‘Big, Beautiful Bill’ Will Cause Big Spending for Kansas Budget

FOR IMMEDIATE RELEASE 

Contact: Jessica Herrera Russell

Topeka, KAN. - Early this morning, the U.S. House passed the reconciliation bill that will cut hundreds of billions of dollars from critical programs that low-income Americans rely on.  

In Kansas, the bill is likely to cost the state $104 million per year in federal funding for SNAP. Due to the complexity of the proposed Medicaid changes, it’s unknown exactly how much it would cost the state, but they could result in the state losing hundreds of millions of federal dollars to fund the state’s KanCare program.

Around 440,000 Kansans (including 250,000 Kansas kids) are enrolled in Medicaid, and 187,000 Kansans (including 85,000 Kansas kids) receive SNAP benefits. Instead of ensuring these Kansans, along with millions of other Americans, can continue to access critical services, the U.S. House’s plan would funnel trillions of dollars in permanent tax cuts to the very wealthiest in the country.

SNAP

One particularly troublesome provision in the U.S. House’s version of the bill is requiring a state match for federal SNAP dollars, the amount of which is determined by the state’s payment error rate. Currently, all states’ food program benefits are federally funded, with only a portion of the administrative costs covered by the state. But under this plan, Kansas will be forced to allocate $104 million each year toward food benefits eligible Kansans receive.

It’s unclear what happens if the state decides to forgo funding the 25% match rate, but low-income Kansans who rely on the program could see their benefits interrupted if state lawmakers fail to act.

“This massive loss in funding to Kansas will force the state to pick up the cost and will undoubtedly result in real Kansas families not having enough to eat,” said John Wilson, President and CEO of Kansas Action for Children. “One in five Kansas kids already experience food insecurity; this national plan will only worsen conditions for more children in the state."

Additionally, the bill expands work reporting requirements (30 hours for a single parent and 55 hours for two parents) to parents of children age 7 or older to be eligible for SNAP. Right now, parents are generally exempt from work reporting requirements – unless a state has implemented such a restriction. The Kansas Legislature has considered proposals like this before, but has historically rejected them.

Medicaid

While it remains to be seen exactly how much federal funding the state will lose for KanCare, the state’s Medicaid program, it’s almost certain state lawmakers will have to make difficult choices on what services Kansas can afford to provide. There is no way to cut the Medicaid program as is being proposed without some vulnerable Kansas populations (like kids) losing access due to what could be millions of dollars in funding losses.

And with tax credits that help families afford insurance via the Health Insurance Marketplace expiring under the plan, health coverage will become unaffordable for many Kansans and result in families unable to keep up with insurance payments. If the proposal stays as is, it will spell health disasters for thousands, including kids, pregnant women, parents, and those with disabilities.

Additionally, several complex changes will result in Kansans losing their coverage because of administrative burdens, as well as threaten optional services vulnerable Kansans (kids with complex medical needs and those with disabilities) rely on. These services could be easily targeted first for cuts, stopping the forward progress Kansas is making to reduce long IDD and PD waiting lists.

“The state’s health care system is already fragile, especially in rural areas that have seen more hospitals close every year,” Wilson said. “If the Senate doesn’t drastically change the bill, more Kansas hospitals and providers will close and everyone’s health care access will be impacted, regardless of their insurance coverage.”

Kansas Senators Must Act

The U.S. Senate has yet to make their changes and pass the bill back over to the House for approval. Kansas Senators Marshall and Moran could be key to holding the line on massive cuts to Medicaid and SNAP.

“Kansas Senators can be the leaders our country needs at this critical time by prioritizing everyday people instead of funneling trillions toward the wealthiest in the country,” said Wilson. “The current proposal is unacceptable, and the Senate should be ready to start from scratch with a plan that doesn’t cut these programs at all.”