House Republicans Pass Reconciliation Bill that Includes Cuts to Vital Safety Net Programs; Senate to Consider Legislation Next

By Kim Johnson, Senior Director of Policy

House Republicans passed a massive reconciliation bill on May 22 by a vote of 215-214, with all Democrats and Representatives Warren Davidson (R-OH) and Thomas Massie (R-KY) voting against, and Rep. Andrew Garbarino (R-NY) voting “present.” The legislation will now be considered in the Senate, with the goal of passing a final bill into law before the July 4 recess. The Senate will likely make changes to the bill, and non-budgetary provisions may be challenged by the Senate Parliamentarian based on the “Byrd Rule.” 

If enacted, the bill would make the tax cuts originally authorized in the 2017 “Tax Cuts and Jobs Act” permanent, exempt tipped wages from being taxed, and provide significant funding increases for defense and immigration enforcement, among other provisions. In addition, the bill includes key pieces of the “Affordable Housing Credit Improvement Act” (AHCIA; H.R. 2725/S. 1515), including a 12.5% allocation increase for three years, lowering the bond-financing threshold from 50% to 25%, and designating rural and Tribal areas as “Difficult to Develop Areas,” which makes developments in these areas eligible for a basis boost (see Memo, 5/19). 

To offset the cost of these provisions, the bill would make several harmful changes to Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and other vital anti-poverty programs. The bill would cut at least $716 billion from Medicaid through policy and programmatic changes that would result in an estimated 15 million people losing healthcare coverage by 2034. The bill also proposes cutting SNAP by about 30%, around $300 billion, which would reduce future food assistance for all 40 million SNAP participants. Added work requirements for the program would also result in an estimated three million people losing assistance, and a drop in assistance for the roughly two million children whose caregivers cannot meet stricter work requirements.  

In addition, the bill would increase barriers to accessing assistance for immigrant families, including a proposal to exclude nearly 4.5 million children – the majority of whom are U.S. citizens – from receiving the Child Tax Credit. While undocumented immigrants are already ineligible for federal assistance programs, the bill would kick lawfully present immigrants off the assistance programs they can currently access, prohibiting them from receiving SNAP, Medicare, healthcare coverage under the “Affordable Care Act,” and Federal Student Aid.   

While housing assistance is not a target for cuts, the anti-poverty programs being considered for cuts play a crucial role in economic stability for people and families with low incomes, helping them put food on the table and receive needed medical care. The financial assistance these programs provide also promotes housing stability: by helping families afford the cost of food and other necessities, more money is left over at the end of the month to ensure rent is paid. States can also use Medicaid to cover health-related social needs, including housing.  

The threats to Medicaid, which serves over 72 million low-income people around the country, and SNAP, which serves over 42 million people, have triggered widespread outcry from advocates around the country. Public opposition to the proposed cuts to Medicaid and SNAP is pressuring moderate and swing-district Republicans to express concerns about the bill to leadership. Changes are expected as the Senate considers the bill. As negotiations continue, it will be crucial for advocates – especially those in Republican districts and states – to keep up the pressure on their members of Congress to vote against any reconciliation bill that would cut vital safety net programs.  

The National Alliance to End Homelessness launched a Take Action page for advocates to quickly and easily contact their elected officials and urge them not to support cuts to Medicaid. Take action here: tinyurl.com/3c2ntnnw. 

Learn more about how you can advocate for continued SNAP funding at the Food, Research, and Action Center’s (FRAC) website: tinyurl.com/2mzr5pb3.