Wisconsin faces $600B Medicaid cuts and changes to SNAP requirements under new legislation

The Finance Committee of the City of Madison convened on May 27, 2025, to discuss significant changes proposed in federal legislation affecting local programs and budgets. The meeting focused on the implications of recent cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), as well as various tax law changes.

The committee began by reviewing the proposed reductions in Medicaid, which could lead to over $600 billion in cuts nationwide. These changes include stricter eligibility requirements and work mandates, potentially affecting up to 50,000 residents in Wisconsin alone. The discussion highlighted that approximately 20% of Wisconsin residents currently rely on Medicaid, and the new rules could create barriers that complicate access to healthcare for many individuals.

Next, the committee addressed modifications to SNAP, which would introduce work requirements and state matching obligations based on error rates in benefit distribution. With about one in eight residents in Wisconsin receiving SNAP benefits, these changes could significantly impact food security for vulnerable populations.

The meeting also covered tax law adjustments, including an increase in the state and local tax (SALT) exemption and the permanence of the 2017 tax cuts. While these changes may benefit higher-income individuals, they could exacerbate financial strain on lower-income families due to cuts in social programs.

Committee members expressed concerns about the broader implications of these federal changes on local institutions, particularly hospitals and social services. Alder Figueroa Cole emphasized the need for data reflecting the local impact of these cuts, while President Biddiver raised concerns about potential increases in crime and homelessness due to reduced access to mental health services.

The committee concluded with a discussion on next steps, noting that the bill would proceed to the Senate, where further cuts may be proposed. The urgency of addressing the impending debt ceiling was also highlighted, with projections indicating a critical deadline in August.

Overall, the meeting underscored the potential challenges Madison may face as federal budgetary decisions unfold, particularly regarding the health and welfare of its residents. The committee plans to gather more localized data to better understand and address these impacts in future discussions.