By the Missouri Budget Project
Thursday’s passage of the federal budget resolution in the U.S. House paves the way for Congress to rush through massive federal changes that would result in Missourians losing health insurance, food assistance, and other support. These plans would essentially offload massive federal responsibilities onto our state, forcing harmful tradeoffs and deep service cuts.
If enacted, the proposals would slash federal support for health care, food assistance, education, and other priorities—while offering trillions of dollars in tax cuts to the wealthy. About half of the cost of extending the 2017 tax changes goes to tax cuts for the top five percent of earners.
While Missouri families would pay the price of the cuts – with parents forced to skip meals so their kids can eat, people unable to afford life-saving prescriptions, and students packed into overcrowded classrooms – Missouri legislators would be left holding the bag, expected to plug massive funding holes with strained budgets and limited revenue tools.
“Regardless of the smoke and mirrors, these are cuts. Cuts that will make it harder for Missourians to afford health care and feed their kids, and cuts that could make it harder for Missouri to keep rural schools open,” said Amy Blouin, President and CEO of Missouri Budget Project, a nonprofit public policy analysis organization that analyzes state budget, tax, and economic issues. “The federal government is passing the buck, and state lawmakers will face dire choices.”
Under Congressional proposals at play, Missouri could lose upwards of $2 billion in federal funding each year:
● Medicaid: Missouri could lose up to $2 billion in federal funding under proposals being discussed in Congress.
● Supplemental Nutrition Assistance Program (SNAP): If Missouri were required to pay just 10% of SNAP benefits, we would face an additional $150 million cost.
● Education and Public Services: Deep cuts to federal education funds, housing supports, and child care would force Missouri to either backfill federal dollars or cut essential local services.
Missouri lawmakers would still be required to enact a balanced state budget, despite huge federal funding losses. Doing so would require massive budget cuts, likely some combination of cuts to health coverage – with impacts concentrated among low-income people and families, older adults, and people with disabilities who otherwise would not be able to afford health care, education, and other services.
“These proposals would devastate state budgets and families alike,” said Blouin. “Our state is already facing growing budget challenges, and these cuts would hit a time of deep economic uncertainty.”
In the coming weeks, Congress will begin fleshing out its proposals.
“Our Congressional delegation has a choice. They can reject tax cuts for millionaires and billionaires and invest in Missouri families, healthy communities, and a federal-state partnership that works for all of us.”
The Missouri Budget Project is a nonprofit public policy analysis organization that analyzes state budget, tax, and economic issues.
