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Legislative bills

Massive Tax and Spending Bill Could Leave 3.2 Million People Without Food Assistance Benefits

Strategic Insights

— 2 min read

Democrats have expressed concern over the massive tax and spending bill passed by the U.S. House Republicans, which could result in 3.2 million people losing food assistance benefits and saddling states with over $14 billion in annual costs. The bill, which aims to extend the 2017 tax law and its cuts, increase spending on border security and defense, overhaul American energy production, and cut spending, has been met with criticism from Democrats, who argue it would cut programs for the needy to fund tax breaks for high earners. The nonpartisan Congressional Budget Office (CBO) analysis suggests that the bill's provision to tighten work requirements and impose a state cost-share for Supplemental Nutrition Assistance Program (SNAP) benefits could lead to significant consequences for those relying on the program.

Key Takeaways:

  • The massive tax and spending bill could result in 3.2 million people losing food assistance benefits, with 1.4 million losing access to the program due to state waivers and 800,000 adults living with children 7 or older being excluded from the program.
  • The CBO analysis estimates that 1.3 million people would lose benefits due to state responses to the new cost-share, which would require states to pay 5-25% of SNAP benefits, depending on their payment error rate.
  • The cost-share changes would add a massive line item to state budgets, potentially limiting participation in the program and leading some states to drop out or modify benefits and eligibility.
  • The bill's provision to tighten work requirements could exclude single parents of children older than 6 and raise the age of adults to whom the work requirements apply.
  • Republicans argue that the changes would be more fair to those the program is meant to help and would encourage states to administer the program more efficiently and effectively.
  • The bill would require states to pay federal policy would encourage states to administer the SNAP program more efficiently and effectively.

Statistics:

  • 3.2 million people could lose food assistance benefits due to the bill's provision to tighten work requirements and impose a state cost-share.
  • 1.4 million people would lose access to the program due to state waivers.
  • 800,000 adults living with children 7 or older would be excluded from the program.
  • 1.3 million people could lose benefits due to state responses to the new cost-share.
  • States would collectively be responsible for just under $100 billion from 2028 to 2034, approximately $14 billion per year.
  • The CBO analysis estimates that 1.3 million people would lose benefits due to state responses to the new cost-share.
  • Every state has hit a payment error rate of 6% or lower at some point in the last decade, making the lowest state cost-share of 5% available.

Sources:

  • Congressional Budget Office (CBO) report: "The Effects of the House Proposal to Reform the Supplemental Nutrition Assistance Program" (May 22, 2025)
  • News from the States article: "US House Republicans push through massive tax and spending bill slashing Medicaid" (May 2025)
  • House Agriculture Committee press statement by Rep. Angie Craig (May 23, 2025)
  • House Agriculture Committee press statement by Ben Nichols (May 23, 2025)
  • Senate Agriculture Committee press statement by Sara Lasure (May 23, 2025)
  • CBO Director Phillip Swagel's statement (May 23, 2025)

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