Senate Passes Sweeping Tax and Immigration Bill, Slashes SNAP and Medicaid Funding

The U.S. Senate has narrowly approved a far-reaching tax and immigration bill that includes major reductions to the Supplemental Nutrition Assistance Program (SNAP) and Medicaid, marking one of the most significant overhauls of federal social programs in recent years. The legislation, championed by President Trump and Republican leaders, passed by a 51-50 vote, with Vice President JD Vance casting the decisive tiebreaker.

Key Provisions:

• Tax Cuts: The bill makes permanent the individual and business tax cuts first enacted in 2017, extending benefits to high-income earners and providing new deductions for tipped and overtime wages. The Congressional Budget Office estimates the wealthiest households will see an average tax reduction of $12,000, while the poorest could lose $1,600 annually. Middle-income taxpayers are projected to receive a $500 to $1,500 break.
• SNAP Cuts: The legislation imposes stricter work requirements for SNAP recipients, mandating that able-bodied adults aged 18-64 work at least 80 hours per month or participate in approved programs. Parents with children over age 7 are also subject to these requirements. Additionally, states with high payment error rates must begin contributing to SNAP costs starting in 2028, a move expected to shift some financial burden from the federal government to the states.
• Medicaid Reductions: The bill introduces new work requirements for Medicaid recipients and reduces the provider tax rate in Medicaid expansion states. The Congressional Budget Office projects that up to 11.8 million people could lose Medicaid coverage by 2034 if the bill becomes law.
• Immigration and Border Security: The package allocates $350 billion for border and national security, including $46 billion for the U.S.-Mexico border wall and $45 billion for expanding migrant detention facilities, in line with the administration’s pledge for a large-scale deportation operation.
• Other Social Programs: Funding for clean energy initiatives and student loan programs is also reduced, with the bill aiming to offset the trillions in lost tax revenue from the extended cuts.

Political Reaction:

Supporters argue the bill will stimulate economic growth and reduce waste, fraud, and abuse in federal programs, while opponents warn it will disproportionately harm low-income Americans. Democrats and some moderate Republicans have condemned the cuts, particularly to SNAP and Medicaid, as endangering food and health security for millions. The Congressional Budget Office estimates that 3 million people could lose SNAP benefits under the new requirements.

The bill now heads to the House of Representatives, where several GOP members have signaled strong opposition, citing concerns over the scale of the cuts and potential impact on vulnerable populations. With a self-imposed July 4 deadline looming, the debate over the future of the nation’s social safety net is set to intensify.