The “One Big Beautiful Bill Act” (OBBBA), signed into law by President Donald Trump on July 4, 2025, is a sweeping reconciliation bill that reshapes two of the federal government’s largest safety net programs — Medicaid and the Supplemental Nutrition Assistance Program (SNAP). The legislation imposes $186 billion in SNAP cuts and approximately $1 trillion in Medicaid cuts through 2034, introduces new work requirements, tightens eligibility, and shifts a portion of program costs onto states.
If you currently receive SNAP or Medicaid — or think you may qualify — use the SNAP eligibility calculator to estimate your current eligibility before changes take effect, and see how to apply for SNAP benefits in your state.
Are There Cuts to Medicaid Because of the Big Beautiful Bill?
Yes — the OBBBA includes the largest cuts to Medicaid in the program’s history, totaling approximately $1 trillion over 10 years through 2034, according to the Congressional Budget Office (CBO). These cuts are designed to reduce federal spending to offset tax cuts elsewhere in the legislation.
The reductions are estimated to result in 17 million people losing Medicaid coverage by 2034, including 10.9 million due to work requirements and other eligibility provisions.
Key Medicaid Cuts and Changes
Funding Reductions: The CBO estimates a $1.02 trillion cut to Medicaid and the Children’s Health Insurance Program (CHIP) — $326 billion from work requirements, $191 billion from limits on state provider taxes, and $149 billion from restrictions on state-directed payments.
Work Requirements: Starting January 1, 2027 (with states able to implement earlier), adults aged 19–64 with incomes between 100% and 138% FPL must work, volunteer, or attend school for at least 80 hours per month to maintain Medicaid eligibility. Exemptions apply for pregnant individuals, people with disabilities, caregivers of children under 14, and those in high-unemployment areas (above 8% or 1.5 times the national rate). Arkansas’s prior Medicaid work requirement experiment resulted in 18,000 people losing coverage without meaningful employment gains — a frequently cited benchmark for what mandatory verification produces in practice.
Increased Eligibility Checks: Starting December 31, 2026, states must conduct Medicaid redeterminations every six months instead of annually, increasing the risk of coverage loss due to missed paperwork — particularly for seniors and people with limited internet or phone access.
Immigrant Restrictions: Starting October 1, 2026, most noncitizens (except lawful permanent residents, children, and pregnant women) are barred from Medicaid. This is projected to affect approximately 1.4 million people nationwide.
Reduced Retroactive Coverage: As of December 31, 2026, retroactive Medicaid coverage drops from three months to one month for expansion enrollees and two months for traditional enrollees — increasing medical debt risk for vulnerable populations including pregnant women and seniors who often have coverage gaps between applying and being approved.
Increased Out-of-Pocket Costs: Starting October 1, 2028, copayments rise for recipients above the FPL, which may deter care-seeking for low-income households who technically remain eligible.
Provider Funding Restrictions: The bill limits state provider taxes and directed payments, reducing revenue for hospitals and clinics. Despite a $50 billion rural hospital relief fund over five years, 44% of rural hospitals were already operating at negative margins in 2023 — experts project the relief fund will be insufficient to prevent closures.
How Will the Big Beautiful Bill Change SNAP?
SNAP — which serves over 42 million Americans — faces $186 billion in cuts through 2034 under the OBBBA, representing a roughly 20% reduction in program funding. The Urban Institute estimates 22.3 million families, including 5.3 million working families, will lose some or all benefits, with an average monthly loss of $146 per affected household.
The changes affect benefit amounts, eligibility, administrative structure, and who qualifies.
State Cost-Sharing
Starting in fiscal year 2028, states must pay between 5% and 15% of SNAP benefit costs, depending on their payment error rates. States with error rates above 13.3% may delay implementation until 2029 or 2030. Additionally, states’ administrative cost-sharing rises from 50% to 75%.
This is a fundamental structural change — SNAP has been a nearly entirely federally funded program since its inception. States facing budget pressure may respond by restricting eligibility or reducing benefits. See SNAP income limits to understand current eligibility thresholds while they remain in effect.
Utility Allowance Reductions
Approximately 600,000 households — including 500,000 with children — will lose an average of $100 per month due to changes in utility expense calculations. Under the new rules, most households must submit actual utility bills rather than using the Standard Utility Allowance (SUA), unless the household includes an elderly or disabled member. This reduces the shelter deduction, which in turn raises countable net income and lowers the monthly benefit amount.
This change is effective upon USDA guidance, expected in 2026. Elderly and disabled households are exempt from this change.
Thrifty Food Plan Restrictions
The Thrifty Food Plan (TFP) — which sets maximum SNAP benefit amounts — is limited to cost-neutral updates, meaning it cannot be adjusted upward beyond inflation. In 2024, SNAP benefits already failed to cover the cost of a modestly priced meal in 99% of U.S. counties. This restriction prevents the TFP from being updated to reflect actual food costs, widening the gap between benefits and grocery prices over time.
