in Congress
Though the House GOP leadership has championed the bill, internal divisions between conservative and moderate factions could stall progress. The Senate is also expected to introduce amendments that could reshape or weaken several provisions. A final version—if it passes—will reflect ongoing negotiations between both chambers and possibly the White House.
Nonetheless, the current House version underscores a dramatic policy shift. If enacted, it would mark a fundamental rollback of health and nutrition assistance that has expanded incrementally for over five decades. And for millions of low-income Americans, the stakes could not be higher.
