Cutting SNAP is bad for families, but it’s bad for Maryland businesses, too

Right now, Congress is debating changes to two programs that serve as lifelines for working families and individuals in Maryland and across the country.

A bill that passed the House of Representatives last month could significantly weaken our nation’s safety net by cutting nearly $300 billion from the Supplemental Nutrition Assistance Program (SNAP, formerly called food stamps) and $625 billion from Medicaid over 10 years. Both programs aid low-income individuals and families who are weathering tough times to get back on their feet.

This is one of the most substantial reductions in the SNAP program’s history. Nationwide, millions of Americans will see reductions to their benefits, or lose benefits entirely.

Stricter eligibility requirements will disqualify people who are in need, especially older adults and parents. Work-reporting mandates — including for parents of young children — will lead to loss of benefits for those unable to navigate the system, even if they are working.

The loss of funding for these programs would be devastating for Maryland as well, and not just in the ways most people expect.

First, cutting SNAP and Medicaid will increase poverty and food insecurity for working families, children and older adults living at or under the federal poverty level. Nearly 130,000 Marylanders currently on SNAP would be at risk of losing some benefits. An estimated 71,000 Marylanders would lose SNAP benefits entirely; approximately 200,000 Marylanders would lose their health care due to Medicaid cuts.

At the Maryland Food Bank, we know that even with the help of SNAP, many families in our state struggle to afford food. With as many as 1 in 3 people in our state already facing food insecurity, fewer resources will force neighbors to make tradeoffs – like skipping meals and purchasing cheaper, less nutritious food.

Further tightening eligibility requirements will mean that even fewer people will be able to afford the healthy groceries they need to work, learn and contribute to their communities. Eating less nutritious food can have long-term health consequences, particularly for children and vulnerable populations.

While these negative outcomes should be enough to give us pause, there’s less obvious harm that will result from the current proposal to cut benefits. What might surprise many is that the House bill would force states to shoulder much more of the costs of both SNAP and Medicaid, at a time when everyday costs are rising, and state leaders are already tightening belts.

The added financial impact of having to pick up a portion of SNAP program costs could lead to cuts to other essential services like education and health care, or infrastructure or tax increases, placing further strain on Maryland residents.

While we don’t frequently talk about the economic impact of SNAP and Medicaid, cutting these benefits would also have repercussions on businesses across the state. The core of our work at the Maryland Food Bank is to provide access to nutritious food so that communities can thrive. That goes beyond providing a meal today. We want to build a food system that is resilient, equitable, and accessible for all – and that means supporting local economies.

More than 3,800 grocery stores and food retailers in Maryland accept SNAP benefits. According to a recent analysis by the National Grocers Association, SNAP funding supports approximately 31,600 jobs in Maryland and $1.6 billion in direct wages. That translates to over $289 million in state and $333 million in federal tax revenue.

People who have lost benefits will have less to spend at the grocery store and will be more reliant on the 780 food pantries and other feeding sites that partner with the Maryland Food Bank. That means less money powering our economy, and more strain on the food assistance network.

Cutting SNAP is bad for business in Maryland, and it’s bad for families. And this is urgent: The current timeline for the Senate to consider changes to SNAP and Medicaid leaves just days before 3.2 million people lose SNAP benefits. At a time when our neighbors need help the most, these critical programs must be kept in place – for Marylanders and for Maryland’s economy.