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Nonprofit Leaders in Minnesota's 8th Congressional District Fear Devastating Consequences of Medicaid and Food Assistance Cuts

Strategic Insights

— 2 min read

Nonprofit leaders across Minnesota's 8th Congressional District are sounding the alarm about the recently passed federal spending bill, which they say will further strain their organizations and exacerbate the struggles of those they serve. The bill, signed into law by President Donald Trump on July 4, cuts Medicaid spending by $1 trillion over the next decade and leads to 11.8 million more uninsured people nationwide. In Minnesota specifically, 150,000 to 250,000 Minnesotans are projected to lose their health insurance due to new work requirements.

Key Takeaways:

  • The One Big Beautiful Bill Act, signed into law by President Trump on July 4, will cut Medicaid spending by $1 trillion over the next decade, leading to 11.8 million more uninsured people nationwide.
  • In Minnesota, 150,000 to 250,000 Minnesotans are projected to lose their health insurance due to new work requirements.
  • Nonprofit leaders in Minnesota's 8th Congressional District are concerned about the devastating consequences of these cuts, particularly for low-income individuals, children, and families who rely on Medicaid and food assistance programs.
  • Jake Emmer, a spokesperson for U.S. Rep. Pete Stauber, said the congressman's office receives "countless" letters from nonprofits every day and that it was "not standard procedure" for congressional offices to respond to nonprofits' mass letters.
  • Kelsey Emmer also stated that Stauber's office received the letter from nonprofit leaders on July 2, the evening before the bill's final passage, and claimed that the nonprofit leaders should have tried to set up a meeting sooner.
  • Nonprofit leaders, including Joel Kilgour of Stepping On Up and Katie Hagglund of Union Gospel Mission, expect that the cuts to Medicaid and food assistance programs will lead to an increase in costs for local governments and an 9.5% increase in the St. Louis County property levy.
  • Brittany Robb of Safe Haven Shelter and Resource Center anticipates an increase in domestic violence cases due to the reduced access to health care and food assistance, as survivors may be hesitant to leave abusive partners due to concerns about feeding their families and accessing health care.
  • U.S. Rep. Pete Stauber defended the work requirements in a statement, saying they are about helping Americans find a better quality of life through the dignity of work.

Statistics:

  • The One Big Beautiful Bill Act cuts Medicaid spending by $1 trillion over the next decade, leading to 11.8 million more uninsured people nationwide.
  • In Minnesota, 150,000 to 250,000 Minnesotans are projected to lose their health insurance due to new work requirements.
  • The federal bill will shift $259 million in costs to the state, expanding work requirements for SNAP recipients.
  • St. Louis County estimates that the bill will drive up costs for SNAP and Medicaid by more than $10 million and $6.4 million, respectively.
  • The county property levy would need to be increased by 9.5% to absorb those additional costs.
  • The office of Gov. Tim Walz states that 440,000 Minnesotans rely on SNAP.

Sources:

  • Congressional Budget Office (no date)
  • KFF (no date)
  • Duluth News Tribune (no date)

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