Under the GOP law, the wealthiest segments of society reap the largest benefits while the economically disadvantaged face the deepest reduction of resources, according to an analysis.
The recently enacted Republican domestic policy legislation, signed into law on July 4, 2025, has significantly affected low-income Americans' access to food assistance and Medicaid.
Food Assistance and SNAP
Key changes to the Supplemental Nutrition Assistance Program (SNAP) include:
- Funding cuts of over $100 billion, impacting approximately 42 million people who rely on this program[1].
- State financial responsibilities based on error rates, potentially straining state budgets and reducing benefit availability[1].
- Limited Thrifty Food Plan updates, with recalculations only every five years and cost-neutral adjustments, leading to insufficient benefit levels[1].
- Stricter work requirements for able-bodied adults without young children, which may lead to increased disenrollment[1][4].
- Increased administrative burdens due to harsher SNAP paperwork requirements, often resulting in benefit losses among eligible recipients[4].
Medicaid and Healthcare
The legislation introduces cuts and restrictions that disproportionately affect the lowest-income households, exacerbating challenges in accessing healthcare coverage[3].
- The new strict work requirement for Medicaid is expected to cause an estimated 5.3 million more Americans to become uninsured[2].
- It becomes more challenging for areas with higher unemployment rates to qualify for work requirement waivers[2].
- Some states, such as Pennsylvania, have expressed concerns about continuing SNAP operations due to the added costs of providing benefits[5].
Analysis and Implications
The Congressional Budget Office's analysis suggests that the incomes for the highest 10% of earners could rise by an average of 2.7% by 2034, primarily due to tax cuts[6].
On the other hand, the incomes for the lowest 10% of earners could fall by 3.1%, mainly because of cuts to programs such as Medicaid and food aid[6].
The budget office estimates that the cost share change would reduce or eliminate SNAP benefits for about 300,000 people in an average month[6].
Overall, the bill's Medicaid policies will cause around 7.5 million Americans to lose health insurance[7].
In summary, these legislative changes are expected to result in greater food insecurity and reduced healthcare access for low-income Americans, while largely benefiting wealthier populations[3].
[1] Congressional Research Service Report [2] Kaiser Family Foundation [3] Center on Budget and Policy Priorities [4] Urban Institute [5] PennLive [6] Congressional Budget Office [7] Congressional Budget Office
- The recent political legislation has instigated over $100 billion in cuts to the Supplemental Nutrition Assistance Program (SNAP), affecting approximately 42 million individuals who depend on this program.
- The new legislation imposes stricter work requirements for able-bodied adults without young children in the SNAP program, which may lead to increased disenrollment.
- The Medicaid healthcare coverage for low-income households is disproportionately affected by the legislation's cuts and restrictions.
- The new strict work requirement for Medicaid is estimated to cause 5.3 million more Americans to become uninsured.
- Wealthy populations are expected to primarily benefit from tax cuts in the enacted policy, as suggested by the Congressional Budget Office's analysis.
- The budget office projects that the cost share change will reduce or eliminate SNAP benefits for about 300,000 people in an average month.
- The overall impact of the bill's Medicaid policies is expected to result in around 7.5 million Americans losing health insurance, leading to increased food insecurity and reduced healthcare access for low-income Americans.
