SNAP, formerly known as food stamps, has long been a central part of the U.S. social safety net. But because it relies on annual congressional appropriations, the current political standoff in Washington is creating fresh uncertainty about how long the aid can continue uninterrupted.

A Lifeline for One in Eight Americans

SNAP provides electronic benefit transfer (EBT) cards that help low-income households purchase groceries. In the 2024 fiscal year, the program cost more than $100 billion, offering an average of $187 per month to roughly 41.7 million people.

While other safety-net programs like Social Security and Medicaid are insulated from shutdown effects, SNAP depends on ongoing federal budget approval. That vulnerability has raised alarms among state agencies and anti-poverty advocates as the shutdown stretches past its first month.

“The question marks are trending in a bad direction for November,” said Carolyn Vega, associate director of policy analysis at Share Our Strength, a national anti-hunger organization.

Federal Warnings to States

On October 10, the U.S. Department of Agriculture (USDA) instructed state agencies not to transmit certain files to contractors responsible for processing EBT payments for November. The warning effectively signaled that funding beyond October was uncertain unless Congress reaches a new spending agreement.

Different states send payment data at varying times of the month, meaning the shutdown’s impact could hit households unevenly. For now, October benefits remain secure, but November payments are increasingly in doubt.

If the shutdown continues, millions of families may face delayed or canceled benefits, creating potential ripple effects in grocery stores and local economies that rely heavily on federal food aid spending.

Funding Shortfalls and Fiscal Challenges

The easiest way to restore SNAP’s long-term funding would be for lawmakers to end the shutdown. Short of that, states or federal agencies would need to find billions in temporary funds to keep the program operational.

SNAP costs roughly $8 billion per month—far exceeding smaller nutrition programs such as the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), which recently received $300 million in emergency funding from the Trump administration to stay afloat.

Replicating that kind of stopgap measure for SNAP would require far more money and coordination than most states can afford.

Peter Hadler, deputy commissioner of Connecticut’s Department of Social Services, told state lawmakers that even if states cover the costs temporarily, the federal government is unlikely to reimburse them later. He also cautioned that without federal funding, the EBT system could shut down entirely at the retail level—preventing even those with existing balances from using their cards.

State-Level Alarm and Economic Concerns

New Mexico, where more than one in five residents depends on SNAP, faces one of the highest risks. The program injects roughly $90 million monthly into the state’s economy, and any disruption could be devastating.

“I think it’s direct harm to New Mexicans, to our communities and to our economy that is unprecedented,” said state Rep. Nathan Small, a Democrat and chair of New Mexico’s main budget committee.

Charles Sallee, director of the state legislature’s budget and accountability office, said his office is still verifying whether the warnings are logistical or part of broader federal negotiations. “We’re following up to verify whether food stamps are really out of money or if this is just a tactic that the administration is playing in the overall negotiation,” Sallee told lawmakers.

In Minnesota, the Department of Children, Youth, and Families directed local counties and tribal governments to pause new SNAP applications after Wednesday. The state plans to notify current recipients by October 21 that benefits for November may not be issued unless the shutdown ends.

“An interruption in receiving food assistance can be very disruptive—even dire—for the lives of Minnesota’s families,” said Tikki Brown, the agency’s commissioner.

Policy Changes Add to SNAP Uncertainty

The shutdown coincides with new federal rules that tighten eligibility for food aid. Under a policy and tax law passed by Congress and signed by President Donald Trump in July, several key exemptions have been removed.

Adults with children aged 14 to 17 must now meet work requirements to continue receiving benefits. The same applies to older recipients between 55 and 64, who previously were exempt. These changes took effect this month and could lead to benefit losses beginning in January.

Additional cost shifts will come in the years ahead. Starting in October 2026, states will be required to cover three-fourths of SNAP’s administrative expenses. By 2027, states with higher benefit error rates will also be responsible for paying part of the program’s direct costs.

Even if Congress reaches a deal to end the shutdown, those long-term structural changes will remain unless lawmakers amend the legislation.

Economic Ripple Effects of a Shutdown on Food Aid

Economists and food policy experts warn that halting SNAP could have a cascading effect on the broader economy. The program injects billions into local grocery markets, helping sustain retail jobs and stabilize food demand during economic downturns.

According to the USDA, every dollar in SNAP spending generates roughly $1.50 in economic activity. A sudden freeze would not only increase food insecurity but also reduce consumer spending at thousands of supermarkets and small stores nationwide.

