, and roughly 42 million Americans receive food stamps, according to the federal agencies that oversee them, reports CNN.
Hospitals could also suffer financially from Medicaid cutbacks, potentially leading some to increase prices for patients with employer-sponsored insurance. In worst cases, some hospitals might be forced to shut down entirely.
White House study raises alarm: 9 million Americans could lose health insurance in 'major' recession if...States would be required to cover a larger share of the costs for these programs, pushing them to make difficult budget decisions. Possible measures include reducing Medicaid enrollment, scaling back benefits and provider payments, or limiting access to food assistance programs like SNAP. Alternatively, states might reallocate funds from other critical areas such as education and infrastructure, or consider raising taxes.
Meanwhile, grocery store owners caution that reductions in SNAP benefits could negatively impact local economies and result in job losses.The nation's largest anti-hunger program may soon face unprecedented funding cuts as lawmakers seek to offset the cost of Donald Trump’s sweeping tax legislation.House Republicans have introduced a budget proposal that, according to some policy experts, would severely reduce funding for the
Supplemental Nutrition Assistance Program (SNAP). Critics argue that the savings would help fund tax breaks primarily benefiting the wealthiest Americans.
It proposes slashing SNAP by nearly $300 billion over the next ten years. SNAP, previously known as food stamps, currently helps over 40 million low-income Americans — about 1 in 8 people, including 1 in 5 children — afford basic groceries each month.
“These would be the largest SNAP cuts in history, resulting in food being taken away from those who need it most,” said Bobby Kogan, senior director of federal budget policy at the Center for American Progress.
The proposed reductions come amid rising food insecurity and increasing grocery prices. Overall, food costs are expected to rise by 3.5% this year. Economists also warn that Trump-era tariffs on key trade partners could further drive up the cost of canned goods and fresh produce.
Republican lawmakers are weighing significant changes to the country’s largest nutrition assistance program as a way to help fund President Donald Trump’s 2025 tax plan.
Members of the GOP-led House Agriculture Committee have proposed cutting at least $290 billion from the Supplemental Nutrition Assistance Program (SNAP) over the next ten years—a reduction of nearly 30%, according to the Center for American Progress (CAP).
The proposal would shift some of the program’s costs to state governments, raise the age threshold for work requirements, and limit eligibility to U.S. citizens and green card holders. It would also restrict future administrations from increasing SNAP benefits beyond the rate of inflation.
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An updated analysis by the Congressional Budget Office (CBO), released Tuesday, finds that the House GOP’s package would cut federal Medicaid funding by nearly $700 billion over the next decade, CNN reported.
The proposals could remove Medicaid coverage from over 10 million people within 10 years. Some of those affected may obtain insurance through their employers or Affordable Care Act exchanges, according to a previous CBO report. Still, the Medicaid changes are projected to leave an additional 7.6 million Americans uninsured by 2034.
For the first time in Medicaid’s 60-year history, certain recipients aged 19 to 64 would need to work at least 80 hours per month to keep their benefits. Alternatively, they could meet the requirement through community service, schooling, or participation in work programs. Exemptions would apply to parents, pregnant women, those medically frail, people with substance-abuse disorders, and others. This rule would begin in 2029, although some conservative lawmakers want to start it earlier.
Experts warn that even individuals who work or qualify for exemptions might lose coverage due to difficulties navigating reporting requirements or exemption applications. For example, low-income people with chronic conditions who qualify through Medicaid expansion (not disability) would have to prove their inability to work to get an exemption. Caregivers and students may also face administrative hurdles that could lead to loss of benefits.
The bill would also limit states’ ability to tax healthcare providers, a major revenue source used to increase provider payments and fund health programs. Almost every state imposes some form of provider tax, which some Republicans argue is a way for states to increase federal matching funds.
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With more people uninsured, hospitals may see uncompensated care costs rise. While states usually help cover these expenses, reduced federal Medicaid funding may leave them less able to do so. This financial pressure could force some hospitals and nursing homes—especially those in rural or low-income areas—to cut services, raise prices, or even close.
Bruce Siegel, CEO of America’s Essential Hospitals, said, “Hospitals already operating on thin margins cannot absorb such losses without reducing services or shutting down.”
The bill may also harm those eligible for both Medicare and Medicaid, as Medicaid currently helps pay their Medicare premiums, out-of-pocket costs, and long-term care. One provision delays until 2035 a Biden administration rule designed to simplify Medicaid eligibility and enrollment, potentially making it harder for people to enroll or renew coverage. This change could cause about 2.3 million people—including seniors, people with disabilities, and children—to lose Medicaid, according to a CBO estimate.
The GOP plan would expand work requirements for food stamps. Currently, adults 18-54 without dependent children can receive benefits for only three months in 36 unless they work 20 hours weekly or qualify for an exemption. The legislation would extend this requirement to adults aged 55-64 and parents of children aged 7-18. It would also restrict states’ ability to waive work requirements, limiting exemptions to counties with unemployment above 10%.
Starting in fiscal year 2028, states would be required to pay at least 5% of food stamp benefit costs—a first. States with higher error rates in payments could pay up to 25%, and administrative costs would rise from 50% to 75% borne by states.
Ty Jones Cox, vice president for food assistance at the Center on Budget and Policy Priorities, said these rules could jeopardize nutrition aid for 11 million people, including 4 million children whose families might lose benefits if parents don’t qualify.
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States facing reduced federal funding may choose to limit enrollment or exit the program altogether, since food stamps participation is voluntary.
“They have more incentive to make food assistance harder to get since they’re responsible for costs and concerned about error rates,” Cox noted.
Grocery store owners warn this could harm local economies. Food stamp benefits support roughly 388,000 jobs, generate over $20 billion in wages, and produce more than $4.5 billion in state and federal tax revenue, according to the National Grocers Association.
Stephanie Johnson, the group’s vice president for government relations, said, “SNAP is more than food aid—it’s an economic engine that supports jobs on Main Street. SNAP dollars flow directly through local businesses, helping pay wages, keep shelves stocked, and support essential community services.”
