A report from the Congressional Budget Office indicates that the reduction of money to programs such as SNAP (Supplemental Nutrition Assistance) as part of the agreement approved in Congress to raise the debt ceiling will not be as dramatic as some have estimated.
The non-partisan entity revealed on Tuesday that in the agreement that had been discussed for weeks and which was passed yesterday in the Senate, the number of new eligible beneficiaries is equivalent to the number of people who will be subject to stricter labor requirements.
Currently, the law that makes SNAP viable requires qualified adults between the ages of 18 and 49 without dependents to work or attend training programs for at least 80 hours per month if they want to receive benefits for more than three months within a three-month period. years. The new statute sets higher age limits; the maximum is 54.
However, this provision will expire in five years. By that date, the labor requirements would drop again to 49.
The CBO estimates that the new rules will reduce SNAP spending by $6.5 billion over 10 years. But with other exceptions added by Democrats for groups like veterans and the homeless, the plan would involve an investment of $6.8 billion over the same period. Additionally, the agency anticipated that the agreement would lead to the investment of another $1.2 billion, as the changes would overlap somewhat as they are phased.
House Republican Majority Leader Kevin McCarthy, who led negotiations with President Joe Biden on the debt ceiling; and the chairman of that body’s Agriculture committee, Republican Glenn Thompson, called the CBO’s estimate incorrect and argued that some of the recipients currently exempt from labor requirements may have been double counted.
The CBO noted that the changes to SNAP will increase federal spending by approximately $2.1 billion. Approximately 78,000 more people will receive food assistance per month on average than currently projected.
In the case of TANF (Temporary Assistance Program for Needy Families), it will save the government only $5 million, according to the office data.
The Senate, in the hands of the Democrats, approved the agreement yesterday, a day after the Lower House, with a Republican majority, did the same.
With 63 votes in favor and 36 against, the bill passed the last legislative process. Now, President Joe Biden must stamp his signature for its provisions to take effect.
The process in the Senate took place four days before the deadline, June 5, established by the Treasury Department so that the country does not default on its debt.