26-02-2025
House passes budget blueprint that could impact Medicaid and SNAP, deliver tax cuts that favor rich
The U.S. House of Representatives on Tuesday passed a budget framework that could bring massive tax savings that favor the wealthiest Americans, and huge reductions in federal spending that could result in cuts to Medicaid and SNAP.
The budget resolution includes $4.5 trillion in tax cuts over the next ten years, a $2 trillion reduction in federal spending, and funding of $175 billion and $150 billion for border security and the military respectively, while allowing for a $3.3 trillion increase in the federal deficit.
The budget resolution passed by a 217-215 vote in the Republican-controlled House, with Rep. Thomas Massie the lone Republican vote against. Minnesota Republican Reps. Brad Finstad, Tom Emmer, Michelle Fischbach, and Pete Stauber all voted in favor, and Democrat Reps. Angie Craig, Kelly Morrison, Betty McCollum and Ilhan Omar (CD-5) voted against.
The focus of much of the coverage has been the combination of the extension of the Trump Administration's 2017 tax cuts, and the potential spending reductions in public programs that provide assistance to tens of millions of low-income Americans.
The Associated Press reports, citing figures from the Treasury's Office of Tax Analysis, that a 10-year extension of the tax cuts stands to benefit the top 1% of earners to the tune of $314,000 each. It also cited that the Tax Policy Center, which in July said households earning $450,000 or more would receive more than 45% of the benefits from an extension.
Democrats proposed amendments to the Senate version of the budget resolution last week limiting the tax cuts so they didn't apply to anyone earning above $10 million annually, then $100 million, then $500 million, all of which were rejected.
The New York Times reports that the $2 trillion in federal spending cuts "almost certainly could not be reached without reducing spending" on Medicaid, while leading Republicans have identified food aid programs such as SNAP as other potential savings targets.
Medicaid, the nation's largest health insurance program, currently provides medical coverage for 78 million American residents. Initially limited to children, the elderly, the disabled, and the pregnant, it was expanded through the Affordable Care Act to allow low-income adults to join in states that approved expansion.
It's being reported that the Medicaid expansion – which now provides insurance coverage to 21 million low-income Americans across 41 states including Minnesota (Minnesota Medical Assistance) – could be on the chopping block to achieve $880 billion in savings required of the House Energy and Commerce Committee, which oversees the Medicaid program.
The nonpartisan Center for American Progress claims that based on the funding reductions passed in the budget resolution, around 197,000 Minnesotans on MA (Minnesota Medical Assistance) or CHIPs (the Children's Health Insurance Program) could lose their coverage.
Another potential cut candidate is the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, which provides subsidies for food purchases to more than 42 million low-income Americans.
The resolution calls on the House Agriculture Committee to find $230 billion in savings over the next 10 years, with much of these savings expected to come from SNAP and other food aid programs.
Politico reported this week that Republican House Ag Chair G.T. Thompson claims there would be no cuts to current SNAP benefits, but there has been skepticism that the $230 billion savings can be reached by measures like expanded work requirements for SNAP beneficiaries, and efforts to target fraud and waste.
Rep. Michelle Fischbach (R-CD7) said the resolution "sets the framework to deliver on one big beautiful bill to extend the tax provisions of the Tax Cuts and Jobs Act to tax relief to working families, secure the border and unburden American workers from unnecessary federal regulation."
She pointed out that the resolution alone does not cut Medicaid, Medicare, Social Security or anything else at this point, but instead instructs Congress "to identify better investments and more savings so the federal government is acting as a good steward of taxpayer dollars."
Bring Me The News asked Rep. Fischbach whether she would oppose cuts to Medicaid and SNAP. This story will be updated when we receive a response.
Sixth Congressional District Rep. Tom Emmer, the GOP Majority Whip in the House, posted the following in favor of the tax cuts and military and border investments, but didn't touch on the spending cuts: "The American people can rest easy tonight knowing that House Republicans have successfully overcome the first hurdle in putting our country on the path to fiscal sanity.
"The Budget Resolution passed by the House without a single Democrat vote will keep Trump's tax cuts in place for American families, provide crucial investments in securing our country's border, and increase American energy production to levels that were previously unimaginable."
Rep. Betty McCollum (D-CD4) shared a letter on Monday from 14 state Republicans who were appealing to President Donald Trump and Reps. Emmer, Finstad, Fischbach and Stauber not to cut Medicaid.
"Just to emphasize what you already know, Medicaid includes services and care for the seniors and those with disabilities, not just health care for the poor. Additionally, nearly 50% of all Medicaid enrollees are children," the letter read.
Rep. Omar spoke before Congress this week, describing the budget resolution as a "blueprint for American decline."
