So, Where are those Cuts to SNAP, Medicaid, and the ACA Subsidies Going?

The old cut taxes for the wealthy and we will have a better economy which will benefit those in the lower income brackets. The recently passed bill passed by Trump and Republicans creates a deficit in which case many in Congress will be looking for ways to alleviate such. Cuts in programs is one way

The mega bill passed by the Republican-controlled Congress and signed by Trump in July 2025 redistributes trillions of dollars upward over the next decade. In the end, this makes it harder for families with modest incomes to meet basic needs while helping those at the top accumulate more wealth.

By upward, it is meant to the upper income brackets in the form of tax breaks. They will be looking for ways to balance those tax breaks such as cutting services to lower income citizens.

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To partially finance $4.5 trillion in tax cuts tilted to the wealthiest households, the new law (the One Big Beautiful Bill Act) imposes sweeping cuts. These cuts impact the programs helping people with low and moderate incomes afford health care and groceries. The bill shifts extensive new responsibilities to states and localities. Independent analyses project that the law will increase the deficit and in the long run provide only a meager boost to the economy and might in fact slow economic growth.

One of the megabill’s most straightforward impacts will be to increase income inequality. The Congressional Budget Office (CBO) finds that the new law’s program cuts and tax cuts will make households with incomes in the bottom 20 percent of the income scale worse off. They will lose more from the cuts in health coverage, food assistance, and other programs than they will gain in tax cuts.  Average household incomes will fall by $1,200 (3.1%) for those with incomes in the bottom 10 percent of the income scale. At the opposite end for those with incomes in the top 10 percent, according to CBO will see an increase in income of ~ $13,600 (2.7 percent) according to CBO.

High-end tax cuts. The megabill extends the expiring 2017 individual tax cuts and adds new tax cuts on top, such as increasing the amount that heirs of the largest estates can receive tax-free and adding highly skewed corporate tax breaks.

Megabill supporters have also highlighted much smaller tax provisions exempting tipped income, overtime pay, and car loan interest payments from income taxes. However, these account for just 3 percent of the new law’s tax cuts. Similarly, the law’s expansion of the Child Tax Credit leaves out 19 million children in lower-income families because their families do not earn enough to receive the full credit.

On the opposite end of the Income or those in the 10% income bracket.

Households making over $500,000 will receive a total of $1.4 trillion in tax cuts from the megabill — an amount that exceeds the law’s cuts to health care and food assistance combined. (See Figure 1.) In other words, Congress could have passed a bill that had the same overall cost but did not cut Medicaid and SNAP if it had chosen not to cut taxes for the roughly 2 percent of households making over $500,000.

US Secretary of U.S. Department of Agriculture (USDA, Brooke Rollins on Saturday openly celebrates millions of people losing their food assistance, which experts say is a direct result of the Republicans’ 2025 budget law slashing funding to the Supplemental Nutrition Assistance Program by $186 billion over a decade.

In a social media post citing preliminary data from her department, Rollins boasted that there were now “4.3 million off SNAP and counting!”