For current maximum benefit amounts by household size, see the SNAP benefits by state guide.
Immigrant Eligibility Restrictions
Starting October 1, 2026, SNAP eligibility is limited to U.S. citizens and lawful permanent residents. Refugees, asylees, and humanitarian parolees — except Cubans and Haitians under specific provisions — lose eligibility. This is projected to affect between 60,000 and 125,000 people nationwide.
Elimination of SNAP-Ed
The Nutrition Education and Obesity Prevention Grant Program (SNAP-Ed) is defunded entirely, ending federally supported nutrition education and physical activity programs for low-income households. This takes effect upon USDA guidance, likely by late 2025 or early 2026.
National Accuracy Clearinghouse Expansion
The National Accuracy Clearinghouse (NAC), currently used to prevent duplicate SNAP participation across states, will be extended to other programs including Medicaid, aiming to reduce federal spending by $7 billion through 2034. While the program targets genuine fraud, it also increases administrative complexity for households receiving multiple benefits.
What Are the New SNAP Work Requirements?
The OBBBA significantly expands who must meet work requirements to remain eligible for SNAP.
Previously, able-bodied adults without dependents (ABAWDs) aged 18–54 were limited to three months of SNAP benefits in any 36-month period unless they were working or in approved training for at least 20 hours per week. The OBBBA expands and tightens these rules substantially.
Age Expansion: 18 to 64
The ABAWD work requirement now applies to adults aged 18 through 64, up from the previous cutoff of 54. This affects an estimated 900,000 adults aged 55–64 and 270,000 veterans nationwide who were previously exempt by age.
Parents of Older Children Now Required to Work
Parents with children aged 14 or older — who were previously exempt from work requirements as caregivers — must now work, volunteer, or participate in approved training for 20 hours per week. The CBO estimates this affects approximately 800,000 parents of school-age children.
As an example of the benefit impact: a single parent losing their own SNAP benefit due to non-compliance would see the household’s total benefit recalculated at a lower level, since the ineligible member’s income still counts but they no longer receive a portion of the benefit.
Verification Requirements
States must verify work status at least every six months, with some states opting for monthly verification. Failure to document compliance results in benefit loss after three months, though states may enforce shorter periods.
Approved activities include paid employment, volunteering, and participation in approved training programs such as those offered through state workforce agencies and community colleges.
Exemptions That Remain
Exemptions continue to apply for individuals who are under 18, over 64, pregnant, have a documented disability, are caring for a child under age 14, or live in areas with unemployment rates above 8% or 1.5 times the national rate. However, proving exemptions — particularly disability and caregiving status — requires documentation, and administrative errors or delays can lead to benefit loss even for exempt individuals.
See the SNAP work requirement exemptions guide for the full list of exemptions and how to document them.
CBO Estimate
The CBO estimates 3.2 million adults, along with 2 million children in their households, will lose some or all benefits monthly due to the expanded work requirements.
How Big Are the SNAP Cuts?
The $186 billion in SNAP cuts through 2034 breaks down across several mechanisms:
Work requirement losses account for the largest share, with 3.2 million adults losing benefits and their children’s household benefits reduced.
Utility allowance reductions affect 600,000 households with an average monthly loss of $108–$146, impacting 500,000 children.
Thrifty Food Plan restrictions prevent benefit amounts from keeping pace with food price inflation. In 2024, SNAP benefits already fell approximately $53 per person per month short of the cost of a modest meal plan — this gap will widen annually under the new restrictions.
State cost-sharing, beginning in 2028, creates pressure on state budgets that may lead to reduced eligibility or benefit amounts in states unable or unwilling to cover their share.
Immigrant exclusions remove between 60,000 and 125,000 current recipients beginning October 2026.
When Will These Changes Take Effect?
The OBBBA phases in changes over several years. Here is the timeline:
Immediately (Post-July 4, 2025)
SNAP-Ed defunding takes effect upon USDA guidance — likely by late 2025 or early 2026.
Thrifty Food Plan restrictions are effective immediately, limiting how benefit maximums can be updated in October 2025 and each year thereafter.
2026
Utility allowance changes take effect upon USDA implementation guidance, expected in 2026. Most households will need to submit actual utility bills rather than using the Standard Utility Allowance.
Work requirement expansion — states may begin implementing the expanded requirements (ages 18–64, parents with children 14+) as early as 2026, with mandatory enforcement by 2027.
Immigrant eligibility restrictions for both SNAP and Medicaid take effect October 1, 2026.
Medicaid eligibility redeterminations shift to every six months beginning December 31, 2026.
2027
Medicaid work requirements begin January 1, 2027, with states able to implement earlier.
SNAP work verification systems must be fully operational by 2027.
2028
State SNAP cost-sharing begins in fiscal year 2028 (October 1, 2027). States with error rates above 13.3% may delay to 2029 or 2030.
