About 2.4 million fewer Americans, including families with kids, are expected to get food stamps each month after Republican lawmakers made work rules stricter. This was part of a new law supported by President Donald Trump, according to a report from the Congressional Budget Office (CBO) released Monday.
Other people who still get food stamps may see their monthly benefits go down. This comes at a time when grocery prices are still high and food banks are struggling to help more people.
The new law requires parents with children to work in order to get food stamps. But fewer people will lose benefits under this final version compared to an earlier House bill. The House’s original bill would have cut food stamps for 3.2 million people each month.
The CBO looked at how the law will affect programs like food stamps (called SNAP), Medicaid, and health insurance through 2034. It also found that low-income families will lose money overall, while wealthy families will get a big boost.
Before, some able-bodied adults had to work to get food stamps longer than three months. Now, the law also requires parents with kids age 14 and older to work, volunteer, or do job training at least 80 hours a month.
Adults aged 55 to 64, veterans, homeless people, and former foster kids also have to meet this work rule, but Native Americans are exempt. It’s also harder for states to get exceptions during tough economic times.
The CBO says about 300,000 adults who live with kids 14 or older will lose food stamps on average each month.
Another rule means some states will have to pay part of the cost for food stamps for the first time. States with high error rates in payments will have to cover 5% to 15% of the costs starting in 2028. This might cause some states to reduce benefits or even leave the program.
This could cut food stamps for another 300,000 people and reduce help for about 96,000 children’s nutrition programs.
The House’s original bill would have forced states to pay even more, cutting benefits for 1.3 million people and hurting 420,000 children.
Other parts of the law also reduce benefits for some families by changing how monthly help is calculated.
Many people on food stamps have jobs, but they might lose help because it’s hard to prove they work enough hours. Gina Plata-Nino, who helps run a food assistance group, said, “People will be hungrier and sicker without that help.”
This will happen while even more people lose health insurance. The law also requires some Medicaid recipients, like parents with kids 14 and older, to work. This will cause 5.3 million more people to be uninsured by 2034, according to the CBO.
In total, the law will cause 7.5 million more people to lose Medicaid coverage, but changes to the Affordable Care Act will add 2.1 million people with insurance. So, 10 million more Americans will be uninsured by 2034.
Who Benefits and Who Doesn’t
The CBO found that, overall, Americans’ incomes will go up, but not everyone will benefit.
Low-income families making less than $24,000 a year will lose about $1,200 a year (3.1%) because of benefit cuts.
Middle-income families, earning about $86,000 a year, will see an $800 increase (0.8%).
The richest Americans, making nearly $700,000 a year, will get a $13,600 increase (2.7%).
The richest 10% will get 63% of the benefits from this law, while the bottom 60% will get just 4%, said economist Justin Wolfers.
