House Reconciliation: Major SNAP Overhaul, Commodity Boosts & Conservation Rewrites

CBO scores $238 billion in savings as Republicans reshape SNAP, farm safety net, and climate funds

The House Agriculture Committee’s section of the GOP reconciliation package is set to reduce the deficit by $238.2 billion, surpassing the $230 billion savings target under the budget resolution. The legislation — anchored in cost-cutting, program reform, and commodity expansion — includes sweeping changes to SNAP, conservation funding, and farm income support.

SNAP Overhaul: Cost-Shifting, Work Requirements, and Eligibility Tightening

• State Cost-Share Requirements: Starting FY 2028, states will fund 5% of SNAP benefits, rising to 25% based on benefit error rates—which would impact over half of U.S. states based on 2023 data.
• Admin Cost Split: Federal reimbursement for administrative costs drops from 50% to 25%.
• Thrifty Food Plan Lockdown: Updates limited to 5-year intervals and cost-of-living adjustments only, preventing cost hikes like those in the 2021 Biden update.
• Work Requirement Changes:
  • General requirements raised to ages 18–64 (from 16–59).
  • ABAWD (able-bodied adults without dependents) age exemption rises to 65.
  • Stricter waiver limits: Areas must have >10% unemployment, capped at 12 months.
  • 1% discretionary exemptions cap, down from 8%.
• Exemptions Roll Off: Exemptions for veterans, homeless, and foster youth expire Oct. 1, 2030.
• Eligibility Cuts:
  • Noncitizens limited to green card holders and select island nationals.
  • Asylees and refugees excluded.
• Utility & Shelter Deductions:
  • Internet costs excluded from shelter expense.
  • Energy assistance threshold raised for utility allowance access.
• Payment Error Tolerance: Shrinks to $0 in FY 2026, down from $37 (adjusted since 2014).

Commodity Programs: Expanded Acreage, Bigger Payouts

• ARC/PLC Extended through 2031 crop year.
• New Base Acreage: Up to 30 million acres eligible by 2026.
• Reference Prices: Across-the-board 10–20% hike; indexed up to 115% by 2031.
• ARC Guarantee: Raised to 90% of benchmark revenue (from 86%); payment cap increased.
• PLC Payment Cap: Increased from $125,000 to $155,000, inflation adjusted.
• Income Cap Exemptions: $900k limit waived for producers with ≥75% ag income.

Sugar and Dairy Sweeteners

• Sugar Loans:
  • Cane sugar loans rise to $0.24/lb.
  • Beet sugar loans rise to 136.6% of cane rate.
• Dairy Margin Coverage:
  • Extended to 2031.
  • Coverage cap rises to 6M lbs. of milk (from 5M).
  • Premium discounts remain for early electors.

Crop Insurance: Bigger Coverage, More Subsidies

• Coverage Increase: All levels of crop insurance premium assistance are bumped 5% except for the 80 and 85% levels are only bumped 3%. For example, 38% of the premium at the 85% level was subsidized by the government. This will bump up to 41% under the reconciliation proposal.
• Subsidy Boosts:
  • Expanded supplemental coverage assistance.
  • Premium help for beginning farmers.
  • Additional insurer reimbursements.

Livestock, Poultry & Specialty Producer Relief

• Livestock Depredation: Full (100%) market value reimbursement.
• Fish Farms: Minimum $600/acre loss payout.
• Tree Assistance: Mortality threshold lowered, pruning cost share rises to 65%.
• Honeybee Losses: Trigger lowered to 15% mortality.
• Poultry Weather Pilot: Indexed insurance in Ala., Ark., Miss.

Conservation Spending Reoriented

• Funding (FY26–31) via Commodity Credit Corporation (CCC):
  • $18.5B – EQIP
  • $8.1B – CSP
  • $4.1B – ACEP
  • $2.7B – RCPP
• Climate Funds Rescinded: Democrats’ 2022 climate law funding redirected to traditional programs.
• Watershed/Flood Protection: $150M/year (permanent).
• Feral Swine Eradication Pilot: $15M/year through FY31.

Trade, Research & Forestry

• Ag Trade: CCC will fund $285M/year from FY 2027 onward for market access.
• Research Investments:
  • $175M/year – Specialty crop R&D.
  • $125M/year (2026+) – Facilities construction grants.
  • $60M (FY26) – Scholarships for 1890 HBCU institutions.
• Forestry:
  • Secure Rural Schools: Reauthorized through FY26.
  • Emergency Services & Planning: Extended through FY28.
  • Rescinds: 2022 climate law grants for private/state forestry.

Other Farm Bill Extensions & Boosts

• Animal Health: Funding jumps to $233M/year through FY30, drops to $75M in FY31.
• Specialty Crops: Block grants raised to $100M/year.
• Plant Disease Control: Increased to $90M/year.
• BioPrograms: Maintains current levels:
  • $3M/year – BioPreferred procurement.
  • $7M/year – Advanced Biofuels Payment Program.

Bottom Line: This comprehensive package represents one of the most extensive rewrites of agricultural and nutrition policy in years, positioning fiscal restraint, state responsibility, and commodity competitiveness at the center of Republican priorities.