Summary
- One Big Beautiful Bill cuts SNAP by $186 billion.
- Nearly 3 million Americans lose SNAP benefits.
- Benefit increases capped to inflation, limiting growth.
- More work and state cost-sharing requirements set.
- Families will receive less food assistance money.
The Congressional Budget Office (CBO), a nonpartisan federal organization that advises Congress on economic matters, issued the findings.The final draft of the bill, which President Donald Trump signed into law in July, is being examined for the first time by them.
CBO analysts examined the impact of the bill's numerous provisions on household resources over the next ten years, including cash income and government assistance.
While some modifications will be phased in until 2028, others will take effect immediately.
Changes to job requirements in the Supplemental Nutrition Assistance Program (SNAP) are expected to decrease participation among the more than 40 million Americans who depend on the program, resulting in an average monthly decrease of 2.4 million participants, according to CBO analysts.
Another 300,000 people in an average month will likely lose benefits starting in 2028, as lawmakers shift SNAP benefit costs onto some states, but the CBO indicated those numbers depend on a lot of variables.
“CBO expects that there will be a variety of state responses to the new requirement,”
analysts wrote.
“Some states will maintain current benefits and eligibility; others will modify benefits or eligibility or leave the program altogether.”
According to CBO estimates, subsidies for child nutrition programs will also decline for approximately 96,000 children in an average month since SNAP eligibility is linked to other student benefits, such as school and summer meals.
Lastly, the new law will result in reduced average monthly payments since it requires that changes to the package that supports SNAP benefits cannot increase costs. Average benefits will drop from the previously projected $227 per month to $213 per month by 2034.
The agency also noted that while most American households will see a gain in income owing to tax savings, the bill's combination of SNAP and Medicaid cuts will result in a fall of around $1,200 annually for the poorest American families.
How will the SNAP benefit reductions specifically impact low-income families?
Many low-income families will face a significant increase in food insecurity, meaning they will not have reliable access to enough nutritious food for an active and healthy life.
Children in families experiencing SNAP cuts or benefit reductions are particularly vulnerable, with higher risks of poor health, developmental delays, and hospitalization.
Reduced SNAP benefits squeeze already tight household budgets, forcing families to make difficult trade-offs between essential needs like food, utilities, housing, and healthcare. Some families experience a “cliff effect,” where even small increases in income lead to steep cuts in benefits, paradoxically making them financially worse off.