Finance

Trump Signs SNAP Reform Bill Cutting Benefits for Millions

On July 4, 2025, President Donald Trump signed a new piece of federal legislation known as the “One Big Beautiful Bill.” This law brings significant changes to several social programs, with a particular focus on the Supplemental Nutrition Assistance Program (SNAP), the government’s primary food aid program. SNAP currently helps over 41 million Americans buy groceries, but the new reforms are set to reshape how the program operates and who qualifies for assistance.

The Congressional Budget Office estimates that up to 5.4 million people could lose SNAP benefits due to expanded work requirements alone, and roughly 2.7 million families could be affected monthly. This is a big shift, especially for many families and individuals who rely on SNAP as a critical resource to put food on the table.

One of the major changes introduced by the bill is an increase in work requirements. The bill raises the age limit for SNAP work requirements from 54 to 64, extending obligations to parents of children aged 14 and older; caregivers of children under 14 remain exempt.

The legislation eliminates federal funding for SNAP‑Ed, the nutrition education component of SNAP that previously cost approximately $536 million annually, though the phase‑out timeline through fiscal year 2025 should be confirmed.

The bill also shifts more financial responsibility to the states. Beginning in fiscal 2027, states must contribute 75% toward SNAP administrative costs (up from 50%), and starting in fiscal 2028, states with payment error rates exceeding 6% will cover 5–15% of actual SNAP benefit costs.

The law restricts SNAP eligibility to U.S. citizens, nationals, lawful permanent residents (including specific groups like certain SIV holders and categories of Cubans), explicitly excluding undocumented immigrants and others not meeting those criteria.

In addition, the law introduces penalties for states if their payment error rates go beyond certain limits. This measure aims to reduce fraud and mistakes but may also increase pressure on state agencies to manage the program more tightly.

The legislation limits updates to the Thrifty Food Plan, which determines SNAP benefit levels, to once annually, reducing flexibility to adjust benefits based on price changes more frequently.

Organizations that help feed those in need are already concerned about the impact. For example, the Atlanta Community Food Bank, which serves nearly 250,000 households each month, warns that the new law could increase demand on local food assistance networks, even as fewer people qualify for SNAP.

The “One Big Beautiful Bill” is a bold step in reshaping social support programs in the United States. While it aims to tighten eligibility and increase work participation, the changes are expected to have significant effects on millions of Americans who depend on food assistance. Communities and state governments alike will be closely watching how these reforms play out in the coming years.

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