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Trump’s One Big Beautiful Bill Takes Effect With New Medicaid and SNAP Rules

CBO projects up to 5 million Medicaid disenrollments under new work requirements, prompting states and nonprofits to prepare budget backstops

President Donald Trump signs his signature bill of tax breaks and spending cuts at the White House, Friday, July 4, 2025 surrounded by members of Congress.
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Overview

  • The reconciliation law signed July 4 introduces work requirements, a $35 Medicaid co-pay and shifts SNAP costs to states, with implementation set to begin in the coming months
  • The Congressional Budget Office estimates up to 5 million Americans could lose Medicaid coverage and adds $3.4 trillion to the national debt over the next decade
  • Health experts warn that added administrative hurdles may close rural hospitals, deepen coverage gaps and contribute to as many as 200,000 preventable deaths over ten years
  • Republican officials express concern that cuts to Medicaid and food assistance could erode support and jeopardize the party’s slim House majority in the 2026 midterms
  • Governors like Illinois’s J.B. Pritzker and nonprofit leaders are planning to plug funding shortfalls, with some states projecting backfill costs exceeding $1 billion