An atmosphere of uncertainty and anxiety is looming over millions of Americans who rely on Medicaid and the Supplemental Nutrition Assistance Program (SNAP). This follows the enactment of a recent tax law signed by President Donald Trump last week. This legislation introduces significant reductions in social spending, alongside new eligibility requirements for accessing essential health and food assistance, potentially leaving many low-income individuals without medical coverage or nutritional support. This group includes precarious workers, people with chronic illnesses, and single-parent families.
More Stringent Criteria, Reduced Access
Among the most contentious aspects of the law is the introduction of mandatory work requirements for adults aged 19 to 64 seeking or maintaining Medicaid benefits. Beneficiaries must now prove they are employed, enrolled in educational programs, or engaged in at least 80 hours of community service monthly. A similar mandate applies to SNAP recipients, formerly known as "food stamps", with the age requirement extended to 65. Although exceptions exist for individuals with children under 14, social rights advocates warn that many could lose access due to bureaucratic hurdles or failure to meet these new standards, even if they are otherwise eligible.
The Congressional Budget Office predicts that up to 11.8 million people could lose Medicaid coverage by 2034. Additionally, many might be excluded from SNAP for failing to submit documentation on time or due to errors in state systems.
"I'm Panicking": The Human Impact
Amanda Hinton, a 39-year-old from Missouri who suffers from fibromyalgia, shared her distress with Univision: "I'm panicking. I have incurable chronic illnesses and depend on my medication to get through the day. Without Medicaid, I couldn't afford them." Such stories are common among those worried about meeting the requirements or being excluded due to administrative mistakes. Julia Bennker, a home care worker in Wisconsin, recounted losing her medical coverage for a month due to paperwork delays, leaving her without treatment and forcing her to reschedule a doctor's appointment.
Increased Bureaucracy, Decreased Access
Experts have heavily criticized the increased bureaucracy introduced by the new law. Eligibility will now be reassessed every six months, adding administrative burdens and increasing the risk of people falling through the cracks due to simple procedural errors. "For every additional document someone has to submit, people get lost," said Deborah Steinberg, an analyst at the Legal Action Center. Moreover, conditions like mental illnesses or substance use disorders are still inadequately recorded in state Medicaid systems, complicating the process of obtaining exemptions.
States and Hospitals Under Pressure
States are mandated to implement Medicaid's work requirement by 2027. Regarding SNAP, the law compels states to bear a larger share of administrative costs by 2027 and to contribute to food assistance benefits starting in 2028. "This timeline will be extremely tight and challenging for many states," stated Sophia Tripoli, senior director of health policy at Families USA, a health advocacy organization. Legal organizations anticipate a rise in program dropouts due to system frustrations. Meanwhile, rural hospitals could face financial strain. The NGO KFF estimates that Medicaid funding in rural areas will decrease by over $155 billion in the next decade, potentially leading to widespread closures.
The Controversial "One Big Beautiful Bill"
President Trump signed the ambitious "One Big Beautiful Bill" last Friday, a measure that extends tax cuts and gradually introduces reductions to Medicaid. The signing ceremony at the White House coincided with the United States' Independence Day celebrations. This controversial legislation signifies a major overhaul of the nation's fiscal, social, and national security policies.
Key elements of the law include permanent extensions of the tax cuts initiated in 2017 during Trump's first term, tax exemptions for tips and overtime for workers earning less than $150,000 annually, and the creation of "Trump Accounts" for tax-advantaged savings for education, housing, or job training. The child tax credit is increased to $2,500 through 2028; up to $10,000 in interest on domestic car loans is deductible; and the state and local tax (SALT) deduction cap is raised to $40,000 for those earning under $500,000 a year.
The OBBB allocates over $150 billion to the military budget and $170 billion for border security. It also cuts more than $1.2 trillion in federal spending, primarily targeting Medicaid, imposes work requirements for medical assistance, reduces SNAP subsidies, and gradually removes tax incentives for renewable energy.
Implications of Trump's New Legislation on Medicaid and SNAP
What changes does the new law introduce for Medicaid recipients?
The new law mandates that adults aged 19 to 64 must meet work requirements to receive or maintain Medicaid benefits. This includes proving employment, education enrollment, or community service of at least 80 hours per month.
How does the legislation affect SNAP beneficiaries?
SNAP recipients are now subject to similar work requirements as Medicaid beneficiaries, with the age limit for these requirements extended to 65. This may result in reduced access due to increased eligibility criteria.
What are the potential impacts on rural hospitals?
Rural hospitals could face financial challenges due to a projected $155 billion reduction in Medicaid funding over the next decade, potentially leading to numerous closures.