Budget cuts to Medicaid, SNAP could devastate TN communities

Published 10:54 am Friday, May 16, 2025

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As Congress debates a host of federal budget cuts, groups advocating for lower-income Tennessee families said the state will not be able to handle major reductions in safety net programs like Medicaid and SNAP.

More than 1.4 million people are enrolled in TennCare, Tennessee’s Medicaid program.

Michele Johnson, executive director of the Tennessee Justice Center, said Congress appears to be pushing forward with deep Medicaid cuts of $880 billion over 10 years. She warned it would have ripple effects on the state’s economy and health care system, and would hit both the youngest and oldest residents.

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“Medicaid is a pillar in our state budget,” Johnson pointed out. “Twenty cents of every dollar spent in Tennessee is federal Medicaid funds, and half of the children in our state depend upon Medicaid. Two-thirds of seniors in nursing homes depend upon Medicaid.”

A House committee moved forward Wednesday with its section of a broad tax cut package, which includes major reductions in health care spending. The House Agriculture Committee released its budget plan this week. It aims to cut $230 billion over 10 years, mostly from nutrition programs like SNAP, formerly known as food stamps.

Johnson noted the congressional committees appear to be working quickly on Medicaid funding cuts, which could delay access and create new barriers, making it harder for people to get the care they need.

“In the last 48 hours, there are provisions around creating all sorts of hurdles for people to go through so they can keep their health care,” Johnson observed. “That’s what’s happening now. It’ll go back to the House, they’ll have to vote on it, then it’ll go back to the Senate.”

Johnson acknowledged the proposed Medicaid work rules target adults without children but warned Tennessee’s paused Medicaid waiver could extend them to parents, including those with young or special-needs children. She noted similar policies in Georgia and Arkansas dropped eligible workers, risking harm to families.