The Voice News I House Republicans are pushing a plan to cut nearly $1 trillion from Medicaid and food stamps, two of the nation’s key safety net programs, as part of their effort to advance President Donald Trump’s agenda. If passed, millions of Americans could lose access to vital health care and nutrition assistance.
While Trump has repeatedly promised not to cut Medicaid, GOP lawmakers argue that the reductions would mostly impact able-bodied adults who, in their view, should be working. However, experts warn the cuts would affect a much wider range of people, including vulnerable groups such as children, seniors, and people with disabilities.
Currently, more than 71 million Americans rely on Medicaid, and around 42 million receive food stamps (officially called the Supplemental Nutrition Assistance Program, or SNAP).
Impact on States, Hospitals, and Local Economies
The proposed cuts would shift more financial responsibility to states, which may respond by reducing Medicaid enrollment, trimming benefits, lowering provider payments, or restricting food stamp access. States might also cut funding for education, infrastructure, or raise taxes to cover the shortfall.
Hospitals and nursing homes could face significant revenue losses as Medicaid cuts increase the number of uninsured patients. Some facilities—especially those in rural and low-income areas—might raise prices, reduce services, or even close. Grocery store owners warn that cuts to SNAP could hurt local economies, costing jobs and reducing tax revenue generated by food stamp spending.
Changes to Medicaid
The GOP plan would reduce federal Medicaid funding by nearly $700 billion over 10 years, potentially removing coverage from over 10 million people. An additional 7.6 million Americans could be uninsured by 2034 due to these changes.
One major change is the introduction of work requirements for Medicaid recipients aged 19 to 64, requiring at least 80 hours of work, school, community service, or job training monthly to maintain benefits. Exemptions would apply to parents, pregnant women, those medically frail, and individuals with substance abuse disorders. The rule would begin in 2029, though some conservatives want to accelerate this timeline.
Experts caution many people who qualify for exemptions or already work could lose coverage due to challenges in reporting or navigating bureaucracy. Those with chronic conditions, caregivers, and students may face difficulties proving eligibility or exemption status.
The bill would also limit states’ ability to impose taxes on health care providers, a revenue source often used to boost Medicaid payments. This could strain hospital finances further.
Additionally, the legislation delays until 2035 a Biden administration rule designed to streamline Medicaid enrollment, potentially making it harder for millions—including seniors, disabled individuals, and children—to access or renew coverage.
Changes to Food Stamps
The GOP package would expand work requirements for SNAP, extending them to adults aged 55 to 64 and parents of children aged 7 to 18. It would also restrict states’ ability to waive these requirements during economic hardship, limiting waivers to counties with unemployment above 10%.
States would be required to cover at least 5% of food stamp benefit costs starting in 2028 and could pay up to 25% if they have high error rates. Administrative cost-sharing would also increase from 50% to 75%.
These changes could jeopardize food assistance for up to 11 million people, including 4 million children. States might respond by limiting enrollment or even opting out of the program altogether.
Economic Concerns
SNAP benefits support roughly 388,000 jobs and generate over $20 billion in wages and $4.5 billion in tax revenue. Grocery store groups emphasize that food stamps are an important economic driver in local communities.
“SNAP is not just food assistance for families — it’s an economic engine that bolsters jobs on Main Street,” said Stephanie Johnson, vice president of government relations for the National Grocers Association. “SNAP dollars help keep local businesses thriving and communities supported.”