Austin, Texas – Congress continues to debate President Donald Trump’s One Big Beautiful Bill Act (OBBBA), a sweeping domestic policy and tax cut extension.
While the White House touts savings for American taxpayers and a reduction in spending, Democrats are voicing concerns about the bill’s changes to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), both of which could have significant impacts in Texas.
Changes to SNAP
According to Feeding Texas, Texas issued an estimated $7.2 billion in SNAP benefits in fiscal year 2024. As of May, over three and a half million Texans qualified for SNAP.
The bill, if passed, would require most states — including Texas — to pay for part of the program.
States with a payment error rate higher than 6% will be required to cover 5-15% of the cost, a financial burden that Alex Jacquez, chief of policy and advocacy for Groundwork Collaborative, says could make it difficult for states to continue supporting the program.
The bill could lead to reductions in benefits or, in some cases, cause states to opt out of the program entirely. Additionally, the bill would impose stricter work requirements for SNAP.
Under the proposed changes, parents with children aged 15 (down from 18) would be subject to work requirements, and the exemption age for Able-Bodied Adults Without Dependents (ABAWD) would rise from 54 to 64.
State Representative Gene Wu, D-Houston, called these changes a “disaster waiting to happen” for Texas, particularly as children depend on SNAP for food during the summer months when they do not receive school lunches.
Changes to Medicaid
The OBBBA also proposes significant changes to Medicaid, including work requirements for Medicaid recipients. Under the bill, beneficiaries would need to have a job to receive benefits, with exemptions for people with disabilities and children.
The bill would also shift some Medicaid costs onto states and reduce Medicaid expansion under the Affordable Care Act (ACA), which Texas did not adopt.
The Congressional Budget Office estimates that millions could lose Medicaid coverage nationwide under this change.
Gene Wu criticized these proposed Medicaid cuts as harmful to the most vulnerable, saying, “To say we’re not going to provide the basic health care that people need to be healthy … that’s not just evil, it’s also really stupid.”
The Tax Cuts Extension
The cuts to Medicaid and SNAP are part of the plan to fund the extension of the 2017 Tax Cuts and Jobs Act, which significantly lowered taxes for corporations and top earners.
Republicans argue that the tax cuts are already in place, while Democrats warn that extending them would add more than $3 trillion to the national deficit over the next decade.
Alex Jacquez has opposed these cuts, accusing Republicans of prioritizing the wealthy while hurting the most vulnerable. “They are going to cut taxes for the wealthy and for large corporations, and they’re going to pay for it on the backs of the basic needs programs for food assistance and for health care the millions of people rely on,” Jacquez said.
Read Also: Elon Musk Criticizes Trump’s ‘Big, Beautiful Bill,’ Says It Will Cost Millions of Jobs
AI Regulation Provision
Another provision in the OBBBA is a moratorium on state regulation of artificial intelligence (AI). Gov. Greg Abbott signed House Bill 149 into law this year, a bill that regulates AI in Texas.
However, the OBBBA would prohibit states from enacting their own AI regulations for the next five years in order to receive certain funds. This provision has sparked pushback from State Sen. Angela Paxton and 17 Republican governors, calling for the provision to be removed.
What’s Next for the Bill?
The bill is still under debate in the Senate, and after it passes the Senate, it will return to the House before going to the president.
The final version of the bill could affect millions of Americans, especially those relying on SNAP and Medicaid.
What are your thoughts on the proposed changes to SNAP and Medicaid in the OBBBA? Do you think the changes will benefit or harm Texas residents? Share your thoughts and comments below!
For more updates and news, visit ridgecrestpact.org