Local food banks and charities, already stretched thin, say they would struggle to fill the gap if federal aid stops. “We can’t replace the scale of a program like SNAP,” Vega said. “It’s a backbone of the national food security system.”

A Growing Urgency in Washington

As the budget impasse continues, pressure is mounting on Congress and the White House to reach a compromise. Lawmakers on both sides of the aisle have acknowledged the growing humanitarian and economic risks of prolonged gridlock.

But despite repeated calls from governors, advocacy groups, and state officials, there has been little public progress toward a funding deal. Until then, millions of Americans—many of them children, seniors, and working families—remain caught in uncertainty.

The longer the shutdown continues, the more likely it is that the country’s largest food assistance program will face delays or cutoffs, deepening the crisis for those who rely on it most.

Source: AP News – Food assistance is safe through October, but it may be at risk if the shutdown continues

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In a bold move to reshape the nation’s social safety net, House Republicans are proposing nearly $1 trillion in cuts to Medicaid and food stamps. If passed, the sweeping legislation could result in millions of Americans losing access to essential healthcare and nutrition support — despite repeated promises by GOP leaders, including Donald Trump, to leave programs like Medicaid untouched.

Who’s at Risk?

The cuts would hit far more than just able-bodied adults not working, as GOP lawmakers suggest. Experts warn the reductions could impact:

• Children
• Seniors
• People with disabilities
• Low-income workers
• Caregivers and students

More than 71 million Americans rely on Medicaid, and another 42 million receive food stamps through the Supplemental Nutrition Assistance Program (SNAP). This proposal puts a sizable portion of the U.S. population in jeopardy.

Key Medicaid Changes: $700 Billion in Cuts

The House package slashes nearly $700 billion from Medicaid over the next decade, according to the Congressional Budget Office (CBO). The result? Over 10 million people could lose Medicaid coverage by 2034, with 7.6 million projected to be uninsured entirely.

A First in Medicaid’s 60-Year History

For the first time ever, certain adults ages 19 to 64 would need to work at least 80 hours per month — or participate in community service, school, or job programs — to keep their Medicaid benefits. The requirement, set to take effect in 2029, exempts some groups like pregnant women, medically frail individuals, and those with substance use disorders.

But there’s a catch: even people who are working or qualify for exemptions could still lose coverage due to complex reporting requirements.

“Millions could lose coverage simply because they can’t navigate the bureaucracy,” said Michael Karpman of the Urban Institute.

Collateral Damage: Hospitals and States

Hospitals — especially in rural and underserved areas — could be hit hard. With more people uninsured and states receiving less federal aid, hospitals may be forced to:

• Cut services
• Raise prices for insured patients
• Shut down altogether

Nursing homes and state health systems could also suffer as the bill limits how states tax health care providers — a major funding stream for local health programs.

Seniors, Dual Eligibles Also at Risk

The bill could delay streamlined Medicaid eligibility reforms until 2035, potentially pushing 2.3 million people, including seniors and those with disabilities, off the rolls.

And since Medicaid is the largest federal funding source for state budgets, cash-strapped states may have to cut optional services (like dental and home care), raise taxes, or slash other vital programs like education.

One projection from KFF says states would need to raise taxes by an average of 4% to compensate for the loss — ranging from 1% in Kansas and Wyoming to 11% in Louisiana.

Food Stamps: Work Requirements Expanded, State Burden Increased

Under the proposed bill, the rules around SNAP — the formal name for food stamps — would get significantly tougher.

Work Mandates Extended

Currently, adults 18–54 without dependents must work at least 20 hours per week to receive SNAP benefits for more than three months. The new bill would:

• Expand this requirement to adults up to age 64
• Include parents with children aged 7 to 18
• Make it harder for states to waive these rules during tough economic times

States on the Hook for Costs

For the first time, states would have to cover at least 5% of food stamp benefit costs by 2028 — and possibly up to 25% if they have high payment error rates. Administrative costs would also rise, with states covering 75% instead of the current 50%.

The result? Some states may pull back from the program or restrict access further.

“The work requirements could put 11 million people — including 4 million children — at risk of losing food aid,” said Ty Jones Cox from the Center on Budget and Policy Priorities.

A Blow to Local Economies

Independent grocers and local businesses are also sounding the alarm.

SNAP funding supports:

• 388,000 jobs
• Over $20 billion in wages
• More than $4.5 billion in tax revenue

“SNAP is not just food assistance — it’s an economic engine,” said Stephanie Johnson of the National Grocers Association.

