The Supplemental Nutrition Assistance Program, widely known as SNAP and formerly called food stamps, is set to undergo significant changes that will affect millions of American families. According to recent research from the Urban Institute, newly enacted provisions in the federal budget could result in 22.3 million families losing some or all of their SNAP benefits. This shift comes as part of broader budget cuts aimed at reducing federal spending, with SNAP among the programs targeted for substantial reductions.
The Urban Institute’s analysis highlights the scale of impact these changes could have. Out of the 22.3 million families affected, about 5.3 million are expected to lose at least $25 in monthly benefits. Many of these families include children, working adults, and those with full-time workers, underscoring the wide reach of the cuts.
The changes involve tightening eligibility rules and expanding work requirements. For example, the new rules extend work requirements to households with school-age children and increase the age limit for these requirements from 54 to 64. This means more adults will need to meet work or qualifying program participation criteria to continue receiving benefits. Failure to meet these requirements could lead to families losing benefits after three months within a 36-month period.
These SNAP adjustments are part of a larger budget reconciliation bill signed into law recently. The bill includes about $186 billion in cuts to SNAP over the next decade, a reduction of roughly 20 percent from current funding levels. These cuts are less severe than earlier proposals, which suggested reductions closer to $290 billion, but they still represent a significant financial tightening for the program.
The budget also shifts some of the financial responsibility for SNAP benefits to the states. Starting in 2028, states will be required to cover at least 5 percent of SNAP benefit costs, a role previously fully funded by the federal government. This change raises concerns among state officials about their ability to maintain current levels of assistance without additional funding.
SNAP has long been a critical tool in combating food insecurity, helping millions of low-income Americans afford nutritious food. Nearly 53 million people in the U.S. live in households that experience food insecurity, and SNAP benefits have been shown to reduce poverty and improve health outcomes. Cuts to the program risk increasing food insecurity and related health problems, particularly among vulnerable populations such as children and those enrolled in Medicaid.
The combination of reduced SNAP benefits and stricter eligibility could lead to a rise in hunger and poor nutrition. Experts warn that these changes will strain food banks and other community resources already stretched thin. Schools may also face challenges, as SNAP enrollment often triggers eligibility for free school meals, a critical source of nutrition for many children.
Beyond the immediate impact on families, cutting SNAP benefits has broader economic consequences. Research indicates that every dollar cut from SNAP for families with children can cost society $14 to $20 in lost economic activity and increased social costs. Reduced benefits could lead to higher healthcare expenses due to worsened health outcomes associated with food insecurity.
The new work requirements and eligibility restrictions also raise concerns about the administrative burden on states and the potential for increased unemployment or underemployment among affected populations. The Congressional Budget Office projects that these changes will reduce SNAP enrollment by millions and lower benefit levels for those who remain on the program.
The changes to SNAP reflect a shift in federal policy that will reshape how food assistance is delivered in the United States. With millions of families facing reduced support, the social and economic ripple effects are expected to be significant. Policymakers, advocates, and community organizations will be watching closely as states implement these new rules and seek ways to mitigate their impact.
For investors and businesses in sectors related to food retail and social services, these changes may alter demand patterns and funding flows. The SNAP program remains a key indicator of federal support for low-income households, and its evolution will continue to influence economic and social landscapes.
