The House last week wrapped up a series of marathon markups in three key committees – Ways and Means, Energy and Commerce, and Agriculture. Together, the bills advanced by these three committees represent the bulk of House Republicans’ reconciliation priorities and deliver significant changes to public benefits programs and tax policy. The bills were each advanced out of committee on party-line votes.
Each committee bill, including the Education and Workforce Committee bill approved last month, was packaged and the full reconciliation bill was approved by the Budget Committee over the weekend, following two contentious votes. The Rules Committee will consider the package early Wednesday morning, before the massive bill goes to the House floor. House Republican leadership faces a razor-thin majority and may consider additional changes, particularly on tax issues still unresolved within the caucus.
The Agriculture Committee approved its reconciliation proposal last Wednesday, which includes significant changes to the Supplemental Nutrition Assistance Program (SNAP) alongside new investments in farm safety net programs. The bill ultimately cuts $300 billion over 10 years from SNAP spending. The savings would come from increasing the age range for SNAP participants subject to the program’s work requirements to 64, constraining the Agriculture secretary’s ability to make changes to the generosity of benefits, and instituting a new cost-sharing scheme for states.
Currently, SNAP benefit costs are paid for by the federal government, with states paying half of the costs associated with program administration. The House proposal would put states on the hook for 5% of the program’s benefit costs, with a sliding scale up to 25% for states that have a high payment error rate, and increasing the share of administrative costs paid by the states.
How it affects students
Many community college students participate in SNAP, although uptake for the program is low even among eligible, food-insecure students. While the changes to SNAP eligibility will not impact student eligibility directly, the new age requirements may lead some students to lose benefits if they live in a household with a family member under 64 who does not fulfill the new extended work requirement.
The larger effect of proposed SNAP changes will be the potential negative impact on state funding for higher education. The new 5%-to-25% cost share will represent a significant new cost-shifting to states. Along with proposed changes to Medicaid financing (see below), this will spell a difficult fiscal environment for public higher education funding across the country.
Last Thursday, the House Committee on Energy & Commerce completed its markup after 26 hours of debate. The Committee has jurisdiction over the Medicaid program and was instructed to identify $880 billion in 10-year savings, most of which would have to come from changes to Medicaid eligibility and the federal cost share. While the final bill did not ultimately include many of the more draconian cost-saving measures that were proposed, including per-capita caps on the federal share of Medicaid funding or major cuts to the generosity of the federal match, it does include new work requirements for Medicaid enrollees and limits to state-levied provider taxes.
Under the new Medicaid work requirements, Medicaid enrollees must participate in work, education or volunteer activities for 80 hours a month to maintain their health coverage. While most community college students participating in Medicaid will likely meet this threshold through a combination of school and work, it would introduce additional steps in enrollment, certification and recertification processes that could serve as significant administrative burdens for students.
Medicaid changes’ impact on states
Like the Agriculture Committee’s bill, the Energy & Commerce bill’s largest effect on community colleges would likely come from decreasing state resources for higher education. By capping or limiting the taxes that states can levy on Medicaid providers, states would have to devise alternative ways of financing their share of Medicaid expenses. This would ultimately mean shifting limited state resources away from other budget items, including higher education.
Finally, the House Ways & Means Committee (which has jurisdiction over tax issues) completed its markup last week as well. The bill extends the tax cuts that were enacted as part of the 2017 Tax Cuts and Jobs Act, includes many of President Donald Trump’s campaign promises around tax issues, and major increases taxes on private universities with large endowments. The bipartisan Tax-Free Pell Grant Act was not included in the House text, to the disappointment of the American Association of Community Colleges.
Colleges are encouraged to mention their support for the measure in meetings with their House and Senate members, particularly those on the Senate Finance Committee.
If the House cannot pass its reconciliation package, the Senate may take the lead in moving the process forward. Either way, key senators have indicated they are unlikely to accept the House’s proposals without modifications.
