This might be not a great news for the SNAP recipients in the coming days. In the U.S., many may now face the shortage of foods due to the incoming GOP bill, if it gets passed in the Senate. If this becomes true, then a close 4.2 million recipients may get axed from receiving the SNAP benefits. Since the debate is going on in the Senate, so for now we will see through this article on what is the GOP bill, how it can affect the 4.2 million people and reactions from various spheres. Read on!
Understanding the GOP bill and what it serves on the table
The proposed GOP-backed bill is a part of the so called “Big Beautiful Bill” which has been passed by the House and now awaits being passed by the Senate to become a law. Cost cutting of some of the Supplemental Nutrition Assistance Program (SNAP) benefits is also included in this bill. Let’s see what all proposed laws are there in this:
- Cost Cutting and Cost Shifts: This bill will reduce funding from the Central government. This would also involve those states to cover part of the benefit funding whose payment error rate goes above 6%. This can eventually affect Alaska, Maryland, Oregon, Delaware, Tennessee etc. as they had the highest SNAP payment error rates in 2023 and further can increase the cost burden on states.
- Changes in Work Requirements: The bill proposes to raise the threshold level for mandatory work from 54 to 64 for those who are able-bodied and without any dependants. It also includes the mandatory 20hour/week of work for able-bodied people without dependants, parents without children or having children aged 10 or more. It would also limit the exemptions which were availed on high-employment areas by restricting the loan waivers which can make the whole qualification scenario difficult.
- Reduction in benefits: It would make limitations on the future increments in SNAP payments as per inflation adjustments and would totally eliminate the program SNAP-Ed, which used to focus on education on nutrition.
- Rules on refugees: The new law could prevent refugees and asylum seekers to get SNAP benefits and could also remove other costs like internet service costs as a part of deductible expenses during shelter calculations.
Overall, the GOP bill will cut down the funding for SNAP by $300 billion over the next ten years, thereby marking it as one of the biggest costs cutting in the history of U.S food assistance policy.
What if GOP bill get passed by the Senate
As every coin has two sides, so does the GOP bill. There have been mixed reactions from both public and experts. It the GOP bill get passed in the Senate, then it would reduce the central funding, and shift the responsibility on the states. Supporters are of opinion that it would save the central taxpayer’s money and would make people self-dependent from government aid. The stricter work policies would make sure that the right persons are getting benefits. Changes in the work requirements would encourage participation in the work as it would cover the able-bodied population and parents with 10-year-old kids or more into jobs. It would also limit extra expenses related to SNAP, which can then be utilized in other programs.
But critics have some points like, that this would be an issue for those who are solely dependent on SNAP, like families with low-income, old age and disabled people. Many states would also cover the SNAP costs, which can lead to small payment distribution or lower qualified people. With the bill being stricter on refugees and asylum seekers, it can become challenging for the ones who are trying for a better life in the U.S. Also, removing basic costs like internet service from shelter expense claims can also increase more expenses and less benefit claims for financially-poor households.
How 4.2 million people would see SNAP benefits eliminated?
With the major overhaul changes in SNAP under the GOP bill, it can affect both, household with low-income, old age people and disabled people, and unemployed people. If found with more than 6% payment error rate, then the states will have to contribute 5% to 15% in the SNAP program which can increase the financial burden, making them reduce benefit amounts, make the criteria stricter or entirely withdraw from the program. Also, raising the work requirements, limiting the exemption in high-unemployed areas etc. would overall raise the figure to 4.2 million people getting snaped from the benefits of SNAP as they would be either unable to qualify or their respective state may suspend the program.
Economic and social effects after GOP bill passes the Senate
Economically, if the GOP bill is passed in the Senate, then it would increase the financial strain on those states which have high payment error as they now have to cover the costs and that would lead to cuts in other state-funded programs. This would lead to low purchasing power, decreased sales and job losses which can weaken the inter and intra businesses.
On social scale, it can lead to more poverty and hunger issues for larger population. Poor health would result in more diseases amongst the people. The charity organizations will face more financial burden on covering more people. The increased pressure of costs can affect child development and education while also affecting the social communities in the name of saving the money.
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