INSURASALES

Impact of the 'Big Beautiful Act' on Rural Wisconsin's Insurance and Farm Aid

The recently introduced "Big Beautiful Act" by congressional Republicans includes significant cuts to Medicaid, the Affordable Care Act (ACA), and the Supplemental Nutrition Assistance Program (SNAP), which will adversely affect rural populations such as those in Wisconsin. These cuts also extend to educational support, climate change funding, and other social programs, potentially deepening challenges for lower and middle-income Americans while increasing the national debt. The legislation notably removes subsidy caps for affluent farmers and enhances federal subsidies for major crop producers, which has raised concerns over equity within farm aid distribution.

This act has fragmented the historically bipartisan support for the Farm Bill, which provides critical assistance to farmers and the hungry across rural, suburban, and urban areas. Key provisions within the Agriculture Appropriations have resulted in the reduction of SNAP benefits for approximately 90,000 Wisconsinites, along with reforms that disproportionately benefit larger, wealthier farms, particularly in Southern states. These changes risk destabilizing the foundational coalition that supports farm policies and rural welfare.

Moreover, the Department of Agriculture's budget cuts have slashed funding by over $1.5 billion for programs that purchase food from U.S. farmers for schools and food banks, while the dissolution of the Agency for International Development threatens a $2.2 billion market vital to American farmers and global hunger relief efforts. Proposed eliminations of international food programs such as Food for Peace and McGovern-Dole would further limit U.S. agricultural outreach.

The expected consequences of these health coverage cuts include the loss of Medicaid for many Wisconsinites (estimated at 276,175) and decreased affordability and accessibility of ACA private insurance starting in 2025. Without extensions of expanded federal tax credits, insurance premiums are anticipated to rise, likely causing coverage gaps. Such Medicaid reductions are projected to accelerate rural hospital closures, compounding healthcare access issues in rural areas.

Overall, this legislation is seen as a pivotal challenge to rural community stability, farm aid equity, and healthcare accessibility in Wisconsin. The political support from Wisconsin Republicans for this act marks a significant shift in policy that may have lasting implications on insurance and healthcare markets in rural regions, reflecting broader trends in national agricultural and social welfare policy.