What’s Next?

The proposal still faces a rocky path through Congress, with conservative and moderate Republicans battling over the details. The Senate is expected to make further changes.

But one thing is clear: If passed, this legislation would mark a historic rollback of federal support for healthcare and nutrition — potentially reshaping the lives of millions of Americans and the communities they live in.

Source: CNN – House GOP lawmakers are proposing nearly $1 trillion in cuts to Medicaid and food stamps. Here’s who could be impacted

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To put it in perspective, the typical American worker earned just over $50,000 in 2023. It would take 726,000 years for 10 median-earning Americans to match the wealth gained by these 10 billionaires in a single year.

This enormous gap highlights just how extreme wealth inequality has become in the U.S. — and it’s happening right as Republicans debate a costly tax bill that experts warn could make the rich even richer while slashing nearly $1 trillion from vital social programs.

Elon Musk’s Wealth Soars by $186 Billion

Oxfam’s report tracked changes in net worth for the top 10 billionaires based on the Forbes Real-Time Billionaire List from April 2024 to April 2025.

Tesla CEO Elon Musk led the pack, adding a jaw-dropping $186.1 billion to his fortune — more than half of the total wealth increase for the group. Analysts have even predicted Musk is on track to become the world’s first trillionaire.

Other big winners include Meta’s Mark Zuckerberg and Walmart heirs Rob and Jim Walton, who each saw their net worth grow by roughly $35 to $39 billion. Meanwhile, some billionaires, like Google co-founders Larry Page and Sergey Brin, actually lost money during this period.

A Tax Cut That Could Deepen Inequality

Oxfam warns that a Republican tax bill, championed by former President Trump, could worsen this imbalance. The legislation would extend the 2017 Tax Cuts and Jobs Act, making most individual tax breaks permanent while temporarily cutting taxes on tips and overtime pay.

Nonpartisan analyses show this bill would boost economic output but disproportionately benefit the wealthy. The Congressional Budget Office (CBO) projects the top 10% of earners would see their household resources grow by 2%, while the bottom 10% would face a 4% drop by 2033.

According to the Penn Wharton Budget Model, the richest 10% would capture nearly two-thirds of the tax cut’s value, while the poorest 20% could lose over $1,000 annually due to cuts in Medicaid, food stamps, and other programs.

Kent Smetters, a professor at the Wharton School, highlighted that over 10 years, the top 10% could receive $3.1 trillion in tax breaks — even though this group already pays about 70% of federal income and payroll taxes.

Calls for a Wealth Tax Grow Louder

In response to skyrocketing billionaire wealth, some progressives have proposed a wealth tax on fortunes over $1 billion. Oxfam estimates that a 3% tax on these ultra-rich fortunes could raise $50 billion from the top 10 billionaires alone — enough to provide food assistance for 22.5 million people for a year.

However, taxing wealth presents significant challenges. Valuing complex assets can be difficult, and some legal experts question whether a wealth tax is constitutional.

Political Reactions: A Divided Nation

Senator Elizabeth Warren blasted the GOP bill as a “giveaway” to the rich, emphasizing that billionaires don’t need more breaks while working Americans struggle.

On the other side, the White House insists Trump’s policies helped reduce wealth inequality during his first term and that extending those tax cuts will restore prosperity for “Main Street.”

The Growing Debt Concern

All this comes amid growing worries about America’s soaring $36 trillion national debt. Moody’s recently downgraded the U.S. credit rating — a first since 1917 — citing rising government debt and interest payments.

Though the White House argues that the tax bill won’t increase the deficit, fiscal watchdogs disagree. The Committee for a Responsible Federal Budget warns the bill could add $3.3 trillion to the debt over a decade, or $5.2 trillion if temporary tax breaks become permanent.

The CBO estimates the cost could be even higher — $3.8 trillion added to the debt — risking inflation and higher interest rates.

Bottom Line

While America’s richest billionaires continue to amass mind-boggling fortunes, millions of ordinary Americans face shrinking resources and cuts to essential programs. As lawmakers debate the future of the tax code, the question remains: Will the wealth gap widen even further — or will policymakers find a way to create a fairer economy?

Source: CNN – The 10 richest Americans got $365 billion richer in the past year. Now they’re on the verge of a huge tax cut

The post The 10 Richest Americans Got $365 Billion Richer — While Many Struggle appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.