Mar 05 Budget Reconciliation Passes House, Sets Stage for Reduction in Medicaid, Nutrition Programs
(March 5, 2025)
On February 27, the House of Representatives passed a budget resolution which if enacted will likely mean significant reductions in key federal programs including Medicaid, school meals, SNAP, and other programs that families, children, and schools rely on every day to function.
The budget resolution bill contains budget reconciliation instructions. Budget reconciliation is a special budget process in which Congress can move tax, spending, and debt limit legislation quickly through both chambers with a simple majority vote. Through this process, Congressional committees are given a set of instructions which contain a ceiling or a floor for the committees to achieve cuts or to reduce the deficit for mandatory programs – meaning federal programs that do not go through the annual appropriations process.
In the budget bill that the House passed, the instructions are for committees to cut spending to offset $2 trillion in proposed tax cuts. Specific instructions to reduce funding includes $800 billion to the Energy and Commerce Committee – which would impact Medicaid funding, $330 billion to the Education and Workforce Committee – likely impacting student loans and school lunch programs, $230 billion in the Agriculture Committee – impacting Supplemental Nutrition Assistance Program (SNAP). It is important to note that while supporters of this bill say it is important to curb the deficit, The Committee for a Responsible Federal Budget reports that the entire package will actually add $3.6 Trillion to the deficit over the next ten years. You can learn more about the possible impacts on children and families at the Center for Budget and Policy Priorities.
The bill now moves to the Senate for their amendments and passage. If approved in the Senate, the two chambers will meet to iron out their differences, likely through a conference committee. Once a compromise has been reached between the two chambers, then the budget bill will go one more time to the House and then to the Senate for a final vote, and then to the President for his signature. After that, the committees will begin to follow the instructions by making drastic and devastating cuts to Medicaid, school breakfast and lunch, and other crucial safety net programs.
It is crucial that everyone realizes the potential impact of this bill. If these cuts go into effect, the state, counties, schools, community based organizations, local municipalities, and others will be responsible for picking up the slack for the harsh and quick ending of key federal resources that help so many every day. In Allegheny County alone, more than 246,000 low-income individuals rely on Medicaid, including nearly half of all children in the county. We must reach out to our legislators and tell our stories. Explain the impact if these services were to go away and how crucial they are to you, your loved ones, and/or the families you serve. Please remember – we are in this together and we will keep fighting!!
Resources:
Food Research and Action Center: Budget, Reconciliation & Appropriations
Center on Budget and Policy Priorities: 2025 Budget Stakes: Millions of People Across U.S. Could Lose Needed Assistance Under Republican Proposals
Coalition on Human Needs: Budget & Appropriations
Pennsylvania Health Access Network
Jamie Baxter, Allies for Children Executive Director