What could massive cuts to SNAP benefits mean for the U.S. economy – and for all of us?
Robbery on a massive scale. Cadillac-driving welfare queens dining on steak. Lazy poor people who are unwilling to work and therefore undeserving of food.
Since the Food Stamp Act was signed into law in 1964 by President Lyndon Johnson, this sort of rhetoric has been hurled at the program — now known as the Supplemental Nutrition Assistance Program, or SNAP — and the low-income U.S. residents for whom it offers a buffer against hunger. Providing under-resourced Americans with these sorts of benefits has often garnered bipartisan support (Richard Nixon, in the 1970s, was the first president to significantly increase the program). More recently, though, it’s been Republicans who have called to cut or abolish SNAP outright.
Today, almost 43 million U.S. residents are enrolled in SNAP — 90 percent of whom are seniors, people with disabilities and families with children. And the program is, once again, on the chopping block for a Republican-controlled Congress and White House, who claim without much evidence that it’s rife with “waste, fraud, and abuse” — for example, that there are too many able-bodied adults taking benefits without working, or working enough. Trying to get a handle on the potential fate of SNAP is currently a roller coaster ride, with new pronouncements about it being made almost daily. Here’s how things stood as of this writing:
On February 12, the House Budget Committee directed the House Agriculture Committee to make $230 billion worth of cuts over the next ten years to its various programs, which include SNAP — broadly speculated to be the program that will take the brunt of the hit. (For the record, $230 billion represents about 20 percent of SNAP.) “Nobody’s ever cut the program by anything near that,” says Jonathan Coppess, who teaches agricultural policy at University of Illinois at Urbana-Champaign, while not discounting that it could happen now.
Yet two days later, Glenn “GT” Thompson (R-PA), Chairman of the House Committee on Agriculture, vowed that there would be no cuts to food benefits themselves, either in a reconciliation process or the Farm Bill, which is the piece of legislation where SNAP lives. Rather, he told “Politico,” opaquely, that cuts would come about by strengthening the program and improving its accountability and integrity.
What changes may lie ahead — and why they matter
The reconciliation process
As the National Women’s Law Center explains, most bills require “a supermajority of votes (60 out of 100 senators) to overcome a filibuster and pass. A ‘budget reconciliation’ process allows senators to expedite certain legislation’s approval with a simple majority vote.” The Republican Congress might want to use reconciliation to set the federal budget, since it only has a four-seat advantage in the Senate (53-47), and Senate Democrats are unlikely to sign off on any budget that drastically cuts SNAP and other vital programs like Medicaid. The budget will have to pass both the House and Senate (although the president does not sign it into law). That proposed $230 billion chop to agricultural spending would be part of this reconciliation process, with its many potential cuts to many programs, which Republicans want to use to fund tax cuts that greatly favor wealthy U.S. residents. Normally, though, agricultural spending is determined in the Farm Bill.
The Farm Bill
The Farm Bill is a piece of legislation that exists independent of the federal budget being tossed around for reconciliation; although the bill and budget are two distinct entities, it’s possible Republican lawmakers could try to reduce SNAP benefits in both places. The first Farm Bill was passed in 1933 to reduce crop surplus and raise crop prices while also keeping food affordable for consumers. Food Stamps were added in 1973. The Farm Bill is now a $428 billion package — about 80 percent of which goes to SNAP — that also helps farmers access crop insurance and credit, and supports rural development, farming research and conservation efforts. The bill is meant to be renewed every five years but there hasn’t been a new one since 2018. It’s been extended yearly since it expired in 2023, with the current extension set to expire on September 30, 2025.
Coppess says SNAP’s inclusion in the Farm Bill has always been essential to propelling the legislation forward. “For the last 50-plus years, you didn’t move a Farm Bill without that coalition between the farm assistance [side] and the food assistance side,” he says. “They need to be bipartisan” to get the entire package passed. But for Congress to make cuts to SNAP in reconciliation, he predicts they’ll split the program from the Farm Bill, leaving farmer benefits intact for now. He thinks it’s also possible legislators could try to turn SNAP into block grants — that is, rather than administering the program federally, they would allocate money to each state and then make those states “figure out who doesn’t get their food assistance.” Block grants, he says, “are a favorite gimmick because [they allow] Congress to take credit for cutting spending but not actually having to choose.” This strategy also risks cutting off essential food aid to many people who need it.
