The Senate on Tuesday approved a sweeping domestic policy package that would slash spending on the Supplemental Nutrition Assistance Program (SNAP), marking what analysts call the deepest food-aid cut in modern history and sending the bill back to the House for final action.
How The ‘Big, Beautiful Bill’ Affects SNAP
- Work longer. Able-bodied adults without small children must verify 80 hours a month of work, training, or community service until age 64, up from 54 under current law. Parents escape the rule only if their youngest child is under 7, not 18.
- Lose benefits faster. The Congressional Budget Office projects the tougher rules will drop about 3.2 million people from SNAP rolls each month once fully in force.
- Shift costs to states. States would pay 5% of benefits and 75% of administrative expenses. Those with payment-error rates above 6% could owe up to 15% of benefits.
- Cap future increases. The bill freezes the inflation formula for the Thrifty Food Plan, trimming every household's annual cost-of-living raise and erasing roughly $35 billion over 10 years.
- Cut overall funding. Federal SNAP spending would decrease by $295 billion over a decade, the largest reduction on record.
How Does The Bill Affect Medicaid?
- Work mandate expands. Able-bodied adults ages 19-64, including parents of children 14 and older, must log 80 hours a month of work, study or volunteering to keep coverage.
- More paperwork. States would verify eligibility twice a year and check income every six months, increasing the odds of procedural terminations.
- Cost-sharing rises. Expansion enrollees could be charged up to $35 per visit for many services.
- Federal aid shrinks. A $1-trillion Medicaid cut over 10 years would force states to curb benefits or tighten enrollment.
- Coverage losses mount. The CBO projects about 12 million more uninsured by 2034 from the Medicaid provisions alone.
What About Individual Tax Cuts?
- 2017 rates stay. The bill makes the 2017 individual rate cuts and doubled standard deduction permanent, as mentioned in a WSJ report, avoiding a scheduled January lapse.
- Household impact. Average filers would save about $2,900 in 2026, though gains vary sharply by income, the Tax Policy Center says.
- Few notice. Because the breaks have been in place since 2017, many taxpayers would see no change in withholdings.
What’s In It For Seniors?
- Temporary boost. From 2025-28, Americans 65+ could claim an extra $6,000 standard deduction. The benefit phases out above $75,000 for singles, $150,000 for couples.
- Social Security tax stays. The carve-out replaces Trump's campaign pledge to end taxes on benefits.
- Collateral hit. Low-income dual-eligibles could lose Medicaid help with Medicare premiums as states trim programs.
How Does The Bill Impact Student Loans?
- Loan caps. Graduate borrowing would cap at $20,500 a year, $100,000 lifetime. Parent PLUS loans would max at $20,000 a year, $65,000 overall.
- Fewer options. Grad PLUS and subsidized loans disappear, leaving just a standard plan and one income-based option.
- Harder relief. Deferments and forbearances tighten, and forgiveness periods stretch to 30 years.
What’s For Parents?
- Credit rises. The child tax credit jumps permanently to $2,200 per kid, indexed to inflation.
- Income limits. Full credit available up to $200,000 (single) / $400,000 (joint). Phases out above those thresholds.
- Work-linked aid. Parents of teens 14+ must meet Medicaid and SNAP work rules to retain assistance.
What About "Trump Accounts"?
- $1,000 seed. Every baby born 2025-28 receives a $1,000 government deposit into a stock-index account.
Parental top-ups. Parents may add up to $5,000 yearly. Withdrawals barred until age 18. - Pilot scope. Lawmakers dub the three-year test "Trump Accounts," echoing ideas long pushed by Sen. Cory Booker (D-NJ).
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