Republicans have advanced plans to reduce spending by over $23 billion in the next decade and revamped the Supplemental Nutrition Assistance Program (SNAP) during a vote from the Agriculture Committee late Wednesday.
The committee voted 29-25 along party lines.
This initiative is a central piece of President Trump’s “big and beautiful” agenda, now moving to the House Budget Committee starting Friday for further markup and to consolidate various legislative efforts.
In April, Congress had already set a framework for a significant bill, instructing different committees to aim for at least $230 billion in savings over a ten-year period.
The Congressional Budget Office indicated that the committee’s proposals surpassed expectations, although it didn’t specify the amount. Some Republicans on the committee mentioned they could potentially increase cuts to around $300 billion.
The proposal stipulates that the federal government will penalize states with high error rates in SNAP payments, commonly referred to as food stamps, based on data collected by the government.
As of 2023, the national average for state error rates stood at 11.68%, with 46 states exceeding an error rate of 6%, according to Food and Nutrition Services.
Key Measures from the Agriculture Commission
- States with error rates between 6% and 8% may face penalties of 15% of SNAP funds, diverging from historical practices where the federal government entirely funded the program.
- States with error rates from 8% to 10% will have to cover 20% of the program.
- For states exceeding a 10% error rate, the requirement rises to 25%.
- The proposal also raises the work requirement age for childless, healthy adults from 54 to 64.
- This move could create space for Republicans to address a $60 billion farm bill, incorporating elements like crop insurance and trade promotion.
In 2023, SNAP’s federal budget was $112.8 billion, aiding more than 42 million Americans, each receiving an average of over $212 monthly.
Moderate Republicans showed support for the proposed changes to SNAP, yet lingering concerns about Medicaid cuts and unresolved issues with state and local tax deductions remain more pressing points in the larger bill.
On Wednesday, the Tax Writing House Ways and Means Committee forwarded a tax plan forecasted to add around $3.7 trillion to the national debt over the next decade.
Additionally, the Energy and Commerce Committee approved spending cuts totaling approximately $900 billion along with a Medicaid reform proposal.
The broader “big and beautiful” bill framework also tasks the House Financial Services Committee with identifying $100 billion in savings and the House Education and Labor Committee with finding $330 billion, culminating in over $1.5 trillion in overall reductions.
The coming bill is anticipated to include an extension of the 2017 tax cuts, eliminate taxes on tips and overtime salaries, bolster border security, and enhance energy supply. This represents Trump’s main legislative goal this year, aimed at supporting his second term.
GOP leadership hopes to finalize the bill in time for Trump to sign it by July 4th, yet challenges such as internal party disputes and narrow majorities in Congress present significant obstacles.
