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By Suzanne Blake
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The Republican-led House passed a budget framework this week that sets the stage for sweeping spending reductions across a range of federal programs.
The framework has raised alarms among public health and anti-poverty advocates about potential cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Though the budget text does not spell out specific program reductions, it instructs key congressional committees to slash hundreds of billions of dollars from areas that include these services.
Why It Matters
The scope of the proposed committee-level cuts would represent one of the largest rollbacks of public benefit programs in recent memory.
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The combined reduction in Medicaid and SNAP could total more than $1.1 trillion over the next decade, leading to the loss of more than 1 million jobs and a $113 billion hit to state economies by 2026, according to a comprehensive analysis by the Commonwealth Fund.
As of 2024, 71.8 million Americans were enrolled in Medicaid, 67 million in Medicare and nearly 42 million in SNAP.
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What To Know
The budget directs the House Energy and Commerce Committee, which oversees Medicaid and part of Medicare, to reduce the federal deficit by $880 billion over a decade. The Agriculture Committee, which oversees SNAP, is ordered to cut $230 billion.
While these figures do not confirm direct program cuts, experts say the sheer magnitude of the targets makes such outcomes highly likely unless alternative offsets are found.
Medicare and SNAP directly support health care providers and food supply chains, so the cuts would have a multiplier effect on jobs and economic activity, particularly in states with high enrollment rates. States would also face a drop in tax revenues, making it more difficult to maintain local services.
Republicans framed the budget as a vehicle to curb federal spending and extend expiring tax cuts from the 2017 Trump tax law.
The budget passed largely along party lines, with Republicans Thomas Massie of Kentucky and Victoria Spartz of Indiana joining all Democrats in voting no.
Though the budget resolution doesn't detail individual program cuts, it signals where lawmakers intend to find savings.
The $230 billion reduction tied to the Agriculture Committee suggests potential SNAP cuts amounting to 20.6 percent over 10 years. That could include benefit reductions or tighter eligibility rules, according to an analysis by the Center for American Progress.
Medicare, while not directly named, could be affected if Republicans pursue broader health care savings through provider reimbursement changes or restructuring benefits.
What People Are Saying
Addison Dick, spokesperson for the New York State Democratic Party, in a statement shared with Newsweek: "New York House Republicans are doubling down on their dangerous plans to gut Medicaid and put New Yorkers' health care at risk, all so they can pay for tax breaks for their billionaire donors. New Yorkers want solutions, not reckless cuts that will devastate millions of people across the state – they will hold every New York House Republican accountable for voting for this horrific budget proposal."
Democratic Representative Alexandria Ocasio-Cortez of New York, in a statement: "This is heist on Medicaid, a heist on Medicare recipients, a heist on public health care in order to continue to finance Elon Musk's defense contracts."
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: "The good news? This isn't a done deal yet. The Senate's version only calls for about $4 billion in cuts. A huge difference! It reminds me of when my family tries to plan a vacation and my sister suggests a luxury resort while my wallet insists on camping. There's going to be a lot of back and forth before they settle on something in the middle."
Kevin Thompson, the CEO of 9i Capital and the host of The 9innings Podcast, told Newsweek: "The budget may impact those in need of government assistance especially as grocery prices continue to rise. It is a tough sale for many representatives as the bill truly does not attack the government spending issues and increases deficit spending all-around, while possibly cutting entitlement programs."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "The difficult factor to ascertain from a budget of this size is just what exactly cuts to SNAP and Medicare entail. For weeks, Republicans have been reassuring their constituencies these are not cuts to benefits, but rather cuts to administrative waste in both programs.
"However, considering cuts of hundreds of billions of dollars over the course of years, it's hard to think there won't either be a cut to some benefits or, at the very least, some additional requirements added that could shrink enrollment in these entities."
What Happens Next
The budget resolution's passage sets the stage for a reconciliation process that enables Republicans to pass follow-up legislation with a simple majority in the Senate.
Because reconciliation bills are not subject to a filibuster, GOP lawmakers could move forward without Democratic support, provided they maintain party unity. The specific policy changes—whether to Medicaid, SNAP or other programs—will be outlined in subsequent legislation developed by the instructed committees.
"There have been some Republicans that are adamantly opposed to the Resolution and will not vote for it," Thompson said. "Some are seeing it as unserious as it increases the deficit under the rosiest of projections and does not combat the government spending problems. If it does pass, cuts will definitely be made in programs, which programs remains to be seen."
With Republicans in control of both chambers of Congress and the White House, the reconciliation bill could become law if intraparty negotiations remain intact. However, differences within the party over the scope and focus of spending reductions could influence how aggressively proposed cuts are pursued.
"I think what happens next depends on how the negotiations go between the House and Senate," Ryan said. "Like watching one of those political dramas, but with real consequences for millions of Americans. Especially those who are already struggling."
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