With the recent elections, many budget and financial changes are expected to take place this year. With cost-of-living being arguably one of the biggest voter concerns each year, Americans are anxious to hear what changes could be implemented to governmental benefits programs for low-income individuals. Recently, President Donald Trump’s administration have proposed budget cuts for certain governmental assistance programs, a change which could affect 40 million Americans if implemented.
SNAP benefits could be slashed by 20%
The Supplemental Nutrition Assistance Program (SNAP) is an essential program which assists low-income American families with affording food. In 2024, SNAP helped an average of more than 41 million low-income people in the United States afford a nutritionally adequate diet. It is arguably one of the most important governmental assistance programs which keeps families from going hungry.
Under the new budget proposal from the Trump administration, if approved, beneficiaries of the food program could see their benefits reduced by 20%. This would be disastrous, as the benefits from the program offer a lifeline of support for families. With food prices consistently changing, a 20% decrease would put increased strain on beneficiaries to make their program benefits cover the costs of all, or part, of their food expenses.
Plans to cut Medicaid budgets
In addition to the SNAP benefits being reduced, the new proposal also seeks to reduce Medicaid budgets by $880 billion. Medicaid is is a joint federal and state program that helps cover medical costs for some people with limited income and resources. Medicaid helps to cover the healthcare expenses of one in five Americans. The program provides coverage to over 70 million Americans. Further, should the proposal be approved, the budget cut of $880 billion would completely defund the federal assistance for the program.
“This budget from House Republicans seeks to eliminate Medicaid completely,” said legal analyst Aaron Parnas Parnas. “And they think they can get away with calling it a budget cut? Uh-uh, we’re not gonna let them.”
Important to note, if these budget cuts were approved, they would force states to reduce Medicaid eligibility, limit benefits, and lower provider reimbursement rates. This would mean that millions of Americans, specifically low-income individuals would be left without access to healthcare coverage.
“These cuts will especially harm rural communities where hospitals are already operating on tighter margins,” explained Joan Alker, Executive Director of the Georgetown University Center for Children and Families,. She also pointed out that the budget committee’s plan to save $880 billion over ten years closely aligns with past proposals to impose a per capita cap on Medicaid funding, ending the federal guarantee that has been in place for 60 years.
If federal service funding is cut, it also puts increased strain on state funding: “States will have to raise taxes or further reduce services to make up for the decline in federal support. This will affect rural and economically disadvantaged areas, where these programs play an outsized role in supporting both individual welfare and local economies,” said Michael Ryan, an expert on the subject that worries millions of families.
Federal assistance is necessary for low-income families
Budget cuts like these put low-income families into difficult positions. Millions of Americans rely on federal programs, including Social Security. Government funding for programs such as SNAP and Medicaid help to ensure that everyone, no matter their income status, has access to basic services and needs such as food and healthcare. Eliminating funding for these programs puts vulnerable populations into positions where their wellbeing is on the line. To ensure an more equitable society, funding governmental assistance programs ensures equal access for all and contributes towards closing the wealth gap which exists in society.
