The federal government’s proposed tax cuts will be balanced by reducing Government spending– spending on what you ask. Medicaid, which ensures healthcare coverage for low-income individuals and families among other things, and SNAP (Supplemental Nutrition Assistance Program), a food stamp/anti-hunger program. The$4.6 trillion tax subsidies would eliminate $880 billion from the Medicaid budget and $230 billion from SNAP benefits over the next decade. In the near term (2026), researchers estimate about $24 billion (31%) to be trimmed from SNAP and $81 billion (16%) from Medicaid.

While households with a high net worth will gain substantially, numbers crunched by the Urban Institute point out the starkly disparate economic impact. Those earning less will lose – a lot.

·      Income <$10,000 would lose >$2,700 (15%lower income)

·      Income $30,000-$40,000: no change in benefits

·      Income >$200,000: gain $13,200 (4.1% higher income)

SNAP: More Than Food Stamps

SNAP, which serves between 41-42 million people monthly (2023-2024 numbers), goes way beyond just food stamps. In partnership with the Department of Human Services and the Department of Labor and Workforce Development, it creates economic opportunities by supporting programs that offer vocational/technical training, certifications, case management, and job readiness and placement services.  Experts describe SNAP as the most effective anti-poverty tool.

On a broader scale, the cutbacks are projected to yield 143,000 fewer jobs, 78,000 of which would directly be in the food industry such as agriculture, retail grocery, and food processing, and an additional 65,000 in other industries consequent to lower spending. Simultaneous cuts to Medicaid would have a 3-fold greater impact on job losses: about477,000 healthcare jobs may be eliminated in hospitals, doctors’ offices, and nursing homes across the nation. The massive impact on state revenues could lead to another 411,000 jobs being lost.

According to Joseph R. Betancourt, Commonwealth Fund President, “Medicaid and SNAP are foundational to people’s health and well-being. Slashing these programs will worsen health outcomes for all Americans, and particularly for people with chronic conditions who rely on Medicaid for ongoing care. Similarly, cutting SNAP will push more families into financial distress, making it harder for them to afford basic necessities. The ripple effect will hit the entire health care system and impact everyone — not just those with Medicaid — driving more people to emergency rooms and further straining an already overburdened system.”

Further Strain on Food Pantries, Soup Kitchens

Those less fortunate among us who need the support to put food on the table also turn to community food pantries and soup kitchens. One such organization that serves NJ and PA is the Trenton Area Soup Kitchen (TASK),which served more than 600,000 meals in 2024 alone. While serving on-site meals, providing food deliveries, and a mobile soup kitchen, TASK’s wrap-around programs offer clothes, toys, and hygiene kits to its neighbors. Combined with their case management, education, and employment programs, the organization’s goal is to help individuals and families thrive, not just survive.

However, with SNAP cuts looming, organizations like TASK may be required to stretch their resources. “When dollars are taken from families’ food budgets, the responsibility shifts to agencies like TASK to make up the difference. Hunger won’t be solved by further reducing access to food. Instead, a reduction in SNAP benefits will mean that more people will be coming to TASK for help, placing an even greater strain on our community and our resources, further worsening the existing hunger crisis and perpetuating its impact, possibly for generations,” said Amy Flynn, CEO of TASK, in an email.

In a different region of the country, Roadrunner^® Food Bank of New Mexico (RRFB) serves as a food distribution hub that works with hundreds of food pantries, soup kitchens, shelters, and food banks to provide the state’s residents relief from hunger. The organization distributed more than 35.5 million pounds of food in2024, more than 10.5 million pounds of which was fresh produce, serving 388,158 residents.

New Mexico is one of the most food insecure states in the nation, and SNAP benefits are a vital lifeline for many residents. Speaking with SDGAdvohealth, Jason Riggs, RRFB’s Director of Advocacy and Public Policy, who has spent a significant amount of his time at the organization doing SNAP outreach, said, “SNAP can provide nine times the number of meals that the entire food bank network can provide. So, a cut to SNAP is going to have a huge impact on the number of people waiting in line for assistance throughout the state of New Mexico - throughout the United States.”

The bill proposes shifting about $22 billion in administrative and benefit costs to state and local governments. Will states be able to absorb these costs? Surely not, and according to Riggs, this would have a devastating impact. “If states were required to pay 10% of SNAP benefits, just 10%, then New Mexico would have to pay $102 million in state tax dollars. When you look at the retail value of a meal, that’s about 38 million meals that suddenly wouldn’t be there.”

If the proposed budget reconciliation bill passes Senate and authorizes the SNAP and Medicaid cuts, hunger, poverty, and economic losses will be in the near- and long-term future.

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Photo credit: Steve Buissinne from Pixabay

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