Concerns Raised Over U.S. House Budget Bill's Medicaid and SNAP Cuts

The U.S. House of Representatives passed a budget reconciliation bill on May 22, 2025, which includes substantial cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP). These cuts raise concerns about reducing critical safety net protections for millions of American families, particularly impacting low-income individuals, elderly Americans needing nursing and in-home care, and Medicaid's role in funding births, especially in certain states.

Medicaid is crucial not only for health coverage but also for supporting state budgets and hospital systems, notably in rural areas, where Medicaid expansion under the Affordable Care Act has significantly reduced rural hospital closures. The bill also proposes steep SNAP cuts intended to offset extensive tax cuts, including preservation of the significant corporate income tax reductions enacted in 2017.

However, these spending cuts would cover less than half the cost of the tax reductions, leading to an increase in the national debt by trillions of dollars over the next decade. These fiscal policies are projected to exacerbate income inequality by disproportionately benefiting higher-income households and reducing support for the bottom 40% of U.S. households. Additionally, rising debt and deficits are expected to pressure inflation and interest rates upward. Analysts urge rejection of the bill, emphasizing that it fails to address major economic challenges and undermines state capacity necessary for economic resilience. The Senate is encouraged to reconsider and initiate a new budget process.