Early on Thursday morning (May 22), the U.S. House of Representatives narrowly approved its sweeping tax and spending cuts bill. While details are still emerging and we await the Congressional Budget Office’s overall scoring on the bill, most experts agree that the bill will add $3-$5 trillion to the deficit over the next decade. 

Savings over this time period do not come close to the cost of extending the tax cuts of the Tax Cuts and Jobs Act, and most of the “savings” come from cutting back basic needs programs on which many Americans and Arkansans rely, such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP). These short-term savings are overwhelmed by the long-term costs of hunger and poor health. Spending cuts to these programs total around $1.1 trillion over 10 years. But there are other ways to support people and the U.S. economy. 

According to analysis by the Center for Budget and Policy Priorities, the House-approved tax cuts for households making over $500,000 a year would cover the severe cuts to Medicaid, SNAP, and the Affordable Care Act: 

Importantly, funding for these basic needs programs circulates throughout the Arkansas economy: 

• Since Arkansas expanded Medicaid in 2012, no rural hospitals in the state have closed. Since 2012, there have been 59 rural hospital closures in our neighboring states. 

• According to former State Surgeon General Joe Thompson, within the first year of Medicaid expansion, “…uncompensated care costs at the University of Arkansas for Medical Sciences dropped from 14 percent of operating costs to about 4 percent—and private hospitals around the state experienced similar impacts.” 

• According to the National Grocers Association, SNAP drove total output of $157.4 million across grocery and other retailing industries in the state. The output generated by supplier and induced impacts represents another $184.1 million. 

• There are more than 2,600 SNAP retailers in Arkansas. These are found in every corner of the state. Some of the highest concentration of retailers per SNAP recipients occur in rural areas, including Carroll, Prairie, Monroe, and Yell counties. 

Federal Medicaid and SNAP dollars are spent in Arkansas, supporting our communities in many multiplicative ways. This is not typically the case with tax cuts for the top earners in the country. Despite claims by some in Congress, the original 2017 Tax Cuts and Jobs Act did little to spur economic growth during the pre-pandemic period. 

The loss of nearly $10 billion Medicaid and SNAP dollars over the next decade will undoubtably harm Arkansans. There is a another path forward, and Congress should prioritize all Americans.