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Yesterday, House GOP leadership released a legislative proposal to raise the national debt ceiling by $1.5 trillion in exchange for a sweeping array of cuts in discretionary spending, totaling $4.5 trillion. The package includes significant impacts to the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and Medicaid.
SNAP
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Extends the age range for the Able Bodied Adults Without Dependents (ABAWD) work requirement from 50 to 56
- Prohibits states from carrying forward unused discretionary ABAWD exemptions beginning in FY 2025
TANF
- Eliminates the use of excess Maintenance of Effort and changes the baseline year for calculating the caseload reduction credit from 2005 to 2022
- Prohibits states from counting certain working TANF recipients towards the Work Participation Rate
- Requires state reporting of new outcome-oriented performance measures
Medicaid
- Establishes Medicaid work requirements for certain individuals age 19 to 55 and removes federal match for states that continue to serve non-compliant individuals
As proposed, these policies would likely have severe consequences on the well-being of children and families and significantly impact the operations of human services agencies. At this time, the White House and Senate have signaled the proposal is a non-starter for negotiations. A House vote on the proposed bill is expected in early May and, absent Congressional action, there is a prospect of a default happening this summer or early fall.
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