“Waste, fraud, abuse”
So, where might cuts to SNAP come from if not the benefits themselves? Coppess expects Republicans will try to greatly reduce the number of people who participate in the program. “Benefit reductions do not get much in terms of savings, so it almost always has to come out of participation numbers,” he says, which likely means the introduction of a lot more arduous paperwork and changes to who is eligible. This all fits under the rubric of reducing “waste, fraud, and abuse,” incidence of which even the U.S. Department of Agriculture admits is low.
One way GOP legislators have vowed to eradicate “abuse” from the system is by tightening SNAP work requirements. However, says Luis Nuñez, a research analyst at the Center on Budget and Policy Priorities, of the approximately 30 percent of SNAP participants who are not children or elderly or disabled, “74 percent of them worked in the past year or a month after” enrolling in the program. Currently, work requirements are waived for SNAP recipients 54 years and older, veterans, people who are unhoused or recently aged out of foster care, and parents of school-age children, for example. A previously attempted adjustment would have raised the age limit to 64 and, Nuñez says, many of these other work exemptions could disappear.
“Benefit reductions do not get much in terms of savings, so it almost always has to come out of participation numbers."
Agriculture chair Thompson’s talking points around increasing SNAP “efficiency” are also something of a red herring. Actual benefits payments to recipients account for 94 percent of SNAP spending, with administrative costs accounting for a little more than 6 percent.
Chatter around improving the “integrity” of the program likely refers to the Thrifty Food Plan (TFP) — a metric for determining how much it costs to buy groceries to support a cheap, nutritious diet, which determines how much SNAP benefit families can get. At the moment, the TFP is $225 a week for a traditional nuclear family of two adults and two children ages six to 11. Republicans are currently considering two potential changes to the TFP. Says Nuñez, “One is we just don’t update it; we just keep the current value as it is today, which means … over time, SNAP benefits will become inadequate.” The second proposal: “Go back in time and use an outdated food-plan value to calculate current benefits,” Nuñez says.
While these proposals may technically align with Thompson’s promise not to touch SNAP benefits themselves, they lessen their impact — with deleterious consequences. “Various studies have found that SNAP reduces hunger — that’s pretty intuitive,” says Nuñez. But among children “they’ve been linked to improved educational attainment, higher rates of school completion and improved health outcomes over the long term. While benefits are modest — families certainly do struggle even with these benefits and others — they’re very impactful.” In tandem with proposed cuts to other essential programs like Medicaid, more U.S. residents are likely to be pushed to the brink of poverty, and to stay there.
The economy, stupid
Some Republican lawmakers have asserted that the expansion of SNAP over the years represents “uncontrolled growth of entitlement spending.” However, advocates point out that growth actually means the program is working as intended — helping vulnerable people access food when the economy is in bad shape. It is designed to “grow as the economy contracts and shrink with economic recovery,” with participation in SNAP following rates of poverty, reports “Truthout.” In fact, says Nuñez, “During a weak economy, every dollar of SNAP benefits generates $1.54 in economic activity,” most of it spent locally.
According to “Supermarket News,” most SNAP recipients buy their food at traditional grocery stores and big-box shops like Walmart and Target. Supermarket operators provide “critical access to a variety of healthy, nutritious food to communities nationwide,” writes Stephanie Johnson, group vice president of government relations for the National Grocers Association, in an email. “While providing an important safety net to Americans in need, SNAP also strengthens local economies and supports American jobs.” (Additionally, more than half of U.S. states offer Double Up Food Bucks, which increase the SNAP dollars a participant can spend on fresh produce at places like farmers markets, thereby also delivering welcome revenue straight to farmers.)
SNAP is credited with creating almost 200,000 grocery industry jobs in 2020 alone, and an additional 45,000 jobs in agriculture, manufacturing, transportation and municipal services. With grocery prices currently soaring, cuts to SNAP, say the program’s advocates, mean food dollars will have to stretch even further, helping to weaken an already weakened economy.
“If you listen to arguments about how SNAP pays a pretty small amount to people,” an average of $6.20 per person per day, “maybe you can convince yourself it doesn’t matter,” says Coppess. “But reality doesn’t care about your ideology. People are still going to be hungry.”
Top photo by jetcityimage/Adobe Stock.
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