Food aid cuts and other changes: What the U.S. House spending bill could mean for Texans

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The changes in Medicaid, SNAP, border security and other issues included in the Republican megabill that the House passed on Thursday would touch the lives of millions of Texans. Here are details on the possible big impacts for the state.

The budget reconciliation bill is a spending and tax package that includes much of the president’s agenda including major spending cuts. All but two voting House Republicans — both non-Texans — voted to support the bill. The bill now heads to the Senate.

Operation Lone Star Repayment

The bill carves out $12 billion to refund state-funded border security efforts since the start of the Biden administration. Gov. Greg Abbott has asked the federal government for $11.1 billion to reimburse the state for his Operation Lone Star, the effort to militarize the southern border, construct border barriers and attempt to prevent border crossings.

While Texas Republicans in Congress had advocated for the money for a few years, the calls for this funding became louder after President Donald Trump’s second inauguration.

SNAP

Significant cuts to the Supplemental Nutrition Assistance Program — known commonly as SNAP and formerly as food stamps — were included in the megabill. If the cuts are replaced by state spending, Texas will have to pay an additional $1 billion a year, according to food bank association Feeding Texas.

Changes to requirements for getting SNAP benefits could mean that 3.2 million fewer people in the United States would receive SNAP food assistance in an average month through 2034, according to the Congressional Budget Office.

The bill would require most able-bodied adults under 65 years of age without children younger than seven to work, train or volunteer. Now, only able-bodied adults, younger than 55 without dependents, have to do these activities 80 hours a month to receive more than three months worth of SNAP benefits within three years.

Currently, the federal government pays for all SNAP benefits and 50% of administrative costs. If the megabill’s plan is unchanged, states would have to start paying for 5% to 25% of SNAP benefits in 2028 and 75% of the program’s administrative costs. If the state does not want to pay this amount, the state could also cut benefits to make up for that reduction.

Medicaid

Texas is already the most uninsured state in the country, and the changes included in the House version of the bill may increase the number of people in the state without health insurance.

Many Republicans in Congress, including Rep. Chip Roy, R-Austin, pushed for changes to Medicaid to cut down on what they termed “waste, fraud and abuse” in the program that funds health care for mostly low-income Americans.

Roy held out on supporting the package until the final vote, pressing for deeper Medicaid cuts.

The final package would require able-bodied Medicaid recipients without children to work, attend school or volunteer for at least 80 hours a month by the end of 2026. The bill also adds additional verification of eligibility requirements.

An analysis by the Congressional Budget Office estimated that the bill could lead to about 8 million more people being uninsured by 2034.

Texas is expected to have a 7% decrease in enrollment in Medicaid by 2034 due to the bill, according to health policy research organization KFF.

Many Democrats have been outspoken about concerns that such cuts could harm low-income families and rural hospitals.

“They rely on Medicaid,” Rep. Julie Johnson, D-Farmers Branch, said in an interview about rural hospitals. “I don't understand why these Republicans keep voting for their constituents’ healthcare to go away.”

Border Security 

The budget reconciliation bill put-in-place various spending provisions to fund border security and promote the hiring of additional border patrol officers.

The House bill allocates more than $46 billion to the border wall and $5 billion for Customs and Border Protection facilities. Another $4 billion is set for hiring and training border patrol agents along with an additional $2 billion for signing and hiring bonuses.

Inflation Reduction Act energy sector cuts 

The reconciliation bill aims to cut tax credits for renewable energy, a sector that has seen a boom in recent years in Texas.

The bill restricts some tax credits provided by the 2022 Inflation Reduction Act that incentivize investments into renewable energy by requiring projects to begin construction within 60 days of the bill becoming law to qualify.

Additionally, the proposal would end tax credits to purchase electric vehicles.

Disclosure: Feeding Texas has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.

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