Published June 26, 2025
Senate Republicans continue to debate deep cuts to basic needs services as part of a larger plan to fund President Trump’s tax breaks for the ultra-wealthy. On Sunday, parliamentary rulings targeted two Supplemental Nutrition Assistance Program (SNAP) provisions, the measures to shift costs to states and to bar humanitarian-based immigrants from receiving SNAP benefits. On Tuesday, the Senate Agriculture Committee issued a press release incorrectly claiming the parliamentarian had ruled in favor of its updated language to allow its cost shift provision. That release and a related social media post celebrating a GOP “win” were promptly taken down. On Wednesday, the committee released revised language that attempts to comply with procedural requirements but is equally harmful — it keeps the state cost shift with some amendments and exempts other humanitarian-based immigrants. (See table comparison). Whether this amended version will pass muster with the parliamentarian remains to be seen.
Amid this legislative back-and-forth, the bottom line is clear: These proposed cuts to SNAP would be devastating. The latest version still imposes deep reductions to SNAP funding, shifts those costs onto states, expands time limits, and increases hunger and poverty. That is a bad deal for local communities across America. According to a recent analysis, the House-passed reconciliation package would transfer income from lower- and middle-income Americans to the wealthy at a level without precedent in at least the past 40 years. The bill would reduce income among the poorest 20 percent of Americans by an average of 3.8 percent, while increasing it by 3.7 percent for the wealthiest 20 percent — a staggering 7.5 percentage-point gap.
Ripple Effects on Communities and Local Budgets
This damaging policy proposal would hit state and local governments hardest, forcing difficult choices at a time when they can least afford them. States cannot absorb these costs, and the impact will be most severe at the local level. Cities and counties, from major metropolitan areas to rural towns, would feel mounting pressure as SNAP funding declines. These proposed cuts come at a fragile time, when communities are still recovering from the pandemic with the help of one-time federal investments like the American Rescue Plan Act, which has been one of the most effective boosters of economic growth and equity. Now, as those funds dry up and existing contracts with farmers, nonprofits, and community organizations are being canceled by the Trump administration, local governments face an economic double– bind: shrinking revenue just as demand for public services is increasing.
When SNAP benefits shrink, families must stretch limited income to cover food, utilities, health care, and housing. The end of pandemic-era SNAP allotments in 2023 demonstrated this reality. Less spending at grocery stores and small businesses reduces sales tax revenue, while softening property tax collections means even less funding for vital public services.
The hit to local tax bases would be immediate and especially difficult for economically challenged and rural areas. Estimates show that if all states adopted conformity dates under the proposed law, including other estimated cuts to Medicaid and basic needs, state income tax revenues would drop by $3.7 billion in 2026, a 0.8 percent decline. Every dollar lost in tax revenue is one less dollar to pay for public safety, road repair, afterschool programs, parks, libraries, and other vital community services.
Stable tax revenue and robust public investments help local governments repair streets and bridges, maintain parks and libraries, and improve broadband and transit options. Without those resources, vital investments will be delayed or canceled, making communities less competitive and less desirable places to live and do business.
SNAP is more than a moral commitment to fight hunger; it is an economic engine supporting rural and urban economies. Every $1 of SNAP spending generates between $1.50 to $1.80 in economic activity, especially during downturns. SNAP spending supports food and beverage manufacturers, wholesalers, grocers, transportation companies, and farmers. Farmers’ markets depend on SNAP customers and incentive programs that help families afford fruits and vegetables. SNAP dollars help businesses remain viable and keep local food systems strong.
If these cuts become law, small grocers will close, farmers will lose customers, wholesalers will face declining demand, and public health and social services will stretch even further. According to USDA data, farmers stand to lose approximately $24 billion in revenue over 10 years as SNAP cuts reduce consumers’ ability to buy their products.1 This will leave local leaders with impossible choices: cut services or raise taxes that many cannot pay. Communities will struggle to support children, older adults, and working families — and to maintain the infrastructure and programs that promote opportunity and well-being.
Ignoring these ripple effects would undermine the sustainability of public services and the long-term prosperity of communities across the nation. This is more than a budget issue — it is a direct threat to local economies and the quality of life that residents and businesses depend on.
Take Action
Reach out to your Member of Congress today and let them know that cuts to SNAP is not an option. With a simple click here, you can make a difference. You can also join FRAC and other national partners that have come together to lead a powerful national protest action — the “EmptyPlatesProtest” — a national relay fast that started this week to protest massive proposed cuts to Medicaid, SNAP, education, the Child Tax Credit, and other basic needs included in the budget reconciliation bill. The relay fast will continue until the Senate adjourns for the July 4th recess.
You and your Members can join the “EmptyPlatesProtest” by visiting: https://protestfast.org/, then:
1. Pledge to fast for 24 hours (or skipping one–two meals in solidarity) on any day this week.
2. Share widely and invite friends. Use the social media hashtag #EmptyPlatesProtest. Add up to three others like #TheFastingFurious, #HungryForJustice, #HandsOffSNAP, or #HandsOffMedicaid.
3. Send emails to Senators for each meal you sacrifice, which helps mobilize pressure on Senators to oppose the cuts.
➡️ Join the #EmptyPlatesProtest.
1 Farmers receive 24.3% of every dollar spent on groceries (i.e., food at home) and SNAP participants cut their food purchases by roughly half for every dollar that they lose in benefits (page 15: “the marginal propensity to consume food at home, which find estimates near 0.5 or above”).
The Senate bill cuts $197B from SNAP. Divided by 2 to get the reduction in spending by SNAP participants = $98.5B.
$98.5B x 0.243 (amount of every dollar spent on groceries that goes to farmers) = $23.9B.
