The Food Depot's Statement on Budget Reconciliation

July 13, 2025

The Food Depot’s Statement on Budget Reconciliation

On July 4, 2025, President Donald Trump signed into law the One Big Beautiful Bill Act. Even though the One Big Beautiful Bill Act is now law, what it means for New Mexico is still unclear. Major changes to SNAP and Medicaid are coming, but their impact here depends on how the law is implemented. The Food Depot is actively monitoring developments and will keep our community informed as we learn more.

Here’s what we do know: 

SNAP and Medicaid are facing unprecedented changes. There will be structural changes to both programs, as well as cuts to eligibility and benefits.

For SNAP, there will be an estimated six billion meals lost each year across the United States. 

Medicaid changes estimate a loss of health insurance for over 8 million people in the Unites States by 2034 due to Medicaid cuts alone.

Changes to SNAP (Supplemental Nutrition Assistance Program) Include:

• Shifting SNAP costs to states by:
  • Requiring states to pay a portion of SNAP benefits for the first time in program history, up to 15%, based on their payment error rates, beginning in October 2027. Final negotiations in the Senate resulted in a temporary implementation delay for up to two years for states with high error rates. New Mexico’s error rate is 14.67%, so our state should fall under delayed implementation. 
  • Increasing state’s share of administrative costs to 75%.
• Restrict future adjustments to the Thrifty Food Plan. The USDA’s Thrifty Food Plan estimates the cost of a healthy diet at the lowest price point and is used to determine SNAP benefit amounts. Without a consideration for the cost of living (and no language to prevent decreases), SNAP benefits will be cut, as well as benefit levels for The Emergency Food Assistance Program (TEFAP), SUN Bucks/Summer EBT benefits, and the Nutrition Assistance Program block-grant to Puerto Rico. (No specified effective date, assumed effective upon enactment.)
• Increasing the number of individuals subject to time limits on their SNAP benefits, including, for the first time ever, parents of school-aged children over 14 and older adults age 55 through age 64 by expanding work requirements and restricting waivers. (No specified effective date, assumed effective upon enactment.)
• Adds a time limit on benefits for veterans, currently homeless individuals and former foster care youth. (No specified effective date, assumed effective upon enactment.)
• Eliminating funding for the SNAP Nutrition Education program (called SNAP-Ed). Many of The Food Depot’s partners rely on SNAP Ed. Termination of this funding will be October 2025.

SNAP is the most effective hunger relief program in the U.S. For every one meal that The Food Depot provides, SNAP provides nine.

The Food Depot, and the rest of the charitable food network, can not provide the same amount of support that will be lost. With the passage of this bill, we know more and more people will go hungry.

We are forever grateful for the thousands of New Mexicans who joined The Food Depot over the last few months to speak out about these cuts with countless phone calls, emails, and letters. Now, we must move forward with compassion and resolve to create a strong, healthy New Mexico.

This is not a moment for despair; it is a moment for action. Our communities are counting on us.

Together, we can continue to do good.