Texas could face hundreds of millions in unexpected expenses under proposed changes to the Supplemental Nutrition Assistance Program that would fundamentally alter federal funding arrangements. The state currently receives complete federal funding for its $7.2 billion annual SNAP program that serves over 3.5 million residents, but the new legislation would require states with higher error rates to contribute significant portions of program costs.
States exceeding a 6% payment error rate would become responsible for 5% to 15% of SNAP expenses, creating massive budget pressures for Texas and other affected states. Policy experts warn that this unpredictable cost-sharing model makes long-term budget planning nearly impossible, as states cannot predict whether they will face 5%, 10%, or 15% responsibility in future years.
The legislation also tightens work requirements by lowering the age threshold for parental exemptions from 18 to 15 years old, while raising the exemption age for able-bodied adults without dependents from 54 to 64. These changes could force thousands of Texas families off food assistance programs just as states grapple with increased financial obligations. Critics argue that states may respond by reducing benefits or withdrawing from the program entirely rather than absorbing unexpected costs.
Medicaid work requirements threaten healthcare access
Texas Medicaid recipients face unprecedented barriers to healthcare access through proposed work requirements that would mandate employment for benefit eligibility. The program currently serves over 4 million Texans, representing approximately 15% of the state’s population, but new restrictions could dramatically reduce coverage for vulnerable residents.
The legislation would require able-bodied Medicaid recipients to maintain employment while providing exemptions only for individuals with disabilities and children. Congressional Budget Office estimates suggest millions of Americans could lose Medicaid coverage nationwide if these requirements become law, with Texas facing proportional impacts given its large enrolled population.
State officials express concern that administrative costs for verifying work requirements could exceed savings generated by reduced enrollment, creating a lose-lose scenario for state budgets and healthcare access. The proposed changes also include gradual reductions to Medicaid expansion under the Affordable Care Act, though Texas never implemented ACA expansion programs.
Tax cut extensions funded by social program reductions
The massive social program cuts serve primarily to finance extensions of the 2017 Tax Cuts and Jobs Act, which predominantly benefited corporations and high-income earners. The original tax legislation added over $1 trillion to federal deficits, while extending these provisions could increase deficits by more than $3 trillion over the next decade according to Congressional Budget Office projections.
Republican lawmakers dispute these deficit projections, arguing that existing tax cuts cannot add to deficits since they are already implemented. However, policy analysts characterize the approach as transferring wealth from low-income Americans who depend on social programs to wealthy individuals and corporations who benefit from tax reductions.
The funding mechanism creates a direct trade-off between social safety net programs and tax benefits for affluent Americans, raising questions about national priorities and economic equity. Texas families could face reduced food assistance and healthcare access while wealthy residents enjoy continued tax advantages, fundamentally altering the relationship between federal support and state responsibilities.
AI regulation restrictions override state authority
The legislation includes provisions that would prevent states from regulating artificial intelligence technology for five years, directly conflicting with recent Texas legislative efforts to address AI governance. Governor Greg Abbott signed House Bill 149 this year, establishing comprehensive AI regulations that could be invalidated by federal restrictions.
State Senator Angela Paxton has formally objected to the AI provisions, arguing they violate Tenth Amendment principles of federalism and state sovereignty. Her letter to Texas Senators John Cornyn and Ted Cruz emphasizes that states retain constitutional authority to regulate emerging technologies within their borders.
Seventeen Republican governors have also opposed the AI restrictions, though Governor Abbott has not joined their formal protest. The federal override of state AI regulations represents a significant expansion of federal authority that contradicts traditional conservative principles of limited government and state rights. Texas officials argue that states are better positioned to understand local technology impacts and should retain regulatory authority over AI applications affecting their residents.