Medicaid out-of-pocket cost increases take effect October 1, 2028.
What Should You Do Now?
If you currently receive SNAP benefits, the most important steps are:
Apply or recertify now if you haven’t. Certifying under current rules locks in your benefit period before expanded work requirements and eligibility changes take effect. See how to apply for SNAP benefits in your state.
Document work activity and exemptions. If you are an ABAWD, begin keeping records of your work hours, volunteer activities, or training participation. If you qualify for an exemption — disability, caregiving, pregnancy — gather documentation now before verification requirements increase. See the full SNAP work requirement exemptions guide.
Submit all documents promptly. Report income changes, household size changes, and address changes within 10 days. Missing a recertification under the new more-frequent review schedule will result in benefit termination regardless of underlying eligibility.
Know your utility costs. When the utility allowance change takes effect, households will need to submit actual utility bills. Start keeping records of your monthly heating, cooling, and other utility costs.
Appeal denials. You have 90 days from a denial or reduction notice to request a fair hearing. If you were already receiving benefits and appeal within the window, benefits continue at the prior level during the appeal. See how to check your SNAP balance and your state SNAP portal for case status.
Contact local food banks. Organizations in the food bank network can provide support if benefits are reduced or terminated. Dial 2-1-1 in most states to find food assistance in your area.
Perspectives on the Bill
Supporters, including Rep. Buddy Carter and Sen. John Cornyn, argue the bill reduces fraud, promotes self-sufficiency through work, and protects the “truly needy” — including children, people with disabilities, and pregnant women — while funding tax cuts intended to stimulate economic growth. Proponents cite an estimated $56 billion annually in improper Medicaid payments and note that only 28% of able-bodied adults on SNAP are employed.
Critics, including Rep. Hakeem Jeffries and numerous governors, warn that expanded work requirements primarily eliminate benefits from people who are already working informally, between jobs, or unable to navigate complex documentation requirements — rather than those with no work activity at all. They point to the Arkansas Medicaid work requirement as evidence: 18,000 people lost coverage without meaningful employment gains. Critics also note that the $186 billion in SNAP cuts fall almost entirely on low-income households while the bill extends significant tax benefits to higher-income earners.
Frequently Asked Questions
Are the Medicaid cuts happening immediately?
No — most Medicaid cuts phase in over several years. Work requirements begin January 1, 2027 (states may start earlier). Six-month redeterminations begin December 31, 2026. Out-of-pocket cost increases begin October 1, 2028. The immigrant eligibility restriction is the earliest major change, beginning October 1, 2026.
Who is affected by the new SNAP work requirements?
Starting in 2026–2027, work requirements apply to all able-bodied adults aged 18–64 (expanded from 54) and parents of children aged 14 and older. You must work, volunteer, or participate in approved training for 20 hours per week. Exemptions remain for people with disabilities, pregnancy, caregiving for children under 14, and residents of high-unemployment areas. See the SNAP work requirements exemptions guide for the full list.
How much will SNAP benefits decrease?
The impact varies by household. Households affected by the utility allowance change will lose an average of $100–$146/month. Households where an adult loses eligibility due to work requirements will see their benefit recalculated at a lower level. The Thrifty Food Plan restriction means maximum benefits will not keep pace with food price inflation each year. Use the SNAP eligibility calculator to estimate your current benefit before changes apply.
When does state SNAP cost-sharing begin?
State cost-sharing for SNAP benefit costs begins in fiscal year 2028 (October 1, 2027). States with payment error rates above 13.3% may delay until 2029 or 2030. The administrative cost-sharing increase from 50% to 75% also begins at that time.
Will my state reduce benefits because of the cost-sharing requirement?
It depends on your state’s budget situation and political priorities. States facing significant fiscal pressure — particularly those with higher-than-average error rates — may reduce benefits or restrict eligibility to manage their new cost-sharing obligations. No state has announced benefit reductions yet, but the pressure increases as 2028 approaches.
Do I need to do anything right now?
If you are currently eligible, applying or recertifying now is the most important step. Locking in a certification period under current rules provides protection for the duration of that period. Beyond that, document your work hours or exemption status, keep utility bill records, and monitor your case status through your state’s SNAP portal. For your state’s application portal and phone number, see EBT phone numbers for all states.
Bottom Line
The One Big Beautiful Bill Act represents the largest cuts to both SNAP and Medicaid in the history of either program. The $186 billion in SNAP reductions and $1 trillion in Medicaid cuts phase in primarily between 2026 and 2028, with some changes — including SNAP-Ed defunding and Thrifty Food Plan restrictions — already in effect.
If you currently receive benefits, acting now — applying, recertifying, documenting exemptions, and staying informed — is the most effective way to protect your household’s access to food assistance during this period of change.
Use the SNAP eligibility calculator to check your current eligibility, find your state’s SNAP application portal, and review SNAP income limits to understand how the thresholds apply to your household.