Impact on Food Aid from Trump’s Tax Bill: By the Numbers

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    President Donald Trump’s substantial tax reform is set to bring significant changes to the Supplemental Nutrition Assistance Program (SNAP), commonly known as the food assistance program. The new legislation introduces requirements for states to assume a portion of the program’s costs and mandates that more beneficiaries work in order to qualify for benefits. These changes are expected to lead to a decrease in the number of people receiving assistance through this long-standing component of the nation’s social safety net.

    The evolution of SNAP dates back to its inception in 1939. Initially known as the food stamps program, it underwent several modifications, the most significant of which occurred in 1979 with the removal of the requirement for participants to purchase food stamps. By 2008, it was officially renamed the Supplemental Nutrition Assistance Program, offering monthly aid to individuals earning below $1,632 and families of four with incomes under $3,380. Currently, SNAP plays a vital role in supporting low-income households across the nation.

    As of March, more than 42 million individuals across the United States received SNAP benefits, equating to about one in every eight people. This figure has diminished from a peak of 47.6 million beneficiaries during the 2013 fiscal year. In total, over 22 million households were enrolled in SNAP as of the latest count, receiving an average of $350 per household monthly. The funds are primarily allocated for grocery purchases, though six states—Arkansas, Idaho, Indiana, Iowa, Nebraska, and Utah—have been allowed to prohibit the use of SNAP benefits for certain items such as soda and candy.

    Looking ahead, the Congressional Budget Office estimates that the legislative changes will result in $186 billion in reduced federal spending on SNAP over the next decade. This reduction is largely attributed to stricter work requirements pushing some recipients out, as well as a shift of funding burdens onto the states. Furthermore, a new provision that limits the inflationary growth of food benefits is poised to save the federal government tens of billions of dollars by 2034.

    Work requirements under the current law stipulate that adults aged 18 to 54 without dependents and who are able-bodied must engage in work, volunteering, or training programs for at least 80 hours monthly to qualify for extended benefits. The new legislation expands these work requirements to those aged 55 to 64 and to parents of children 14 years and older. It also removes work exemptions for certain groups, including homeless individuals, veterans, and young adults transitioning out of foster care. States can appeal for federal waivers of work mandates in areas with unemployment rates above 10%, but new rules curtail more lenient exemptions.

    The federal government currently shoulders the full cost of SNAP benefits while sharing administrative costs with the states. However, the legislation demands that states begin covering three-fourths of administrative expenses starting in the 2027 fiscal year and eventually contribute to the food benefits by the 2028 fiscal year. States that make fewer than 6% in payment errors will receive full federal funding for SNAP benefits. In contrast, states with error rates surpassing 6% will be obligated to cover 5% to 15% of benefit costs, beginning in 2028. For states with the highest error margins, cost-sharing could be delayed until 2030 due to a Senate amendment. This shift in cost is projected to lead some states to cut back or eliminate SNAP benefits according to the CBO.

    The legislation introducing changes to SNAP narrowly passed the Senate with a 51-50 vote, with Vice President JD Vance casting the deciding vote. Following this, the House granted final approval with a 218-214 vote count, marking a significant legislative overhaul of the food assistance program.