The USDA's updated Thrifty Food Plan indicates potential drastic impacts on the economy if congressional Republicans proceed with proposed cuts to Medicaid and SNAP. A study unveils that these cuts could reduce state GDPs by $113 billion and result in over 1 million job losses in the U.S. Specifically, California may suffer the greatest, with projected job losses reaching nearly 140,000 and a GDP decline of nearly $17 billion. The repercussions extend beyond low-income beneficiaries, affecting healthcare providers, grocery stores, and overall state revenues significantly.
Part of the point we're trying to make is these are not harmless cuts. We were trying to say there are broader effects for state economies.
Although huge numbers of lower-income Americans benefit from the programs, the direct recipients of Medicaid payments and SNAP benefits are actually health care providers and grocery stores.
This would be in addition to the budget problems the state is already facing, with state and local tax revenues falling by about $1.4 billion in California alone.
The cutbacks will also lower the amount of taxes that state and local governments can collect, with significant impacts on employment and economic growth.
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