Problems could outpace savings from proposed cuts to federal food and health programs
As Congress weighs the latest budget reconciliation bill, it's important to take a step back and consider how these decisions will affect everyday people in South Dakota. Reducing federal spending and promoting self-reliance are important goals, but some of the proposed changes could unintentionally create more problems than they solve.
If you've been to the grocery store lately, you've likely noticed how much harder it has become to afford the basics. For many families in South Dakota this isn't just a budget concern – it's a daily challenge.
We urge Rep. Dusty Johnson, Sen. Mike Rounds and Senate Majority Leader John Thune to consider the concerning impacts that the current proposal by the House could have. Federal support for the Supplemental Nutrition Assistance Program (SNAP) would be significantly reduced, shifting more of the cost to states. South Dakota's share of that expense could range from $9 million to $18 million as early as 2028 — an increased pressure on a state budget already stretched thin.
SD Rep. Johnson votes yes as U.S. House Republicans push through budget reconciliation bill
At the same time, it would impact the South Dakota economy as SNAP supports 789 retailers in the state to the tune of over $156 million. Each SNAP dollar has up to $1.80 of economic impact, supporting the supply chain from farmer to store. Reduce the program, reduce the revenue.
The increased state cost and reduced revenue would force states to make tough choices: cut benefits, limit eligibility or raise taxes to cover the gap.
Proposed Medicaid cuts would hit rural hospitals especially hard, many of which are already stretched thin. These facilities are often the only source of care in their communities, and losing access would be devastating.
The bill also includes new requirements tied to work. SNAP already includes work incentives and gradually reduces benefits as income rises. In South Dakota, over 80% of SNAP recipients live in a family that has one working adult.
Congress modernized SNAP by requiring regular updates to the monthly benefits. However, the current bill includes a proposal to limit future updates to the Thrifty Food Plan, which determines SNAP benefit levels. This would reduce support over time, even as food prices remain high. The average SNAP benefit is still just $6.57 per person, per day, in our state.
At Feeding South Dakota, we are seeing more working families, seniors, children and veterans through our programs and partners; in fact, 15% more than this time last year. We are operating at full capacity and have already felt the very real impact of federal changes after food for 147,000 meals was immediately discontinued in April. It is critical that federal programs stay strong to support the fight to end hunger, or the gap between need and resources will become too great for us to close.
If you take nothing else from this, know that the proposed cuts would:
Increase hunger.
Decrease local revenue.
Overwhelm already strained food pantries.
We urge our lawmakers to think critically about any cuts through a budget reconciliation bill that undermines SNAP and Medicaid.
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