Two weeks ago, the U.S. House of Representatives passed a budget resolution directing top-level spending cuts and teeing up negotiations with the Senate. All four of Iowa’s Representatives voted in favor of the resolution.
Related Reading: 40+ groups tell Iowa’s Congressional delegation: Don’t cut Medicaid and SNAP
The budget resolution directs at least $880 billion in cuts to Medicaid, at least $230 billion in cuts to SNAP, and $12 billion in cuts to school nutrition programs. These cuts would be devastating to hundreds of thousands of Iowans who rely on these critical programs, and would further exacerbate food insecurity in the state.
While we still don’t know what specific cuts will be made, we do have some indications based on earlier proposals that have been discussed. So what exactly would be the impact in Iowa from these possible policy changes? Keep reading to find out.
Supplemental Nutrition Assistance Program (SNAP)
The budget resolution calls for $230 billion in cuts to SNAP over ten years, or 20% of all program funding. There is not a way to make such substantial cuts without slashing benefits, changing eligibility, or requiring states to cost-share on benefits. Any one of these options would do immeasurable harm to SNAP and the Iowans assisted by the program.
Undoing the Thrifty Food Plan Modernization of 2021
Undoing the modernization of the Thrifty Food Plan that occurred in 2021 would decrease SNAP benefits by an estimated 27% in the state of Iowa. This would slash the average monthly SNAP benefit for households by $71, from $351 to $280. This would cut the average individual daily benefit by $1.17, from $5.72 to $4.55. It would lead to almost $10 million less in benefits going out to Iowans every single month, for a monthly loss of almost $15 million in economic activity.
Expanding the 3-Month Time Limit (Work Reporting Requirements)
Able-Bodied Adults Without Dependents (ABAWDs) ages 18-54 currently are required to work at least 20 hours per week or face a time limit of being enrolled in SNAP for only three months every three years. There are a variety of proposals that have been floated, including expanding these time limit to adults ages 55-56, expanding the time limit to adults up to age 65, and expanding the time limit to caretakers of children ages 6 and up. There have also been proposals to eliminate the exemption for veterans, people experiencing homelessness, and young adults aging out of foster care.
Without knowing the exact proposal, it’s difficult to estimate how many additional Iowans would be subject to the time limit/work reporting requirements. But we do know that these work reporting requirements don’t meaningfully improve employment - they just reinforce false narratives and kick people off the program who struggle to meet the requirements, including people who are working.
Ending Broad-Based Categorical Eligibility
Ending broad-based categorical eligibility (BBCE) would kick 24,300 Iowans off SNAP, over half of whom are children (11,300) and seniors (2,500), by reducing income eligibility for SNAP in Iowa from 160% of the federal poverty level (FPL) to 130% FPL. It would also impose a strict asset test for SNAP, which would deter additional Iowans from being able to access SNAP.
Requiring States to Cost-Share on SNAP Benefits
Another possible proposal would require states to cost-share on SNAP benefits with the federal government. Currently, the federal government pays for 100% of SNAP benefits, with states having a 50/50 cost-share on the administrative costs.
In federal fiscal year 2024, SNAP benefits to Iowans totaled $528.9 million. If the state of Iowa were required to cover even 10% of this, it would cost the state $52.9 million - more than twice what we currently pay to administer the program.
This would no doubt be a cause for concern, given our Governor's reluctance to provide funding for nutrition programs, and impending budget shortfalls. It would leave Iowa in a tight spot, and could lead decision-makers to roll back eligibility for SNAP or create additional administrative hurdles to further drive down program participation in order to save money.
Child Nutrition Programs
Making Changes to the Community Eligibility Provision (CEP)
The Community Eligibility Provision (CEP) allows schools to serve free breakfast and lunch to all students if they have a high enough percentage of their student population who qualifies for free or reduced price meals. Research has shown this type of policy can greatly reduce childhood food insecurity, especially for children from households with incomes between 185-250% who would otherwise not qualify for free or reduced price meals, but still struggle to make ends meet.
Changing the qualifier for schools and school districts to be eligible for the Community Eligibility Provision from 25% of the identified student percentage (ISP) receiving free or reduced price school meals to 60% ISP would eliminate access to free school meals to nearly 28,000 children in Iowa, including 12,000 elementary students, 7,000 middle school students, and 9,000 high school students.
Loss of Direct Certification for Free School Meals and Adjunctive Eligibility for WIC
If Iowans lose access to SNAP or Medicaid, that can also jeopardize their ability to remain eligible for free school meals and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). This could create a ripple effect for families, losing access to multiple benefits at a time and further increasing food insecurity.
Contact Your Members of Congress Today!
It's important that Iowa's Senators and U.S. Representatives hear from their constituents about these concerning proposals. Please contact Iowa's federal delegation and tell them to protect SNAP, school meals, and Medicaid from harmful cuts!
We encourage you to use data and talking points from above, but most importantly, make it personal! Explain why you object to these cuts as an Iowan and a voter.
Thank you for your ongoing advocacy!