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Federal HR 1 could cut benefits, change school meal eligibility and introduce new scholarship tax credit, NCSL tells Oregon committee

Interim House Education Committee · October 1, 2025
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Summary

National Conference of State Legislatures speakers told the interim House Education Committee that HR 1 would add $3.4 trillion to the federal deficit over 10 years and introduce major SNAP, Medicaid and scholarship tax-credit changes that could reduce direct certification for free school meals and shift costs to states.

Emily Katz, associate legislative director for education and human services at the National Conference of State Legislatures, told the House interim education committee on Oct. 1 that the Congressional Budget Office estimates HR 1 would increase the federal deficit by about $3.4 trillion over 10 years, with tax cuts and extensions and changes to major benefit programs driving most of that figure.

Katz said HR 1 would introduce a new state cost share for SNAP benefit payments starting in fiscal year 2028 tied to each state’s payment-error rate: states with an error rate under 6% would avoid the cost share, while states at 6% or higher would face a…

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