Trump says not to mess with Medicaid, but $1T in cuts to Medicaid, Food Stamps still loom; Millions could lose benefits

House Republicans are advancing a Trump-backed bill to cut nearly $1 trillion from Medicaid and food stamps. As per a report, the plan could affect over 100 million Americans, with states, hospitals, and low-income communities bracing for fallout.

Written By Ravi Hari
Updated21 May 2025, 09:54 PM IST
House Republicans are reportedly advancing a Donald Trump-backed bill that could slash nearly $1 trillion from Medicaid and food stamps. REUTERS/Ken Cedeno/File Photo
House Republicans are reportedly advancing a Donald Trump-backed bill that could slash nearly $1 trillion from Medicaid and food stamps. REUTERS/Ken Cedeno/File Photo(REUTERS)

House Republicans are advancing a proposal that could slash nearly $1 trillion from two of the United States’ core safety net programs — Medicaid and food stamps — in an effort to align with President Donald Trump’s policy agenda.

As CNN reports, if the legislation passes, millions of Americans could lose access to vital health and nutrition benefits.

Medicaid and SNAP on the chopping block

The proposed legislation would cut nearly $700 billion in federal support for Medicaid over the next decade, according to an updated Congressional Budget Office (CBO) analysis cited by the news outlet. The changes could leave more than 10 million people without Medicaid coverage over the next 10 years, and by 2034, 7.6 million more Americans could be uninsured.

In addition, the GOP aims to overhaul the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, by imposing stricter work requirements and transferring more cost burdens to states. About 42 million people currently rely on SNAP, while over 71 million are enrolled in Medicaid.

According to the news report, these cuts could lead states to limit enrollment, reduce benefits, or even exit the food stamps program altogether. For Medicaid, optional services like dental care, physical therapy, and home-based care for the elderly and disabled may be the first to go.

Work requirements

As CNN notes, the legislation would impose, for the first time in Medicaid’s history, a work requirement for non-exempt adults aged 19 to 64 — requiring at least 80 hours per month of work, education, or community service to remain eligible for coverage. Although exemptions exist for parents, pregnant women, and the medically frail, experts warn that many low-income Americans could lose benefits simply by getting entangled in bureaucratic hurdles.

Even those who are already employed or exempt could be kicked off Medicaid for failing to consistently document their status, the report stated. This would disproportionately affect people with chronic illnesses enrolled through Medicaid expansion, as well as caregivers and students.

Hospitals, states brace for fallout

The impact of the Medicaid cuts will ripple beyond households. The news report highlights that hospitals — particularly those in rural or low-income areas — could see a surge in uncompensated care costs as more people become uninsured. With less federal funding, states may be unable to cushion hospitals, potentially leading to service reductions, rate hikes, or even closures.

Moreover, the GOP plan would delay implementation of a Biden administration rule meant to streamline Medicaid eligibility and renewals until 2035. According to a CBO estimate shared with Democratic lawmakers, this delay could result in 2.3 million people — including seniors, disabled individuals, and children — losing coverage.

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Food Stamp changes could hit older adults, parents

Under the new SNAP provisions, work requirements would expand to recipients aged 55 to 64 and parents of children aged 7 to 18. States would also be restricted in their ability to waive these requirements, even during economic downturns, unless unemployment in a county exceeds 10%, the report stated.

In another shift, states would be forced to cover a minimum of 5% of SNAP benefits by 2028. Those with high error rates could end up paying up to 25%. Administrative costs, currently shared evenly between states and the federal government, would become 75% state-funded — a steep increase that may be unmanageable for poorer states.

Grocery store owners are also warning of broader consequences. As per the report, reductions in food stamp spending could shrink local economies and eliminate jobs, especially in rural and low-income regions where SNAP spending forms a significant part of consumer demand.

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Final outcome uncertain

The legislation’s final shape remains uncertain, as moderate and conservative Republicans continue to negotiate its provisions. Even if the tax bill passes the House, significant revisions are expected in the Senate before it could become law.

Still, the scale of the proposed cuts — and their potential impact on tens of millions of Americans — has sparked concerns. As Trump’s “One big, beautiful bill” moves forward, the country could be on the verge of its most dramatic rollback of social welfare programs in decades — one that may test the GOP’s long-standing promise to protect America’s most vulnerable.

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Trump’s message: Not to mess with Medicaid

While House Republicans are pushing forward with historic rollbacks, Trump has warned his party not to overreach, as per multiple reports. “Don’t f--- around with Medicaid,” he told GOP lawmakers at a recent closed-door meeting, according to multiple Republican sources quoted by news reports. He reportedly urged them to focus instead on eliminating “waste, fraud, and abuse,” and insisted on maintaining work requirements — a key Republican goal — while avoiding further cuts that could jeopardise public support.

Despite Trump’s remarks, as per reports, the House Freedom Caucus and other conservatives are still pressing for deeper reductions in Medicaid spending, prompting tensions within the GOP ranks.

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