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$1 Trillion in Cuts Target Medicaid, Food Aid, and Child Support
Families with low incomes could lose thousands as Republicans push sweeping budget cuts.
sean h
June 14, 2025
Republicans are rolling out what they’re calling the “One Big Beautiful Bill” — a sweeping piece of legislation designed to reshape America’s tax and welfare systems. With promises of bigger child tax credits, shiny “Trump Accounts” for newborns 💰, and thousands more in potential take-home pay, House Republicans are hailing it as a win for working families.
But a closer look reveals a different story for many — especially low-income households with children.
According to the nonpartisan Congressional Budget Office (CBO), families in the lowest income bracket are projected to lose about $1,600 a year under this bill — roughly 3.9% of their income — from 2026 through 2034. That’s due to deep cuts in programs like Medicaid and SNAP (food stamps) — essential safety nets that help the most vulnerable survive.
🧒 Millions of Children Left Behind
One of the bill’s major headline promises is an increase in the child tax credit, from $2,000 to $2,500 per child. Sounds generous, right?
Not quite.
The expanded credit isn’t refundable, which means you don’t get it unless you owe taxes. That leaves out families earning too little to pay income tax — a staggering 20 million children, according to advocacy group Economic Security Project Action.
“This bill raises the credit for wealthier families while excluding vulnerable ones,” says Adam Ruben, the group’s director. “That’s not a pro-family policy.”
To get the full $2,500, a single parent with two kids would need to earn at least $40,000/year. For minimum wage workers? That’s often out of reach.
Under President Biden’s 2021 plan, the credit was fully refundable, and it slashed child poverty by nearly half. But with that provision gone and replaced by stricter thresholds, the new plan could send those gains into reverse.
📉 Food Assistance Faces Deep Cuts
The bill proposes nearly $300 billion in cuts to SNAP over the next decade. SNAP currently serves over 42 million people, and nearly 40% are children.
According to the Center on Budget and Policy Priorities (CBPP), more than 2 million children could lose food assistance entirely if the bill becomes law. The proposed work requirements would be extended to parents with kids over 6, forcing them to work at least 20 hours/week or risk losing benefits.
“This is the deepest cut to food aid ever proposed,” warns Katie Bergh of CBPP.
Adding more strain, states would now be responsible for up to 25% of SNAP benefits, a major shift from the current 100% federal funding. That could force states to either cut aid, raise taxes, or abandon SNAP altogether.
And while school meal programs aren’t directly cut, losing SNAP means many kids may also lose access to free school meals — a domino effect with real consequences 🍽️.
🏥 Health Care Coverage Could Plummet
The proposed legislation slashes an estimated $1 trillion from Medicaid, the Children’s Health Insurance Program (CHIP), and Affordable Care Act subsidies.
Work requirements for Medicaid recipients could mean millions — especially adults without traditional full-time jobs — risk losing coverage. Even parents and pregnant women could be impacted if they can’t navigate the complex exemption documentation.
CBPP warns that up to 4.2 million people could be uninsured by 2034 if premium subsidies aren’t extended. For example, a family of four making $65,000/year would pay $2,400 more annually just to keep their insurance.
💬 What Lawmakers Are Saying
House Speaker Mike Johnson (R-La.) defends the bill as a tool to uplift hardworking families.
“We’re trying to help Americans who are working hard to support their families,” Johnson told ABC News.
But critics argue the bill penalizes low-income families for being poor.
Elaine Maag, a senior fellow at the Urban-Brookings Tax Policy Center, says:
“The Biden-era credit lifted millions of children out of poverty. The Republican plan reverses that progress and adds red tape.”
🧮 A Tradeoff or a Trap?
In theory, this “One Big Beautiful Bill” delivers tax relief and shiny new incentives. But in practice, millions of families stand to lose food, health care, and critical support — especially those already on the margins.
The bill might add a few thousand dollars to the budgets of middle-class families — but for many others, it’s subtracting far more.
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