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Federal funding cuts would increase hunger and hardship across Alabama


Congress is advancing a cruel proposal to take away food assistance, health coverage and other vital services from millions of Americans who struggle to afford basic needs.

Why? To give huge tax cuts to the wealthiest people in the country. The bill’s proposed $1.1 trillion of cuts to food assistance and health care over the next decade would be equal to the amount of tax cuts it would provide for the wealthiest 2% of households, according to the Center on Budget and Policy Priorities.

Congressional leaders are pushing the bill through budget reconciliation, a process that bypasses the Senate filibuster and allows legislation to pass with a simple majority vote. That process is ongoing and fluid. The U.S. House voted 215-214 for the bill in late May. By the time you read this, the Senate may have made many changes, some for the better and others for the worse.

The specifics may change, but the bill’s brutal core will remain the same. It will increase suffering for millions of Americans with low incomes to finance tax breaks for wealthy households and highly profitable corporations.

An existential threat to SNAP in Alabama

Alabama likely would feel the worst effects from proposed cuts to food assistance under the Supplemental Nutrition Assistance Program (SNAP). SNAP helps more than 42 million people nationwide and nearly 800,000 Alabamians put food on the table.

Now, Congress and the White House are threatening those families’ meals in an effort to reduce taxes for billionaires. Three major proposed SNAP changes would have devastating effects on Alabama.

(1) The bill likely would require Alabama to pay hundreds of millions of dollars more for SNAP benefits and administrative costs. The federal government has funded 100% of SNAP benefits for decades. Under the new cost shift, Alabama would become responsible for a projected $258 million or more in direct benefit costs annually, plus an additional $35 million a year in administrative costs.

The General Fund is already facing increasing costs and often stagnant revenues. There is real reason to be concerned that the Legislature can’t, or wouldn’t, commit this money. In that case, Alabama would be forced to cut SNAP benefits significantly – or even eliminate the program altogether.

(2) Congress also is considering expanding SNAP current time limits and work verification red tape for an additional 165,000 Alabamians, including parents with children over age 7. A change of this magnitude would create additional burdens for Alabama’s already stretched child care and child welfare systems. And it could leave thousands of Alabama children and families without food.

(3) Congress is considering limiting future growth in the value of SNAP benefits. Over time, this would reduce benefits for nearly 800,000 SNAP participants in Alabama, including more than 300,000 children, even as food costs continue to grow.

The economic devastation of SNAP cuts

SNAP cuts not only would hurt Alabama’s people. They also would damage Alabama’s economy. More than 5,000 Alabama stores are authorized to accept SNAP payments, and for many, it’s a large part of their business. This is particularly true in small towns and rural communities where retail is a major source of jobs and tax revenue.

Every $1 in SNAP benefits can generate $1.50 in economic activity in local communities, the USDA estimates. Deep SNAP cuts could force layoffs or closures at grocery stores and other retailers across our state. A reduction or loss of SNAP benefits is a threat to our economy and the local communities where we all live and shop.

Threats to Medicaid and ACA coverage

The bill also would make health care inaccessible or less affordable for tens of millions of Americans, including tens of thousands of Alabamians. It would allow enhanced Affordable Care Act (ACA) subsidies to expire, increasing premium costs for marketplace plans.

In addition, the bill would create new barriers that would limit Alabama’s ability to manage its own Medicaid program in the future. For example, the legislation would eliminate the federal incentives set aside to help states like Alabama cover the first two years of Medicaid expansion.

Alabama is one of 10 states yet to expand Medicaid to cover adults with low incomes. As a result, nearly 200,000 Alabamians are in the health coverage gap, earning too much to qualify for Medicaid but too little to afford private insurance.

The bill also would freeze provider taxes at current levels. This would ban Alabama from increasing fees on nursing homes, ambulance providers and others to fund Medicaid costs – even if legislators find that move necessary to sustain the program or expand coverage later.

Now is the time to speak out

It is not too late for us, as Alabamians and Alabama Arise members, to raise our voices against this dreadful bill. Congress is hearing the opposition from people back home, and that pressure continues to grow. The bill’s margin for passage is tight, and only a few votes can make a difference.

Please call on your U.S. representative and senators to say “no” to deep cuts to food assistance and health care. Ask them to focus instead on legislation that advances tax equity and meets essential health and nutrition needs in our communities.