REPORT: New House Bill Harms Wisconsin Economy, Drives People Into Hunger

On May 22, 2025, the United States House of Representatives passed a budget reconciliation bill, known as the "One Big Beautiful Bill Act", that included a comprehensive package of tax and spending changes.

The changes include provisions for extending and expanding tax cuts, increasing spending on administration priorities, and raising the statutory debt limit. The bill also contains provisions health experts say could harm millions of Americans because they involve cuts in vital programs like Medicaid, Medicare, and the Supplemental Nutrition Assistance Program (SNAP).

Recently, the Wisconsin Department of Health Services started a focused analysis on what impact the proposed cuts to the SNAP program would have on people in Wisconsin, and shared the results with the public.

The SNAP Program In Wisconsin

According to the USDA, the ultimate goal of the SNAP program is to provide food benefits to low-income families to supplement their grocery budget so they can afford the nutritious food essential to health and well-being.

The Wisconsin Department of Health Services (DHS) says the program, also known as "FoodShare" in Wisconsin, helps nearly 700,000 Wisconsinites put food on their tables. SNAP benefits can be used at most stores and many farmers markets, allowing many working families, kids, and older adults access to fresh fruits and vegetables throughout the year.

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Wisconsin health officials add that SNAP is also good for Wisconsin's farmers, grocers, and local economies. For every $1 of SNAP benefits, working families across the state generate $1.50 for our economy by shopping at local stores and farmers markets.

How Federal Changes Will Financially Impact Wisconsin

An initial analysis by the Wisconsin DHS showed that a set of proposals in the new bill to cut funding for the SNAP program would take food away from families, shift costs to Wisconsin taxpayers, and increase red-tape requirements, making it harder for parents, kids, people with disabilities, and older adults to get food assistance.

All told, cuts to the SNAP program would cost Wisconsin taxpayers approximately $314 million annually, money that would no longer be available for health care, roads, schools, or the state's economy. Furthermore, the DHS says that new red-tape requirements included in the bill would put nearly 90,000 people at risk of losing SNAP benefits.

The Wisconsin DHS notes that for the entire 80-year history of the program, the federal government funded every dollar in SNAP food benefits. The new proposal requires states to start making matching payments for SNAP benefits, based on the state's error rates.

Wisconsin Medicaid Director Bill Hanna says the state runs one of the best programs in the country, with one of the nation's lowest payment error rates, but this change would still account for $207 million of the $314 million total.

Payment errors represent things like unexpected changes to a person's income or accidental errors that occur when determining if someone qualifies for the program. These errors are not fraudulent.

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Additionally, the federal government and states have always shared the cost to administer the program. Congress is proposing a cut to the amount the federal government pays for the staff and systems necessary to run the SNAP program. This would cost the state $51 million per year.

The Wisconsin DHS also accuses the new bill of piling on unnecessary red-tape requirements, making it harder for parents, kids, people with disabilities, and older adults to get food assistance.

Based on the initial analysis, below is the summary of the fiscal impact of SNAP cuts to Wisconsin, totaling $314 million:

• Federal cost shift to Wisconsin - Benefits: $207 million
• Federal cost shift to Wisconsin - Administrative: $51 million
• Work requirements for parents and older adults: $44 million
• SNAP-Ed elimination: $12 million

You can see the full, detailed report from the Wisconsin DHS by clicking the button above.

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The "One Big Beautiful Bill Act," passed by the House of Representatives, is now headed to the Senate for consideration. The Senate will likely debate the bill, potentially make changes, and then vote on whether to pass it.